A Legal Showdown over NFL "Sunday Ticket": Judge's Frustration and High Stakes
LOS ANGELES – The legal battles surrounding the NFL's "Sunday Ticket" package have intensified, with U.S. District Judge Philip Gutierrez making his frustration clear. The class-action lawsuit, filed by "Sunday Ticket" subscribers against the NFL, covers 2.4 million residential subscribers and 48,000 businesses who purchased the package of out-of-market games from the 2011 through 2022 seasons. This high-stakes case has attracted attention due to its potential implications for both the NFL and fans nationwide.
Judge Gutierrez's Concerns
Before Dallas Cowboys owner Jerry Jones took the stand for his second day of testimony, Judge Gutierrez voiced his dissatisfaction with how the plaintiffs' attorneys were handling their side of the case. The judge emphasized that the case's premise was straightforward: it centered on the frustration of fans who could not watch their favorite out-of-market teams without purchasing the entire subscription package.
Judge Gutierrez’s frustrations were not new. On Monday, he had already admonished the plaintiffs' attorneys for what he considered a waste of time by repeatedly describing past testimony. On Tuesday, he further expressed doubts about the relevance of Jerry Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures.
The Core of the Lawsuit
The plaintiffs claim that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices. They argue that the league restricted competition by offering "Sunday Ticket" exclusively through a satellite provider, DirecTV. The NFL, however, maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting, a standpoint the plaintiffs challenge by arguing 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. This figure could potentially triple to $21 billion under antitrust laws, making the stakes incredibly high for both parties involved.
Testimonies from Key Figures
Jerry Jones' testimony drew considerable attention, particularly when he stated that allowing individual teams to sell their out-of-market television rights "would undermine the free TV model we have now." Additionally, 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 enjoys in local markets.
During negotiations, both CBS and Fox had requested that "Sunday Ticket" be sold as a premium package. DirecTV, rather than the NFL, set the prices during the class-action period. The league’s television contracts with CBS and Fox include language stating 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." 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 "Sunday Ticket" package. Starting in 2023, Google's YouTube TV acquired the rights, marking a significant shift in distribution channels.
The Broader Context
Jamie Dyckes, a marketing official from DirecTV, testified that Major League Baseball (MLB), the National Basketball Association (NBA), and the National Hockey League (NHL) provided suggested retail prices for their out-of-market packages. Dyckes added that these leagues had revenue-sharing agreements with carriers, and their packages were distributed across multiple platforms, unlike the NFL's exclusive satellite arrangement.
The Road Ahead
Testimony is set to continue on Thursday, with closing statements scheduled for early next week. Judge Gutierrez has hinted that he may consider invoking a rule allowing the court to find that a jury lacks sufficient evidence to rule for a party in the case. As the proceedings move forward, all eyes remain on the courtroom, with anticipation building over whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.
Judge's Remarks
Judge Gutierrez has not withheld his candid opinions throughout the case. “I’m struggling with the plaintiffs' case,” he admitted. His comments have reflected his mounting frustrations, remarking, "The way you have tried this case is far from simple." He also commented, "This case has turned into 25 hours of depositions and gobbledygook," and added, "This case has gone in a direction it shouldn't have gone."
With significant financial implications and the potential to reshape how NFL fans access out-of-market games, this case has become a critical point of focus. The legal showdown continues, and the outcome could have far-reaching ramifications for the sports broadcasting landscape.