February 21, 2012   |No Comments Uncategorized

NFL’s Blackout Rule Punishes Disabled, Elderly Fans

The most significant discussion of NFL blackouts in 40 years is taking place right now. Given the fact that the NFL’s blackout rule punishes disabled, poor and elderly fans and the fact that the rule doesn’t even work, it’s long past time the rule was eliminated.

According to NFL rules, if a game is not sold out within 72 hours, the television broadcast is blacked out in the local market. The Federal Communications Commission then steps in and says that if local broadcasters can’t air a game locally, then neither can cable or satellite companies. Cities like Cincinnati, Tampa Bay, Jacksonville, Buffalo and Oakland have been plagued by NFL blackouts over the last decade. These blackouts happen despite the fact that the NFL is making hand over fast and will earn $6 billion per year from its television contracts starting in 2015.

In January, the FCC agreed to review its 36-year-old blackout rule in response to a petition filed by Sports Fans Coalition and other prominent public interest groups. (The rule itself pre-dates ESPN!) On February 13, the initial deadline for public comments, formal comments were filed by Sports Fans Coalition, the NFL, MLB, the National Association of Broadcasters, five U.S. Senators, several top sports economists (who said “blackouts have no significant effect on ticket sales in the NFL”), and over 4,000 individual fans around the country.

Among the individual comments from fans are some really heartbreaking letters of loyal fans who have cheered for their team over the years, but are physically unable to attend games anymore.

From Arthur in Williamsville, NY:

I am completely disabled now…My late brother & I had season tickets, but now due to disability I can’t walk from the car nor navigate the crowds. Please note so many of the “crowds” show no concern for the disabled. I pay taxes that go to support the upkeep as well as the original construction. The ability to see games on tv is the very least to be give back to those who have given their all to support the team and the league.

From Stephan in Olean, NY:

I am a disabled veteran that not only cant afford to travel to the games but I physically can’t get to buffalo for the home games, like I used to before I became disabled! So my only way to see the Bills is by watching them on TV. When it gets blacked out it’s frustrating.

From Frank in Buffalo, NY:

I had season tickets from the mid 70s till 1984. I sat through a lot of rainy (or snowy) games, and a lot of losing seasons, but I am still a Bills fan. I’m now retired, and physically unable to go to the stadium. I don’t think it’s fair that after my years of support, I can’t watch the games on television. My 91 year old mother-in-law is also saddened by the blackouts.

From Jeanette in Blasdell, NY:

The reason for my desire to have blackouts stopped is how discriminatory they are to disabled people. My mom was in a wheelchair with severe complications of diabetes and it was simply not possible for her to go to a game. I could not understand why she would get so upset and tearful until I developed a form of dystrophy and now it is not possible for me to go to games.

From Stephen in Fairborn, OH:

I’ve been dealing with cancer for the last 4 + years. Surgeries and chemo have left my stomach as a ball of pain. An occasional jostle at a supermarket isn’t too bad, but the kind of crowds that attend football games is beyond anything I have the physical capacity to tolerate.

There are many, many more like this from fans who would love to be able to attend games but simply can’t.

In its filing with the FCC, the NFL wrote that “blackout policies, supported by the FCC’s sports blackout rule, promote live attendance and thus improve the stadium experience.” However, nine top sports economists led by Roger Noll also filed comments stating: “Academic research supports the conclusion that local television blackouts have little or no effect on ticket sales or attendance for the game that is being televised.  Local blackouts of home games harm consumers without producing a significant financial benefit to teams.”

The NFL has yet to provide any actual evidence to support its claim that blackout rules promote live attendance – likely because it doesn’t have any. Of course, if the NFL is having selling tickets to the most popular sporting event in America, it could lower ticket prices, but that would be too easy.

So what does the NFL have to say to its loyal, but physically disabled, fans? How can it justify blacking them out when the numbers show blackouts don’t even work?

February 15, 2012   |No Comments Blog, Issues, Uncategorized

FCC Blackout Fight: What Comes Next?

Many of you are wondering what comes next in the fight to end the FCC’s sports blackout rule. Monday was the deadline for “responses” to the petition filed by Sports Fans Coalition and other public interest groups calling on the agency to eliminate its blackout rule. For the next two weeks (until February 28), the agency will seek “replies” to the initial responses filed. So Sports Fans Coalition is poring over the comments filed by the NFL, Major League Baseball and the National Association of Broadcasters, all of whom are lobbying to maintain the government’s blackout rule. We intend to file a response soon and will share it with you when we do.

In the meantime, if you would like to read the comments filed by all these groups — and submit your own reply to them — you can find them below. To submit a reply, you will need to click here, enter 12-3 for the proceeding number, change the “Type of Filing” to “REPLY”, and attach your reply as a Word document.

Sports Fans Coalition, et al: http://apps.fcc.gov/ecfs/document/view?id=7021859832

NFL: http://apps.fcc.gov/ecfs/document/view?id=7021860097

MLB: http://apps.fcc.gov/ecfs/document/view?id=7021860023

NAB: http://apps.fcc.gov/ecfs/document/view?id=7021859916

Top Sports Economists: http://apps.fcc.gov/ecfs/document/view?id=7021860132

Five U.S. Senators: http://apps.fcc.gov/ecfs/document/view?id=7021860015

4,155 Individual Comments from Fans: http://apps.fcc.gov/ecfs/document/view?id=7021860172

Handwritten Letters from Fans: http://apps.fcc.gov/ecfs/document/view?id=7021858304

Related: Open Letter to the National Association of Broadcasters

February 14, 2012   |No Comments Blog, End the Sports Blackout Rule, Issues, Uncategorized

Top Sports Economists Destroy NFL’s Claims: “Blackouts Have No Significant Effect on Ticket Sales in the NFL”

Several top sports economists, including Roger Noll and Andrew Zimbalist, filed very significant comments in the FCC’s blackout rule proceeding on Monday. The economists laid waste to the NFL’s contention that “blackout policies, supported by the FCC’s sports blackout rule, promote live attendance and thus improve the stadium experience.” In fact, the economists wrote, “Academic research supports the conclusion that local television blackouts have little or no effect on ticket sales or attendance for the game that is being televised.  Local blackouts of home games harm consumers without producing a significant financial benefit to teams.”

The economists also wrote:

“The main reasons to abandon the FCC’s blackout rules are, first, to get rid of unnecessary regulation and, second, to erase an official government endorsement of an NFL policy that harms consumers and that has been voluntarily abandoned by all other professional sports leagues.  As stated by Commissioner Goodell, the NFL sees blackouts as a means for “driving people to … stadiums.” Blackouts have no significant effect on ticket sales in the NFL and increase no-shows only when the weather is bad. The issue in deciding whether to continue the FCC’s blackout rules accurately can be characterized as follows: should the federal government assist the NFL in forcing a few hundred people a few days per year to choose between not seeing a game and attending the game in bad weather, while simultaneously preventing fans who do not have tickets from watching the game on television?”

The filing will no doubt become the definitive analysis of the economics of blackouts. You can view it here.

February 14, 2012   |1 Comment Blog, End the Sports Blackout Rule, Issues, Uncategorized

SportsFans.org Submits Over 4,000 Comments to FCC from Fans Asking for End to Blackouts

Yesterday, Sports Fans Coalition submitted 4,155 individual comments from fans calling on the FCC to end its blackout rule. Most fans chose to use our suggested comments, but some chose to submit their own comments. You can view them all here. Below are some examples:

Frank Adams in FL:

IF THE PRO TEAM ACCEPTS PUBLIC FINANCING TO BUILD THE FACILITY TO PLAY GAMES, THUS BENEFITTING OWNERSHIP, THE COMMUNITY HAS PAID FOR THE RIGHT TO SEE THE GAMES ON TV. Dismissing all the extra “perks” often thrown into a stadium deal, such as splits on concessions, lower rents, etc, the dividing line- objectively- is if the public already subsidized the private professional team. And if they did, they can not black out the public. We already paid them and earned the right to watch the games on tv- we subsidized the stadium construction costs. Our construction subsidies costs us hundreds of millions of dollars- which pays for every ticket for every game for years and years. The tv revenues are already the major revenue source. This rule is predatory. The fact is pro sports teams do not price their product at a level that will insure a sell out crowd. There are more than enough fans who would buy tickets to sell out the game- many times over. They can’t price their product and use predatory strategies to gouge consumers above their level to afford after taking our money to build them a stadium. Please rescind this rule. DONT TAKE OUR MONEY AND It’s time to end to the Sports Blackout Rule.

Steven White in MA:

The teams get big government subsidies and are allowed to run a monopoly without being sued under anti-trust laws. The natural economic remedy to price controls and sharing the public good the team provides, i.e. not blacking out games. There’s really no argument in favor of the NFL except that we should be more concerned with the bottom line of billionaire owners than with the wants of tens of millions of Americans. I hope the FCC agrees with me that most people are more worried about the vast majority of Americans than the 32 owners.

Daniel Riffle in OH:

The sports blackout rule is in place to benefit billionaires who own professional sports teams, and it affects die-hard fans like me, who often have benefited said owner over the years through tickets and merchandise purchased. Fans and taxpayers also heavily subsidize professional sports through publicly-funded stadiums, tax breaks, anti-trust exemptions, and other benefits. Speaking for myself, I can also tell you the blackout rule is ineffective. If I can’t afford to attend the game when it’s on TV, I still can’t afford to attend when it’s not. Blacking out the game doesn’t put money in my pocket or otherwise enable me to buy tickets. Blackouts are unethical and punish fans who can’t afford the high cost of attending games or who simply want to watch their home team on TV. At the very least, the government should not be in the business of propping up sports leagues’ blackouts. Thank you!

Ronald Fox in WV:

The NFL is making more money than it needs. Soaring prices on tickets, and even merchandise in general, Television contracts and cable subscriptions to their network provide ample funds to run the business day to day. The black out rule was invented to generate more revenue to local clubs. The truth is that if a franchise puts a good product on the field, people will pay to watch. It is time to stop punishing people who love the game, but cannot afford the ticket price, or whose health will not permit them to go outside to the games, by withholding TV broadcast of the game simply because there was not a sell-out. Greed is the name of the game these days. We pay already to see the games because there is no such thing as free TV anymore. Who would have thought anyone would have to pay to watch television 30 years ago. I pay enough to earn the right to watch any game, any time. My cable bill is over 200 a month and I have the NFL network. My choice, but not for much longer. Any more silliness by the NFL to get more money from me, and I will bow out gracefully and let them have their game.

February 06, 2012   |1 Comment Blog, End the Sports Blackout Rule, Issues, Uncategorized

NFL Planning to Migrate Even More Games to NFL Network in 2012

In his annual “State of the NFL” press conference at the Super Bowl, NFL Commissioner Roger Goodell announced that the league would be increasing the number of games aired on Thursday nights on the NFL Network to 13 in the 2012 season. NFL Network is only available to fans with some cable and satellite carriers, whom the network reportedly charges around 81 cents per subscriber.

This is very troubling. Many fans will be able to see even fewer NFL games because they don’t have cable or satellite service or the right cable or satellite service. Moreover, the costs of airing these games on the NFL Network will be passed on to fans who do have cable and satellite service. Given the enormous popularity of NFL football, there is absolutely no need for any games to be broadcast solely on cable or satellite TV. The NFL’s decision to move games to cable is drive by its desire to make lots of money from ESPN and from its own NFL Network.

In comments about Sports Fans Coalition’s petition to the FCC asking the agency to review its 36-year-old blackout rule, National Association of Broadcasters Executive Vice President Dennis Wharton stated: “If you want to hasten the migration of marquee sports to pay TV, this is the petition for you…At least the NFL is the one sports league that keeps marquee games on over-the-air TV.” It would seem the NAB should look no farther than its corporate bedfellow, the NFL, if it wants to know who’s hastening the migration of games to pay TV…

February 03, 2012   |No Comments Blog, End the Sports Blackout Rule, Issues, Uncategorized

Sports Fans Coalition Running End Blackouts Ads This Weekend in Buffalo

Contact: Matt Sabuda 716-603-7118
Email:  matt@sportsfans.org

For Release- February 2, 2012

NFL Fans Run Anti-Blackout Ads in Buffalo on Super Bowl Sunday

Sports Fans Coalition Purchases Weekend TV Spots on NBC, ESPN

View the Website Here

View the Commercial Here

Sports Fans Coalition announced today it will air commercials in Buffalo on NBC and ESPN over Super Bowl weekend to raise awareness of its EndBlackouts.com campaign, which aims to get fans to submit comments to the Federal Communications Commission asking for an end to blackouts. The ad features Buffalo Bills fans wearing blindfolds, in reference to the fact that they were blacked out from nearly half their home games this season.

“While everyone is focusing on how great the NFL is this weekend, Buffalo fans still remember that the NFL blacked us out for our last three homes games this season,” SFC Buffalo Chapter Chairman Matt Sabuda said. “We hope that by taking such a bold step in buying TV air time, fans will see that we mean business when it comes to standing up for fans’ rights.”

In January, the FCC agreed to review its 36-year-old blackout rule, which prohibits cable and satellite carriers from carrying a game lcoally if sports league rules prohibit local broadcasters from carrying the game. The NFL’s blackout rule requires that games be sold out at least 72 hours in advance. Buffalo has one of the largest stadiums in the NFL, yet one of the smallest markets.

“Fans need to make some noise now while the government is listening, “ Sabuda said. “Blackouts have gone on for too long and are completely unethical, especially given the fact that Bills’ ownership is asking the public to pay for stadium improvements. With lease negotiations coming up, the stakes will only get higher.”

Tampa Bay, Cincinnati and San Diego also had multiple games blacked out locally this season.

<iframe width=”560″ height=”315″ src=”http://www.youtube.com/embed/2DAJ1tiwm1U?rel=0″ frameborder=”0″ allowfullscreen></iframe>

February 02, 2012   |No Comments Blog, End the Sports Blackout Rule, Issues, Uncategorized

Several U.S. Representatives Send Letter to Roger Goodell Requesting NFL End Blackout Policy

Today, five U.S. Representatives sent a letter to NFL Commissioner Roger Goodell asking the NFL to end its blackout policy. The Representatives hail from districts that have been affected by blackouts and include Brian Higgins (D-NY), Dennis Ross (R-FL), Corrine Brown (D-FL), Kathleen Hochul (D-NY) and Gus Bilirakis (R-FL).

The Representatives write: “Given the significant changes that have occurred since the adoption of these regulations, including the commitment of substantial tax dollars to the construction and renovation of stadia and the vast diversification and growth of the Leagues’ revenue sources, we believe it is time for the NFL to re-consider and end its blackout policy.”

The letter also refers to the FCC’s recent decision — following a petition from Sports Fans Coalition and other public interest groups — to review its own sports blackout rule: “We applaud the Federal Communications Commission for its recent decision to review its outdated sports blackout rule, and we respectfully encourage you to take similar action.”

A copy of the letter can be viewed here.

Fans wishing to comment to the FCC about the blackout rule should visit EndBlackouts.com.

February 02, 2012   |No Comments Blog, End the Sports Blackout Rule, Issues, Uncategorized

Rep. Higgins Calls for End to NFL Blackout Policy on Floor of House

Today on the floor of the U.S. House of Representatives, Rep. Brian Higgins (D-NY) called for the NFL to change its blackout policy. ”Last year almost half of the Buffalo Bills’ home games were blacked out – this is unacceptable,” said Congressman Higgins. “When economic times are tough, working families may not have the resources to purchase tickets, but they should not be punished and denied the opportunity to turn on the television and see their hometown team, especially when its stadium has been supported through their tax dollars.  This is a matter of fan fairness.”

Way to go, Rep. Higgins! A true advocate for sports fans.

Fans in Buffalo and around the country need to speak up about blackouts while the government is listening. Just go to EndBlackouts.com, make your own comments or use ours, and we will submit them to the FCC.

February 01, 2012   |No Comments Blog, Issues, Stadiums, Uncategorized

SFC’s Frederick to Congress: Sports Becoming “Glorified Real Estate Scam”

Sports Fans Coalition Executive Director Brian Frederick told a House Judiciary subcommittee today that professional sports has become a “glorified real estate scam” because owners are able to manipulate the public into financing stadiums that provide little to no economic benefit. Frederick said Sports Fans Coalition supports a bill to end rental car taxes that are often used to pay for these sports stadiums.

“Professional sports in America has become a glorified real estate scam, where individual owners prey on fan loyalty in order to manipulate massive public subsidies toward private coffers using tools such as car rental excise taxes,” Frederick said. “These team owners play cities off one another, threatening to uproot teams from their fan bases and move them to a new city in order to get the public to approve hundreds of millions of dollars for new stadiums. Once the stadiums are built, owners raise ticket prices and black out the games if fans don’t buy tickets.”

Frederick was speaking to the House Judiciary Subcommittee on Courts, Commercial and Administrative Law regarding a bill called the “End Discriminatory State Taxes for Automobile Renters Act of 2011.” Joining Frederick in testifying were leaders of the National Consumers League and the Global Business Travel Association.

Frederick specifically pointed to Indianapolis’ Lucas Oil Stadium, where the Super Bowl is being played this weekend, as an example of how owners take advantage of cities using public subsidies. The public’s share of the $720 million was 92%, Frederick said, paid for by taxes on hotels, food and rental cars.

“Only one year after it opened, Lucas Oil Stadium was in danger of closing because its operating authority, the Capital Improvement Board, faced a $47.4 million operating deficit,” Frederick said. “[Indianapolis Colts owner Jim] Irsay and the Colts refused to help out, even though the team receives $3.5 million annually from non-Colts related events. But Irsay was willing to raise the cost of the cheapest Colts ticket after only one season in the new stadium by 42%.”

Eliminating rental car excise taxes “will help shift the responsibility back toward sports team owners to privately finance stadiums,” Frederick said.

You can read Frederick’s written testimony here.

Sports Fans Coalition is the largest nonprofit fan organization in the country. It was founded in 2009 by former staffers of the Clinton and Bush White Houses and fights for fans on public policy issues. In January, the Federal Communications Commission agreed to review its 36-year-old sports blackout rule after a petition from Sports Fans Coalition and other groups.

January 31, 2012   |1 Comment Blog, End the Sports Blackout Rule, Issues, Uncategorized

An Open Letter to the National Association of Broadcasters from Sports Fans Coalition

January 31, 2012

National Association of Broadcasters
1711 N St. NW
Washington, DC 20036

Dear Members of the National Association of Broadcasters,

Your organization finally weighed in on the Federal Communications Commission’s decision to review its 36-year-old Sports Blackout Rule after a petition from Sports Fans Coalition and other public interest groups – and you didn’t pull any punches. In an article in AdWeek, NAB Executive Vice President Dennis Wharton called our petition a “charade” and attacked our corporate contributors, which we’re used to by now. It seems the more effective we become at speaking up for fans, the more our opponents try to marginalize us. We’ve repeatedly said – and shown – that our corporate contributors have no say over our agenda and we’re grateful for their support. When you’re a small nonprofit taking on some of the most powerful interests in America, it helps to have some big dogs in your corner!

But to the issue at hand – blackouts. Can we both agree that blackouts are bad for broadcasters? When games aren’t shown in the local markets, advertisements don’t run and local broadcasters lose money. This is why local broadcasters – your members – to step in and buy up large blocks of tickets, as WFOR-CBS repeatedly did in Miami this past season. Further, blackouts decrease overall interest in the local team, meaning lower ratings and making it more likely that games will be blacked out in the future. We agree with FCC Commissioner Robert McDowell that “taking a fresh look at this 36-year-old rule could be constructive.”

So rather than address the issue of the NFL’s blackout policy head on, NAB is trying to change the subject. “If you want to hasten the migration of marquee sports to pay TV, this is the petition for you,” Wharton told AdWeek. “At least the NFL is the one sports league that keeps marquee games on over-the-air TV.”

First and foremost, we’re very concerned about the migration of sports to pay TV as well. For fans, this trend means higher costs and less access to sports programming. We believe that professional sports leagues benefitting from federal policies like the Sports Blackout Rule and the Sports Broadcasting Act, not to mention local taxpayer subsidies for stadium construction and transportation, should be required to hold up their end of this bargain. Leagues should, among other things, ensure that a minimum number of games are made available on free, over-the-air broadcast television or, in the alternative, they should give up some of their public subsidies.

Second, why the worry? CBS, NBC and FOX just signed nine-year deals with the NFL that will keep most of the games on broadcast television through 2022. (And they’re going to pay a boatload of money to do so.)

If you are concerned about the migration of sports away from broadcast television, perhaps you should start by talking to the NFL. What game could be more “marquee” than Monday Night Football, which is now shown on ESPN? In addition, as you know, the NFL is now airing some games on its NFL Network. While these games air on broadcast television in the local markets of the two teams that are playing, there’s no doubt there would be a much larger audience if the game were on broadcast television nationally. Moreover, the television contracts your members just signed with the NFL give the NFL Network even more games in the future.

Everybody – and I mean EVERYBODY – should be vocally opposed to NFL blackouts. The ONLY people who stand to gain from these archaic and unethical blackouts are NFL owners. And that’s only because they are apparently too short-sighted to see how counterproductive blackouts are to building up a large and loyal fan base.

We recognize that you are very close with the National Football League and that they deliver record ratings for you. We know that your organizations are both represented by the powerful law firm Covington & Burling. This should make it easier for you to put some pressure on the league behind the scenes to end its blackout rule on its own, which we all would prefer. There’s no reason to fear backlash – the networks are now locked in for nine more years and are committed to paying the league billions of dollars. How about sticking up for fans?

Sports Fans Coalition will continue to fight any and all blackouts, whether they are caused because of warring media companies or because of unethical league rules. As long as we all continue to subsidize professional sports, games should stay on the air. We hope the National Association of Broadcasters will join us in this fight.

Sincerely,

Brian Frederick

Brian Frederick, Ph.D.
Executive Director
Sports Fans Coalition
SportsFans.org

© 2010 National Sports Fan Coalition. All rights reserved. Download SFC Bylaws (PDF).

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