Closing arguments begin in class action lawsuit filed by Sunday Ticket subscribers against the NFL

LOS ANGELES (AP) — The jury in the Sunday Ticket subscribers’ class action lawsuit will receive instructions Wednesday and hear closing arguments before beginning deliberations.

U.S. District Judge Philip Gutierrez will give jury instructions and the plaintiffs will deliver their closing statements during the morning session. After lunch, the NFL will deliver its closing statements. Each side will have 1 hour and 10 minutes to make statements, with the plaintiffs having an additional 20 minutes to rebut their arguments.

The trial began on June 6 and included 10 days of testimony from economists and league executives, including NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.

Gutierrez denied the plaintiffs’ motion to dismiss the case in their favor Tuesday morning, and postponed the NFL’s motion until after the verdict.

This means that even if a jury rules in favor of the plaintiffs, Gutierrez could still rule in favor of the NFL and claim that the plaintiffs have not proven their case.

Gutierrez raised that possibility last week when he said at a hearing on both sides’ motions, “I have difficulty with the plaintiff’s case.”

The lawsuit affects 2.4 million residential customers and 48,000 businesses who paid for the package of out-of-market games from the 2011 through 2022 seasons on DirecTV. It claims the league violated antitrust laws by selling its package of Sunday games broadcast on CBS and Fox at an inflated price. Subscribers also say the league restricted competition by offering “Sunday Ticket” only through a satellite provider.

The league claims it has the right to sell “Sunday Ticket” under its antitrust exemption for broadcast television. Plaintiffs say that applies only to terrestrial broadcasts, not pay TV.

DirecTV carried Sunday Ticket from its launch in 1994 through 2022. The league signed a seven-year deal with Google’s YouTube TV that began with the 2023 season.

Even though Sunday Ticket has become available to more fans since it was acquired by a streaming provider, prices are higher than DirecTV. The league has emphasized throughout the process that Sunday Ticket is a premium product.

Former CBS Sports chairman Sean McManus said in a memo to the NFL and during testimony that the network believed “the concept was always to sell these packages at a premium, thereby limiting distribution.”

Fox Sports executive vice president Larry Jones said during testimony in 2022 that it was important to the network that “Sunday Ticket” be a premium product so it wouldn’t hurt local ratings.

“We think it’s important that it’s a premium product that complements our television shows. And as long as it’s a premium product, the market will determine the extent of distribution,” he said.

Jones said this meant that the more expensive the Sunday Ticket was, the fewer subscribers it would have.

If the NFL is found liable, a jury could award $7 billion in damages, but that figure could rise to $21 billion because antitrust litigation can triple the damages. It would also change how the league would have to distribute its broadcasts outside of its market and could lead to renegotiations of contracts with Fox and CBS. The league’s current agreements run through the 2033 season.

CBS and Fox together pay an average of $4.3 billion per season for Sunday afternoon games, while YouTube TV pays an average of $2 billion per season for the “Sunday Ticket” rights.

The lawsuit was originally filed in 2015 by San Francisco sports bar Mucky Duck but was dismissed in 2017. Two years later, the 9th U.S. Circuit Court of Appeals, which covers California and eight other states, reopened the case. Gutierrez ruled last year that the case could proceed as a class action lawsuit.

Whatever the final decision, the losing side is expected to appeal to the 9th Circuit and then possibly to the Supreme Court.

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