DOJ Investigates NFL for Anticompetitive Practices
The Justice Department is said to be looking into potential anticompetitive behavior by the National Football League (NFL) as concerns grow about the increasing difficulty and cost for fans to watch their favorite teams.
The NFL currently benefits from antitrust protections under the Sports Broadcasting Act of 1961, which permits teams to bundle their media rights for larger television deals.
Recently, FCC Chairman Brendan Kerr mentioned that the NFL might risk losing this exemption if it continues to push live games behind paywalls. Fans, after all, can spend up to $1,500 a year for access to pro football on various streaming platforms.
The specifics of the DOJ’s inquiry aren’t immediately clear, but reports have surfaced regarding its scope. Both the NFL and the Justice Department have yet to respond to requests for comments on the situation.
In February, the FCC sought public feedback on how the move from traditional broadcasting to streaming impacts sports viewers, a sign that a more significant investigation could be on the horizon.
Moreover, Senator Mike Lee from Utah, who chairs the Senate Antitrust Subcommittee, recently reached out to the Justice Department and FTC, urging them to take a closer look at the NFL’s current antitrust protections.
As streaming services rise, a growing number of NFL games are now subscription-based and not available for direct purchase.
A recent survey indicated that over 70% of sports fans believe major sporting events should still be accessible on free television.
Adding to the frustration, streaming services have been increasing their prices; for instance, Netflix upped its monthly fees by at least $1 last month.
Kerr expressed concerns in March, stating that it used to be quite simple for fans to grab a remote and quickly find games. However, that experience has become increasingly tricky, with viewers needing to sign up for multiple services and still having a hard time locating games.
When asked about a potential investigation into the NFL, Kerr confessed he didn’t have any concrete thoughts but hinted that the situation may need attention from the Justice Department, FTC, or Congress.
The NFL argues that streamers have mostly taken over from broadcasters and claim that these services also provide local broadcasts of NFL games.
Current media rights agreements with various streaming platforms, including Disney, Paramount, and Amazon, are projected to bring in over $100 billion in sports rights fees, according to an FCC filing from February.
Additionally, the NFL is reportedly contemplating renegotiating its $2.1 billion yearly contract with CBS, especially after CBS’s parent company was sold in an enormous deal last summer.
If a new deal is reached with CBS, it could pave the way for renegotiations with other media rights holders as well.
