The Verdict Looms: Class-Action Lawsuit Against The NFL
The class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is reaching a critical juncture as the jury is expected to begin deliberations on Wednesday. Both sides wrapped up their cases on Monday, and U.S. District Judge Philip Gutierrez is set to hold a conference with the attorneys on Tuesday morning to finalize jury instructions.
Final Arguments and Deliberations
Judge Gutierrez may hear a motion from the NFL on Tuesday afternoon, in which the league argues for judgment as a matter of law, contending that the plaintiffs failed to provide sufficient evidence. On Wednesday morning, Gutierrez will present final instructions to the jury, composed of five men and three women, before final arguments commence. Each side will receive one hour and ten minutes for their closing statements, with the plaintiffs having an additional twenty minutes reserved for rebuttal.
The Expert Testimonies
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning after starting last Thursday. Bernheim reinforced the NFL's position that selling out-of-market Sunday afternoon games on Fox and CBS to DirecTV from 1994 to 2022, and then to Google YouTube TV, benefits fans and ensures competitive balance on the playing field. Countering Bernheim's testimony was Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness. Elhauge argued that no significant links exist between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. He testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Statements from Key Figures
Dallas Cowboys owner Jerry Jones also testified last week, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently. This statement underscores a central issue in the case, which represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 through 2022 seasons.
Allegations of Antitrust Violations
The lawsuit claims that the NFL broke antitrust laws by selling 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. The NFL, however, argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs, conversely, contend that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Financial Implications
If the NFL is found liable, the jury could award damages of $7 billion, a figure that could be tripled to $21 billion due to the antitrust nature of the case. The original lawsuit, filed in 2015 by the Mucky Duck sports bar in San Francisco, was dismissed 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 sanctioned the proceeding as a class action last year.
Possible Appeals and Future Legal Battles
Regardless of the decision, the losing side is anticipated to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly even the Supreme Court. The upcoming deliberations mark a pivotal moment in a long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question. As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports.
Quotes
"Both sides wrapped up their cases on Monday."
"Failed to provide sufficient evidence."
"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."
"No significant links exist between the league's constraints to make 'Sunday Ticket' a premium package and fostering competitive balance."
"The roughly $62.5 million each team receives annually from 'Sunday Ticket' wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets."
"I wouldn’t support a salary cap if he could sell his out-of-market rights independently."
"Argues that it retains the right to sell 'Sunday Ticket' under its antitrust exemption for broadcasting."
"This exemption only applies to over-the-air broadcasts, not pay TV."