A Landmark Decision Looms for NFL 'Sunday Ticket' Antitrust Case
The much-anticipated conclusion to the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is rapidly approaching. With both sides having wrapped up their cases on Monday, the spotlight now turns to the jury, which is expected to begin deliberations on Wednesday.
Final Preparations Before Jury Deliberations
U.S. District Judge Philip Gutierrez has scheduled a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. There is also a possibility that Gutierrez will hear a motion from the NFL on Tuesday afternoon, asking to grant judgment as a matter of law in favor of the league. This motion argues that the plaintiffs have failed to provide sufficient evidence to support their claims.
On Wednesday morning, Gutierrez will deliver the final instructions to the jury, which comprises five men and three women. Following this, the stage will be set for the final arguments to begin. Each side will be allotted 1 hour and 10 minutes for their closing statements, with the plaintiffs receiving an additional 20 minutes reserved for rebuttal.
Contentious Testimonies from Expert Witnesses
The NFL wrapped up its testimony with its final witness, Stanford economics professor B. Douglas Bernheim, who concluded his remarks on Monday morning. Bernheim supported 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.
The plaintiffs countered Bernheim’s arguments with the testimony of Harvard professor Einer Elhauge. Elhauge contended that there were no significant links between making "Sunday Ticket" a premium package and fostering competitive balance in the league. He testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t significantly impact the league’s salary cap or individual teams' operating budgets.
Adding another layer to the debate, 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 Stakes: Billions on the Line
This class action lawsuit, representing 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 through 2022 seasons, claims that the NFL violated antitrust laws. The lawsuit argues that the NFL sold 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.
On its part, the NFL maintains that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. This exemption, the league argues, allows it to offer the package in the manner it has. Conversely, the plaintiffs contend that this exemption only applies to over-the-air broadcasts and not to pay TV.
Should the NFL be found liable, the jury could award damages amounting to $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case.
A Long Road to Justice
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit initially faced dismissal in 2017. However, the 9th Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez officially sanctioned the proceeding as a class action last year.
Regardless of the outcome, the losing side is anticipated to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly even the Supreme Court. This protracted legal battle casts a long shadow over the future of sports broadcasting and the legality of exclusive distribution deals.
Awaiting a Verdict
As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports. The upcoming deliberations mark a critical juncture in this longstanding legal battle, with significant implications for sports fans, broadcasters, and the NFL alike.