The Legal Battle Over "Sunday Ticket"
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. This significant legal battle, which could reshape the landscape of sports broadcasting, hinges on the NFL's exclusive distribution deals and their alleged antitrust violations.
Final Steps Before Deliberation
U.S. District Judge Philip Gutierrez is scheduled to hold a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez may hear a motion from the NFL on Tuesday afternoon, seeking judgment as a matter of law, which argues that the plaintiffs have failed to provide sufficient evidence.
On Wednesday morning, Gutierrez will present the final instructions to the jury, composed of five men and three women, before final arguments commence. Both sides will receive 1 hour and 10 minutes to make their closing statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal.
The Case Against The NFL
The lawsuit, representing 2.4 million residential subscribers and 48,000 businesses, 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 class action spans purchases from the 2011 through 2022 seasons.
The plaintiffs argue that the NFL's antitrust exemption for broadcasting does not apply to pay TV, only to over-the-air broadcasts. 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. This potential financial blow underscores the gravity of the lawsuit.
Expert Testimonies and Key Witnesses
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim 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.
However, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, countered Bernheim's claims. Elhauge argued that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. He testified that the roughly $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Additionally, Dallas Cowboys owner Jerry Jones testified last week, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently. Jones's testimony further highlights the complexities and stakes involved in the lawsuit.
A Long Legal Journey
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals, with jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year, allowing it to move forward on behalf of millions of subscribers and thousands of businesses.
Regardless of the verdict, the losing side is anticipated to appeal, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. This could prolong the legal battle and continue to pose questions about the legality of exclusive distribution deals in sports broadcasting.
Awaiting the Verdict
The upcoming deliberations mark a critical juncture in this long-standing legal battle. As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could redefine the future of televised sports. The result could set a precedent for how sports leagues negotiate broadcasting rights and influence the market dynamics of sports viewership.
With the weight of billions of dollars in potential damages and the legal principles at stake, the decision in this case will be closely watched by stakeholders across the sports and broadcasting industries.
The conclusion of this case will not just resolve a dispute but could also chart the course for future dealings in sports broadcasting. As both sides make their final statements, the significance of this moment cannot be overstated. The impact of the jury’s decision will be felt far beyond the courtroom, potentially altering the landscape of how sports are consumed by millions of fans across the nation.