Judge Channels Frustration in NFL 'Sunday Ticket' Antitrust Case
LOS ANGELES -- The ongoing class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL took a dramatic turn on Tuesday as federal judge Philip Gutierrez expressed frustration with the plaintiffs' attorneys. The case, which involves millions of residential and business subscribers, alleges that the NFL has violated antitrust laws in its pricing and distribution of the "Sunday Ticket" package.
The Core Issue
The lawsuit represents 2.4 million residential subscribers and 48,000 businesses that paid for the out-of-market games package from the 2011 through 2022 seasons. Plaintiffs argue the league broke antitrust laws by inflating the price of the package and limiting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL counters that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, plaintiffs assert this exemption only applies to over-the-air broadcasts, not pay TV. If the NFL is found liable, the potential damages could skyrocket to $21 billion due to the possibility of triple damages in antitrust cases.
Judge Gutierrez's Concerns
Before Dallas Cowboys owner Jerry Jones resumed his testimony on Tuesday, Judge Gutierrez made clear his frustration with the plaintiffs’ approach. The judge noted that the case's premise is straightforward: fans, like a Seattle Seahawks enthusiast living in Los Angeles, cannot watch their preferred team without purchasing a comprehensive subscription for all Sunday afternoon out-of-market games.
Gutierrez has already voiced his discontent several times during the trial. On Monday, he reprimanded the plaintiffs’ attorneys for wasting time by repetitively referring to past testimonies. The judge has questioned the relevance and efficiency of the plaintiffs' arguments, even expressing doubt about their focus on Jerry Jones' 1995 lawsuit challenging the NFL’s licensing and sponsorship procedures, which was eventually settled out of court.
Testimony Highlights
Jerry Jones, when asked about teams selling their out-of-market television rights, stated that such a move could undermine the free TV model currently in place. Retired CBS Sports Chairman Sean McManus also testified, reiterating his longstanding opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus believes "Sunday Ticket" infringes on CBS's market exclusivity for local games.
During negotiations, CBS and Fox had requested that "Sunday Ticket" be sold as a premium package. Prices during the class-action period were set by DirecTV, not the NFL. The league's contracts with CBS and Fox specify that “resale packages (like Sunday Ticket) are to be marketed as premium products for avid league fans.” Additional contract language prohibits the sale of individual games on a pay-per-view basis.
Market Insights
DirecTV paid a rights fee to the NFL for "Sunday Ticket" from 1994 through 2022. Last year, Google’s YouTube TV assumed the rights for the next seven seasons. Testimony from DirecTV marketing official Jamie Dyckes revealed that other leagues, such as MLB, the NBA, and the NHL, had a suggested retail price for their out-of-market packages and engaged in revenue sharing between the leagues and carriers, across multiple platforms.
Gutierrez has hinted at the possibility of invoking a rule that allows the court to conclude that there is insufficient evidence for a jury to rule in favor of one party. This potential turning point adds to the high stakes as the trial progresses.
Looking Ahead
Closing statements are expected early next week, and all eyes will remain on the courtroom to see if the plaintiffs' attorneys can present compelling arguments aligning with the case's straightforward premise. Judge Gutierrez's comments underline the critical need for clarity and efficiency in the plaintiffs' case presentation.
Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." His comments have reflected mounting frustration, stating, "The way you have tried this case is far from simple." Furthermore, he remarked, "This case has turned into 25 hours of depositions and gobbledygook," adding, "This case has gone in a direction it shouldn't have gone."
As proceedings continue, the anticipation builds around whether the plaintiffs’ attorneys can turn the tide and present a convincing argument against the NFL’s practices. The resolution of this high-profile case could have far-reaching implications for the future of sports broadcasting and consumer rights.