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NFL Fights To Save TV Blackout Rule Despite $9 Billion Revenue

An anonymous reader writes with word of new movement on an old front: namely, the rule that makes it hard for sports fans to see coverage of local teams. The 39-year-old blackout rule basically "prevents games from being televised locally when tickets remain unsold." The Federal Communications Commission (FCC), in response to a 2011 petition by consumers, has decided to consider abolishing this rule. The National Football League (NFL) has of course objected, claiming that the rule allows it to keep airing their games on free TV. If that were to change and they would have to move to cable, they argue, the "result would represent a substantial loss of consumer welfare." In their petition to the FCC, consumers point out that the NFL charges "exorbitant prices for tickets" which results in lower attendance. The blackout rule, they claim, therefore punishes fans by preventing them from watching the game if the NFL can't sell enough stadium tickets. NFL yearly profits reportedly number in the billions. Even if the FCC supports the petition, however, sports leagues can and probably will privately negotiate blackouts to boost their revenue.

21 of 216 comments (clear)

  1. Punishes fans? by TrollstonButterbeans · · Score: 5, Insightful

    "NFL charges exorbitant prices for tickets" ...

    " punishes fans by preventing them from watching the game if the NFL can't sell enough stadium tickets"

    "NFL yearly profits reportedly number in the billions.".

    Sounds like the obvious answer is "Then don't watch it."

    But I can see this article isn't about rationality, but about "I want to watch it" and "I want it to be free" and "I want it available under my terms".

    --
    Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
    1. Re:Punishes fans? by gl4ss · · Score: 4, Interesting

      I don't understand how the rule that prevents airing the matches keeps them on free air channels?

      I mean, if NFL wants, they sure as fuck can put on a rule that causes them to be always available for broadcasting? and the other way too for that matter.

      I mean, the "if tickets not sold then no show" as a rule sure sounds like it only makes it harder for them to show the matches if they want.

      furthermore, WHAT THE FUCKING KIND OF RULE IS THAT!?!? shouldn't the organizer of the event -any event- get to choose if it can be broadcast or not, since aren't they in control of the copyright of the recording????

      --
      world was created 5 seconds before this post as it is.
    2. Re:Punishes fans? by sjames · · Score: 5, Interesting

      There is a very high probability that the team has received many valuable considerations from the local government including having the stadium built for them. It's not so unreasonable that the local citizens might expect a return on the investment.

    3. Re:Punishes fans? by dk20 · · Score: 5, Insightful

      They can also do what Toronto, Ontario did with its skydome.
      Taxpayer funded cost of construction: $570 million
      Sale price to private corporations: $151 million

      So yeah, i can see how the taxpayers might want something after taking a $400 million dollar loss. The kicker is this is not the only "stadium" for such a small city.

      A lot of sports is all about taxpayer subsidies and huge player salaries.

    4. Re:Punishes fans? by Gogo0 · · Score: 4, Insightful

      pro football is like smoking crack, only harder to kick.

      the NFL hates its fans with a *passion*, as evident by their business practices, and they punish us every way they can find (new terrible red zone ads, EA madden exclusivity, directv/verizon exclusivity, ~$90 preseason game ticket prices, $200 streaming games only outside the USA [NHL is $50, MLB similar -both available in the USA], etc).

      if anyone (myself included) *could* quit enjoying seeing their team play, we would have already, and the NFL knows. the NFL is a shit organization, but we the fans have made it clear that we will put up with whatever bullshit they throw at us.

      anyway, i dont think its unreasonable to want to be able to watch a game on tv. watching at home and attending a game are entirely different things. no one says 'lets not go to the game, it's on tv".
      its very telling that the NFL needs a *law* to force people to go to games and pay their exhorbitant ticket costs.

    5. Re:Punishes fans? by Sarius64 · · Score: 4, Insightful

      Not to mention the billions in free taxes from the feds, state, county, and city governments. Because billionaires have it so hard.

    6. Re:Punishes fans? by Shakrai · · Score: 5, Informative

      Toronto is a small city? It's the largest city in Canada and the 4th largest in North America, after Mexico City, New York, and Los Angeles.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    7. Re:Punishes fans? by ShanghaiBill · · Score: 4, Informative

      Yes. And the best thing for them have done would have been to buy the team and make it a municipal asset in full or in part.

      Green Bay, Wisconsin has done exactly that. Their football team is the only community owned professional sports team in the US.

    8. Re:Punishes fans? by Anonymous Coward · · Score: 5, Insightful

      No, you can't claim that the NFL is just doing business and the customers should take it or leave it. The fact is that the NFL is the beneficiary of some rather unique laws, lobbied just for them. Take away their tax breaks. Take away their stadiums paid for by government money. Take away their excessive copyright laws. And then you can make your laissez faire claims.

    9. Re:Punishes fans? by Anonymous Coward · · Score: 4, Insightful

      So just stop watching it, then.

      I didn't like the way a TV show I was watching from the start was going, I got angry about it, how it recycled plots and stole them from other shows, the stupid dialogue, the ridiculous way the story arc went and how the fans were being ignored, so I stopped watching it.

      Took a few weeks to get over it - I realised after the first week that I was only watching it out of habit, or ritual. I couldn't think of anything else to do so I'd just turn it on. Once I got through that, I realised something:

      I didn't really give a shit about it. It just wasn't that important.

      I think you'll find the same, if you just give it up. You'll struggle for the first game or two, then it'll get easier, than you'll realise that it just doesn't matter.

      Because it doesn't matter.

    10. Re:Punishes fans? by the_other_chewey · · Score: 4, Interesting

      its very telling that the NFL needs a *law* to force people to go to games and pay their exhorbitant ticket costs.

      It's the law forcing a limiting of the Blackout Rule on the NFL, not
      the NFL being forced to use the Blackout Rule by the law.

      The NFL doen't even care about people coming to the stadiums:
      The teams are allowed to purchase remaining seats to "unlock"
      the broadcasting for the price of the league's share of the ticket sales.

      So it's the NFL trying to force maximum revenue per game (for the NFL, that is).

    11. Re:Punishes fans? by pepty · · Score: 4, Interesting

      And the leagues banned this type of ownership (corporate, both public and private) to keep it from happening again. A team has to be owned by a maximum of 32 people (not corporations), one of which must own at least 30% of the team.

  2. Why would anyone go willingly to the stadium? by Opportunist · · Score: 4, Insightful

    That's the main problem you have there. At home, on the screen, you simply and plainly get the better experience. Now, I'm no expert on sports, but it doesn't take an avid watcher to notice the immediate advantage of sitting at home over going to the game.

    1. Cheap drink & snacks. No need to explain. You understand it even if you don't care about sports, you have the same deal with movies.
    2. Better view. Even if you have a front row seat right at the 50 yards sideline, you can't compete with a dozen cameras showing the game from every possible angle. You get an overview to see how the play unfolded, you get a closeup of the catch, hell, even the referees don't have that kind of luxury overview you get on TV.
    3. No hassle getting to or from the game.
    4. If the game stinks, just flip over to some movie and keep flipping back now and then to see whether it improves.
    5. And of course you can do something while watching your game on TV. Personally I can't really concentrate on watching something if it's fractured like football or, worse, baseball, where moments of action are interrupted by long times of boredom for too long without getting incredibly bored.

    So, tell me again, why the fuck should I go to the stadium, pay a fortune for a ticket where I'll then sit next to Bob who had onions for lunch, somewhere about a mile from the field where the players look like they are sprites of a badly done C64 game?

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:Why would anyone go willingly to the stadium? by Dutch+Gun · · Score: 5, Insightful

      At home, on the screen, you simply and plainly get the better experience.

      From a purely logical or intellectual viewpoint, you're absolutely correct. But watching sports isn't an intellectual exercise, and I don't mean that in a disparaging way.

      Have you ever been to a live concert? A magic show? A broadway musical or play? How about a technical conference or lecture where you listen to someone really interesting speaking? There's nothing at those events that, objectively speaking, couldn't be better delivered to your home entertainment system in the comfort and safety in your own home.

      Human beings are social creatures, and enjoy experiencing interesting and entertaining events while in the company of others. For a sports event, sharing the thrill of possible victory or defeat with thousands of other fans around you is also about sharing in a certain camaraderie. Unless you're a fan yourself and already enjoy the game, or if you really hate crowds in general, it's probably hard to understand the appeal.

      I can strike up a friendly conversation with anyone wearing my home team colors and feel pretty confident that we have something in common to talk about. When my team comes back from near-certain defeat and wins the game in overtime, I'm in my seat, shouting and cheering, and giving high-fives to other like-minded fans around me whether I know them or not. The roar of the crowd is a visceral experience, adding to the excitement and helping to create an experience that's very different than watching the game from home. It feels more like you're a bit closer to participating in the game itself, because you know your home team can hear you cheering for them - not individually, of course, but certainly collectively.

      Football season is almost here. This 12 is ready. Go Hawks!

      --
      Irony: Agile development has too much intertia to be abandoned now.
    2. Re:Why would anyone go willingly to the stadium? by Afty0r · · Score: 4, Insightful

      You are clearly one of a VERY small minority of people who prefer to NOT socialise.

      Most of the rest of us enjoy doing things in groups, it's a primal thing and appeals to our base urges, especially if we get to be all tribal about it.

  3. Comment removed by account_deleted · · Score: 5, Insightful

    Comment removed based on user account deletion

  4. Wrong Organization by Anonymous Coward · · Score: 5, Interesting

    If one were to, you know, look at FCC's Rules on Sports Blackouts, you'd notice that basically the only blackouts the FCC requires involving sports involve exclusive broadcast rights on broadcast TV requiring blackouts on cable/satellite (and even then:

    Sports programming that originates on broadcast television (programming that originates on cable or satellite channels or systems is not affected); and
    Cable systems with 1,000 or more subscribers, and satellite television systems with 1,000 or more subscribers within a certain zip code.

    )

    The short and long of it is that (1) the NFL has cornered the market on getting local governments to back stadium construction through loans and tax breaks and (2) cornered the market on exclusive broadcasting rights to effectively ban local broadcasts to allow ridiculous ticket prices for anyone local to actually watch the game--this latter part, btw, is likely what the local government wants anyways as it removes a lot of the plebs and grants a higher tax revenue when the tax breaks end (or are reduced).

    Going and whining to the FCC as if they're responsible entirely misses the point except in so far as the FCC may have some sort of obligation to demand that public broadcasts be used to allow local people to watch games they're effectively subsidizing in multiple ways (tax breaks for the stadium and broadcast rights for the tv stations). Yet, I think that too much of a stretch, personally, given that it's quite clear that the FCC's job is not to be some sort of universal enforcer on tv broadcasters. This, like the issue with Verizon's throttling, are issues the FTC should be taken to task to deal with as clearly the real issue in both cases are ones of fair trade.

  5. Government paid for stadiums by Firethorn · · Score: 4, Insightful

    I happen to agree with you. We're downright illogical about our sports, but given the number of government built stadiums out there that sports teams normally get dedicated access to for next to nothing, it's not out of line to expect some concessions.

    --
    I don't read AC A human right
  6. "a substantial loss of consumer welfare" by bistromath007 · · Score: 4, Funny

    I might never stop laughing.

  7. No it does not make 9 billion profit. by 140Mandak262Jamuna · · Score: 4, Interesting
    NFL is a non-profit organization. It does not make any profit. What you call 9 billion dollar profit, might look like profit, walk like profit, bark like profit, smell like profit, bite like profit. But it is NOT profit. IRS will not get a dime.

    America has been consistently electing politicians who promise to cut taxes. And they have been dutifully cutting the taxes for the richest people (and corporations which are people). But corporations are special citizens who can claim a non-profit status and exempt themselves from taxation. It is very expensive to create a new people-citizen. But corporate citizen is just a 25$ filing fee, no nine month waiting period, no active cooperation between two different people required. Corporation-people don't go to jail. They can be killed when it is suitable without any penalty. But corporation-people can be enslaved by other corporation-people and people-people. Corporation-people can have religious beliefs when it is profitable to have them. But they don't have religious responsibilities .

    Don't blame the politicians. Blame ourselves, collectively.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  8. Blackouts in the Bay Area.. by HockeyPuck · · Score: 4, Interesting

    I live in the SanFrancisco area, home to two teams (niners and raiders)... and the blackout rules are killing me...

    *There's two primary time slots on Sundays when the majority of teams play (not including the Sunday night game).
    *The NFL will never schedule both teams to play at the same time.
    *If the game isn't sold out, it's not televised.
    *The NFL will not allow another game to be shown on TV if a local game is blacked out.

    If I lived in Nebraska, I would have the option of watching four games (2 early games and 2 later games). However, I've had more than enough Sunday's whereby both the niners and the raiders didn't sell enough tickets and thus BOTH slots were blacked out.

    I'm not going to watch a game at the Oakland Colesium and having visited the new Levis Stadium, I won't be going there either (transportation is a disaster). They'd get my advertising dollars by watching them on TV tho.