Shaikin: How the NFL Sunday Ticket trial could impact baseball’s streaming future

As a long-time movie lover and someone who has spent countless hours trying to figure out where and how to watch my favorite baseball teams play, I can wholeheartedly agree with Rob Manfred’s desire to provide fans with a “frictionless experience” of being able to watch every game, for every team, at the same place, for one price. The current system is confusing and frustrating, with games spread across various channels and streaming services that often come with blackouts or high fees.


Based on my experience working in sports management and following Major League Baseball closely, I can confidently say that the mission statement of the league is clear. Now, you might not see eye to eye with the commissioner on every issue, but I believe there’s a strong consensus among baseball fans and industry insiders that the league’s objectives are well-defined.

Two years ago, Rob Manfred shared with me his deepest desire: the power to provide fans with uninterrupted access to watch their preferred content, wherever they choose.

As a long-time sports fan, I can’t express enough my relief and excitement at the prospect of putting an end to the confusion and frustration that comes with trying to keep track of where and when my favorite teams are playing. For years, I have found myself driving myself crazy trying to decipher which network or streaming service has the rights to broadcast their games.

In the last 12 months, with many local cable sports channels going out of business across the country, Manfred and his team have been vocal about their preferred solution: Broadening the league’s streaming service to provide access to all games for every team from a single platform at an affordable price.

What if that turned out to be illegal?

As a movie critic, I’d put it this way: Starting Thursday, a significant trial will unfold in the prestigious U.S. District Court of Los Angeles. The NFL finds itself center stage as the principal defendant, facing accusations that their Sunday Ticket package infringes upon antitrust regulations. The commissioner’s office would be wise to keep a close eye on this intriguing legal showdown.

With a single payment, you can gain entry to watch all out-of-town games for every sports team on Sundays, in one convenient location.

At the trial, bar owners argue that they’re overpaying for the sports package due to the NFL allowing only one company to provide it. On the other hand, individual spectators claim they’re overpayed because they must pay for every team in the package even if they’re only interested in watching one.

If the NFL succeeds in its endeavors, it would mean one fewer obstacle for Manfred to deal with, among the many hurdles preventing MLB from launching a unified streaming platform offering access to all teams at an all-inclusive price.

If the NFL fails to win their case, the potential repercussions for MLB could vary depending on the reasons behind the jury’s decision.

MLB chose not to provide comments on the ongoing NFL situation and its possible consequences for baseball. However, should the NFL face defeat, MLB’s first response could be, “Since we hold an antitrust exemption, this situation doesn’t affect us.”

Maybe, or maybe not.

As a devoted cinema-goer, I’d put it this way: “I’ve noticed and continue to observe a present-day weakness in baseball’s antitrust exemption.”

It’s unclear if the broadcast contracts fall under baseball’s antitrust exemption or not.

The federal antitrust exemption, which has been in place for over a century, has faced criticism and calls for reform from the courts and legislators alike. Despite its longstanding existence, there have consistently been concerns raised about its potential negative impacts. Legislators have even made attempts to repeal it on numerous occasions.

In 2021, Supreme Court Justice Brett M. Kavanagh left the door open for a legal dispute. In his ruling on a college sports case, he explicitly stated that the baseball exemption had not been expanded to other sports. He based this decision on the idea that “baseball exhibitions” did not involve interstate commerce, despite teams frequently traveling between states to earn money and boost their commercial growth.

In the Minor League Baseball dispute that surfaced in 2022, involving the dissolution of four minor league teams, the Department of Justice requested the court to have a restrictive interpretation of the exemption. This case was settled between MLB and the affected teams prior to the Supreme Court considering this matter.

Two years ago, Manfred expressed that he found the exemption insignificant in most situations, except for franchise relocations.

The NFL claims an antitrust exemption for broadcasting, citing a 1961 law that allows America’s four major sports leagues to sell their rights for “sponsored telecasting” as a league, rather than on a team-by-team basis. The plaintiffs challenging the NFL allege that “sponsored telecasting” means free, over-the-air commercial broadcasts, not pay-TV options such as satellite and streaming. If the jury agrees, that could imperil Manfred’s streaming vision.

In a 2012 case between MLB and the NHL that was eventually resolved, Judge Shira Scheindal of the U.S. District Court ruled: “Making all games accessible as part of a bundle may boost overall output, but it doesn’t, legally speaking, erase the competition harm caused by preventing teams from selling their games independently in their own territories initially.”

Based on my understanding and experience with antitrust law, I believe the courts would carefully evaluate Manfred’s plan to determine if it benefits or harms consumers. As someone who has closely followed antitrust cases, I can tell you that the primary goal of these laws is to promote fair competition and prevent monopolies or anti-competitive practices.

As a dedicated fan, I can’t help but feel excited at the prospect of having all my favorite games accessible on just one streaming platform. The convenience this would bring is truly hard to argue against.

“It’s inconvenient for me to have to spend time each day searching for where the game is located,” remarked Steve Ross, a distinguished professor at Penn State with an expertise in sports and antitrust law.

As a movie reviewer, I find myself asking the same question each day: “Is today’s baseball game available to stream online? Or is it blocked by blackout restrictions? I need to know where and how I can watch it.”

But would the convenience of an exclusive home for baseball provide fans with a good deal?

I ponder the idea that if Major League Baseball fully took over and made baseball accessible everywhere at reasonable prices, it could potentially boost production. But on the other hand, there’s a concern that MLB might exploit this situation by overcharging, leading to a decrease in output instead.

“That is a factual question that would be subject to antitrust challenge.”

You can access out-of-market MLB games through the current streaming package for either $119.99 annually for all 30 teams or $104.99 yearly if you only want to follow one specific team.

That may or may not be a better deal than letting each team sell its own streaming rights.

“Deuber, the sports law specialist, suggested that perhaps the Yankees could price their tickets at $500 while the Twins might offer them for $20.”

The future appearance of baseball broadcasts, specifically those provided by Bally Sports which includes the Angels and 11 other MLB teams, is uncertain and hard to predict, even for the upcoming year, let alone the next ten years. Currently, Bally Sports is going through bankruptcy proceedings and there’s a possibility that it may no longer be in existence by next year.

The Yankees and Twins may never come to an agreement on sharing streaming revenue due to the significant difference in value for Yankees broadcasting rights.

As I watched the unfolding events in Los Angeles regarding the major American sports leagues and their close interest in the ongoing legal proceedings, I couldn’t help but feel a sense of anticipation. Every league is keeping a keen eye on this situation, eagerly awaiting its outcome.

As a movie buff, I can tell you this: if the NFL were to face significant shifts or challenges, it’s only natural that other leagues would need to adapt as well, adjusting their offerings accordingly.

MLB faces a challenging dilemma regarding whether to modify their package or claim an antitrust exemption. This choice might be contested, leading to a significant legal dispute if the decision is not well-received.

Currently, there’s a dilemma you’re faced with: Might a consumer protection law inadvertently hinder Manfred from delivering the desired baseball experience for fans?

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2024-07-18 22:42