Class-Action Lawsuit Against NFL Enters Final Phase
The jury in the high-stakes class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is set to commence deliberations on Wednesday. This comes after both parties concluded their presentations on Monday, marking a critical juncture in a case that has significant implications for sports broadcasting.
Final Preparations and Jury Instructions
U.S. District Judge Philip Gutierrez is scheduled to meet with attorneys from both sides on Tuesday morning to finalize jury instructions. Additionally, there's a possibility that Gutierrez will hear a motion from the NFL on Tuesday afternoon that seeks a judgment as a matter of law, arguing that the plaintiffs failed to provide sufficient evidence to support their claims.
On Wednesday morning, Judge Gutierrez will present the final jury instructions. The jury, consisting of five men and three women, will then hear closing arguments from both sides. Each side will be allotted 1 hour and 10 minutes for their final statements, with the plaintiffs granted an additional 20 minutes for rebuttal.
Witness Testimonies Conclude
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim, who began testifying last Thursday, reiterated the NFL's position 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.
Countering Bernheim was Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, who argued that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically affect the league’s salary cap or individual teams' operating budgets.
Additionally, Dallas Cowboys owner Jerry Jones testified last week, stating that he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Core of the Lawsuit
This class-action lawsuit represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 to 2022 seasons. The plaintiffs claim that the NFL violated antitrust laws by selling its package of Sunday games, aired on CBS and Fox, at inflated prices while restricting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL, on the other hand, argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs contend that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Damages and Legal Precedents
If the NFL is found liable, the jury could award damages of up to $7 billion, a sum that could be tripled to $21 billion due to the antitrust nature of the case. This lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco but faced initial dismissal in 2017. 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 verdict, the losing side is expected to appeal, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. The forthcoming deliberations mark a critical moment in a long-standing legal battle that could reshape the landscape of televised sports and question the legality of exclusive distribution deals.
Awaiting the Verdict
As the jury prepares to deliberate, all eyes remain focused on the courtroom awaiting a verdict that could have far-reaching implications for the future of sports broadcasting. The outcome of this case could set a precedent affecting not only the NFL but also other professional sports leagues and their broadcasting agreements.
This landmark case encapsulates the tension between maintaining competitive balance and ensuring a fair market for broadcasting rights. With billions of dollars at stake, the sports world and its fans are bracing for a decision that could impact how they consume their favorite games in the years to come.