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.

Comments

Punishes fans?

[TrollstonButterbeans]

"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".

Re:Punishes fans?

[sjames]

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.

Re:Punishes fans?

[dk20]

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.

Re:Punishes fans?

[Shakrai]

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.

Re:Punishes fans?

[Anonymous Coward]

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.

Comment removed

[account_deleted]

Comment removed based on user account deletion

Wrong Organization

[Anonymous Coward]

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.

Re:Why would anyone go willingly to the stadium?

[Dutch Gun]

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!