SCOTUS Low Approval & NFL Antitrust Exemption | Bloomberg Law
793 segments
This is Bloomberg Law with June Graasso
from Bloomberg Radio.
In recent years, the Supreme Court has
gotten what you might call bad grades
from the public, and it's gotten worse
since the last term. Americans are now
more displeased with the court than at
any time in the last 26 years. According
to the latest Gallup poll, only 33% of
the public approves of the job the
Supreme Court is doing, a record low.
Joining me is Bloomberg Supreme Court
reporter Greg Store. Greg, tell us about
the latest polls.
>> There were several new polls that came
out after the court's term ended, and by
far the worst of them was the Gallup
poll that showed the Supreme Court's
approval rating plummeting to 33%. That
is easily the lowest since Gallup
started surveying about the court in
2001. The number went down 9 percentage
points from 42% when they took it in
September. So really a big decline
there. The other polls were not as
stark, but for example, a Marquette Law
School poll showed the court down two
percentage points from a year earlier.
So, it's consistent with the notion that
at best the Supreme Court is treading
water.
>> In the Gallup poll, was it a slide among
Republicans that brought that number
down?
>> It was a slide mostly among Republicans.
The court's approval ratings were
already really low among Democrats and
independents. But among Republicans,
support dropped 21 percentage points
since September. It was 79% in
September, fell to 58%. With a plus or
minus margin of error of four percentage
points, that's definitely a big big
drop.
>> A huge drop. And you would think that
the way the Supreme Court ruled this
term on Republican priorities like
narrowing agency power, enhancing gun
rights, eliminating campaign spending
restrictions. The Republicans would be
happy with the court. Well, one big
reason sure seems to be Donald Trump and
the way he's reacted. The court, of
course, ruled against him on a couple
big issues, including tariffs and his
ability to fire Lisa Cook and his
birthright citizenship restrictions. And
Donald Trump was extremely aggressive,
lashing out at even those justices he
appointed like Amy Coney Barrett and
Neil Gorsuch. If you recall, after the
tariff decision, he said, among other
things, that they are an embarrassment
to their families. So, Republicans of
course do respond very strongly across
the board to things Donald Trump says
and sure seems like his criticisms of
the Supreme Court drag the court down
with Republicans.
>> Tell us about some of the factors that
have made this Supreme Court so
unpopular with Democrats and
independents.
>> There have been a lot of forces over the
years that have been dragging the court
down. This is not just a one-year thing.
This has been happening over the course
of a couple of decades. And of course,
we're seeing institutions in general
have their approval ratings falling. But
you have a combination of a court that
seems more partisan, and indeed they are
more partisan in the sense that it's the
Republican justices who are now the most
conservative and the Democratic justices
who are the most liberal. You have
things like the ethical controversies
that we had a few years ago that were
very much in the news. Clarence Thomas
accepting trips uh paid for by a
Republican mega donor. You have the way
the court acquired this conservative
supermajority with Republicans holding
one seat open after Antinine Scalia died
and then rushing to fill another one
when Ruth Bader Ginsburg died. So
there's kind of a perfect storm. Oh, I
haven't even mentioned overturning Roie
Wade, which obviously was a decision
that was highprofile and among many
people extremely unpopular. So a
combination of factors have kind of
gotten us to this point. So there were
two decisions where the Supreme Court
went against President Trump on the
tariffs and birthright citizenship
in the sea of decisions where they, you
know, helped move forward his agenda on
the regular docket and on the shadow
docket. Some people are pointing to
that, even Justice Kagan are pointing to
those two as well. We're holding the
line here. Well, I did think that
Justice Kagan's remarks this summer were
very interesting because after the
ruling that overturned Roie Wade three
years ago, she pretty much called into
question the court's legitimacy in a
couple public appearances, saying that
when the court is overturning cases
isn't being consistent, that it can call
into question its own legitimacy. So,
the fact that she was in at least in
some sense standing up for the court
this summer, I did think was notable.
Having said that, she was very strongly
in descent from a number of the
decisions you mentioned where the
conservative majority uh moved the law
in a particular direction in a way that
conservatives have been hoping for for
quite a long time.
>> Is anybody else buying that argument
that, you know, oh well, we held the
line on these two cases where if they
hadn't held the line, it would have been
shocking.
You know, Jude, I I hate to say this as
somebody who covers the Supreme Court,
spends all my waking hours or at least
my work hours thinking about how to
communicate what the Supreme Court is
doing. But the truth is, a lot of
Americans don't pay attention to what
the Supreme Court is doing unless it's
one of these mega cases like overturning
Roie Wade or deciding a presidential
election or something like that. So, you
know, people often have impressions of
the court. They've heard a little bit.
If you look at these polls, it's kind of
remarkable how little people have heard
about some cases that I think
everybody's heard about, first rate,
citizenship, tariffs, things that you
you mentioned. Uh so, you know, what
people think of the court may be in a
lot of cases more impressionistic than
something that is really tied to
particular decisions that that came out.
>> And in your story, you write that the
justices have said in public that they
don't consider polls.
>> Yeah. They've said that over and over in
a variety of different contexts. So, one
thing I mentioned in the story was in
the Dobs ruling which overturned Roie
Wade. Uh, Justice Alo mentioned that
the, as he put it, the judicial branch
derives its legitimacy not from
following public opinion, but from
deciding by its best lives whether
legislative enactments of the popular
branches of government comport with the
Constitution. Other justices have said
similar things. On the other hand, we
discussed Justice Kagan talking about
the court's legitimacy. The court and I
would venture to say all the justices
understand that their legitimacy is
really important as a country, as a
republic. We need people, both average
people and other members of the
government to accept Supreme Court
decisions even if they don't agree with
them. We need people to be like Al Gore
who can say after the Bush v.Gore your
decision. I disagree strongly, but I
accept it. Otherwise, you know, we run
the risk of chaos where despite what the
Supreme Court says, people say we are
going to go off in our own direction,
interpret the Constitution our own way.
>> I know they say that they don't care
about the polls in public, but I have
this feeling like some of them must be a
little bit upset about the fact that
they're at record lows and that, you
know, the public is seeing them as
politicians in robes. I mean they come
out and defend themselves and you see
you know Justice Roberts trying to
emphasize the number of unanimous
decisions and also talk about we don't
overturn president as much as some past
justices. I mean it seems like they're
doing a lot of explaining. It is
certainly the case that if you went to
any of the nine of them and said you're
acting like a politician, they would uh
tell you in very strongly worded terms
why they don't think they're a
politician, why they are just
interpreting statutes and interpreting
the Constitution the way they think they
should be interpreted.
>> I am puzzled by one of the polls that
found that a majority approved of the
decisions the court made while not
approving of the court itself. One thing
that to me is fascinating about these
polls is that even as the court is
becoming less popular, its decisions at
least in this last term were actually
quite popular. So if you look at the
Marquette poll, they asked about 13
recent Supreme Court decisions and a
majority of people said the justices had
made the right decision in 11 of those
cases. So there is when you ask people
about the particular issues the Supreme
Court is deciding there is some support
for what the Supreme Court is doing even
as the court as a whole as an
institution goes down in the public
mind.
>> There have been calls for a long time
from liberal groups to either add
members to the court packing the court
or set term limits. Do you think that
come 2028 in the presidential election,
we're going to be hearing more about
making changes to the court in some way?
>> Yeah, I expect very much we will hear a
lot about this on the Democratic side.
We already have Pete Buddhajudge and Kla
Harris as two prospective candidates who
are pushing the idea of of adding seats
to the Supreme Court. Uh others are
talking about things like term limits
and you of course right now it's just
talk because Democrats are not in a
position to do that but you don't have
to squint too hard into the future to
imagine a world where Democrats might
have control of both Congress and the
White House. And then the question would
be will they do something about the
Supreme Court now that they they have
that power? And you know we may see a
dividing line among Democrats some who
will say we need to do something now.
this is a thing that will, you know,
make an instant change adding seats to
the Supreme Court and others who say,
"Look, if we do it when we have the the
power to do it, as soon as Republicans
get back in power, they're going to do
it and that's not good for anybody."
>> You talked to Jesse Wegman of the
Brennan Center and he said, "This court
is not going to change its behavior. It
was instituted precisely for this
behavior." And the way I think you solve
this is structurally, which is what
we've been talking about. I mean, last
term the conservative majority certainly
changed the law. Are any cases coming up
next term that might give them the same
kind of opportunities?
>> We don't yet have the boundary pushing
cases that we had last term. So, I would
say birthright citizenship, tariffs,
Lisa Cook, all of those were Donald
Trump doing something that a couple
years ago nobody was really thinking a
president might be able to do. And we
don't yet have those cases, but we
might. You know, so many of these uh
cases at the lower court level get up to
the Supreme Court through the emergency
or shadow docket and can present that
sort of issue. That's what happened with
with Lisa Cook. So, it is certainly
possible. You know, for the most part,
we have seen, the way I think about it
is we have seen this court do most or
all of the things that Ronald Reagan
would have wanted that the kind of
Reagan revolution, the notion of let's,
you know, get back to, you know,
originalist interpretation of the
Constitution. Let's bolster the power of
the presidency and, you know, reduce the
role of race in our in our government.
all those things that are long-standing
conservative priorities, the court has
been willing to do those things. It's
where Donald Trump has sort of created
his own priorities that maybe aren't
things that the Reagan folks would have
thought of. That's where the court is
sometimes drawing that line.
>> Finally, there was a rumor that Justice
Alo was going to retire last term and he
has said that he is not retiring this
term at least.
>> He did say that. I can only tell you
what words he used. This was in an
interview with the editorial features
editor of the Wall Street Journal. So,
sort of a friendly audience. Uh, Justice
Alo told them, obviously, I'm here for
another term. And the reason that we're
talking about this now is normally if a
Supreme Court justice is going to
retire, he or she does that at the end
of a term. It's the least disruptive for
the court. You know, if you leave in the
middle of the term, then you end up
with, you know, maybe only an eight
justice court. And so when Justice Alo
didn't retire at the end of this this
last term, normally one would think,
okay, he's going to stick around for
another term. But because there is at
least the prospect that Democrats could
take over the Senate in the November
midterm election, there has been some
talk that if that happened, maybe
Justice Alo, who's very conservative,
might say, or at least come under
pressure to say, "I'm going to retire
now so that the lame duck Congress with
the Republican controlled Senate, can
confirm my successor." These comments
seem to preclude that. Obviously, things
can change, but he at least sounded from
what I can read in this story as
somebody who's not at all planning on
leaving in November.
>> Thanks so much for taking the time,
Greg. That's Bloomberg Supreme Court
reporter Greg Store. Coming up next is
the NFL breaking antitrust law in its
negotiations with streaming services.
This is Bloomberg.
It's a tough time for football fans who
live outside their favorite team's home
market. The rise of streaming services
has ended the era when sports fans could
easily follow their favorite teams on a
handful of broadcast and cable channels
without buying special subscriptions.
But the NFL has signed deals with
multiple services, creating a
bewildering schedule and a steep cost to
watch games at home, as fans have to
subscribe to multiple streaming services
in addition to a traditional cable or
satellite bundle. During a judiciary
subcommittee hearing in June, Republican
Congressman Jim Jordan described the
challenge football fans face trying to
watch their favorite team. Here's what
the fan deals with today in our report.
A Green Bay Packers fan who lives in
Dallas, Texas, grew up in Green Bay,
loves the Packers, wants to watch the
Packers, grew up in Dallas, Texas. For
the 2026 season, the Packers are
scheduled to play eight games on Fox,
two games on Amazon Prime Video, two
games on Netflix, two games on NBC, one
game on ESPN, one game on CBS, and one
unscheduled game that is left to be
determined by the NFL. The fan will need
access to Amazon Prime Video, Netflix,
NBC, and ESPN to see the seven games
scheduled for those services for the
nine games scheduled for Fox and CBS.
The fan will likely need Fox and CBS
because some of the games will be on
broadcast television in Dallas. The fan
will also likely need Sunday Ticket just
to watch some subset of the nine Fox CBS
games because the fan will not know
which games will and will not be on
broadcast until the NFL and relevant
networks release the broadcast maps the
week of the games. That's what they got
to navigate. That's what they got to
navigate.
>> The Justice Department has opened an
antitrust investigation into whether the
NFL is breaking antitrust law in its
negotiations with streamers and driving
up the costs for consumers. My guest is
an expert in antitrust, Harry First, a
professor at NYU Law School. Harry, some
of our Bloomberg reporters looked into
this and so for a Philadelphia Eagles
fan living outside of Pennsylvania to
get all the games the Eagles are in,
they would need Sunday Ticket at $378,
YouTube at $83,
Peacock at $33, Fox One at $20, and
Prime Video at $9 for a grand total of
$523. $3. Yet the NFL claims that 87% of
its games are primarily shown on free
overthe-air broadcast TV.
>> I mean, I assume that that's true, you
know. Yeah. So, if you want to just want
to watch the Eagles, I mean, you know,
it's going to be on free overtheair
television. But if you want to watch
away games, you know, if you want to
just sit there on a Sunday and watch
every game out of your market, you're
going to have to pay for it. if you want
to watch every time the the Eagles play,
you know, in LA, it's not going to be on
channel 10 in Philadelphia. So, yes, if
you fly to LA, it'll be there for free,
too, but not exactly free. So, I don't
know the the number, it's one of those
numbers that will convince no one.
Obviously, a lot of people are buying
this Sunday ticket to watch out of
market football games because they just
love sitting there watching their team
wherever they are and other teams, you
know, cuz there are teams all around the
country that you can't see on
overthe-air TV unless you pay extra for
it. The investigation is reportedly
focused on this antitrust loophole in
the Sports Broadcasting Act that allows
the NFL and other leagues to negotiate
media deals collectively on behalf of
their teams. And that's the same
loophole that the congressional
subcommittee was looking into in June.
>> So the lawyer in me doesn't like to call
them loopholes, likes to call them
exemptions. you know, in 1961. Yes. It's
interesting to try to think about and
I'm not certain I fully understand why
the over there broadcasters went along
with this cuz they were, I think,
relatively more powerful than the NFL in
1961, which was, you know, not the
juggernaut we know today. So they
allowed the NFL to pull all their TV
rights free of any antitrust issues. the
law was in some ways less settled then
and you know maybe it was a little less
clear but they clearly would have had
some problems and there had been
litigation and I think everyone thought
it was in their best interest to to
negotiate with a single source have this
brand NFL football which then I guess
the TV networks could sell to
advertisers cuz you know that's that's
their game. So in that sense it was a
good deal for those two powerful sides
you know who then got this through
Congress. I doubt that the fans showed
up for legislative hearings and um you
know in the end the fans didn't pay
directly because those are overtheair
quote unquote free broadcasts but you
know someone picks up the tab for the
advertising so consumers do pay. You had
the congressional hearing in June and of
course politicians on both sides
questioned
>> whether the deals now violate that law.
Do you think they violate that law?
>> Well, in a technical sense, the question
is whether the exemption applies to some
of the current deals. So if it's a deal
that involves broadcasting rights where
the broadcast is paid for by sponsors,
in other words, advertiser supported,
then that comes within the Sports
Broadcasting Act. But the current deals
that the NFL's negotiating are with, you
know, platforms are with streaming
platforms.
pretty hard to see how they're within
the wording of the exemption from the
Sports Broadcasting Act. So, the Sports
Broadcasting Act wouldn't give the NFL
an exemption. They'd have to go straight
under the antitrust laws. And then the
question is whether violates the
antitrust laws. And they got pretty much
socked in the Sunday ticket litigation
uh with a pretty clear binding from a
jury. So the pooling of rights
apparently keeps some of the teams from
negotiating separately to sell their
broadcasting rights to, you know, maybe
other streaming platforms or put them on
YouTube where, you know, you would just,
if you didn't want to get a whole
package, all you wanted to do was follow
the Eagles, you would want to get a
package just of Eagles games. But that
can't happen now. So, they would be in
for some litigation if they don't fall
within that exemption.
>> And why did the judge toss out that
almost $5 billion jury verdict against
the NFL in the Sunday ticket class
action lawsuit?
>> So, there are two answers to this. The
first answer that I uh often would give
in class was it's the zeros.
>> I get that. Now, that's not that's not a
legal answer, but this was probably the
largest plaintiff's verdict, certainly
in any trust, maybe in any plaintiff's
verdict, but $4.7 billion before
trembling is a lot of money. Now, that
can be a reason for knocking down the
amount, but that's not what the judge
did. He disqualified
two of their experts on damages that he
had actually qualified at the trial. So
it seems a little like let me find a
problem with this trial. And
interestingly he did not find a problem
with liability in itself. It was on the
damages I think. So that case has sort
of been has been sitting before the
court of appeals now for a while uh
waiting for a decision. So, um, what, so
the the Justice Department is launching
an investigation into whether the NFL
and the leagues are breaking antitrust
law in their negotiations with
streamers. Is that different from the
Sunday Ticket?
>> I don't know exactly which negotiations
they have in mind. I mean, the Sunday
Ticket litigation involves an agreement
to distribute and also they had it with
Direct TV first and then with YouTube
that if you wanted access to these
games, you would buy it and it would be
streamed on YouTube. Now there are other
they're licensing Netflix, Amazon. So
they're licensing a bunch of different
platforms, but the problem is the same
without regard to which platform it is.
It's the question of, you know, is the
NFL a single entity or are they a group
of however many teams, 32 teams all
coming together and agreeing that
they're going to sell their rights
jointly. pull their rights because each
one has the right, you know, the legal
right, the copyright to the games that
they're involved with. So, they're
pooling all the rights to make a single
product called NFL football. So, is that
coming together is an agreement and
that's section one of the Sherman Act.
Now, whether that's lawful or not is
something that the NFL presumably would
fight. these sports leagues haven't had
great track record in saying, "Gee,
we're coming together for your good."
So, I don't know. Now, when you say the
um the Justice Department is
investigating, the careful approach that
I would suggest is there are reports
that the Justice Department is
investigating. We really don't know what
they're doing. And frankly, I'm not
sure, you know, in looking back at the
antitrust history here, I don't think
the government has necessarily spent its
prosecutorial resources worrying about
competition in professional
sports. They've usually left it to the
people with money in the game, the
owners, fans, consumers, things like
that. So, why are they interested in
this? Uh, why do you think? Well, we
know the answer. The staff report, you
just mentioned the House NHS
subcommittee staff report starts out
with a quote from the president. There's
something very sad when they take
football away from many, many people. He
said that in May and I'm glad that he
has empathy for, you know, the cost of
living.
>> I'm going to refrain from making a
comment on that. Harry, this justice
department has not been, shall we say,
strong on antitrust enforcement. They
walked away from the ticket master live
nation trial and left it to the states
who then won. They also walked away from
the Paramount Warner Brothers Discovery
merger, leaving it to the states to sue.
Do you think they would really sue the
NFL? I don't really see any government
group doing anything here because
they're just going to rub some important
economic interest the wrong way. I mean,
I don't see Congress doing anything. The
House report didn't say, "Oh my god, we
have to repeal this statute." Or, "Oh my
god, we have to amend it." Or, "Oh my
god, we have to do something." No, they
said, "Oh my god, we've got to stand
here and look. We've got to keep watch."
And thank you very much. We're going on
recess. I mean, I don't know, maybe
they've got a big investigation going,
but there are a lot of big mergers going
on in the economy and although private
parties get involved in those
occasionally, that's really fallen to
the government to do something about not
that they're doing a lot about them, but
at least they've got to review them and
they're involved. So they have important
or stuff that demands government
attention maybe more than this because
we have private enforcement and the
private enforcement's been at work,
>> right? So there might be a private
antitrust suit
>> indeed. I mean that's you know that's
what Sunday Ticket litigation was and
you know would not be surprising if
there were.
>> So we shall see. Stay with me. Coming up
next on the Bloomberg Law Show,
Paramount is trying an interesting
tactic to try to get a resolution of the
antitrust case filed by 12 states to
block the Paramount Warner Brothers
Discovery merger. I'm June Grao and
you're listening to Bloomberg. Let's
turn now to the Paramount Warner
Brothers Discovery Merger. So 12 states,
Democratic le states led by California's
attorney general Rob Bont are suing to
block the merger. And David Ellison told
Paramount senior executives
last week that he's prepared to relocate
Paramount and Warner Brothers 2 if the
merger is successful. So, exiting
California, if the California AG doesn't
agree to negotiate a settlement in the
case, what do you think about a threat
like that to a state AG who's suing you?
>> I don't know how that helps him in any
particular way. First of all, it doesn't
really do anything about the litigation.
So, I assume that
California and the other states who have
filed would still have jurisdiction in
one way or the other over this merger
because they've got movie theaters. So,
I don't know how it affects that. So, it
seems just sort of like a political
threat. I guess he's he's threatening to
destroy Hollywood. I in some ways I I
feel like the the discussion of this is
that Ellison and the I don't know who's
advising him. They just don't seem to
want to see the antitrust issues and
they just don't want to see this as a
piece of real litigation. They're
entranced by Bont standing in front of
the Hollywood sign. And you know that's
that's theater, but it's not the
litigation. So it's just hard to know
what he thinks is going to move these
attorneys general, but moving is not
going to be moving these attorneys
general.
>> That only takes out one attorney
general. It doesn't take out the rest of
them.
>> Yeah. So, so then he's going to have Tis
James to negotiate with. Okay. Yeah. The
bottom line problem is this is a case
that as it's written is really hard to
settle. I mean, you either win or lose
this litigation. Maybe he doesn't want
to acknowledge that or something. And to
some extent, he's sort of talking past
litigation, but either they're going to
win or lose this litigation. I don't see
it settling. You know, maybe in the end
they'll just have to restructure this
deal.
>> What about Paramount has agreed to sign
contracts with the major theater chains
guaranteeing they'll release 30 movies a
year in cinemas if they acquire Warner
Brothers. Three-year agreement.
>> Great. So, first of all, this is not the
kind of thing that convinces any
legitimate any trust enforcer of
anything. So, any time you say it's a
three-year contract and any trust
enforcer says, "Okay, what about the
fourth year? You want to merge forever
and you're giving me something for three
years?" Uh, it's not all that good. All
right. Second is, so what's the deal?
You're promising 30 movies. Doesn't say
these are 30 you would not have made.
That was an earlier claim. 30 movies you
promise to distribute in these two major
chains. Great. Come look at my coalition
and ask whether they've got any movie
theaters that are not in these chains
and are not part of this deal. They'll
love this. So great, now you've hooked
up with the two major distributors for
exclusive distribution of your films. I
think I'll throw that in as another
count of any competitive behavior. I
really don't get it. You know, if he
said, "We promise to make deals with all
of the movie theaters in the United
States. You we'll give a 90-day window
that we won't put these movies online.
Anything we make that looks a little
different. I'm not sure what it gets in
particularly, but again, this is I don't
get it.
>> If you don't get it, then it's not
getable." Um,
so does it matter that the UK authority
gave the deal a go-ahad?
>> So I think that's a plus for the deal.
The UK authority was worried about
editorial controls and that's not part
of this complaint. So in some ways I
mean it's sort of ironic. This is not
what the states are complaining about.
They are not complaining about CNN being
run by CBS even though again Ellison
said oh that's what you're upset about
and Bont says not us go you look in the
complaint CNN isn't mentioned to me that
was one of the political things that was
pushing the merger and so it's it's
really ironic that Ellison wants to pin
that on the states the states want to
say not me we are so clever we are not
going there, folks.
>> Well, as you said last time we talked,
it was a well-drawn complaint by a
powerhouse antitrust lawyer that the
state of California hired. So, they
appeared to have made the right choices.
Always a pleasure, Harry. Thanks so
much. That's Professor Harry First of
NYU Law School. And that's it for this
edition of the Bloomberg Law Show.
Remember, you can always get the latest
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www.bloomberg.com/mpodcastlaw.
And remember to tune in to the Bloomberg
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