Judge's Frustration Mounts in NFL 'Sunday Ticket' Antitrust Case
Judge's Frustration Mounts in NFL "Sunday Ticket" Antitrust Case
LOS ANGELES -- The Core of the Controversy
The federal judge presiding over the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL expressed significant frustration on Tuesday with how the plaintiffs' attorneys are managing their case. Before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony, U.S. District Judge Philip Gutierrez underscored that the case's premise was straightforward.
Judge Gutierrez highlighted the scenario of a Seattle Seahawks fan living in Los Angeles who cannot watch their favorite team without subscribing to a package for all the Sunday afternoon out-of-market games, illustrating the real-world implications for many fans. This class-action lawsuit encompasses 2.4 million residential subscribers and 48,000 businesses who paid for the out-of-market game package from the 2011 through 2022 seasons.
Allegations of Antitrust Violations
The lawsuit claims the NFL violated antitrust laws by selling its package of Sunday games broadcasted on CBS and Fox at inflated prices. Furthermore, subscribers argue the league restricted competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL firmly maintains it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Plaintiffs counter, however, that this exemption should apply only to over-the-air broadcasts and not pay TV. Should the NFL be found liable, a jury could award up to $7 billion in damages, a figure that could potentially triple to $21 billion due to the nature of antitrust cases.
Judge's Concerns and Legal Proceedings
Tuesday was not the first instance where Judge Gutierrez vocalized his frustrations with the plaintiffs' handling of the case. On Monday, he admonished their attorneys for repeatedly referencing past testimony, which he regarded as a waste of time. Before Jerry Jones resumed his testimony, Gutierrez expressed doubts about the plaintiffs' attorneys citing Jones' 1994 lawsuit against the NFL, which had previously contested the league's licensing and sponsorship procedures and was settled out of court.
Jones, during his testimony, reiterated his stance against teams selling their out-of-market television rights, stating that it would "undermine the free TV model we have now." These sentiments were echoed by retired CBS Sports chairman Sean McManus, who reiterated his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel, arguing that "Sunday Ticket" infringes on the exclusivity CBS holds in local markets. Both CBS and Fox had requested during negotiations that "Sunday Ticket" be sold as a premium package.
Contractual Agreements and Market Implications
It's essential to note that DirecTV, not the NFL, set the prices during the class-action period. The league's television contracts with CBS and Fox include language that specifies "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans that satisfy complementary demand to the offering of in-market games." Additional clauses prohibit selling individual games on a pay-per-view basis.
From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. Starting last year, Google's YouTube TV acquired the "Sunday Ticket" rights for seven seasons.
During a deposition, DirecTV marketing official Jamie Dyckes stated that MLB, the NBA, and the NHL had suggested retail prices for their out-of-market packages. Dyckes also noted that there was revenue sharing between the leagues and the carriers, with their packages being distributed across multiple platforms.
Conclusion and Projections
Testimony in this case is set to continue on Thursday, with closing statements scheduled for early next week. Judge Gutierrez mentioned he might consider invoking a rule that allows the court to find that a jury lacks sufficient evidence to rule for a party in a case.
Throughout the proceedings, Judge Gutierrez's comments have reflected his growing frustration. He candidly admitted, "I'm struggling with the plaintiffs' case," and remarked, "This case has turned into 25 hours of depositions and gobbledygook," adding, "This case has gone in a direction it shouldn't have gone."
As the litigation progresses, all eyes will be on the courtroom, awaiting whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined. The resolution of this lawsuit could have significant implications, not only for NFL fans across the country but also for the broader landscape of sports broadcasting and antitrust law.
