Antitrust Law Daily Wrap Up, ANTITRUST NEWS: NFL’s broadcasting exemption called into question, (Sep 18, 2014)

By Jeffrey May, J.D.

With the National Football League already on the defensive in the court of public opinion and with sponsors over its handling of recent instances of player misconduct, at least one federal lawmaker is suggesting an unconventional approach to keeping the NFL in line. Senator Richard Blumenthal (D., Conn.) is threatening to take away the league's “special antitrust treatment” if the NFL violates the public trust or fails to comply with “ethical and legal standards.”

Yesterday, on the Senate floor, Blumenthal announced that he would introduce legislation to sunset the league’s antitrust exemption and to make it renewable every five years. Currently, the NFL—along with Major League Baseball, the National Basketball Association, and the National Hockey League—enjoy an antitrust exemption under the Sports Broadcasting Act when jointly marketing broadcasting rights. Blumenthal suggested that the exemption should be conditioned on the “leagues’ acting consistently with their public trust and complying with ethical and legal standards that both protect and oversee players and that keep the teams accountable to their fans.”

“The NFL has a position of public trust because of its prominence and power, but it also has a position of public trust because of the special benefits it is accorded under the law,” according to Blumenthal. The same holds true for the NBA, MLB, and the NHL. Blumenthal pointed to the tax benefits, public subsidies, and local assistance, in addition to the antitrust exemption, received by these leagues. Thus, the senator is calling on the leagues “to do more and do better.”

“The era of the blank check for sports teams must end,” Blumenthal remarked. “The special benefits must be dependent on the leagues’ fulfilling their positions of trust and special responsibility.”

Blumenthal has been quite vocal lately about his dissatisfaction with the conduct of the NFL and its players. Last week, Blumenthal issued a statement, questioning the NFL’s handling of a video of Ray Rice battering his then fiancée in April. Rice, who had played for the Baltimore Ravens, was placed on indefinite suspension by the league after the video was made public. Initially, Rice was suspended for two games in light of the misconduct. When the infamous video was made public, NFL Commissioner Roger Goodell had stated that the league was not in possession of the clip at the time of the initial punishment. However, questions have been raised whether the NFL had access to the video long before it was made public but failed to act.

News: Antitrust