Judge overseeing NFL ‘Sunday Ticket’ trial voices frustrations over the case

The federal judge overseeing the class-action lawsuit filed by “Sunday Ticket” subscribers against the NFL expressed frustration on Tuesday with the plaintiffs’ attorneys’ handling of the case.

Before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony, U.S. District Judge Philip Gutierrez noted that the case’s premise was straightforward: it revolves around the frustration of a Seattle Seahawks fan in Los Angeles who cannot watch their favorite team without purchasing a subscription for all the Sunday afternoon out-of-market games.

“The way you have tried this case is far from simple,” Gutierrez told the subscribers’ attorneys. “This case has turned into 25 hours of depositions and gobbledygook. … This case has gone in a direction it shouldn’t have gone.”

The class-action lawsuit, representing 2.4 million residential subscribers and 48,000 businesses that paid for the package of out-of-market games from the 2011 through 2022 seasons, claims the NFL violated antitrust laws by selling its Sunday games package on CBS and Fox at inflated prices. The plaintiffs also argue the league restricted competition by offering “Sunday Ticket” only through a satellite provider.

The NFL argues it has the right to sell “Sunday Ticket” under its antitrust exemption for broadcasting. The plaintiffs counter that this exemption only applies to over-the-air broadcasts, not pay TV.

If the NFL is found liable, the jury could award $7 billion in damages, a figure that could triple to $21 billion under antitrust law provisions.

Tuesday wasn’t the first time Gutierrez expressed frustration with the plaintiffs. On Monday, he criticized their attorneys for wasting time by repeatedly referencing past testimony.

Before Jones resumed his testimony, Gutierrez questioned the relevance of the plaintiffs’ attorneys citing Jones’ 1995 lawsuit against the NFL over licensing and sponsorship procedures. “I don’t know what you are doing, but marketing is not media,” Gutierrez said.

Later, Jones testified that he sued the NFL because the league had sued him, with both parties eventually settling out of court. Jones stated he supported the league’s model for negotiating television contracts and revenue-sharing agreements.

When asked if teams should be able to sell their out-of-market television rights, Jones said no, as it would undermine the current free TV model.

Retired CBS Sports chairman Sean McManus also testified, reiterating that he did not favor “Sunday Ticket” or the NFL’s Red Zone channel because they infringed on CBS’s local market exclusivity. McManus added that CBS and Fox had requested “Sunday Ticket” be sold as a premium package, and it was DirecTV, not the NFL, that set the prices during the class-action period.

The NFL’s contracts with CBS and Fox include language that positions “Sunday Ticket” as a premium product for avid fans, complementing the in-market games, and prohibits selling individual games on a pay-per-view basis. The NFL received a rights fee from DirecTV from 1994 to 2022, and Google’s YouTube TV acquired “Sunday Ticket” rights starting last year.

Jamie Dyckes, a DirecTV marketing official, testified that MLB, the NBA, and the NHL had a suggested retail price for their out-of-market packages, with revenue-sharing agreements between the leagues and carriers, as their packages were available on multiple platforms.

Testimony will continue Thursday, with closing statements expected early next week. Gutierrez mentioned he might invoke a rule allowing the court to determine that a jury does not have sufficient evidence to rule for a party in the case.

“I’m struggling with the plaintiffs’ case,” he said.