Jury to Deliberate in NFL "Sunday Ticket" Antitrust Lawsuit
Introduction
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is poised to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. This highly anticipated case could significantly impact the landscape of televised sports and exclusive distribution deals.
Final Pre-Deliberation Steps
U.S. District Judge Philip Gutierrez is scheduled to confer with attorneys for both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez may hear a motion from the NFL on Tuesday afternoon requesting judgment as a matter of law, arguing that the plaintiffs failed to provide sufficient evidence to support their claims.
Jury Instructions and Closing Arguments
On Wednesday morning, Judge Gutierrez will present final instructions to the jury, composed of five men and three women. Following the instructions, final arguments will commence, with both sides receiving 1 hour and 10 minutes to make their closing statements. The plaintiffs will have an additional 20 minutes reserved for rebuttal.
Expert Witness 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 no significant links exist between the league's constraints on making "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the roughly $62.5 million each team receives annually from "Sunday Ticket" would not dramatically impact the league’s salary cap or individual teams' operating budgets.
Testimonies from NFL Executives
Dallas Cowboys owner Jerry Jones also provided testimony last week, stating that he would not support a salary cap if he could sell his out-of-market rights independently. Jones' testimony highlighted the potential economic implications for individual teams if the NFL's distribution model were to change.
The Lawsuit: A Brief Overview
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.
Potential Consequences
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. Such a ruling would not only have financial repercussions for the league but could also reshape how sports broadcasting rights are distributed in the future.
Case History and Appeal Possibilities
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.
Regardless of the jury's verdict, the losing side is anticipated to appeal, potentially escalating the case to the 9th Circuit and possibly even the Supreme Court. The upcoming deliberations mark a critical juncture in this long-standing legal battle.
Conclusion
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. The outcome of this case may ultimately influence how fans experience their favorite sports and how leagues monetize broadcast rights in the years to come.