Jurors Set to Deliberate in Landmark NFL "Sunday Ticket" Antitrust Case
The much-anticipated class-action lawsuit brought by "Sunday Ticket" subscribers against the NFL is almost at its conclusion, as the jury is set to begin deliberations on Wednesday. Both sides concluded their cases on Monday, setting the stage for U.S. District Judge Philip Gutierrez to finalize jury instructions during a conference with attorneys on Tuesday morning.
Final Preparations Before Deliberation
Judge Gutierrez may also hear a motion from the NFL on Tuesday afternoon. The league is requesting judgment as a matter of law, asserting that the plaintiffs have not provided sufficient evidence to support their claims. On Wednesday morning, Gutierrez will present the final instructions to the jury, which consists of five men and three women. Following this, the final arguments from both sides will commence, with each side allotted 1 hour and 10 minutes for closing statements. The plaintiffs have an additional 20 minutes reserved for rebuttal.
Expert Testimonies Shape the Case
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, wrapped up his testimony on Monday morning. Bernheim began his testimony the previous Thursday, reiterating the NFL's position that selling out-of-market Sunday afternoon games to DirecTV from 1994 to 2022, and subsequently to Google YouTube TV, benefits fans and ensures competitive balance on the field.
Countering Bernheim’s testimony, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, contended that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge argued that the approximately $62.5 million each team receives annually from "Sunday Ticket" would not dramatically impact the league’s salary cap or individual teams' operating budgets.
Dallas Cowboys owner Jerry Jones also provided crucial testimony last week, stating he would not support a salary cap if he had the ability to sell his out-of-market rights independently.
The Lawsuit's Implications and Stakes
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 violated 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, on the other hand, contends that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs argue 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 potentially triple 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 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.
The Future of Sports Broadcasting at Stake
The implications of this case are monumental. Regardless of the jury's decision, the losing side is expected to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly to the Supreme Court. The outcome could reshape the landscape of televised sports and the legality of exclusive distribution deals. As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could fundamentally alter how sports fans access out-of-market games.
The upcoming deliberations mark a critical juncture in this long-standing legal battle. The decision will not only affect ratings and revenues but also set a precedent for future cases involving antitrust laws and broadcasting rights. With billions of dollars at stake, fans, legal experts, and broadcasting companies alike are keenly awaiting the jury's verdict.