Introduction
The class-action lawsuit against the NFL involving the "Sunday Ticket" package has reached a critical juncture. Jury deliberations are set to begin on Wednesday after both parties concluded their cases on Monday. The case centers on claims from "Sunday Ticket" subscribers, both residential and commercial, alleging that the NFL violated antitrust laws by selling out-of-market Sunday games at inflated prices while exclusively offering the package through a satellite provider. This case could significantly impact the landscape of televised sports and the legality of exclusive distribution agreements.
Final Preparations and Deliberations
U.S. District Judge Philip Gutierrez will hold a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Later that afternoon, Gutierrez may hear a motion from the NFL seeking judgment as a matter of law, arguing that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, the judge will present the final instructions to the jury, composed of five men and three women, before final arguments commence. Each side will have one hour and ten minutes to make their closing statements, with the plaintiffs receiving an additional 20 minutes for rebuttal.
Testimonies and Arguments
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, reiterated the league'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.
Conversely, the plaintiffs' rebuttal witness, Harvard professor Einer Elhauge, testified that there are no significant links between making "Sunday Ticket" a premium package and promoting competitive balance. Elhauge argued that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t significantly impact the league’s salary cap or individual teams' operating budgets.
Dallas Cowboys owner Jerry Jones also testified last week, stating he wouldn’t support a salary cap if he could independently sell his out-of-market rights.
The Lawsuit’s Scope
This class-action lawsuit represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package between the 2011 and 2022 seasons. The plaintiffs claim that the NFL broke antitrust laws by selling its package of Sunday games aired on CBS and Fox at exorbitant prices while limiting competition by offering "Sunday Ticket" exclusively through a satellite provider.
The NFL, however, argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs counter 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 amounting to $7 billion. Due to the antitrust nature of the case, this figure could potentially triple to $21 billion. The lawsuit, initially filed in 2015 by the Mucky Duck sports bar in San Francisco, was initially dismissed in 2017. However, the 9th Circuit Court of Appeals reinstated the case in 2019, leading to its current status as a class-action lawsuit sanctioned by Judge Gutierrez last year.
Future Implications
Regardless of the decision, the losing side is anticipated to appeal, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. This legal battle casts the future of sports broadcasting and the legality of exclusive distribution deals into question. As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports.
Wednesday marks a decisive moment in this long-standing legal battle. The upcoming deliberations will not only determine the outcome for the involved parties but could also have far-reaching implications for how sports content is packaged and distributed in the future.