Class-Action Lawsuit Against NFL: Judge Gutierrez Voices Frustrations
LOS ANGELES -- The federal judge presiding over the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL expressed his frustrations on Tuesday regarding how the plaintiffs' attorneys are managing their side of the case.
Straightforward Case, Complex Proceedings
Before Dallas Cowboys owner Jerry Jones resumed his testimony for a second day, U.S. District Judge Philip Gutierrez made it clear that the case's premise was straightforward. He noted the evident frustration 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 out-of-market games package from the 2011 through the 2022 seasons. The lawsuit claims that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at an inflated price. Additionally, the subscribers argue that the league restricted competition by offering "Sunday Ticket" only through a satellite provider.
The NFL maintains it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue that this exemption applies only to over-the-air broadcasts and not pay TV. Should the NFL be found liable, a jury could award up to $7 billion in damages. This figure could triple to $21 billion due to the nature of antitrust cases.
Judge's Growing Frustration
This is not the first time Judge Gutierrez has expressed frustration with the plaintiffs' side. On Monday, he admonished their attorneys for repeatedly describing past testimony, which he deemed a waste of time. Before Jones resumed his testimony, Gutierrez expressed doubts about the plaintiffs' attorneys citing Jerry Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. Eventually, both sides settled out of court.
Jones had filed the 1994 lawsuit against the NFL, asserting that while he supported the league's model for negotiating television contracts and the revenue-sharing agreements in place, he was contesting its licensing and sponsorship procedures. When asked Tuesday if teams should be able to sell their out-of-market television rights, Jones replied that they should not, as it "would undermine the free TV model we have now."
Conflicting Views from Industry Experts
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. McManus believes that "Sunday Ticket" infringes on the exclusivity CBS has in local markets. CBS and Fox both requested during negotiations that "Sunday Ticket" be sold as a premium package. DirecTV, not the NFL, set the prices during the class-action period.
The league has language in its television contracts with CBS and Fox that stipulates 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 package. Starting 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 had a suggested retail price 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.
Future of the Case
Testimony will continue Thursday, with closing statements scheduled for early next week. Judge Gutierrez mentioned he would consider invoking a rule allowing the court to determine that the jury lacks sufficient evidence to rule for a party in a case.
Throughout the proceedings, Judge Gutierrez has candidly admitted, "I'm struggling with the plaintiffs' case." 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.