The "Sunday Ticket" Lawsuit Enters Final Phase
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday after both sides concluded their arguments on Monday. This lawsuit, representing 2.4 million residential subscribers and 48,000 businesses, challenges the NFL's exclusive distribution of "Sunday Ticket" through DirecTV and later Google YouTube TV, alleging antitrust violations and inflated prices.
Final Steps Before Deliberations
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. Additionally, the judge might hear a motion from the NFL on Tuesday afternoon, which argues for a judgment as a matter of law, claiming that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Gutierrez will present the final instructions to the jury, composed of five men and three women, before the commencement of the final arguments. Both sides have been allotted 1 hour and 10 minutes for their closing statements, with the plaintiffs receiving an additional 20 minutes reserved for rebuttal.
Testimonies and Key Arguments
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. Bernheim argued that the "Sunday Ticket" package is essential for maintaining competitive fairness within the league.
Countering Bernheim's testimony, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, contested the idea that there are significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge emphasized that the roughly $62.5 million each team receives annually from "Sunday Ticket" would not drastically impact the NFL's salary cap or individual teams' operating budgets.
Additionally, Dallas Cowboys owner Jerry Jones testified last week, stating he would not support a salary cap if he could sell his out-of-market rights independently.
The Legal Battle and Its Implications
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, which oversees California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year.
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 counters that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs argue that 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, an amount that could triple to $21 billion due to the antitrust nature of the case. This lawsuit and its outcome could significantly reshape the landscape of sports broadcasting and the legality of exclusive distribution deals. It raises fundamental questions about fair market practices and the rights of consumers versus the commercial interests of sports leagues.
As the jury prepares to deliberate, the future of televised sports hangs in the balance. Both sides have vigorously defended their positions, with the plaintiffs aiming to tackle what they perceive as monopolistic practices, and the NFL asserting its rights under the current legal framework.
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 doubt on the future of "Sunday Ticket" and similar arrangements.
All eyes remain focused on the courtroom as the jury deliberates, awaiting a verdict that could set a precedent for sports broadcasting and antitrust law.