The Battle Over NFL's "Sunday Ticket": A Courtroom Drama Unfolds
LOS ANGELES -- The class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL took center stage on Tuesday as U.S. District Judge Philip Gutierrez voiced his frustrations with the plaintiffs' attorneys. The case, brought forward by millions of subscribers, questions the NFL's practices related to its out-of-market game package and may have far-reaching implications for sports broadcasting.
A Frustrated Judge
Before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony, Judge Gutierrez reiterated that the case's core issue was crystal clear. The judge sympathized with a Seattle Seahawks fan living in Los Angeles who is compelled to buy a subscription for all the Sunday afternoon out-of-market games just to watch their favorite team. The lawsuit involves 2.4 million residential subscribers and 48,000 businesses who paid for the package from the 2011 through 2022 seasons.
Gutierrez lamented, "I'm struggling with the plaintiffs' case." His remarks reflected his mounting frustration. "The way you have tried this case is far from simple," he commented. "This case has turned into 25 hours of depositions and gobbledygook. This case has gone in a direction it shouldn't have gone."
The Allegations
The plaintiffs claim that the NFL broke antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices. Additionally, they argue that the league restricted competition by offering "Sunday Ticket" only through a satellite provider. The NFL, however, firmly maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting.
The contentious point hinges on whether this exemption applies only to over-the-air broadcasts or extends to pay TV. If found liable, the NFL could face up to $7 billion in damages, a figure that could triple to $21 billion given the nature of antitrust cases.
Testimonies and Tensions
This week marked another instance where Judge Gutierrez expressed his discontent with the plaintiffs' side. On Monday, he admonished their attorneys for repeatedly describing past testimony, calling it a waste of time. Before Jones resumed his testimony, the judge expressed skepticism about the plaintiffs' attorneys referencing Jerry Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures but was eventually settled out of court.
Jones, sticking to his stance, asserted that teams should not sell their out-of-market television rights, as it "would undermine the free TV model we have now." Additionally, retired CBS Sports chairman Sean McManus took the stand, reiterating his opposition to "Sunday Ticket" and the NFL's Red Zone channel, which he claims infringes on the exclusivity CBS enjoys in local markets. During negotiations, both CBS and Fox requested that "Sunday Ticket" be sold as a premium package. It's noteworthy that DirecTV, not the NFL, set the prices for the package during the class-action period.
Broadcasting Agreements and Revenue Sharing
The NFL's television contracts with CBS and Fox specify that "Sunday Ticket" should cater to avid league fans while complementing in-market game offerings. The contracts also prohibit selling individual games on a pay-per-view basis. From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. Last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons.
During his deposition, DirecTV marketing official Jamie Dyckes compared the NFL's out-of-market package to those offered by MLB, the NBA, and the NHL. These leagues had a suggested retail price and revenue-sharing agreements with carriers, given that their packages were distributed across multiple platforms.
Upcoming Proceedings
Testimony will continue on Thursday, with closing statements expected early next week. As proceedings advance, Judge Gutierrez has indicated he may consider invoking a rule allowing the court to determine that a jury lacks sufficient evidence to rule in favor of a party in a case. The courtroom remains the focal point, with all eyes on whether the plaintiffs' attorneys can present a compelling argument aligning with the straightforward premise Judge Gutierrez initially outlined.
This high-stakes legal drama has captivated the attention of sports enthusiasts and legal experts alike. The outcome may not only reshape the way the NFL handles out-of-market game packages but also set a precedent for future broadcasting rights disputes.