The Jury Begins Deliberations in NFL "Sunday Ticket" Class-Action Lawsuit
The long-awaited jury deliberations in the class-action lawsuit initiated by "Sunday Ticket" subscribers against the NFL are set to commence on Wednesday. This follows the conclusion of both parties' cases on Monday, marking the beginning of the end for this highly significant legal confrontation.
Conference to Finalize Jury Instructions
U.S. District Judge Philip Gutierrez is scheduled to convene with attorneys from both sides on Tuesday morning to finalize the jury instructions. This step is crucial to ensuring that jurors have a clear understanding of the legal parameters they must consider during their deliberations.
Furthermore, Gutierrez might hear a motion from the NFL on Tuesday afternoon. The NFL is seeking judgment as a matter of law, arguing that the plaintiffs have not provided adequate evidence to substantiate their claims.
The Final Instructions and Closing Arguments
On Wednesday morning, Judge Gutierrez will present the final instructions to the jury, composed of five men and three women. Once the instructions are given, both sides will proceed with their closing arguments. Each side is allotted 1 hour and 10 minutes for these arguments, with the plaintiffs granted an additional 20 minutes for rebuttal.
Expert Testimonies
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.
In stark contrast, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, argued that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge stated that the approximately $62.5 million each team receives annually from "Sunday Ticket" would not dramatically impact the league’s salary cap or individual teams' operating budgets.
Testimony from NFL Leadership
Dallas Cowboys owner Jerry Jones also provided testimony last week. Jones asserted that he would not support a salary cap if he could independently sell his out-of-market rights. This testimony highlighted the individual economic interests at stake beyond the broader legal issues.
The Class Action Lawsuit
This class-action lawsuit represents 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from 2011 through 2022. The plaintiffs allege 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 satellite provider.
Conversely, the NFL maintains that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs, however, argue that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Financial and Legal Ramifications
If the NFL is found liable, the jury could award damages amounting to $7 billion. Given the antitrust nature of the case, this could potentially triple to $21 billion, posing significant financial implications for the league.
History of the Case
The lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco but faced initial dismissal in 2017. The 9th Circuit Court of Appeals, which exercises jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez designated the proceeding as a class action last year, expanding its scope significantly.
Possible Appeals and Future Impact
Regardless of the outcome, both the plaintiffs and the NFL are expected to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly even to the Supreme Court. This marks a critical juncture 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, the attention of fans, legal experts, and sports industry stakeholders remains focused on the courtroom, eagerly awaiting a verdict that could potentially reshape the landscape of televised sports.