Class-Action Lawsuit Against the NFL: Tensions Rise in Courtroom
LOS ANGELES -- Tensions are running high in the courtroom presiding over the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL. On Tuesday, U.S. District Judge Philip Gutierrez expressed his frustration with the plaintiffs' attorneys, highlighting the simplicity of the case's premise amidst what he viewed as unnecessary complications.
Case Background and Core Arguments
The lawsuit affects 2.4 million residential subscribers and 48,000 businesses who paid for the out-of-market games package from the 2011 through 2022 NFL seasons. Plaintiffs argue that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices. They also contend that the NFL restricted competition by offering "Sunday Ticket" exclusively through a satellite provider.
The NFL, on its part, staunchly defends its right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs counter this claim, arguing that the exemption applies only to over-the-air broadcasts, not pay TV. If the NFL is found liable, a jury could award up to $7 billion in damages, a figure that could triple to $21 billion under antitrust laws.
Judge's Frustration and Courtroom Dynamics
Tuesday marked yet another instance where Judge Gutierrez voiced his exasperation with the plaintiffs' case management. Before Dallas Cowboys owner Jerry Jones resumed his testimony for a second day, Gutierrez underscored the straightforward nature of the lawsuit. He indicated empathy for a Seattle Seahawks fan living in Los Angeles who cannot watch their favorite team without purchasing a subscription for all the Sunday afternoon out-of-market games.
Earlier in the proceedings, on Monday, the judge admonished the plaintiffs' attorneys for rehashing past testimony, which he deemed a waste of time. Gutierrez also expressed skepticism about citing Jerry Jones' 1994 lawsuit against the NFL, which challenged the league’s licensing and sponsorship procedures but was ultimately settled out of court. Jones, during his testimony, maintained that allowing teams to sell their out-of-market television rights would undermine the current free TV model.
Testimonies Add Depth to the Case
Retired CBS Sports chairman Sean McManus also testified, reiterating his opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus asserted that "Sunday Ticket" infringes on CBS's exclusivity in local markets. During negotiations, both CBS and Fox requested that "Sunday Ticket" be sold as a premium package. It was DirecTV, and not the NFL, that set the package prices during the class-action period.
The league has stipulated in its television contracts with CBS and Fox that "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." Further 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. Last year, Google’s YouTube TV acquired "Sunday Ticket" rights for the next seven seasons. During a deposition, DirecTV marketing official Jamie Dyckes testified that other major sports leagues, including MLB, the NBA, and the NHL, had suggested retail prices for their out-of-market packages and shared revenue between the leagues and the carriers distributing their packages across multiple platforms.
Looking Ahead
As testimony continues Thursday, the courtroom remains a focal point for both legal observers and sports fans alike. Closing statements are scheduled for early next week. Judge Gutierrez has even hinted at the possibility of invoking a rule to determine that a jury lacks sufficient evidence to rule for a party in the case, should it come to that.
Final Thoughts
Judge Gutierrez hasn’t minced words regarding his outlook on the proceedings. "I'm struggling with the plaintiffs' case," he candidly admitted. Reflecting his mounting frustration, he remarked, "The way you have tried this case is far from simple." Adding to his criticisms, he also noted, "This case has turned into 25 hours of depositions and gobbledygook," and concluded, "This case has gone in a direction it shouldn't have gone."
As the legal battle progresses, attention will be focused on whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined. The outcome could have significant implications not only for the NFL but for the sports broadcasting landscape as a whole.