This is a class action suit brought against the NFL for violating the Sherman Anti-Trust Act. The Sports Broadcasting Act of 1961 (SBA) exempted professional sports leagues from the Sherman Act and allowed them to collectively sell their broadcasting rights. The NFL agreed to sell broadcasting rights to DirectTV so they could sell NFL Sunday Ticket packages to the public. This package is considered "all or nothing" for you either purchase the ability to view all games, or you are limited to only the 2 games in your region. Shaw argues that this limits options for the public while creating artificially high and non-competitive prices. The Court of Appeals affirmed the District Court's decision that the NFL's actions did not fall within the bounds of the SBA. The NFL already received an exemption to the Sherman Act and that exemption must be narrowly construed according to the Court; after already being granted an exemption it would be wrong for the NFL to be allowed so much latitude.
After reading the Fenwick article, I had sympathy for the NFL, actually believing they were being deprived of their due "piece of the pie". However, I find it improbable that the NFL believed that their contract with DirectTV was fair to the consumer population. If Direct TV is the only provider and offers only one option, they essentially hold a monopoly on the market. If a compromise is to be made between the NFL and their fans, each group needs to be conscious of each other's well being. The consumer can not be held responsible for a ratings system that does not properly reflect viewership; the NFL should, and was held responsible for taking advantage of their fans. Is the NFL acting as a typical capitalist profit seeking firm? To a point yes, but Shaw reveals some greed on their part. The Nielsen ratings already limit consumers' options on the Super Bowl, now the NFL Sunday Ticket limits their options every Sunday. The latter action leads to me to stop giving the NFL the benefit of the doubt.
tagged copyright nfl sports television by jfortune ...on 02-AUG-06


