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Why does the nfl still blackout games in this day and age


Kvoethe

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The only time i agree with a politician. And i had no idea the NFL is a non profit....

 

Editor's note: Senator John McCain is a Republican representing Arizona and Senator Richard Blumenthal is a Democrat representing Connecticut. The opinions expressed in this commentary are theirs.

(CNN) -- This weekend marks the kickoff of what millions of Americans have been looking forward to since the final minutes of Seattle's Super Bowl victory in early February -- another football season.

Players, primed and ready, will take to the field, inspired to make their mark on the new season. Loyal fans, football-starved from a long offseason, will tune in to cheer on their hometown teams. No one can avoid the nervous energy that defines the start of a new season.

But one thing fans should never have to worry about is whether or not this week's game will be impossible to watch due to a TV blackout.

It is unfortunate that we will kick off yet another football season with federal rules on the books that serve only to protect the leagues at the expense of sports fans.

 

 

One of these rules is the Federal Communications Commission's (FCC) sports blackout rule, which prohibits a cable or satellite company from carrying a game that is blacked-out within the local broadcast area. While this affects leagues beyond the NFL, it occurs most often when, under the NFL's rules, a home game does not sell out at least 72 hours before kickoff.

Under the FCC's sports blackout rule, cable and satellite companies are unable to televise that game in the local broadcast market, leaving local fans in the dark.

While the blackout rule was originally cast as a way to encourage ticket sales, this rationale is no longer supported by the facts. The FCC is aware of this and voted unanimously last December to propose elimination of the rule, acknowledging that the record does not support the argument that blackouts increase ticket sales and that "the sports blackout rules have become obsolete."

The comment period for this change concluded long ago, and the well-developed record clearly supports erasing the blackout rule from the books. But we are still waiting on the commission to cast a final vote.

 

We wrote FCC Commissioner Tom Wheeler in June, urging him to bring the rule to a final vote before the start of the new NFL season and he indicated the FCC will do so by "early fall."

That time has now come, another season is upon us, and there is no reason to further delay. This is not a partisan issue, as a clear majority of FCC members from both political parties supports striking the rule. In an increasingly divided government, it would be a breath of fresh air for Republican and Democratic FCC Commissioners to unite with football fans and vote to spike this outdated regulation.

It is not surprising that since the vote last December, the NFL has launched an expensive lobbying and public relations campaign aimed at ensuring the blackout rule stays on the books. Their efforts have obscured the facts, arguing erroneously that the sports blackout rule has worked since its inception nearly 40 years ago. Unfortunately for the league, facts are stubborn things. Research by sports economists indicates there is no link between the blackout rule and stadium attendance.

The league has even threatened to move games from free broadcast TV to pay services like cable if the FCC carries through with the vote. This last-minute pitch is all for the purpose of protecting the NFL's bottom line and preserving the status quo, which netted the league over $9 billion in revenues last year.

 

Further, the NFL enjoys nonprofit status -- meaning it pays no income tax -- and many games are played in stadiums financed in large part with taxpayer dollars. Federal regulations shouldn't favor multi-billion dollar sports leagues over consumers, especially when those leagues have benefited so greatly from those very same taxpayers and sports fans.

As the new season begins, we hope the FCC will do the right thing, and immediately vote to eliminate this outdated anti-consumer rule. At a time when Washington doesn't seem capable of achieving much, making sure fans aren't left in the dark this season could count as a real accomplishment, one deserving a cheer from the American people.

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I knew the NFL was monopoly exempt, but did not know it was a non-profit.

 

As the association that governs a collection of for profit teams, it fits the legal definition, if not the spirit of the non-profit tax statutes. The same is true of any of the thousands of local Chambers of Commerce across the country.

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  • 4 weeks later...

Fcc lifts NFL Blackouts

The Federal Communications Commission voted 5-0 to eliminate its sports blackout rules Tuesday, but the NFL said that it doesn't plan to change the way its broadcasts are handled.

 

NFL Blackouts Lifted By Decade

The NFL set a record with a 99 percent sellout rate as only two games in 256 were blacked out in 2013. The percentages of blackouts lifted by decade:

 

Decade Pct. lifted

2000s 92

1990s 69

1980s 60

1970s 50

"NFL teams have made significant efforts in recent years to minimize blackouts," the NFL responded in a statement Tuesday. "The NFL is the only sports league that televises every one of its games on free, over-the-air television. The FCC's decision will not change that commitment for the foreseeable future."

 

The FCC says the rule was outdated and unnecessary. It was established in 1976 to prevent cable and satellite operators from airing sports events that were blacked out on local TV and to boost ticket sales.

 

FCC chairman Tom Wheeler says NFL teams have hidden behind the rule for 40 years, but no more.

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I knew the NFL was monopoly exempt, but did not know it was a non-profit.

 

As the association that governs a collection of for profit teams, it fits the legal definition, if not the spirit of the non-profit tax statutes. The same is true of any of the thousands of local Chambers of Commerce across the country.

 

 

Exactly how it works Tour. The NFL itself is technically non-profit- but so are all the other major sports franchises. However, the subsidiaries, NFL properties, NFL Films, the Cleveland Browns, etc- are not. Each franchise kicks in $6 million to the league office every year- to pay Goodell's (and his cronies) obscene salaries, and rent on the nice Manhattan digs. Nice article on this in SI recently. So yeah- the NFL itself only clears a few million in profit- and the subsidiaries & franchises rake in billions of revenue- but they do pay taxes on those profits.

 

Do a little digging- and a lot of the other "non profits" like the PGA, and ATP tennis would take a major hit if they legislate away non profit status for sports associations.

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