DOJ opens investigation into NFL over media rights deals
The National Football League is under investigation by the Justice Department centered on whether the league was involved in anticompetitive practices affecting consumers, The Wall Street Journal reported Thursday.While the extent of the NFL investigation wasn't immediately learned, The Wall Street Journal referenced the Sports Broadcasting Act, which allows the NFL limited antitrust protection to allow the teams to collectively negotiate packages of television rights.
Additionally, media organizations, regulators and congressional members have been concerned regarding the challenges for consumers to watch their favorite sports gamers related to the rights deals in which leagues offer limited packages of games to consumers.
According to The Wall Street Journal, when the act was passed in 1961, consumers were able to watch NFL games over broadcast television. Today, games appear on a variety of channels and platforms, some of which require viewers to have a paid subscription.
The sale of CBS parent Paramount to Skydance Media resulted in a change-of-ownership clause permitting the NFL to renegotiate its $2.1 billion annual agreement. The Wall Street Journal noted that if the NFL comes to a new agreement with CBS, the league is likely to focus on new deals with other rights holders.
Moreover, the NFL's television deals with FOX, CBS, NBC and Amazon expire after the 2033 season, while its agreement with ESPN is slated to end after the 2034 season.
Sportico's Michael McCann joins LiveNOW's Austin Westfall to discuss.
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