Jury Deliberations Set to Begin in NFL "Sunday Ticket" Antitrust Lawsuit
The conclusion of both sides' presentations in the high-profile class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL sets the stage for jury deliberations, expected to commence on Wednesday. The closing arguments follow U.S. District Judge Philip Gutierrez's final conference with attorneys on Tuesday morning to finalize jury instructions.
Judge's Final Instructions and Closing Arguments
In a pivotal moment on Wednesday morning, Judge Gutierrez will provide the final instructions to the jury, composed of five men and three women, before the final arguments from both parties begin. Both the plaintiffs and the NFL will have 1 hour and 10 minutes to deliver their closing statements, with an additional 20 minutes reserved for the plaintiffs for rebuttal.
NFL's Motion for Judgement
On Tuesday afternoon, attention may shift as the NFL plans to submit a motion for judgment as a matter of law, arguing that the plaintiffs have failed to provide sufficient evidence to support their claims. Judge Gutierrez's ruling on this motion could significantly impact the proceedings.
Expert Testimonies: Stanford vs. Harvard
The NFL's argument centers on the testimony of Stanford economics professor B. Douglas Bernheim, who concluded his testimony on Monday. Bernheim advocated the NFL's longstanding stance that selling out-of-market Sunday afternoon games on Fox and CBS to DirecTV (1994-2022) and later to Google YouTube TV benefits fans and maintains competitive balance within the league.
However, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, contested Bernheim's assertions. Elhauge argued that the constraints making "Sunday Ticket" a premium package do not significantly contribute to competitive balance. He testified that the $62.5 million each NFL team receives annually from "Sunday Ticket" revenues would not substantially affect the league’s salary cap or individual teams' operating budgets.
Dallas Cowboys Owner's Perspective
Adding another layer to the debate, Dallas Cowboys owner Jerry Jones testified last week. Jones stated he would not support a salary cap if he could independently sell his out-of-market rights, indicating a preference for individual control over revenue streams.
The Class-Action Lawsuit: A Brief History
The class-action lawsuit represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 to 2022 seasons. It alleges that the NFL violated antitrust laws by selling its package of Sunday games, broadcasted on CBS and Fox, at inflated prices while limiting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL has countered, arguing that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The NFL maintains that this exemption applies to all distribution methods, while the plaintiffs argue that it is limited to over-the-air broadcasts and not pay TV.
Potential Damages and Legal Implications
Should the jury find the NFL liable, the league could face damages of $7 billion, an amount that could potentially triple to $21 billion due to the antitrust nature of the case. Such a verdict would mark a significant financial and operational shift for the NFL and its broadcasting strategies.
Reinstatement and Class-Action Certification
Initially filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced dismissal in 2017. However, the 9th Circuit Court of Appeals, which holds jurisdiction over California and eight other states, reinstated the case in 2019. Judge Gutierrez certified the lawsuit as a class action last year, enabling it to represent millions of subscribers and thousands of businesses.
Future Appeals and Broader Implications
Regardless of the jury's decision, the losing side is anticipated to appeal the verdict. Such an appeal would likely escalate the case to the 9th Circuit Court of Appeals and potentially the Supreme Court, extending the legal battle and its broader implications for sports broadcasting and exclusive distribution deals.
The Critical Juncture
As the jury prepares to deliberate, this moment marks a crucial juncture in a protracted legal battle that could reshape the landscape of televised sports. The outcome of this case has the potential to redefine the parameters of broadcasting rights and competition within the sports industry. All eyes remain focused on the courtroom, eagerly awaiting a verdict that will resonate through the world of sports broadcasting.