The Jury Prepares to Deliberate in NFL Sunday Ticket Class-Action Case
The jury in the class-action lawsuit brought by "Sunday Ticket" subscribers against the National Football League (NFL) is slated to begin deliberations on Wednesday. This step follows the conclusion of testimonies from both sides on Monday.
Final Preparations and Motions
U.S. District Judge Philip Gutierrez is set to hold a conference with attorneys from both camps on Tuesday morning to finalize the jury instructions. Additionally, the judge may consider a motion from the NFL on Tuesday afternoon, asking for a judgment as a matter of law on the grounds that the plaintiffs did not provide sufficient evidence.
On Wednesday morning, Judge Gutierrez will present the final jury instructions to the eight-member jury, comprising five men and three women, before final arguments get underway. The plaintiffs and the NFL are each allocated 1 hour and 10 minutes for their closing statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal.
Key Witness Testimonies
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Starting last Thursday, Bernheim reiterated the NFL's position that selling out-of-market Sunday afternoon games on Fox and CBS to DirecTV from 1994 to 2022, and subsequently to Google YouTube TV, benefits fans and maintains competitive balance in the league.
On the other hand, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, contended that there are no significant links between the NFL's decision to make "Sunday Ticket" a premium package and maintaining competitive balance on the field. Elhauge argued that the approximately $62.5 million each team receives annually from "Sunday Ticket" would not meaningfully impact the league’s salary cap or individual teams' operating budgets.
Dallas Cowboys owner Jerry Jones also provided testimony last week, indicating that he would not support a salary cap if given the opportunity to sell his out-of-market rights independently.
The Scope and Claims of the Lawsuit
This class action 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 limiting competition by offering "Sunday Ticket" exclusively through a satellite provider.
The NFL contends that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue that this exemption only applies to over-the-air broadcasts, not pay TV.
Financial Stakes and Legal Journey
If the NFL is found liable, the jury could award damages of $7 billion, a figure that could be tripled to $21 billion due to the antitrust nature of the case. Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit was initially dismissed 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. Irrespective of the outcome, the losing side is expected to appeal the verdict, potentially taking the case to the 9th Circuit and possibly the Supreme Court.
Implications for the Future of Sports Broadcasting
The upcoming deliberations mark a pivotal moment in this long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into uncertainty. As the jury prepares to deliberate, the sports world is fixated on the courtroom, awaiting a verdict that could reshape the landscape of televised sports.
With significant financial implications and potential changes to how fans access out-of-market games, the outcome of this case could set a precedent affecting broadcasters, fans, and the league for years to come. Whether the jury sides with the NFL or the plaintiffs, this case is likely to have a lasting impact on the business of sports.