Federal Judge Expresses Frustration in NFL 'Sunday Ticket' Antitrust Case
LOS ANGELES -- The federal judge overseeing the class-action lawsuit lodged by "Sunday Ticket" subscribers against the NFL did not mince words Tuesday, voicing his discontent with the handling of the case by the plaintiffs' attorneys.
Judge's Frustration
Before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony, U.S. District Judge Philip Gutierrez expressed his frustration. He emphasized that the core premise of the case was straightforward, highlighting the plight of a Seattle Seahawks fan residing in Los Angeles who is unable to watch their favorite team without purchasing a subscription for all the Sunday afternoon out-of-market games.
The lawsuit, representing 2.4 million residential subscribers and 48,000 businesses that paid for the out-of-market game package from 2011 through 2022, alleges that the NFL violated antitrust laws by selling the package at an inflated price. Additionally, the plaintiffs argue that the league restricted competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL maintains its stance that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption applies solely to over-the-air broadcasts, not pay TV.
Potential Consequences
If the NFL is found liable, a jury could potentially award up to $7 billion in damages. This amount could triple to $21 billion due to the nature of antitrust cases, which allow for triple damages.
Judge Gutierrez's frustration with the plaintiffs' side was not a new development. Just a day before, he reprimanded their attorneys for repeatedly revisiting past testimony, which he saw as a waste of time. He also questioned the relevance of referring to Jerry Jones' 1994 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures and was eventually settled out of court.
Testimonies and Key Points
On Tuesday, when asked if teams should have the right to sell their out-of-market television rights, Jones responded that they should not, as it "would undermine the free TV model we have now." Additionally, retired CBS Sports chairman Sean McManus reiterated his opposition to "Sunday Ticket" and the NFL's Red Zone channel, expressing concerns that "Sunday Ticket" infringes on the exclusivity CBS holds in local markets.
CBS and Fox both requested during their negotiations that "Sunday Ticket" be sold as a premium package. Marketing official Jamie Dyckes from DirecTV, which determined the prices during the class-action period, testified that other major leagues like MLB, the NBA, and the NHL also had suggested retail prices for their out-of-market packages, coupled with revenue sharing between the leagues and the carriers.
Contractual Terms
The NFL's agreements with CBS and Fox include stipulations that the "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans that complement the in-market games." The agreements also 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 "Sunday Ticket" rights for a seven-season span.
Judge Considering Case Dismissal
As the testimonies continue and closing statements are anticipated early next week, Judge Gutierrez mentioned he might invoke a rule that allows the court to determine whether a jury lacks sufficient evidence to rule for a party in the case. His candid admission, "I'm struggling with the plaintiffs' case," adds a layer of gravity and anticipation.
He bluntly stated, "The way you have tried this case is far from simple." He further lamented, "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 case advances, the courtroom remains a focal point, with all eyes on whether the plaintiffs' attorneys can pivot and present a compelling argument that adheres to the straightforward premise initially outlined by Judge Gutierrez.