Judge Gutierrez Voices Frustrations in NFL 'Sunday Ticket' Class-Action Lawsuit
LOS ANGELES -- The ongoing class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL faced a moment of sharp critique as U.S. District Judge Philip Gutierrez expressed growing frustration with the handling of the plaintiffs' side of the case. This courtroom tension unfolded on Tuesday while Dallas Cowboys owner Jerry Jones was set to continue his testimony for a second day.
The Case and Its Premise
The lawsuit, which impacts 2.4 million residential subscribers and 48,000 businesses, covers the period from the 2011 through 2022 seasons. At its core, the plaintiffs argue that the NFL violated antitrust laws by selling the package of Sunday games broadcast on CBS and Fox at inflated prices. They also contend that consumers were restricted by the league's decision to offer "Sunday Ticket" exclusively through a satellite provider.
Judge Gutierrez pointed out the simplicity of the case’s premise, noting the frustration an out-of-market fan might feel. For instance, a Seattle Seahawks fan residing in Los Angeles must buy the entire Sunday afternoon package to watch their desired team. Despite this seemingly straightforward issue, Gutierrez is clearly vexed by the presentation from the plaintiffs' attorneys.
Potential Damages and Legal Nuances
If the NFL is found liable, the jury could award up to $7 billion in damages, an amount that could triple to $21 billion, courtesy of antitrust law provisions. The crux of the NFL's defense lies in their assertion that their antitrust exemption for broadcasting allows them to sell "Sunday Ticket." The plaintiffs counter that this exemption pertains only to over-the-air broadcasts and not to pay TV packages.
Judge's Growing Frustration
Judge Gutierrez's patience seems to be wearing thin. As early as Monday, he admonished the plaintiffs' attorneys for repeatedly revisiting past testimony, considering it a waste of the court's time. On Tuesday, before Jerry Jones resumed his testimony, the judge expressed skepticism about the relevance of Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. That case was eventually settled out of court.
During his second day on the stand, Jerry Jones affirmed a stance that selling teams' out-of-market television rights individually would undermine the current free TV model. Similarly, Sean McManus, retired CBS Sports chairman, testified against "Sunday Ticket" and the NFL's Red Zone channel, claiming that such packages infringe on CBS's local market exclusivity.
DirecTV's Role and Industry Comparisons
While CBS and Fox both advocated for "Sunday Ticket" to be marketed as a premium package during negotiations, it was actually DirecTV that set the prices during the class-action period. The NFL's contracts with CBS and Fox include language stipulating that "Sunday Ticket" should cater to avid league fans and should not dilute the in-market game offerings. Additionally, these contracts prohibit the sale of individual games on a pay-per-view basis.
From 1994 through 2022, the NFL received rights fees from DirecTV for the "Sunday Ticket" package. However, starting last year, Google's YouTube TV acquired these rights for a seven-season tenure. DirecTV marketing official Jamie Dyckes stated in a deposition that MLB, the NBA, and the NHL all suggested retail prices for their out-of-market packages and shared revenue between the leagues and carriers across multiple platforms.
Future Proceedings and Legal Outcome
Testimony in the case will continue on Thursday, with closing statements expected early next week. Judge Gutierrez has hinted at potentially invoking a rule that would allow the court to determine that a jury lacks sufficient evidence to decide in favor of one of the parties. His candid admission, "I'm struggling with the plaintiffs' case," underscores the complex trajectory this case has taken.
The proceedings have devolved into what Gutierrez describes as "25 hours of depositions and gobbledygook.” He noted that the case has veered away from its intended course. As the trial progresses, it remains to be seen whether the plaintiffs' attorneys can realign their arguments with the straightforward premise Judge Gutierrez initially described.
Eyes will remain on the courtroom, anticipating whether the plaintiffs can present a compelling case or if the NFL will successfully defend its handling of "Sunday Ticket." The outcome will not only affect the involved subscribers and businesses but could also set significant precedents for sports broadcasting rights and antitrust laws in the future.