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Senators Threaten To Rescind NFL Antitrust Exemption

An anonymous reader writes In response to the FCC's discontinuation of rules that support the NFL's blackout policies, the NFL issued a statement indicating that it would nevertheless continue to enforce its blackout policies through its private contract negotiations with local networks. On Wednesday, however, Senators John McCain (R-AZ) and Richard Blumenthal (D-CT) announced a bill that would rescind the antitrust exemption that enables the NFL to demand blackouts in the first place and formally warned the NFL to abandon blackouts altogether. The antitrust exemption gives sports leagues "legal permission to conduct television-broadcast negotiations in a way that otherwise would have been price collusion" and further allowed the formation of the NFL from two separate leagues. Meanwhile, the NFL enjoys a specialized tax status and direct monetary support from taxpayers to build arenas and stadiums.

40 of 242 comments (clear)

  1. Live by the sword, die by the sword by JoeyRox · · Score: 4, Insightful

    The NFL obviously paid off some group of politicians to achieve their non-profit status. Now a new set of politicians have their hand out for another sweaty envelope filled with cash.

    1. Re: Live by the sword, die by the sword by Anonymous Coward · · Score: 2, Insightful

      Or they already got paid off by the cable companies. Blackouts hurt football fans, true: but they also hurt cable companies.

      What, you didn't think the FCC changed the rules to benefit lowly citizens, did you?!

    2. Re:Live by the sword, die by the sword by DoofusOfDeath · · Score: 4, Funny

      The League of Extraordinary Lobbyists?

    3. Re:Live by the sword, die by the sword by mythosaz · · Score: 4, Informative

      Only the league office is nonprofit. The teams are not. It's not particularly nefarious.

    4. Re:Live by the sword, die by the sword by amiga3D · · Score: 4, Insightful

      When you piss off Congress to the point that they ignore their usual Leftie vs RIghtie tift and decide to work together.....you're fucked.

    5. Re:Live by the sword, die by the sword by Jarik+C-Bol · · Score: 2, Funny

      Because its been stuffed down someones pants. Its a commonly known fact that all bribe money has been grundled.

      --
      I've decided to Diversify my Holdings. I've divided my cash between my left and right pockets, instead of all in one.
    6. Re:Live by the sword, die by the sword by rmdingler · · Score: 5, Informative
      Is there another nonprofit that pays its CEO in excess of $40 million U.S.?

      NFL Commissioner Roger Goodell would be a fool to step down.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    7. Re:Live by the sword, die by the sword by mythosaz · · Score: 2

      His salary is pretty awesome. I'm not sure what the nations top arbitration lawyers get paid - because that's essentially his job. There's a good chance some of them make 7 or even 8 digits.

    8. Re:Live by the sword, die by the sword by Noah+Haders · · Score: 2

      ass pennies!

    9. Re: Live by the sword, die by the sword by mysidia · · Score: 4, Informative

      I hate to disappoint you, but the FCC note says otherwise

      The Federal Communications Commission repealed its sports blackout rules, which prohibited cable and satellite operators from airing any sports event that was blacked out on a local broadcast station. ....

      Elimination of this rule, however, may not end all sports blackouts: sports leagues may choose to continue their private blackout policies through contractual arrangements with programming distributors. ... ...

    10. Re:Live by the sword, die by the sword by mysidia · · Score: 2, Interesting

      Something tells me this Sports Blackout rule change thing is rather sudden and a distraction related to an upcoming election day.....

      Yes, I agree blackouts suck, but at the end of the day NFL/etc have the right to control distribution of their content.

      There are REAL issues our legislators need to address, such as getting rid of software patents, lowering taxes, and cutting spending, that would make me happy.

    11. Re:Live by the sword, die by the sword by Stan92057 · · Score: 4, Insightful

      Yes, I agree blackouts suck, but at the end of the day NFL/etc have the right to control distribution of their content.

      That would be true if they didn't except taxpayer money/tax exemptions/tax breaks but they do and that money comes conditions. I say F the NFL,MBL,NHL owners save up your own dam money and build your own dam stadiums without having to cut school budgets and many other social needs.

      --
      Jack of all trades,master of none
    12. Re:Live by the sword, die by the sword by discovercomics · · Score: 4, Funny

      Actually Blackouts are great. When the Jaguars are blacked out I get to see some real football.

    13. Re:Live by the sword, die by the sword by jimbolauski · · Score: 2

      They do have a right to negotiate how their content is distributed but they are a monopoly and that gives them an unfair advantage to negotiate those terms. Removing the antitrust exemption will allow the government to go after the NFL for these practices, as well as many other practices, rookie pay scale, salary caps, merchandizing, franchising, stadium deals... The NFL is allowed to get away with a lot of things because of this protection. It's all just election cycle dick waving but the NFL should be wary about this gaining traction, if that happens the senators will be forced to use their dicks on the NFL.

      --
      Knowledge = Power
      P= W/t
      t=Money
      Money = Work/Knowledge so the less you know the more you make
    14. Re:Live by the sword, die by the sword by oh_my_080980980 · · Score: 3, Interesting

      Hello ass hat who doesn't understand that football games are subsidized by tax payer money. The argument is that airing a game that does not sell out ticket sales cuts into their profits. The irony is the NFL makes most of it's money through TV contracts making that argument bogus - which is what the FCC found.

    15. Re:Live by the sword, die by the sword by tompaulco · · Score: 2

      If NFL wishes to be able to enforce blackouts, then they need to provide seating for all of the millions of people in that area that would have wanted to watch the game. If the game has sold out, they have not provided adequate seating and they do not get to have a blackout.
      Also, the seating must accommodate all income levels, up to and including having free seats for people who can't afford to go to games and would have watched it for free on their TV.
      I realize this sounds preposterous, but it is meant to. The REAL solution is no blackouts. People weren't going to go to your game anyway, because the ticket prices are so high that the average upper middle class family can't afford to go. Lower your prices and your stadium will fill up. Would you rather sell half your seats at $100 a ticket, or all of your seats at $75 a ticket? Flunk Econ 101 much?
      FYI, I don't attend football games or watch them on TV. I can't be bothered with sports. But an injustice is an injustice.

      --
      If you are not allowed to question your government then the government has answered your question.
    16. Re:Live by the sword, die by the sword by Noah+Haders · · Score: 2

      actually, upright citizens brigade. 4 min video here. kith is good too!

  2. Could they get any more special treatment? by damn_registrars · · Score: 3, Informative

    The NFL also gets nonprofit status on top of this. Could we do more to support them?

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
    1. Re:Could they get any more special treatment? by DoofusOfDeath · · Score: 5, Funny

      The NFL also gets nonprofit status on top of this. Could we do more to support them?

      I dunno. Let's rename them to the Israeli Football League and see what happens.

    2. Re:Could they get any more special treatment? by snsh · · Score: 5, Informative

      Don't confuse "nonprofit" with "charity". While virtually all charities are nonprofits, not all nonprofits are charities.

      The NFL being nonprofit is simply a reflection of how the league is organized and equity and earnings are allocated. In this case, most of the equity in the NFL is held by individual teams and the teams' billionaire owners, and all the earnings are targeted to those same teams. The league acts as just a vehicle for the teams to coordinate functions like marketing, scheduling, and league matters. So when the league gets $10 billion in TV contracts, all the profit is distributed to the teams, which then pay taxes on it. Being structured as a nonprofit, the NFL league has trustees and beneficiaries. It could reincorporate as a for-profit, in which case it would have owners and shareholders. In that case, each team owner could be granted one share. If that were to happen, Paul Allen instead of receiving one tax bill for $100 million for the Seahawks, would get two tax bills for $70 million (for the Seahawks) and $30 million (for the NFL share). From the taxman's point of view, it's pretty much the same.

      There's nothing sneaky about the NFL being a nonprofit. It's just reflects how the league was originally set up.

    3. Re:Could they get any more special treatment? by mythosaz · · Score: 2

      I worked for 4BN dollar nonprofit healthcare organization. Thousands upon thousands of employees. Large swaths of clinicians and technical staff making six-figure salaries.

    4. Re:Could they get any more special treatment? by floodo1 · · Score: 3, Insightful

      You just figured out why "non-profit" is wishy-washy ... people don't work for free and non-profits pay people so at what point are you hiding profits in people's salaries?

      --
      I KUT J00 M4NG!!!
  3. I wish McCain would retire by the_skywise · · Score: 4, Interesting

    This is obviously a payback to Comcast...

    The point of having the blackouts to begin with is AGREED upon by the very cities that McCain is claiming to "protect". It brings foot traffic into the cities and increases sales to nearby restaurants and bars and let's not even go into ensuring that the stadium (which shares profits with the towns) is as near capacity as possible.

    Now, if we want to completely privatize the stadiums I'm all for letting the free market do its thang. But, as McCain oddly points out, these are NOT private entities but basically defacto public partnerships.

    1. Re:I wish McCain would retire by AuMatar · · Score: 5, Insightful

      The point of the blackouts is to extort money from the fans for an overpriced live experience. If they really wanted to sell out every game, they should study basic economics and drop prices. They'll still make ridiculous amounts of money.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    2. Re:I wish McCain would retire by rahvin112 · · Score: 5, Interesting

      Stadium revenue isn't even 5% of the teams earnings anymore. It's so ridiculously small in fact that it's the entire reason cited by the FCC for abolishing the blackout restriction. They could literally give the tickets away and it wouldn't impact earnings in any significant manner.

      The reason they don't cheapen the tickets is that by keeping prices high the owners can use the tickets like money. Court-side tickets are so expensive when they hand the mayor a season's worth of tickets he's bound to whatever the owner wants because they've given him the equivalent of $100K. But because they set the pricing on the seats they can declare the tickets worth less than $5. Those high priced tickets are essentially their own untraceable money that they can print at will.

    3. Re:I wish McCain would retire by PopeRatzo · · Score: 2

      Stadium revenue isn't even 5% of the teams earnings anymore.

      I just learned today that the distribution of the TV money to teams is almost exactly equal to their salary cap. That means, the stadium earning is the profit, along with merchandising deals.

      That means the stadium revenue is actually a very big part of their profit margin.

      Where did you get the 5% figure, by the way?

      --
      You are welcome on my lawn.
    4. Re:I wish McCain would retire by Jaime2 · · Score: 2

      I went to a Monday night Buffalo Bills game with the company's tickets a few years ago. They were decent seats on the goal line, with a bar that was private to the two thousand fans in the section. The tickets cost $275 each..... for a Bills game.

  4. Welcome to the free market by Snotnose · · Score: 5, Insightful

    You charge too much for tickets/parking/hot dogs/beer, people don't go see your games. Threatening to not allow fans who won't bend over and lube up see the game is IMHO seriously bad business practice. Want to entice fans to games? Don't charge $500 per game for a family to go.

    / haven't been to a game in 15 years
    // prefer watching it on TV
    /// except for the damned commercials
    //// then again, when I went to the game they had "commercial timeouts".

    1. Re:Welcome to the free market by amiga3D · · Score: 2

      The ticket isn't the problem. It's all the other expenses involved plus the fucking traffic. They could give me tickets and I wouldn't go.

  5. While we're all fired up with outrage... by argStyopa · · Score: 2, Insightful

    ...since "Redskins" is so harmful and offensive, how about we also ban the word 'nigger' from use in media? Or rescind copyright protection for anything that includes that offensive term.

    I mean, this is all about protecting the feelings of oppressed minorities, right?

    --
    -Styopa
  6. Last blackout date: by rmdingler · · Score: 2
    Last year, two teams, the San Diego Chargers and Buffalo Bills, blacked out local television coverage of a game due to not being sold out 72 hours before kickoff.

    Last blackout for notable teams:

    NY Giants: 1975

    SF 49ers 1981

    Dallas Cowboys 1990

    Chicago Bears 1984

    NE Patriots 1993

    Washington Redskins 1965

    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  7. Re:You underestimate football's popularity by geoskd · · Score: 4, Insightful

    The same could be said about pretty much everything. The things you like are incredibly boring and stupid to a lot of people.

    Yes, but I'm sure that no one spends huge amounts of their tax dollars supporting his boring recreational activities...

    --
    I wish I had a good sig, but all the good ones are copyrighted
  8. Re:You underestimate football's popularity by aardvarkjoe · · Score: 4, Funny

    Football is *REALLY* *REALLY* stupid. I can't get my head around the overwhelming exuberance that people feel over this brief period of watching people chase a ball around a field.

    Tell me, is it more or less stupid than watching a bunch of people dress up in spandex and pretend to fly a spaceship?

    --

    How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
  9. Re:You underestimate football's popularity by ranton · · Score: 4, Informative

    The same could be said about pretty much everything. The things you like are incredibly boring and stupid to a lot of people.

    Yes, but I'm sure that no one spends huge amounts of their tax dollars supporting his boring recreational activities...

    National parks, PBS, National Endowment for the Arts, etc. There are plenty of was the government funds recreational activities.

    According to Grantmakers in the Arts, public funding in the arts comes to about $1.14 billion per year. With the NFL receiving $146 million per year, the NFL is still getting a sizeable amount of money in comparison. But with about 1 in 3 Americans watching at least some football each year, football probably entertains at least as many people as the entire NEA funding does, so perhaps it is money well spent.

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
  10. After the NLF, how about Wall Street? by Required+Snark · · Score: 3, Interesting
    If someone in Congress is willing to stand up to corrupt publicly subsidized major league sports, what about doing something about corrupt publicly subsidized financial institutions that have no actual oversight?

    First, the public subsidy.

    Fed funds, the U.S. overnight inter-bank lending rate, opened 0.08 percent, within the Federal Reserve’s target of zero to 0.25 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

    Fed funds traded from 0.06 percent to 0.3125 percent yesterday, according to data posted on the Federal Reserve Bank of New York’s website. The fed effective, or a volume-weighted average of rates on trades arranged by major brokers, was 0.09 percent.

    This this is on Oct. 2 2014: 0.09% is free money. Who gets this free money: the big banks, B of A, Citi, Chase. Also the top four investment firms which are also banks: #1 Goldman Sachs, #2 Morgan Stanley, #3 JPMorgan Chase, #4 Bank of America Merrill Lynch. Note the overlap, there is no meaningful difference between banks and brokerage firms.

    So what is the result? Why the Fed's Zero Interest Rate Policy Isn't Working.

    But, the Fed’s problem – like Japan a decade ago – is as the International Monetary Fund puts it in its latest financial stability report, the economy is “bifurcated”. Many large American companies, particularly those with global operations, are highly profitable and liquid. Unsurprisingly, for them “bank lending conditions and capital market financing remain easy”, the IMF notes.

    But many small and medium-sized companies – or the entities that typically create jobs inside America, not overseas – find it hard to raise funds. A survey conducted by the International Franchise Association in Washington, for example, notes that whereas in March half of its members expected credit conditions to improve soon, now less than a quarter expect any easing; even as Treasury yields fall.

    And the lack of any effective oversight: Bank of America fined $7.65M over accounting blunder.

    The Wall Street Journal reports the SEC charged BofA with breaking securities laws pertaining to record-keeping and internal controls after the bank disclosed in April that it had discovered a nearly $4 billion accounting error.

    So 7,650,000 divided by 4,000,000,000 = 0.019125 or 1.9125%. Note that this error existed for years, and it meant that BofA saved a huge amount of money by having $4 billion less in capital reserves then was required.

    But to understand what the fine really means it should be compared to the market capitation (total worth on the stock market), which on Oct 2 2014 was $177 billion. So 7,650,000 divided by 117,000,000,000 = 4.32203e-05 = .0000432203 = 0.00432203%. Ohh, that must have really really hurt.

    No one was held accountable. No one lost their job, was demoted, got a bad mark on their permanent record. The stock holders end up paying the fine. That's what it means to have no effective oversight.

    So the NFL is in trouble and B of A gets a fine valued at 0.00432203% of their current net worth. That is why my brain hurts.

    --
    Why is Snark Required?
  11. Re:You underestimate football's popularity by drinkypoo · · Score: 2

    Tell me, is it more or less stupid than watching a bunch of people dress up in spandex and pretend to fly a spaceship?

    It's more stupid, because if people got off of their lazy fat asses and stopped sucking down cheese curds they could play football (or perhaps some sport not designed to cause concussions) themselves. But I can't nip down to the auto dealer and pick up a new Constellation-class.

    I get why someone would be interested in sports, but not how they could be as interested as people get. Especially when they feel like part of the team. Nope, just a customer. Keep buying those Jerseys! The team's lawyers really appreciate it.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  12. Re:Wrong target by drinkypoo · · Score: 2

    The founding fathers did very well in designing what Socrates envisioned as a perfect Government 2,600 years ago.

    Not really. They were well into the modern age of law, lawyers and lies, yet they still wrote in open-ended language like the ICC. That's a completely open back door, they weren't dumb enough not to know it.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  13. Re:that's racist! by ganjadude · · Score: 2

    Im all for taking away the NFL exemptions for blackout. But There is no reason whatsoever to try and force the NFL or the washington redskins to change the team name. It really is pathetic that people out there are making such a big deal about it. If you find it offensive, that is your right. but you dont have a right to NOT be offended by something. Your best bet is to A- not buy any of their stuff and B - root for the other team.

    --
    have you seen my sig? there are many others like it but none that are the same
  14. Re:that's racist! by ganjadude · · Score: 2

    taking their trademark away is not "special treatment" its political targeting. Threatening to take away their non profit status or threatening to do X. If PEOPLE want to boycott, i support that. If people want to force the GOVERNMENT to take action. Thats where I have a problem.

    I am of native descent. I do not find the name offensive in the slightest. There are over 1000 teams named after natives, in the hs - college- majors. the name is not offensive (I would argue chief wahoo from the cleveland indians as a mascot is a little offensive however)

    --
    have you seen my sig? there are many others like it but none that are the same
  15. money by webdragon · · Score: 2

    I wonder who the NFL forgot to bribe this season?