Statements
LOS ANGELES -- The federal judge overseeing the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL expressed his dissatisfaction on Tuesday with the way plaintiffs' attorneys have been handling their side of the case.
Judge's Frustration
Before Dallas Cowboys owner Jerry Jones resumed his testimony for the second day, U.S. District Judge Philip Gutierrez underscored that the case's premise was straightforward. The judge highlighted the irritation of a Seattle Seahawks fan living in Los Angeles, who, without purchasing a subscription for all out-of-market Sunday afternoon games, cannot watch their favorite team play.
The class-action lawsuit encompasses 2.4 million residential subscribers and 48,000 businesses that paid for the out-of-market game package from the 2011 to 2022 seasons. The lawsuit claims the NFL violated antitrust laws by selling its Sunday games package, aired on CBS and Fox, at an inflated price.
Moreover, the subscribers argue that the NFL restricted competition by offering "Sunday Ticket" exclusively through a satellite provider. The league, however, firmly maintains its stance, arguing it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs counter that this exemption only applies to over-the-air broadcasts and not pay TV.
Potential Consequences
If the NFL is found liable, a jury could award up to $7 billion in damages, a figure that could potentially triple to $21 billion due to the nature of antitrust cases. Notably, Tuesday was not the first instance of Judge Gutierrez expressing frustration with the plaintiffs' side. On Monday, he reprimanded their attorneys for frequently referencing past testimony, which he deemed a waste of time.
Historical Context
Judge Gutierrez also expressed skepticism about the relevance of citing Jerry Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. That lawsuit, filed in 1994, resulted in an out-of-court settlement. In the current case, when asked if teams should be able to sell their out-of-market television rights, Jones responded that they should not, as it "would undermine the free TV model we have now."
Additional Testimonies
Retired CBS Sports chairman Sean McManus also testified, reiterating his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus contended that "Sunday Ticket" infringes on CBS's local market exclusivity. During negotiations, CBS and Fox requested that "Sunday Ticket" be marketed as a premium package. Prices for the package during the class-action period were set by DirecTV, not the NFL. The league's television contracts with CBS and Fox specify that "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans, satisfying complementary demand to the offering of in-market games." The contracts also prohibit selling individual games on a pay-per-view basis.
From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. Starting last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons. During a deposition, DirecTV marketing official Jamie Dyckes mentioned that Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL) had suggested retail prices for their out-of-market packages. Dyckes added that revenue sharing existed between the leagues and the carriers since their packages were distributed across multiple platforms.
Upcoming Proceedings
Testimony will continue on Thursday, with closing statements scheduled for early next week. Judge Gutierrez hinted he might consider invoking a rule that allows the court to determine that a jury does not have sufficient evidence to rule in favor of a party in a case.
Quotes
Judge Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." Throughout the proceedings, his comments have increasingly reflected his mounting frustrations, stating, "The way you have tried this case is far from simple." He also 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 the trial progresses, all eyes will remain on the courtroom, awaiting whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.