Jury Deliberations to Begin in Significant NFL “Sunday Ticket” Class-Action Lawsuit
The closely-watched class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is nearing a critical phase as the jury is expected to begin deliberations on Wednesday. Both sides wrapped up their cases on Monday, setting the stage for final arguments and a potential verdict that could reshape the landscape of televised sports.
Final Preparations Before Deliberation
U.S. District Judge Philip Gutierrez is scheduled to hold a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. Judge Gutierrez may also hear a motion from the NFL in the afternoon, requesting judgment as a matter of law. The league contends that the plaintiffs failed to provide sufficient evidence to support their claims.
On Wednesday morning, Gutierrez will present the final instructions to the jury, composed of five men and three women, before final arguments commence. Both sides will receive 1 hour and 10 minutes to make their closing statements, with the plaintiffs allocated an additional 20 minutes reserved for rebuttal.
Key Testimonies and Arguments
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim had testified since last Thursday, asserting 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 no significant links exist 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 the operating budgets of individual teams.
Adding another dimension to the case, Dallas Cowboys owner Jerry Jones testified last week, stating that he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
Allegations and Potential 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 plaintiffs allege that 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. However, the plaintiffs claim that 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.
Historical Context and Future Prospects
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.
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. The upcoming deliberations mark a critical juncture in this long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question.
As the jury prepares to deliberate, all eyes remain focused on the courtroom. The verdict from this case could set a precedent for how sports leagues negotiate broadcasting rights and interact with satellite and digital providers, potentially reshaping the entire industry. With billions of dollars at stake and the potential to alter the competitive balance within the NFL, the outcome of this case is anticipated with bated breath by stakeholders in the sports and broadcasting sectors.