Statements
The class-action lawsuit against the National Football League (NFL) by "Sunday Ticket" subscribers is approaching a pivotal moment, as the jury is set to begin deliberations on Wednesday. The case, which has captured the attention of sports fans and legal analysts alike, centers on claims that the NFL violated antitrust laws by selling its out-of-market games package at exorbitant prices while limiting competition.
Jury Instructions and Final Arguments
U.S. District Judge Philip Gutierrez will confer with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, the NFL is expected to file a motion for judgment as a matter of law, arguing that the plaintiffs failed to provide sufficient evidence to support their claims. Depending on the outcome, this motion could either expedite the verdict or complicate the decision-making process.
On Wednesday morning, Judge Gutierrez will deliver the final instructions to the jury, consisting of five men and three women. Both sides will then have the opportunity to present their closing arguments, with each side allotted 1 hour and 10 minutes. The plaintiffs will also have an additional 20 minutes reserved for rebuttal. Once the arguments conclude, the jury will deliberate on the case's merits, with potential consequences that could reshape the landscape of sports broadcasting in the United States.
Competing Testimonies
Monday saw the conclusion of testimony from the NFL's final witness, Stanford economics professor B. Douglas Bernheim. Bernheim reiterated the NFL's position that its practice of selling out-of-market Sunday afternoon games on Fox and CBS to DirecTV from 1994 to 2022, and later to Google YouTube TV, benefits fans and ensures competitive balance within the league.
However, the plaintiffs countered this argument with testimony from Harvard professor Einer Elhauge, who claimed there were no significant links between the league's constraints on "Sunday Ticket" and promoting competitive balance. Elhauge argued that the approximately $62.5 million each NFL team receives annually from "Sunday Ticket" would not substantially impact the league's salary cap or the operating budgets of individual teams. This viewpoint gained additional traction with the testimony of Dallas Cowboys owner Jerry Jones, who stated that he would not support a salary cap if he could sell his out-of-market rights independently.
Legal and Financial Stakes
The lawsuit, representing 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package between 2011 and 2022, claims that the NFL exploited its antitrust exemption for broadcasting to limit competition and inflate prices unjustly. The plaintiffs argue that this exemption should only apply to over-the-air broadcasts and not to pay TV services like DirecTV or YouTube TV.
If the jury finds the NFL liable, the league could face damages totaling $7 billion, a figure that could potentially triple to $21 billion due to the antitrust nature of the case. This massive financial liability underscores the lawsuit's significance and the broader questions it raises about the legality of exclusive distribution deals in sports broadcasting.
Case History and Potential Appeals
The lawsuit was initially filed in 2015 by the Mucky Duck sports bar in San Francisco. Although it faced dismissal in 2017, the 9th Circuit Court of Appeals reinstated the case two years later, bringing it back into the spotlight. In 2022, Judge Gutierrez certified the lawsuit as a class action, broadening its scope and impact.
Regardless of the verdict, the decision is expected to be appealed, potentially escalating the case to the 9th Circuit Court of Appeals and possibly even the U.S. Supreme Court. The upcoming jury deliberations mark a critical juncture in this long-standing legal battle, with far-reaching implications for the future of sports broadcasting and antitrust law in the United States.
As the jury prepares to deliberate, the sports world, legal community, and millions of "Sunday Ticket" subscribers await a decision that could dramatically shift how professional sports leagues distribute and price their broadcast rights. The verdict will undoubtedly reverberate throughout the sports industry and could usher in a new era of competitive balance and consumer fairness in televised sports.