Jury Deliberates Class-Action Lawsuit Against NFL
As the legal battle between "Sunday Ticket" subscribers and the NFL heads into its final phase, the jury is expected to commence deliberations on Wednesday. Both sides concluded their cases on Monday, setting the stage for a verdict that could significantly alter the landscape of sports broadcasting.
Final Steps Before Deliberation
U.S. District Judge Philip Gutierrez will hold a conference with attorneys from both sides on Tuesday morning to finalize jury instructions. Additionally, the judge may hear a motion from the NFL on Tuesday afternoon, seeking judgment as a matter of law. The NFL contends that the plaintiffs failed to provide sufficient evidence to support their claims.
On Wednesday morning, Judge Gutierrez will present the final instructions to the jury, which consists of five men and three women. Following this, the closing arguments will begin, with each side allotted 1 hour and 10 minutes to make their case. The plaintiffs will have an additional 20 minutes reserved for rebuttal.
Key Testimonies and Evidence
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim supported the NFL's stance that selling out-of-market Sunday afternoon games to DirecTV, and later to Google YouTube TV, benefits fans and ensures competitive balance in the league.
However, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, disputed Bernheim's claims. Elhauge argued that there are no significant links between the league's decision to make "Sunday Ticket" a premium package and the promotion of competitive balance. According to Elhauge, the approximately $62.5 million each team receives annually from "Sunday Ticket" would not substantially impact the league's salary cap or individual team budgets.
Last week, Dallas Cowboys owner Jerry Jones testified, stating that he would not support a salary cap if he could sell his out-of-market rights independently.
The Lawsuit's Scope and Claims
This class action 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 through an exclusive contract with a satellite provider.
The NFL argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs argue that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Implications and a Long Road Ahead
If the NFL is found liable, the jury could award damages amounting to $7 billion, a figure that could be tripled to $21 billion due to the antitrust nature of the case. The lawsuit, originally filed in 2015 by the Mucky Duck sports bar in San Francisco, faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals reinstated the case two years later. Judge Gutierrez sanctioned the case as a class action last year.
Regardless of the jury's decision, the losing side is expected to appeal, potentially escalating the case to the 9th Circuit Court of Appeals and possibly the Supreme Court. The upcoming deliberations mark a critical juncture in this long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question.
Awaiting the Verdict
As the jury prepares to deliberate, all eyes are focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports.