Judge’s Frustrations Surface in NFL "Sunday Ticket" Class-Action Lawsuit
LOS ANGELES -- The ongoing class-action lawsuit against the NFL by "Sunday Ticket" subscribers has seen its fair share of courtroom drama, with U.S. District Judge Philip Gutierrez expressing mounting frustrations over the plaintiffs’ handling of the case.
A Frustrated Fan Base
The lawsuit encapsulates the frustrations of millions of NFL fans who feel they have been unfairly burdened. Judge Gutierrez, before Dallas Cowboys owner Jerry Jones resumed his testimony, pointed out the obvious grievance: a Seattle Seahawks fan in Los Angeles has limited options to watch their favorite team without paying for a subscription covering all out-of-market Sunday afternoon games.
The class-action lawsuit represents 2.4 million residential subscribers and 48,000 businesses, who paid for the NFL's out-of-market game package from 2011 through 2022. The plaintiffs argue that the league violated antitrust laws by selling this package at an inflated price. Furthermore, they claim the NFL restricted competition by offering "Sunday Ticket" exclusively through a satellite provider.
NFL's Defense
The NFL, on the other hand, contends it has the legal right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption pertains only to over-the-air broadcasts and not to pay TV.
If found liable, the NFL could face up to $7 billion in damages—a figure that may alarmingly balloon to $21 billion due to the potential for triple damages in antitrust cases.
Judicial Concerns
This isn't the first instance of Judge Gutierrez voicing his displeasure with the plaintiffs' approach. On Monday, he admonished their attorneys for reiterating past testimonies, which he saw as a waste of valuable court time. Further, before Jones took the stand on Tuesday, Gutierrez expressed skepticism about the relevance of invoking Jones' 1994 lawsuit against the NFL, in which Jones challenged the league's licensing and sponsorship protocols. That lawsuit was settled out of court.
During his testimony, Jones was asked whether teams should be able to sell their out-of-market television rights. Jones maintained they should not, as it could undermine the current free TV model.
Broadcasting Rights and Opposition
Retired CBS Sports chairman Sean McManus also testified, reiterating his opposition to "Sunday Ticket" and the NFL's Red Zone channel, arguing that "Sunday Ticket" affects CBS's local market exclusivity. During negotiations, CBS and Fox requested that "Sunday Ticket" be marketed as a premium product.
DirecTV, not the NFL, set the prices during the class-action period, noting that the league’s television contracts with CBS and Fox specifically request that resale packages like "Sunday Ticket" be marketed as premium products. Additionally, the contracts prohibit individual pay-per-view sales of games.
From 1994 until 2022, the NFL received a rights fee from DirecTV for the package. As of last year, Google's YouTube TV has acquired the "Sunday Ticket" rights for seven seasons. During a deposition, DirecTV marketing official Jamie Dyckes highlighted that MLB, the NBA, and the NHL provided suggested retail prices for their out-of-market packages and shared revenue with carriers, offering their packages on multiple platforms.
Looking Ahead
As the case proceedings continue, testimonies are expected to resume on Thursday, followed by closing statements scheduled for early next week. Judge Gutierrez has hinted at the possibility of invoking a rule allowing the court to determine that a jury lacks sufficient evidence to favor one party over another.
Judge's Stark Comments
Judge Gutierrez has not held back his criticisms, candidly admitting, "I'm struggling with the plaintiffs' case." He has repeatedly expressed his dissatisfaction, saying, "The way you have tried this case is far from simple," and further lamenting, "This case has turned into 25 hours of depositions and gobbledygook. This case has gone in a direction it shouldn’t have gone."
As the case progresses, all eyes remain on the courtroom, eager to see whether the plaintiffs' attorneys can present a convincing argument that aligns with the straightforward premise Judge Gutierrez initially articulated.