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Television The Media United States

NFL Fights To Save TV Blackout Rule Despite $9 Billion Revenue 216

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

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  • Re:Punishes fans? (Score:5, Interesting)

    by gl4ss ( 559668 ) on Saturday August 09, 2014 @05:47AM (#47636483) Homepage Journal

    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????

  • Wrong Organization (Score:5, Interesting)

    by Anonymous Coward on Saturday August 09, 2014 @05:56AM (#47636501)

    If one were to, you know, look at FCC's Rules on Sports Blackouts [fcc.gov], 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:Punishes fans? (Score:5, Interesting)

    by sjames ( 1099 ) on Saturday August 09, 2014 @06:03AM (#47636517) Homepage Journal

    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.

  • by gnupun ( 752725 ) on Saturday August 09, 2014 @06:37AM (#47636591)

    Whoever gave the NFL monopoly rights (resulting in price gouging tickets) over all football matches in the country is at fault. So the solution is to increase supply by allowing more associations to form alternative football organizations. This competition will likely reduce ticket prices everywhere even if their playing quality won't be as good as the NFL players.

    But forcing the NFL to give their content away for free (i.e. abolishing the blackout rule) will mean fewer people will pay stadium prices and is unethical, unfair and communist.

  • by AK Marc ( 707885 ) on Saturday August 09, 2014 @06:56AM (#47636641)

    But forcing the NFL to give their content away for free (i.e. abolishing the blackout rule)

    Abolishing the blackout rule will do no such thing. The FCC used to enforce a private blackout rule against the NFL (at the NFL's request). Now, the NFL is free to enforce the rule themselves. This is more freedom for the NFL, not less.

    It was spelled out in TFS, you didn't even need to read TFA.

  • by 140Mandak262Jamuna ( 970587 ) on Saturday August 09, 2014 @07:56AM (#47636763) Journal
    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.

  • Re:Punishes fans? (Score:5, Interesting)

    by the_other_chewey ( 1119125 ) on Saturday August 09, 2014 @08:53AM (#47636917)

    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).

  • by radicimo ( 33693 ) on Saturday August 09, 2014 @09:47AM (#47637077) Homepage

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

    Yes, blame the politicians. To paraphrase Pogo, I have met the politician and he is us.

    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.

    Damn straight Skippy!

    http://www.sportsonearth.com/a... [sportsonearth.com]

    That's the heart of the problem. Fsck the brain-dramaged NFL oligarchy. We the public have given them too much, and the real question is can we revoke what has been given? Do the lawyers and politicians really speak for the public good. Do they represent us (or at least some craven manifestation of our collective unconscious?)

    There is a subtle shift in power taking place within the sports world right now as evidenced by the lawsuits vs NCAA and NFL by players and former players, the ouster of Donald Sterling, and any number of other more minor incidents. Those are taking place between labor and management in the courts, and in public opinion, in as much as anyone is paying attention, which most probably do not as long as they get their sports fix on a metered dose.

  • Re:Punishes fans? (Score:5, Interesting)

    by pepty ( 1976012 ) on Saturday August 09, 2014 @11:00AM (#47637333)
    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.
  • by HockeyPuck ( 141947 ) on Saturday August 09, 2014 @11:54AM (#47637491)

    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.

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