Judge's Frustration Dominates NFL "Sunday Ticket" Lawsuit
LOS ANGELES -- The federal judge overseeing the class-action lawsuit brought by "Sunday Ticket" subscribers against the NFL expressed his growing frustrations on Tuesday with how the plaintiffs' attorneys are presenting their case.
Case Background
Prior to Dallas Cowboys owner Jerry Jones retaking the stand for his second day of testimony, U.S. District Judge Philip Gutierrez emphasized the straightforward nature of the case. He acknowledged 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 the Sunday afternoon out-of-market games.
The class-action lawsuit represents 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 lawsuit alleges that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices. Additionally, the plaintiffs claim that the league restricted competition by offering "Sunday Ticket" exclusively through a satellite provider.
The NFL staunchly defends its right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue this exemption only applies to over-the-air broadcasts and not to pay TV. Should the NFL be found liable, a jury could award up to $7 billion in damages, which could triple to $21 billion due to the nature of antitrust cases.
Frustrations in the Courtroom
This was not the first instance of Judge Gutierrez vocalizing his frustration with the plaintiffs' side. On Monday, he admonished their attorneys for repeatedly describing past testimony, which he considered a waste of time. Before Jones resumed his testimony, Gutierrez questioned the relevance of bringing up Jerry Jones' 1995 lawsuit against the NFL over the league's licensing and sponsorship procedures, eventually settled out of court.
Jones filed the 1994 lawsuit, asserting that while he supported the league's model for negotiating television contracts and the revenue-sharing agreements in place, he contested its licensing and sponsorship procedures. When asked if individual teams should sell their out-of-market television rights, Jones responded that they should not, as it "would undermine the free TV model we have now."
Notable Testimonies
Retired CBS Sports chairman Sean McManus also took the stand, reiterating his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel, which he believes infringes on CBS's exclusivity in local markets. Both CBS and Fox had requested during negotiations that "Sunday Ticket" be sold as a premium package. DirecTV, not the NFL, set the prices during the class-action period.
According to the league's television contracts with CBS and Fox, 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." The contracts 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. Last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons.
During a deposition, DirecTV marketing official Jamie Dyckes stated that MLB, the NBA, and the NHL suggested retail prices for their out-of-market packages. Dyckes added that there was revenue sharing between the leagues and the carriers, as their packages were distributed across multiple platforms.
Looking Ahead
Testimony will continue Thursday, with closing statements expected early next week. Judge Gutierrez has indicated that 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.
Judge's Candid Remarks
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, anticipating whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.