Congress Critiques NFL’s Antitrust Practices

Congress is scrutinizing the NFL’s expansive television business, with key representatives accusing the league of misusing a long-standing antitrust exemption that results in fans shelling out significant amounts each year for game attendance.

Rep. Scott Fitzgerald, who heads the House Judiciary Committee’s antitrust subcommittee, expressed his concerns on Wednesday, stating that both the NFL and other major sports leagues have deviated from the original intent of the Sports Broadcasting Act of 1961. The Act aimed to ensure that games were broadly accessible on free television.

“After sixty-five years, it’s fair for us to question whether professional sports leagues are honoring their commitments,” Fitzgerald, a Republican from Wisconsin, mentioned during a hearing focused on the law.

He remarked, “In my view, they aren’t, and the sports fans are the ones paying the price.”

NFL Commissioner Roger Goodell chose not to participate in the hearing.

This inquiry follows the release of a report from the Judiciary Committee staff, asserting that the NFL has extended its antitrust exemptions in ways Congress did not foresee when the legislation was enacted.

Fitzgerald highlighted the increasing variety of streaming services that show NFL games, like Amazon Prime Video, Netflix, Peacock, and ESPN, pointing out that fans now often need to juggle multiple subscriptions to keep up with their favorite teams.

FOX Corporation, which owns one of the NFL’s largest broadcast partners, contends that the intent of the Sports Broadcasting Act is to enhance game accessibility via traditional television rather than to diversify viewers across various streaming platforms.

Fox Corp. is affiliated with News Corp., which is the parent company of The Post.

Some Democratic committee members suggested that the Justice Department’s investigation into the NFL’s potentially anticompetitive behavior seems to be aimed at benefiting Fox.

Congressman Jamie Raskin pointed to recent reports indicating that FOX chairman emeritus Rupert Murdoch had personally lobbied the White House about regulating NFL streaming agreements.

“Like this hearing, the Justice Department’s inquiry appears to primarily assist Mr. Murdoch in securing a better broadcast arrangement with Fox,” Raskin observed.

Fitzgerald emphasized the financial burden on consumers who wish to access every NFL game, noting that they might need to spend hundreds annually on various subscriptions. He criticized the league’s distribution approach, lamenting that many fans can’t see their favorite teams without purchasing NFL Sunday Ticket due to market restrictions.

“The Sports Broadcasting Act is meant to facilitate games being shown on free terrestrial television,” he clarified. “It’s not intended to offer a perpetual shield for leagues to coordinate the sale of media rights across all new distribution methods that arise.”

While Fitzgerald acknowledged the NFL’s claim that revenue-sharing bolsters competitive balance among teams, he noted that the league’s financial situation has significantly changed since 1961.

He pointed out that the NFL’s inaugural league-wide television deal was worth $4.65 million per year, whereas a notable media rights package signed in 2021 is valued at about $113 billion over 11 years.

“The company’s disregard for U.S. antitrust laws regarding television contracts enables it to impose inflated prices on consumers that would typically be unlawful,” he stated.

The committee is continuing to evaluate whether the Sports Broadcasting Act is still necessary in its current form and if legislative adjustments are required to enhance access and affordability for sports enthusiasts.

The NFL defended its streaming initiatives as a natural progression in its media strategy, asserting that local fans can still view their home team’s games for free while major national games shift to platforms like Amazon, Netflix, and Peacock.

The league describes streaming as an addition rather than a substitute for broadcast television, believing it will help engage younger audiences while adhering to existing sports broadcasting laws.

The newspaper has reached out for the NFL’s comments on these matters.