The Jury Deliberates in High-Stakes “Sunday Ticket” Antitrust Case
The long-running class-action lawsuit between "Sunday Ticket" subscribers and the National Football League (NFL) has reached a pivotal moment. The jury is expected to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. This case, involving 2.4 million residential subscribers and 48,000 businesses, could potentially reshape the landscape of sports broadcasting.
Final Preparations
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. Following the conference, Gutierrez might hear a motion from the NFL on Tuesday afternoon. The league is requesting a judgment as a matter of law, asserting that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Gutierrez will present the final instructions to the jury, composed of five men and three women, before final arguments commence. Each side will be allotted 1 hour and 10 minutes for their closing statements, with the plaintiffs receiving an additional 20 minutes reserved for rebuttal.
Key Testimonies
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim reaffirmed 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.
In response, the plaintiffs' rebuttal witness, Harvard professor Einer Elhauge, argued that no significant links exist 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 individual teams' operating budgets.
Additionally, Dallas Cowboys owner Jerry Jones offered crucial testimony last week. Jones stated that he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Core of the Dispute
This lawsuit claims 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. Conversely, the plaintiffs contend that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Outcomes
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. This class-action lawsuit initially filed in 2015 by the Mucky Duck sports bar in San Francisco faced an initial dismissal 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 lawsuit as a class action last year.
The upcoming deliberations are a critical juncture in this long-standing legal battle. Regardless of the decision, the losing side is anticipated to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. The case thus casts the future of sports broadcasting and the legality of exclusive distribution deals into question.
Awaiting the Verdict
As the jury prepares to deliberate, the legal, sports, and broadcasting worlds are eagerly awaiting a verdict that could dramatically impact the distribution and pricing of televised sports. The outcome of this case could set significant precedents regarding the balance between business interests and consumer rights in the sports broadcasting industry.
In the high-stakes environment of this courtroom, every argument and counterargument carries substantial weight. The verdict will not only affect the immediate parties involved but also has broader implications for how sports content is distributed and consumed across the nation.