Legal Struggles: NFL 'Sunday Ticket' Lawsuit Faces Judge's Scrutiny
LOS ANGELES -- The federal judge presiding over the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL voiced his frustrations Tuesday with the handling of the case by the plaintiffs' attorneys. Before Dallas Cowboys owner Jerry Jones took the stand for his second day of testimony, U.S. District Judge Philip Gutierrez underscored the straightforward premise of the case.
Frustrations Boil Over
Judge Gutierrez noted the frustration of a Seattle Seahawks fan living in Los Angeles who cannot watch their favorite team without buying a subscription for all the Sunday afternoon out-of-market games. He expressed his impatience with the plaintiffs' lawyers for complicating what he viewed as a simple matter.
The class-action lawsuit encompasses 2.4 million residential subscribers and 48,000 businesses that paid for the package of out-of-market games from the 2011 to 2022 seasons. The lawsuit alleges that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at an inflated price. Additionally, the subscribers argue that the league restricted competition by offering "Sunday Ticket" solely through a satellite provider.
NFL's Antitrust Exemption
The NFL firmly maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption only applies to over-the-air broadcasts, not pay TV. Should the NFL be found liable, a jury could award up to $7 billion in damages—a figure that could rise to $21 billion due to the potential for triple damages in antitrust cases.
Judge's Mounting Frustrations
Tuesday was not the first time Judge Gutierrez expressed his displeasure with the plaintiffs' handling of the case. On Monday, he reprimanded their attorneys for repeatedly describing past testimony, which he deemed a waste of time. Before Jones resumed his testimony, Gutierrez also expressed doubts about the relevancy of referring to Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures, but was eventually settled out of court.
When asked whether teams should be able to sell their out-of-market television rights, Jones replied that they should not, as it "would undermine the free TV model we have now." His stance emphasized the potential disruption to the current broadcasting agreements.
Broadcasting Industry Concerns
Retired CBS Sports chairman Sean McManus also took the stand, reiterating his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus believes that "Sunday Ticket" infringes on the exclusivity CBS has in local markets. He clarified that CBS and Fox both requested during negotiations that "Sunday Ticket" be sold as a premium package, and noted that DirecTV, not the NFL, set the prices during the class-action period.
The NFL's television contracts with CBS and Fox stipulate that "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans that satisfy complementary demand to the offering of in-market games." Additional language prohibits 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 MLB, the NBA, and the NHL had a suggested retail price for their out-of-market packages. Dyckes added that there was revenue sharing between the leagues and the carriers, as their packages were distributed across multiple platforms. Testimony will continue Thursday, with closing statements scheduled for early next week.
Legal Precedents and Future Steps
Judge Gutierrez indicated that he might consider invoking a rule allowing the court to find that a jury lacks sufficient evidence to rule for a party in a case, a decision that could dramatically affect the trial's outcome. Throughout the proceedings, Judge Gutierrez's comments have reflected his mounting frustrations. He candidly admitted, "I'm struggling with the plaintiffs' case," and added, "The way you have tried this case is far from simple." His remark that "this case has turned into 25 hours of depositions and gobbledygook," further highlighted his discontent.
With all eyes on the courtroom, the plaintiffs' attorneys face the challenge of presenting a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined. As the case progresses, any ruling could have significant ramifications for sports broadcasting and the ways fans nationwide access their favorite games.