NFL Must End TV Blackouts or Lose Its Antitrust Exemption

CommanderFrank

CommanderFrank

Cat Can't Scratch It
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This week, Sen. John McCain (R-AZ) and Sen. Richard Blumenthal (D-CT) warned NFL Commissioner Roger Goodell that unless the NFL amends its policy on televised game blackouts, the league would face Congress removing antitrust exemptions, special tax status and other benefits afforded to the NFL.

The NFL issued a statement after the FCC's vote on Tuesday, saying it would make no change to its policies. The NFL praised itself for being "the only sports league that televises every one of its games on free, over-the-air television." However, the NFL prevents games from being shown on local TV when tickets don't sell out.
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The NFL sure reaps a lot of profits for being a nonprofit organization.
 
Antitrust, special tax status, other benefits? Sounds like the NFL is on the "too big to fail" list.
 
Super-D said:
The NFL sure reaps a lot of profits for being a nonprofit organization.
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The NFL is just the organization that oversees the league. They are actually "not for profit", which is different. Their money comes from the teams. The teams already pay taxes on their income just like anyone else. So the money going to the NFL itself is already taxed.

Also, even as a not-for-profit, they still pay payroll taxes.
 
MacDad said:
The NFL is just the organization that oversees the league. They are actually "not for profit", which is different. Their money comes from the teams.
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Just like FIFA the the Olympic Committee but it doesn't stop them from making a ton of money and getting special privileges.
 
"the only sports league that televises every one of its games on free, over-the-air television."
Do have to say, that I do appreciate this much more so than what baseball has done this year with the playoffs, since I don't get FoxSports1, I don't get to watch the playoffs. The only upside to that... I really don't like baseball at all :) But the point is the same, it's a fucking playoffs, and you want to segregate a portion of your viewing public?

And yeah the NFL has a "tax exempt" status, but only in the way that the marketing department for a company doesn't pay taxes whenever the company decides to push money their way. All money is taxed, it's just that the organizing body (aka the "NFL") is a separate entity, as are all the teams.
 
MacDad said:
The NFL is just the organization that oversees the league. They are actually "not for profit", which is different. Their money comes from the teams. The teams already pay taxes on their income just like anyone else. So the money going to the NFL itself is already taxed.

Also, even as a not-for-profit, they still pay payroll taxes.
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Yeah, a classic shell game.
 
MacDad said:
The NFL is just the organization that oversees the league. They are actually "not for profit", which is different. Their money comes from the teams. The teams already pay taxes on their income just like anyone else. So the money going to the NFL itself is already taxed.

Also, even as a not-for-profit, they still pay payroll taxes.
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Someone has been drinking the Kool-Aid.

Corporations are taxed on profits. This means revenue minus business expenses. The teams finance the so called "non-profit" NFL which is a business expense for them therefore that money hasn't already been taxed. On top of that anyone that believes the NFL really doesn't make a profit, well I digress....
 
this is what our legislators are concerning themselves with?
 
Antitrust law actually does apply to the NFL. That's the reason no games are played/broadcast on Fridays/Saturdays from September-late December; it is forbidden by antitrust law. Specifically: USC 15 sections 1291-1295.
 
Knight_of_BAAWA said:
Antitrust law actually does apply to the NFL. That's the reason no games are played/broadcast on Fridays/Saturdays from September-late December; it is forbidden by antitrust law. Specifically: USC 15 sections 1291-1295.
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Learn something new everyday... All this time I thought they were just being nice and not wanting to complete with their AAA league, aka college football. That Thursday night football did add some evidence do that, even though Thursday is the dumbest night to have football unless it's Thanksgiving, then that's tradition :)
 
Are the antitrust exemptions in the Sports Broadcasting Act generic, or is the NFL specifically exempted in some way? I'm trying to understand why the NFL being singled out among pro sports. Everyone from MLB to the NHL does the same thing, and the existing rules (local blackout only for games that sell out <85% at stadiums) seem reasonable imo.
 
MacDad said:
The NFL is just the organization that oversees the league. They are actually "not for profit", which is different.
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Non-profits are a total joke anyway. They can award themselves $5 million a year salaries, private jets, lavish cocaine hooker parties, and then at the end of the day say they spent all the money and are not for profit.

Its a scam and we shouldn't tolerate it.
 
Ducman69 said:
Non-profits are a total joke anyway. They can award themselves $5 million a year salaries, private jets, lavish cocaine hooker parties, and then at the end of the day say they spent all the money and are not for profit.

Its a scam and we shouldn't tolerate it.
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Yup. Yikes.
 
JeffDC said:
Are the antitrust exemptions in the Sports Broadcasting Act generic, or is the NFL specifically exempted in some way? I'm trying to understand why the NFL being singled out among pro sports. Everyone from MLB to the NHL does the same thing, and the existing rules (local blackout only for games that sell out <85% at stadiums) seem reasonable imo.
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Um NO other pro sports in the US does that. NFL was only sport that got away with if game isn't sold out 72hours before game time its blacked out in an area like 75miles around the stadium. NHL, MLB, NBA, etc none of them do that only NFL did it.
 
Arbit3r said:
Um NO other pro sports in the US does that. NFL was only sport that got away with if game isn't sold out 72hours before game time its blacked out in an area like 75miles around the stadium. NHL, MLB, NBA, etc none of them do that only NFL did it.
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Thanks. Here's the info I wanted to know, in case anyone else does.
 
I thought blackouts numbers were up to the discretion of the team, i.e. not every team needs 100% sales numbers. Hell looking at just about any game in the NFL (even the high profile ones) you will see quite a few empty seats, way too many for me to think that people just couldn't go, or are up at the bathroom
 
The NFL is in a tight spot. The blackout policy is in place to protect owners and the non-profit status protects them self.
 
.. but yes, the NFL does receive a lot of public assistance and the people they take money from (to build stadiums and not pay taxes) are the ones being blacked out.

So I think McCain may be right that they drop the policy.

My question is, is there more money for the NFL to make on broadcast channels or cable channels? I think more people watch broadcast channels so the revenue would be higher.
 
JeffDC said:
Are the antitrust exemptions in the Sports Broadcasting Act generic, or is the NFL specifically exempted in some way? I'm trying to understand why the NFL being singled out among pro sports. Everyone from MLB to the NHL does the same thing, and the existing rules (local blackout only for games that sell out <85% at stadiums) seem reasonable imo.
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I think MLB is exempt as well, but the NFL is almost-specifically mentioned in the aforementioned US Code. And it agreed to that in exchange for not being held to the rest of antitrust (the reason for the sections was the NCAA not wanting competition).
 
Blackouts are bullshit plain and simple.

Fuck the NFL. Those fuckers make money hand over fist.

I like football but fuck Roger Goodell and the NFL.
 
MajorDomo said:
This week, Sen. John McCain (R-AZ) and Sen. Richard Blumenthal (D-CT) warned NFL Commissioner Roger Goodell that unless the NFL amends its policy on televised game blackouts, the league would face Congress removing antitrust exemptions, special tax status and other benefits afforded to the NFL.
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Not a surprise. Consumers hate the blackouts, regardless of their politics. If games aren't selling out locally, lower the ticket prices. Do teams really make most of their money from ticket sales? The Cowboys 16% of their revenue for bodies in the stadium (source: http://www.forbes.com/teams/dallas-cowboys/)

If a team doesn't sellout, they can simply lower ticket prices (which are generally very high). It's even worse when consumers pay big bucks for NFL Sunday Ticket and the game they most want to see can't be seen, because they live near the team.
 
Teams make the majority of their money on (local) television contracts and merchandise, ticket sales are a drop in the bucket. Teams make more on you in the stadium buying overpriced concessions and inflated apparel that you could have got at Walmart at a tenth of the cost so you can have a "memory" of the event.

I went to the new Browns stadium in Cleveland and it was the most miserable experience in my life.
For starters, I wear a size 13eee shoe, and not even HALF of my shoe would fit on the stairs going up or down, I felt like A was going to tumble the entire time. THEN when I got to my seat they were sandwiched so close together my knees went past the head of the guy in front of me, the whole time all I heard was "Dude, can you move to another seat?" Not what you want to hear in a packed stadium with nowhere to go. After getting an usher's permission at half time (Browns were getting blown out, people were leaving), I moved to a row with an empty in front of me.
But yeah, I'm NEVER going to a game again, its a joke.
 
nilepez said:
Not a surprise. Consumers hate the blackouts, regardless of their politics. If games aren't selling out locally, lower the ticket prices. Do teams really make most of their money from ticket sales? The Cowboys 16% of their revenue for bodies in the stadium (source: http://www.forbes.com/teams/dallas-cowboys/)

If a team doesn't sellout, they can simply lower ticket prices (which are generally very high). It's even worse when consumers pay big bucks for NFL Sunday Ticket and the game they most want to see can't be seen, because they live near the team.
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The problem is that the secondary market probably disrupts the primary market quite a bit, you get someone with season tickets who doesn't want to go to every game, although they are forced to pay for every game's ticket at full price they'll turn to something like StubHub and sell their ticket at a discount (for games that will not sell out, like pre-season) meanwhile you can see a preseason game with the Cowboys for a few bucks, while the stadium is still charging $65 for the same ticket (just as an extreme example)
 
fdiaz78 said:
So congress has time for this crap but can't pass a balanced budget?
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Because they can't agree on a single damn thing. Not to mention that the word compromise is unknown... Yet as bad as they ALL are we'll send 90% of all current representatives back to the House and the same with the 1/3rd of the Senate that is up for reelection.
 
sfsuphysics said:
To be fair congress can never pass a balanced budget :)
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They did in the late 90's/2000. And a few times in the past. With the right so dead set on never compromising (the left can be bad too, but currently the conservative wing is the less flexible), nothing gets done.

There was a time when conservatives were willing to raise taxes to keep the deficit low. Now they just want to cut taxes and pretend that will limit spending, but it doesn't. And if they controlled all 3 branches of congress, they'd spend like drunken sailors at a whorehouse for as long as they could.
 
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