The Jury Deliberates: NFL Faces Critical Antitrust Decision
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is set to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. At the heart of the case lies the question of whether 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.
Final Preparations
U.S. District Judge Philip Gutierrez is scheduled to hold a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez might hear a motion from the NFL on Tuesday afternoon to grant judgment as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Judge Gutierrez will present final instructions to the jury, composed of five men and three women, before final arguments commence. Both sides will receive one hour and ten minutes to make their closing statements, with the plaintiffs having an additional twenty minutes reserved for rebuttal.
Examination of Testimonies
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning after beginning last Thursday. Bernheim 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, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, 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 roughly $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets. Moreover, Dallas Cowboys owner Jerry Jones also testified last week, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Plaintiffs' Case
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 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 argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs contend this exemption only applies to over-the-air broadcasts, not pay TV. If the NFL is found liable, the jury could award damages of $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case.
Origins and Potential Consequences
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals, with jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year.
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 upcoming deliberations mark a critical juncture in a long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question.
A Pivotal Moment in Sports Broadcasting
As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports. The case stands as a significant test of antitrust laws within the realm of professional sports, scrutinizing the delicate balance between exclusive broadcasting rights and competitive fairness.
Will the jury side with the NFL’s approach to exclusive deals, or will they align with the plaintiffs’ argument of inflated prices and limited competition? The forthcoming deliberations and final verdict will undoubtedly have a lasting impact on how sports leagues negotiate and structure their broadcasting agreements in the future.
The legal battle over "Sunday Ticket" serves as a compelling chapter in the ongoing dialogue about consumer rights, market competition, and the regulation of dominant enterprises in the sports industry. As we await the jury's decision, the potential implications for fans, broadcasters, and the league itself hang in the balance, promising a landmark moment in sports law.