Anticipation Builds as NFL 'Sunday Ticket' Lawsuit Nears Verdict
The long-awaited deliberations in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL are set to begin on Wednesday. This follows the conclusion of presentations from both sides on Monday. The jury, composed of five men and three women, will weigh the evidence and arguments presented to determine the outcome of this significant legal battle. The decision holds potential consequences that could reshape the landscape of sports broadcasting and the legality of exclusive distribution deals.
Final Preparations Underway
On Tuesday morning, U.S. District Judge Philip Gutierrez is scheduled to hold a conference with attorneys from both sides to finalize the jury instructions. Later that afternoon, Gutierrez may hear a motion from the NFL seeking judgment as a matter of law, arguing that the plaintiffs have not provided sufficient evidence to support their claims. If the judge denies this motion, the case will proceed as planned.
Wednesday morning marks a critical juncture, as Gutierrez will present the final instructions to the jury, setting the stage for closing arguments. Both sides have been allotted 1 hour and 10 minutes for their closing statements, with the plaintiffs being given an additional 20 minutes for rebuttal.
Expert Testimonies and Core Arguments
The NFL completed its defense with testimony from Stanford economics professor B. Douglas Bernheim, who began his testimony last Thursday and concluded on Monday morning. Bernheim supported the NFL's position that selling out-of-market Sunday afternoon games to DirecTV from 1994 to 2022, and subsequently to Google YouTube TV, benefits fans and maintains competitive balance on the field.
In contrast, Harvard professor Einer Elhauge, a rebuttal witness for the plaintiffs, argued that there is no significant link between the NFL's exclusive "Sunday Ticket" package and competitive balance. Elhauge testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" does not substantially impact the league's salary cap or individual teams' operating budgets. Notably, Dallas Cowboys owner Jerry Jones testified last week that he would not support a salary cap if he could sell his out-of-market rights independently.
The Lawsuit's Origins and Implications
This class-action lawsuit represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 through 2022 seasons. The lawsuit alleges that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices while restricting competition through exclusive deals with a satellite provider.
The NFL, on the other hand, argues that it holds the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs counter that this exemption applies solely to over-the-air broadcasts, not pay TV. If the jury finds the NFL liable, the potential damages could amount to $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case.
The lawsuit, originally filed in 2015 by the Mucky Duck sports bar in San Francisco, faced an initial dismissal in 2017. However, the 9th Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year, further solidifying the case's legitimacy and scope.
Potential Appeals and Broader Impact
Regardless of the jury's decision, an appeal from the losing side is almost certain, potentially escalating the case to the 9th Circuit and possibly reaching the Supreme Court. The impending deliberations mark a pivotal moment in a prolonged legal struggle, questioning the future of sports broadcasting and exclusive distribution agreements.
As the jury prepares to deliberate, all eyes remain fixed on the courtroom. The outcome of this case could significantly influence the dynamics of televised sports, determining whether exclusive broadcasting deals serve the best interests of fans and competitive balance. The verdict, once delivered, may pave the way for future legal precedents in similar disputes, echoing across the sports industry for years to come.