Senate Judiciary Committee Holds Hearing on Congressman Higgins’ FANS Act
Today the United States Senate Committee on the Judiciary held a hearing to examine the Furthering Access and Networks for Sports (FANS) Act introduced in the House of Representatives by Congressman Brian Higgins (NY-26) and in the Senate by Senators Richard Blumenthal and John McCain.
The FANS Act:
- Removes anti-trust exemption that allows the NFL to blackout home games if they don’t sell tickets
- Forbids cable companies from using the threat of blackouts in contract negotiations
- Asks leagues to make home games available on the internet when unavailable on TV
“Today’s hearing provided thoughtful discussion and tough questions about the impact of NFL policies on consumers, taxpayers and fans,” said Congressman Higgins, who has been outspoken in opposition to the FCC’s blackout rule and NFL’s blackout policy. “I appreciate Senator Blumenthal’s leadership on this matter and look forward to continuing to work with my colleagues in the push for fan fairness.”
Senator Blumenthal presided over the hearing which included testimony from a number of witnesses. Blumenthal in his questioning cited the unfair disadvantage in smaller markets, noting for a sellout to occur in Buffalo 28% of the local population must purchase tickets whereas in Chicago a sellout represents only 2% of the local population.
Senator McCain’s testimony pointed out, “2014 has been a good year for those of us advocating an end to sports blackouts. In September, the FCC voted to eliminate its sports blackout rule. That rule prohibited a cable or satellite company from carrying a game that is blacked-out within the local broadcast area, leaving sports fans in the dark… However, the FCC’s vote was not the final word on sports blackouts, failing to address the root causes for a majority of blackouts... This is an issue that must be addressed by the league itself; and, if the NFL fails to show leadership, then through congressional action.”
McCain continued, “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. The NFL and its teams have benefitted from myriad public benefits, including an exemption from antitrust rules, a specialized tax status, and taxpayer dollars that subsidize their million-dollar football stadiums. These public benefits carry with them a responsibility back to the public—an obligation to treat their loyal fans with fairness.”
Federal Communication Commission Media Bureau Chief William Lake noted, “…ticket sales are no longer the primary source of revenue. The massive popularity of that sport means that the primary source of income for the NFL has shifted to television, with TV revenues now the NFL’s main source of revenue, approaching $6 billion this year. Total NFL revenues reportedly exceeded $10 billion in 2013.”
Speaking for the fans, David Goodfriend, founder and chair of the Sports Fans Coalition said “The NFL should end its local blackout policy once and for all, effective immediately. Fans hate local blackouts.”
Goodfriend backed his point with examples including concerns from a Western New York fan, “Just listen to two fans who told the FCC how they feel: Denis Steinmiller, from North Tonawanda, New York said, “I’m a disabled Vietnam vet. I also suffer from [Post Traumatic Stress Disorder]. I am unable to attend the Bills games because of my disabilities. . . .Watching the Bills on TV is one thing I look forward to every year, as well as help me deal with PTSD. Please put all the games on TV for me and others who gave much of ourselves for our country.”
Sally Greenberg, Executive Director of the National Consumers League addressed the impact on consumers. She pointed out, “Harvard University professor Judith Grant Long recently calculated that 70% of the capital costs of National Football League (NFL) stadiums have been provided by taxpayers.” She also noted, “The high price of actually attending a professional game puts them out of reach for many Americans. From 2010‐2013 the cost for a family of four to attend a NFL game increased by 8.51% to $459.”
Speaking on behalf of the National Football League, Gerard Waldron, a Partner with Covington & Burling, argued that the number of blackouts have decreased in recent years and the NFL’s practice of televising games on free, over-the-air television meets their responsibility to fans.
The complete testimony of witnesses is available through the Judiciary Committee’s website at: http://www.judiciary.senate.gov/.