Federal Judge Frustrated with Plaintiffs in NFL 'Sunday Ticket' Lawsuit
Los Angeles, CA - The ongoing class-action lawsuit against the NFL by "Sunday Ticket" subscribers took a dramatic turn on Tuesday as U.S. District Judge Philip Gutierrez expressed his frustration with the plaintiffs' attorneys. This case, which addresses significant antitrust issues, has seen its fair share of complexities and discontent from the bench, as the Judge has repeatedly voiced his displeasure with the proceedings.
A Simple Premise Complicated
Before Dallas Cowboys owner Jerry Jones resumed his testimony for a second day, Judge Gutierrez reiterated that the core question of the case was straightforward. The frustration of a Seattle Seahawks fan living in Los Angeles who is unable to watch their favorite team without purchasing a subscription for all Sunday afternoon out-of-market games was a poignant example.
The lawsuit, representing 2.4 million residential subscribers and 48,000 businesses, argues that the NFL violated antitrust laws by selling its Sunday game package aired on CBS and Fox at inflated prices and restricting competition by offering "Sunday Ticket" exclusively through a satellite provider. These subscribers claim that the NFL's practices have significantly limited their viewing options and driven up costs unnecessarily.
Arguments and Counterarguments
The NFL maintains it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue this exemption applies only to over-the-air broadcasts and not to pay TV. The stakes are immense; should the NFL be found liable, a jury could award damages that may reach up to $7 billion, a figure that could escalate to $21 billion, considering antitrust cases can result in triple damages.
Judge's Growing Discontent
Tuesday was not the first instance where Judge Gutierrez expressed frustration with the plaintiffs' conduct. On Monday, he admonished their attorneys for repetitively referencing past testimonies, deeming it a waste of time. Furthermore, the judge expressed skepticism about the relevance of Jerry Jones' 1995 lawsuit against the NFL, which also dealt with licensing and sponsorship procedures and was ultimately settled out of court.
Despite these challenges, Jones has stood firm in his belief that individual teams should not sell their out-of-market television rights, arguing that such a move would undermine the existing free TV model.
Media Executives Weigh In
Testimonies from prominent figures in the sports media industry have also underscored the contentious nature of this lawsuit. Retired CBS Sports chairman Sean McManus voiced his longstanding opposition to "Sunday Ticket" and the NFL's Red Zone channel, arguing that these services infringe on CBS' exclusivity in local markets. Both CBS and Fox have historically insisted that "Sunday Ticket" be marketed as a premium package.
During the class-action period, DirecTV, not the NFL, set subscription prices. Additionally, the NFL's television contracts with CBS and Fox mandated that "Sunday Ticket" be marketed as a premium product for avid league fans and prohibited selling individual games on a pay-per-view basis.
A Shift in Providers
From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. However, last year marked a significant shift when Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons, altering the landscape of how out-of-market games are distributed to fans.
During a deposition, DirecTV marketing official Jamie Dyckes pointed out that other major sports leagues, including MLB, the NBA, and the NHL, had suggested retail prices for their out-of-market packages and engaged in revenue sharing with carriers as their packages were distributed across multiple platforms.
Judgment Awaiting
As testimonies continue, with the proceedings set to wrap up with closing statements early next week, Judge Gutierrez has hinted at the possibility of invoking a rule allowing the court to determine if a jury lacks sufficient evidence to rule in favor of a party. This indicates his growing impatience and concern over the directions the case has taken.
Judge Gutierrez's candid remarks, "I'm struggling with the plaintiffs' case," and his assertion that "This case has turned into 25 hours of depositions and gobbledygook," reflect his mounting frustrations. He believes the case has veered far from its original simple premise.
As the trial approaches its conclusion, all eyes remain on the courtroom. The plaintiffs' attorneys face the significant challenge of presenting a compelling argument that aligns with the straightforward narrative Judge Gutierrez initially outlined. Will they succeed in convincing the court of their antitrust claims, or will the NFL prevail in maintaining its broadcasting practices? The outcome of this high-stakes lawsuit remains to be seen.