Statements
The ongoing class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is approaching a pivotal moment as the jury prepares to begin deliberations on Wednesday. This follows both sides wrapping up their arguments on Monday.
Final Preparations Before Deliberations
U.S. District Judge Philip Gutierrez has scheduled a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez is expected to hear a motion from the NFL on Tuesday afternoon seeking judgment as a matter of law, arguing that the plaintiffs have failed to provide sufficient evidence to support their claims.
On Wednesday morning, Gutierrez will present the final instructions to the jury, which comprises five men and three women. Following this, the court will proceed with closing arguments. Each side will have 1 hour and 10 minutes to make their case, with the plaintiffs receiving an additional 20 minutes for rebuttal.
Testimonies and Expert Witnesses
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim, who began his testimony last Thursday, 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.
In contrast, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, argued that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge emphasized that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t significantly impact the league’s salary cap or the individual teams' operating budgets.
Dallas Cowboys owner Jerry Jones also testified last week, asserting that he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
Background of the Lawsuit
This class action represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from 2011 through the 2022 seasons. The lawsuit claims that 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 maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue that this exemption only applies to over-the-air broadcasts, not pay TV.
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.
Legal Journey and Potential Implications
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit was initially dismissed in 2017. However, the 9th Circuit Court of Appeals, which has 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 decision, the losing side is anticipated to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly to the Supreme Court. The upcoming deliberations mark a critical juncture in this long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question.
Awaiting the Verdict
As the jury prepares to deliberate, all eyes remain focused on the courtroom, eagerly awaiting a verdict that could reshape the landscape of televised sports. The outcome of this case could set a significant precedent for how sporting events are broadcast and could impact the economic model that teams and leagues rely on.
The deliberations and eventual verdict will be closely watched by stakeholders across the sports industry, media companies, and fans alike, given the potential for widespread implications and financial consequences.