Legal Battle Over "Sunday Ticket" Nears Conclusion
The class-action lawsuit between "Sunday Ticket" subscribers and the NFL is reaching its critical juncture. The jury is expected to begin deliberations on Wednesday, following the closing arguments from both sides on Monday. This high-stakes legal battle has captured the attention of sports fans and legal experts alike, as it could reshape the landscape of televised sports.
Final Steps Before Deliberation
U.S. District Judge Philip Gutierrez is set to hold a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez may hear a motion from the NFL on Tuesday afternoon to grant judgment as a matter of law, arguing that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Gutierrez will present the final instructions to the jury, comprised of five men and three women. Each side will then have 1 hour and 10 minutes to deliver their closing statements, with the plaintiffs receiving an additional 20 minutes for rebuttal.
Arguments and Testimonies
The trial has seen arguments focusing on whether the NFL's sale of "Sunday Ticket" packages violates antitrust laws. The plaintiffs assert that the NFL inflated prices and limited competition by exclusively offering "Sunday Ticket" through a satellite provider. They contend that the NFL’s antitrust exemption for broadcasting does not apply to pay TV, only over-the-air broadcasts.
In contrast, the NFL maintains that selling out-of-market Sunday afternoon games to DirecTV from 1994 to 2022, and subsequently to Google YouTube TV, benefits fans and ensures competitive balance on the playing field. The defense wrapped up its case on Monday, with Stanford economics professor B. Douglas Bernheim as their final witness. Bernheim supported the league's stance, asserting that these deals promote competitive balance.
Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, countered Bernheim’s claims. He testified that there are no significant links between making "Sunday Ticket" a premium package and fostering competitive balance. Elhauge further argued that the roughly $62.5 million each team receives annually from “Sunday Ticket” does not dramatically impact the league’s salary cap or individual teams' operating budgets.
Adding to the debate, Dallas Cowboys owner Jerry Jones testified last week, expressing that he would not support a salary cap if he could sell his out-of-market rights independently.
Potential Impact and History
This class action 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 lawsuit, originally 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 two years later, and Judge Gutierrez sanctioned it as a class action last year.
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. Regardless of the jury's decision, the losing party is expected to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly the Supreme Court.
The Broader Implications
The outcome of this lawsuit could have far-reaching implications for sports broadcasting and the legality of exclusive distribution deals. Many are watching closely as the jury prepares to deliberate, anticipating a verdict that could significantly alter how sports packages are sold and consumed in the future.
As the courtroom drama unfolds, the legal battle over "Sunday Ticket" continues to highlight the tension between ensuring competitive fairness and maximizing revenue. The jury's decision will not only affect the NFL and its broadcasting partners but also set a precedent for similar cases in the sports industry.
The upcoming deliberations mark a pivotal moment in this long-standing legal dispute, with potential consequences for fans, teams, and the broader landscape of sports entertainment. As all eyes remain on the courtroom, the sports world awaits a decision that could redefine broadcasting norms and antitrust regulations in professional sports.