Jury Deliberations Loom in NFL "Sunday Ticket" Class-Action Lawsuit
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday, marking a crucial juncture in this high-stakes legal battle. The deliberations follow the conclusion of both sides presenting their cases on Monday.
Final Legal Maneuvers
Prior to deliberations, U.S. District Judge Philip Gutierrez is set to hold a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez might consider a motion from the NFL on Tuesday afternoon, seeking judgment as a matter of law on the grounds that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Gutierrez will present the final instructions to the jury, which comprises five men and three women, before final arguments are made by both parties. Each side will have 1 hour and 10 minutes to make their closing statements, with the plaintiffs allocated an additional 20 minutes for rebuttal.
The Battle of Expert Testimony
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim, who started his testimony last Thursday, reiterated the NFL's stance 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 ensures competitive balance on the playing field.
Countering Bernheim, the plaintiffs' rebuttal witness, Harvard professor Einer Elhauge, argued that there were no significant links between the league's constraints in making "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the roughly $62.5 million each team receives annually from "Sunday Ticket" would not dramatically impact the league’s salary cap or individual teams' operating budgets.
High-Profile Testimonies
Last week, Dallas Cowboys owner Jerry Jones also testified, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently. This testimony adds a critical dimension to the plaintiffs' argument that the NFL's current system stifles competition and inflates prices for consumers.
The Basis of the Lawsuit
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 plaintiffs claim that the NFL violated antitrust laws by selling its package of Sunday games, aired on CBS and Fox, at inflated prices while limiting competition through exclusive offers to satellite providers.
The NFL contends that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue that this exemption only applies to over-the-air broadcasts and not to pay TV, framing the crux of their legal argument.
Potential Consequences and Legal History
If the NFL is found liable, the jury could award damages of $7 billion, a figure that could potentially triple to $21 billion due to the antitrust nature of the case. The ramifications of such a verdict could reshape the landscape of sports broadcasting and call into question the legality of exclusive distribution deals.
The lawsuit, initially filed in 2015 by the Mucky Duck sports bar in San Francisco, 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.
The Road Ahead
Regardless of the decision, it is anticipated that the losing side will appeal the verdict. This case could potentially escalate to the 9th Circuit and possibly the Supreme Court, indicating that the outcome of this jury deliberation is but one step in a longer legal journey.
As the jury prepares to deliberate, the sports world watches with bated breath. The impending verdict carries the potential to trigger seismic shifts in how sports are broadcast and consumed, potentially redefining norms that have long governed the intersection of sports and television.