NFL makes goal line stand in epic blackout battle with Senate

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Kansas City Chiefs

Packed houses at Kansas City Chiefs games in Arrowhead Stadium have made the blackout rule a moot point in the area.

James Dornbrook

Reporter- Kansas City Business Journal

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The U.S. Senate Judiciary Committee held hearings Thursday to encourage the National Football League to eliminate its practice of not broadcasting local teams on local TV if games don't sell out 72 hours in advance. The committee threatened congressional action if the NFL doesn't back down from its blackout practices.

The Federal Communications Commission voted unanimously Sept. 30 to eliminate its sports blackout rule. Before that, the government had a policy of prohibiting cable or satellite companies from carrying a game that is in a blackout within the local broadcast area. However, major-league sports policies still prohibit the practice, and the Senate committee is pressuring the NFL to review its policy.

"This is an issue that must be addressed by the league itself, and if the NFL fails to show leadership, then through congressional action," Sen. John McCain, R-Ariz., said in a statement he entered into testimony. "There is something wrong with a situation in which the NFL can say to all those fans who have made the league what it is today, 'You had better purchase tickets, or else.'"

McCain stated that the NFL and its teams receive myriad public benefits, including an antitrust exemption, specialized tax status and taxpayer dollars that subsidize multimillion-dollar stadiums. So they carry an extra responsibility and obligation to treat their loyal fans fairly, he said.

McCain and Sen. Richard Blumenthal, D-Conn., introduced the FANS Act, which would condition antitrust exemptions for major-league teams on ending blackout practices.

"We would prefer that the league take the initiative itself and demonstrate leadership by reforming anti-consumer policies and practices," McCain stated. "But let's be clear, should the league fail to act, we will do everything we can do to stand up for consumers by advancing the FANS Act and other initiatives."

James reports about banking, financial services, manufacturing and sports business.