The Final Countdown: Jury Set to Deliberate in NFL Class-Action Lawsuit
The highly anticipated class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is approaching a pivotal juncture. The jury is expected to begin deliberations on Wednesday after both sides concluded their respective cases on Monday.
Pre-Deliberation Procedures
U.S. District Judge Philip Gutierrez will hold a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, Judge Gutierrez may entertain a motion from the NFL on Tuesday afternoon to grant judgment as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence to support their claims.
On Wednesday morning, Gutierrez will present the final instructions to the jury, which consists of five men and three women, before the final arguments commence. Both sides will be allotted 1 hour and 10 minutes to deliver their closing statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal.
Expert Testimonies and Rebuttals
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, wrapped up his testimony on Monday morning, which began 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 subsequently to Google YouTube TV, benefits fans and maintains competitive balance on the playing field.
Countering Bernheim's assertions, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, contended that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or the individual operating budgets of teams.
Dallas Cowboys owner Jerry Jones also took the stand last week, stating he wouldn’t support a salary cap if he were permitted to sell his out-of-market rights independently.
The Class Action Context
This class action lawsuit represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 through 2022 seasons. The lawsuit alleges that the NFL violated 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 single satellite provider.
The NFL argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs assert this exemption only applies to over-the-air broadcasts, not pay TV. If the NFL is found liable, the jury could award damages of $7 billion, a figure that may triple to $21 billion due to the antitrust nature of the case.
Legal Journey of the Lawsuit
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit was initially 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.
Regardless of the verdict, the losing side is expected to appeal the decision, potentially escalating the case to the 9th Circuit and possibly the Supreme Court.
Broader Implications
The upcoming deliberations mark a critical point 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 significantly reshape the landscape of televised sports.
This case exemplifies the ongoing tensions between fan access to sports content and the business strategies of major sports leagues. The implications of the jury’s decision could extend far beyond the specific issue of the NFL’s "Sunday Ticket" package, potentially influencing similar disputes in other sports leagues and broadcast agreements.
As Judge Gutierrez prepares to instruct the jury, the sports world holds its breath, eager to see how this landmark case will unfold. The decision reached in this courtroom could set a precedent for how out-of-market sports content is sold and distributed, thereby impacting how fans across the country experience their favorite sports.