Congress takes aim at NFL’s antitrust exemption – Business News
Congress is taking aim at the NFL’s profitable tv empire, with a key House lawmaker accusing the league of abusing a decades-old antitrust exemption that’s forcing followers to shell out a whole bunch of {dollars} a yr to watch video games.
Rep. Scott Fitzgerald, chair of the House Judiciary Committee’s antitrust subcommittee, stated Wednesday that the NFL and different skilled sports activities leagues have strayed removed from the unique objective of the Sports Broadcasting Act of 1961, which was supposed to make video games extensively accessible via free TV.
“Sixty five years later, however, it is fair for this body to ask whether the professional sports leagues have kept up their end of the bargain,” Fitzgerald, a Wisconsin Republican, stated during a listening to analyzing the law.
A high lawmaker stated the NFL has stretched a decades-old antitrust exemption past what Congress supposed, forcing followers to pay more to watch video games. Bill Kostroun/New York Post
“In my opinion, they have not, and sports fans are paying the price because of it.”
The listening to follows the release of a Judiciary Committee workers report that argues the NFL has stretched its antitrust exemption past what Congress envisioned when it handed the laws.
Fitzgerald pointed to the growing quantity of streaming platforms carrying NFL video games, together with Amazon Prime Video, Netflix, Peacock and ESPN, saying followers are more and more being pressured to juggle a number of subscriptions to observe their favourite groups.
Fox Corp., whose Fox community stays one of the NFL’s largest over-the-air companions, has argued that the SBA was supposed to maximise entry to video games via broadcast tv slightly than splinter audiences throughout a growing quantity of streaming platforms.
Fox Corp is sister company to The Post’s company mother or father News Corp.
A high Democrat on the panel stated the DOJ investigation into whether or not the NFL has engaged in anticompetitive ways seems aimed at serving to Fox Corp.
Rep. Jamie Raskin cited a current report that Fox chairman emeritus Rupert Murdoch personally lobbied President Trump at a White House dinner to crack down on the NFL streaming offers.
“The DOJ’s investigation, like this hearing, appear to be all about helping Mr. Murdoch get a better broadcast deal for Fox,” the Maryland Dem stated.
NFL Commissioner Roger Goodell faces renewed scrutiny from House lawmakers over the league’s broadcasting and streaming agreements. AP Photo/John Raoux
The Post has sought remark from Fox Corp.
Fitzgerald famous that customers who need entry to all NFL video games can spend a whole bunch of {dollars} a yr on subscriptions and packages. He additionally criticized the league’s distribution model, arguing that many followers are unable to watch their favourite groups in sure markets with out buying NFL Sunday Ticket.
“The Sports Broadcasting Act was designed to facilitate the distribution of games through free over-the-air television,” he stated. “It was not intended to provide a perpetual shield for leagues to coordinate the sale of media rights across every new technology and distribution platform that emerges.”
Fitzgerald acknowledged the NFL’s argument that revenue-sharing preparations help protect aggressive steadiness amongst groups, however stated the league is no longer within the precarious financial place it confronted back in 1961.
House lawmakers say followers are paying the price as NFL video games change into scattered throughout broadcast, cable and streaming platforms. AP
Fitzgerald famous that the NFL’s first league-wide tv settlement was value $4.65 million yearly. By comparability, the league signed an 11-year media rights bundle value roughly $113 billion in 2021.
“Because they do not follow America’s antitrust laws for television agreements, they can charge consumers inflated prices that would otherwise be illegal,” the lawmaker stated.
The committee is constant to look at whether or not the SBA stays crucial in its present type and whether or not legislative reforms are needed to improve entry and affordability for sports activities followers.
The NFL has defended its streaming push as a lawful evolution of its media strategy, arguing that native followers nonetheless get free over-the-air entry to home-team video games at the same time as more national and special-event matchups transfer to platforms equivalent to Amazon, Netflix and Peacock.
The league has framed streaming as a complement to broadcast TV slightly than a alternative, saying the offers help attain youthful and cord-cutting viewers whereas staying within the Sports Broadcasting Act’s antitrust framework.
The Post has sought remark from the NFL.
