Statements
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. This significant lawsuit represents a critical juncture in a long-standing legal battle, with ramifications that could reshape the landscape of televised sports.
The Case and the Courtroom
U.S. District Judge Philip Gutierrez will hold a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, Judge Gutierrez might hear a motion from the NFL on Tuesday afternoon to grant judgement as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Judge Gutierrez will present the final instructions to the jury, composed of five men and three women, before final arguments commence. Both sides are allocated 1 hour and 10 minutes to make their closing statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal.
Expert Witnesses and Testimonies
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning after beginning last Thursday. Bernheim reiterated the NFL's stance 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 ensures competitive balance on the playing field.
Countering Bernheim, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the roughly $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Dallas Cowboys owner Jerry Jones also testified last week, stating that he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Roots and Ramifications 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 claims the NFL broke antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices while limiting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs contend this exemption only applies to over-the-air broadcasts, not pay TV.
If the NFL is found liable, the jury could award damages of $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case. This potential financial impact underscores the high stakes of the jury's impending decision.
A Long Road to Justice
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals, with jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year, allowing millions of affected subscribers and businesses to be represented collectively.
Regardless of the decision, the losing side is anticipated to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. This legal battle has already been lengthy, and the forthcoming verdict may not be the final word on the matter.
The Impact on Sports Broadcasting
As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the future of sports broadcasting and the legality of exclusive distribution deals. This landmark case not only affects the NFL and its fans but also holds implications for the broader media and sports industries, questioning the viability and fairness of exclusive content arrangements.
The upcoming deliberations are a critical juncture, posing important questions about market competition and consumer rights within the realm of televised sports. As stakeholders and observers await the jury's decision, the outcome could herald significant changes and set new precedents in sports media contracts and antitrust laws.