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The Justice Department Is Investigating The NFL
Government game time
The US Justice Department has opened an investigation into the NFL over potential anticompetitive practices that may be costing fans.
The Big Picture: There’s no asset more valuable in media than an NFL package — and that’s something the league has been exploiting for years. That has allegedly led to higher prices for consumers trying to catch every game, and reduced spending across other content categories by studios and streamers trying to stay in the pro-football game.
Behind The Investigation: It was only a matter of time before the NFL became too big to not go under the regulatory microscope.
The investigation is reportedly focusing on how the league has been charging increasingly higher fees for rights packages — costs that are being passed on to consumers… potentially leading to updates to the Sports Broadcasting Act of 1961.
It’s also examining how the league has complicated the market by carving games into smaller packages sold across various broadcasters, cable networks, and streamers.
Senator Mike Lee, chair of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, said fans spent close to $1,000 on subscriptions last season.
Final Play: For its part, the NFL pushed back, noting that 87% of games were available on local TV (NFL games must be made available in the local markets of the teams playing) and that last season was the most-watched since 1989. What the government may argue, however, is that consumers are effectively forced to spend what’s necessary to keep up with the season… but that’s not out of choice because, well, there’s no other game in town quite like the NFL.
Next Season: With the NFL potentially reopening several of its media-rights deals after the 2029-30 season, expect the Justice Department’s decision on whether to sue to reshape those negotiations.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.