Jury Deliberations Begin in NFL "Sunday Ticket" Class-Action Lawsuit
In a critical juncture for sports broadcasting, a jury is set to deliberate on a class-action lawsuit against the NFL, filed by "Sunday Ticket" subscribers. The jury, consisting of five men and three women, will begin their deliberations on Wednesday after both legal teams concluded their cases on Monday.
Final Steps Before Deliberation
U.S. District Judge Philip Gutierrez will hold a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, Judge Gutierrez might address a motion from the NFL on Tuesday afternoon, arguing for a judgment as a matter of law, claiming that the plaintiffs failed to present sufficient evidence.
On Wednesday, Judge Gutierrez will provide the final instructions to the jury before the commencement of the closing arguments. Both sides are allocated 1 hour and 10 minutes for their closing statements, with an additional 20 minutes reserved for the plaintiffs' rebuttal.
Key Witnesses Testify
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim, who started his testimony last Thursday, reiterated the NFL's stance. He claimed 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.
Counteracting Bernheim’s claims, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued that there are no significant links between the league's constraints that make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the approximately $62.5 million each team annually receives from "Sunday Ticket" would not dramatically impact the league’s salary cap or the operating budgets of individual teams.
Dallas Cowboys owner Jerry Jones also provided noteworthy testimony last week, stating that he would not support a salary cap if he could sell his out-of-market rights independently.
The Lawsuit and Its Implications
This class-action lawsuit spans 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 allege that the NFL violated 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 jury rules against the NFL, they could award damages amounting to $7 billion, a figure that could potentially triple to $21 billion due to the antitrust nature of the case.
Background and Future Implications
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced an initial dismissal 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 decision, the losing side is anticipated to appeal the verdict. This could potentially escalate the case to the 9th Circuit and possibly the Supreme Court, prolonging the legal battle. The upcoming deliberations could reshape the landscape of televised sports by questioning the legality of exclusive distribution deals.
The Verdict Awaits
As the jury prepares to commence their deliberations, the sports world watches closely, awaiting a verdict that could significantly impact the future of sports broadcasting. The outcome of this lawsuit will likely influence how leagues negotiate broadcasting rights and how these rights are distributed to consumers. The stakes are high, and the result will be a landmark decision in the realm of sports law.