Jury Deliberations Loom in NFL "Sunday Ticket" Class-Action Lawsuit
The class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is reaching a pivotal moment as the jury is set to begin deliberations on Wednesday. Both sides concluded their cases on Monday, bringing this significant legal battle closer to a verdict that could transform the landscape of sports broadcasting.
Preparation for Jury Instructions
U.S. District Judge Philip Gutierrez is scheduled to meet with attorneys from both sides on Tuesday morning to finalize the jury instructions. This vital step ensures that the jurors understand the legal framework and the specific points they must consider while making their decision.
Additionally, the NFL is expected to present a motion on Tuesday afternoon, seeking judgment as a matter of law. The league contends that the plaintiffs have not provided sufficient evidence to sustain their claims. If granted, this motion could potentially sway the case in favor of the NFL before the jurors even begin deliberations.
Final Arguments and Jury Deliberations
On Wednesday morning, Judge Gutierrez will present the final instructions to the jury, which comprises five men and three women. Once the instructions are delivered, the final arguments will commence. Each side will have 1 hour and 10 minutes for their closing statements, with the plaintiffs being allowed an additional 20 minutes for rebuttal.
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim supported the NFL's argument 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 maintains competitive balance in the league.
Contradictory Testimonies
In contrast, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued that there is no significant connection between the league's measures to make "Sunday Ticket" a premium package and ensuring competitive balance. Elhauge testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" would not substantially affect the league's salary cap or individual teams' operating budgets.
Adding further complexity, Dallas Cowboys owner Jerry Jones testified last week, stating that he would oppose a salary cap if he could sell his out-of-market rights independently. This sentiment underscores the ongoing tension between individual team interests and league-wide policies.
The Scope of the Lawsuit
The class action lawsuit encompasses 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 argue that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices while restricting competition by exclusively offering "Sunday Ticket" through a satellite provider.
On the other side, the NFL maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption applies only to over-the-air broadcasts, not pay TV.
Potential Consequences
If the jury finds the NFL liable, the damages could be substantial. The plaintiffs are seeking $7 billion in damages, a figure that could potentially triple to $21 billion due to the antitrust nature of the case. Such a verdict would have profound implications for the league and its broadcasting strategies.
This lawsuit, originally filed in 2015 by the Mucky Duck sports bar in San Francisco, faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals reinstated the case in 2019. Judge Gutierrez certified the proceeding as a class action last year, allowing it to represent millions of subscribers and thousands of businesses.
A Critical Juncture
Regardless of the outcome, the losing side is expected to appeal the verdict. This legal battle, which has already spanned several years, could ultimately reach the 9th Circuit Court of Appeals and possibly the Supreme Court. Such an escalation would further prolong the resolution of this contentious issue.
As the jury prepares to deliberate, the sports world watches closely, aware that the verdict could reshape the future of televised sports and the legality of exclusive distribution deals. The upcoming decision marks a critical juncture in this long-standing legal battle, with significant implications for both fans and the industry at large.
The courtroom drama underscores the complexities of sports broadcasting rights and the delicate balance between competition and exclusivity. As deliberations loom, the anticipation builds, with the potential for a landmark verdict that could set new precedents in sports law.