FCC eyes changes to live sports broadcast rules amid fan frustration 

The Federal Communications Commission (FCC) is opening the door to a rewrite of its rules for local blackout restrictions on live sports, a move that could be the first step in a potential shake-up of the broadcasting landscape for pro leagues and their media partners.

The FCC announced in February it is seeking public comment on “consumer experience” with live sports viewing, noting the rising cost of subscription services and pointing out what it called a “fragmented” modern media landscape.

The department’s move comes as polls and social media feedback consistently show fans are increasingly annoyed with the cost and hassle of paywalled subscription services required to view games.

Lawmakers on Capitol Hill, meanwhile, are suggesting Congress do more to curb the leverage top leagues have long held over fans when making deals on media rights.

“The thing that’s getting lost in some of this discussion is the broader economics of sports,” one media consultant specializing in streaming told The Hill this week. “The leagues are pretty clearly not interested in doing what’s best for fans. And why would they [be] when people continue to pay to see games on all of these services?”

Today, it is more expensive than ever to watch live sports events, particularly marquee events like the NFL playoffs or the NCAA March Madness tournament.  

Major streamers like YouTube TV and Roku have largely replaced traditional cable bundles, while more media companies like Disney, Paramount and Comcast have launched direct-to-consumer streaming services largely with pro and college sports coverage in mind.  

No league is more profitable for major media conglomerates than the NFL, which raked in more than $110 billion with its most recent broadcast rights deal.  

Consumers who wished to watch every NFL game last season had to pay upwards of $1,000 and subscribe to 10 services to do so, according to estimates by the FCC.  

The department bemoaned the current streaming landscape, arguing in its public notice seeking comment that “sports remain inherently local, despite the increasingly national nature and reach” of both professional and college games. 

It added, “We believe it is important for us to evaluate the sports media landscape and understand how changes have impacted consumers and broadcasters.”

Some of the NFL’s longtime partners would like to see the FCC’s rules stay the way they are.  

Fox Corporation, in a filing with the FCC reviewed by The Hill, warned, “there could be a dramatic impact on both consumers and local journalism if [streaming] became the default means by which Americans watch live sports.” 

“In a world where Big Tech acquires more and more broadcast sports rights—often as a loss leader to support other massive, vertically integrated businesses that primarily profit off of the personal consumption data of its customers—fans across the country could be ‘paywalled’ out of the Fall Classic, Thanksgiving football, or Team USA’s victories in the Olympics or the World Cup,” the Lachlan Murdoch-owned company said.  

Experts and observers within the sports media business point to the NFL’s dealmaking as key to what the future of all sports broadcasting looks like. The downstream impact of the NFL’s prominence is felt by other leagues competing for a smaller viewership pot, these people say.  

“Sports are one of the last things people are watching live. People still care and they want to watch these games,” said Olivia Stomski, director of Syracuse University’s Newhouse Sports Media Center. “I can’t help but think of the older sports fan who is maybe retired and, say, the Mets game is the highlight of their day or their week, and now they can’t find it or pay for another platform they maybe can’t afford.”  

Fans of teams in leagues like the MLB and NHL have for years relied on regional sports networks via cable providers to watch games, but as more consumers cut cable each year, these networks find themselves under increasing pressure to retain audience.

The FCC has no jurisdiction over major tech platforms like Amazon, Netflix or Apple, all of which have poured billions into live sports streaming in recent years.  

The FCC seeking public comment on local blackout restrictions is widely seen as a precursor to potential reform of the Sports Broadcasting Act of 1961.  

The act, passed by Congress after a boom in popularity across the NFL and the advent of color television, granted professional football teams the ability to collectively license the “sponsored telecasts” of their games to national broadcast networks.  

Some lawmakers, like Sen. Mike Lee (R-Utah), argue the act is outdated and needs a revamp with streaming in mind.    

“The modern distribution environment differs substantially from the conditions that precipitated this exemption,” Lee wrote in a letter to the Department of Justice and the Federal Trade Commission. “To the extent collectively licensed game packages are placed behind subscription paywalls, these arrangements may no longer align with the statutory concept of sponsored telecasting or the consumer-access rationale underlying the antitrust exemption.”  

Others say an effort on Capitol Hill to repeal the Sports Broadcasting Act, as well as changes to the FCC’s current blackout restrictions, could cause more chaos for fans to navigate.  

“There are real problems with extending the SBA to streaming services,” said Kellie Lerner, a prominent antitrust attorney. “If Congress is going to go that direction, you can’t just invalidate it with no solution or we’re going to end up worse off than we are now, which is already pretty bad.”  

Extra Points:  

• Body camera footage from Tiger Woods’s DUI arrest last week shows the star golfer taking a call from President Trump and asking police to retrieve the putter he won more than 10 majors with from the trunk of his flipped-over vehicle. At one point during the video, one of the deputies asks Woods if he will play in the Masters this year, to which Woods replied, “Depends on y’all.” Woods announced this week he was stepping back from golf to seek treatment, while Trump has praised the Grand Slam winner, saying he’ll be “fine.”  
• Television ratings for March Madness were through the roof this spring. The men’s tournament has earned the largest audience since the early 1990s and topped out so far during the thrilling UConn vs. Duke game in Washington, D.C., which garnered a whopping 18 million viewers at its highest point.   
• A circuit court judge ruled against University of Virginia quarterback Chandler Morris as he sought a preliminary injunction for a seventh season of eligibility, The Associated Press reported. The NCAA said it was “pleased” with the decision in a statement, vowing to “defend against attempts to rob high school students across the nation of the opportunity to compete in college.”  

Jocks on the Hill: Officer Joey Capliger  

Officer Joey Capliger, a seven-year veteran of the Capitol Police Department, answered some sports questions for The Hill.  

Favorite team:  

“All time … Ohio State football. I will never miss a game. I was born up there, so that’s easy.”  

Favorite sport:  

“Baseball up until I got into middle school and high school and started track and field. But until then yeah, definitely baseball.”  

Who is an athlete you looked up to growing up?  

“David Ortiz! I was a Red Sox fan and I started playing little league just before their 2004 run, so once that happened, I don’t know … I became a Red Sox fan and he was at the heart of it for sure.”  

Is there a team you hate?  

“Michigan for sure … and the Yankees. Those are definitely the top two out of any.”  

Read the coverage:  

• There has been a lot of talk about policing balls and strikes in Major League Baseball and a push to integrate ABS (Automated Ball-Strike Challenge System), allowing players to appeal home plate umpire calls on balls and strikes, in umpiring. Some former umpires are calling foul. The Athletic’s Sam Blum quotes legendary umpire Joe West ripping the system, saying, “My problem is that they haven’t proven it’s as accurate as they say it is.” 
• It’s Masters Monday, and there has been a lot of chatter about fashion brand Malbon’s aggressive moves into the golf industry. Australian Jason Day, one of the company’s top ambassadors, is turning heads with his planned outfits at Augusta National this week, a move Sports Illustrated argues “pushes the limits” of what is acceptable attire on the tee box and green.  
• The Ringer’s Michael Lee has a great profile of Kevin Durant here, and it comes with a subhead that really says it all: “Don’t let Twitter fingers obscure the hands of maybe the greatest scorer ever. As KD approaches MJ, he’s still chasing perfection—and the legend he calls “the blueprint of this whole thing.”