Legal Battle Over NFL's "Sunday Ticket": Judge Grows Impatient with Plaintiffs' Attorneys
LOS ANGELES -- The federal judge overseeing the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL expressed significant frustration on Tuesday with the plaintiffs' attorneys and their handling of the case.
Background of the Lawsuit
Before Dallas Cowboys owner Jerry Jones returned to the stand for a second day of testimony, U.S. District Judge Philip Gutierrez made it clear that the case's premise was simple to understand. He highlighted the plight of 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.
The class-action lawsuit involves 2.4 million residential subscribers and 48,000 businesses who paid for the package of out-of-market games from the 2011 through 2022 seasons. The plaintiffs contend that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices.
Moreover, the subscribers allege that the NFL restricted competition by offering "Sunday Ticket" solely through a satellite provider, namely DirecTV. The league, however, firmly asserts that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs counter that this exemption applies only to over-the-air broadcasts and not to pay TV.
Should the NFL be found liable, the jury could award up to $7 billion in damages, a figure that could potentially triple to $21 billion given the nature of antitrust cases.
Judge's Increasing Frustration
Tuesday's hearing was not the first instance of Judge Gutierrez expressing irritation with the plaintiffs' side. On Monday, he chastised their attorneys for repetitively describing past testimony, which he deemed to be a waste of time. Before Jones resumed his testimony, Gutierrez expressed skepticism regarding the plaintiffs' attorneys' references to Jerry Jones' lawsuit against the NFL in 1995. Jones had challenged the league's licensing and sponsorship procedures back then, although the matter was eventually settled out of court.
Key Testimonies
In his testimony, Jones stated that teams should not be allowed to sell their out-of-market television rights as it "would undermine the free TV model we have now." Retired CBS Sports chairman Sean McManus also took the stand, reiterating his longstanding opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus argued that "Sunday Ticket" infringes on the exclusivity CBS holds in local markets.
During negotiations, both CBS and Fox had requested that "Sunday Ticket" be sold as a premium package. It was DirecTV, and not the NFL, that set the prices during the class-action period. The league's television contracts with CBS and Fox stipulate that the "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 language prohibits selling individual games on a pay-per-view basis.
From 1994 through 2022, the NFL received a rights fee from DirecTV for the "Sunday Ticket" package. Starting last year, Google's YouTube TV acquired the "Sunday Ticket" rights for seven seasons. During a deposition, a DirecTV marketing official, Jamie Dyckes, stated that MLB, the NBA, and the NHL had a suggested retail price for their out-of-market packages. Dyckes added that there was revenue sharing between these leagues and the carriers, as their packages were distributed across multiple platforms.
Looking Ahead
Testimony will continue on Thursday, with closing statements scheduled for early next week. Judge Gutierrez mentioned he would consider invoking a rule that allows the court to find that a jury lacks sufficient evidence to rule in favor of one party in a case.
Quotes from the Courtroom
Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." Throughout the proceedings, his comments have reflected his mounting frustrations, stating, "The way you have tried this case is far from simple." He also 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 case progresses, all eyes will remain on the courtroom, eagerly awaiting whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.