The Department of Justice has opened a probe into the National Football League, exploring whether the sports juggernaut engaged in anticompetitive practices through the various streaming packages it offers viewers. While the league’s increasingly complex subscription structures may represent a legally actionable transgression, the DOJ’s investigation does not exist in a bubble. It follows years of hostility between the president and the NFL.
‘Fragmented viewing experience’
The Justice Department is investigating whether the NFL’s “deals with streaming services are leading fans to pay too much to watch pro football on TV,” said NPR. The Sports Broadcasting Act of 1961 permitted the league to let teams “negotiate for the media rights together,” but critics argue that more regulation may be necessary, as “this isn’t the same marketplace anymore.”
The rising costs of airing high-profile events are being “propelled in part” by demand from “deep-pocketed tech companies hoping to woo subscribers and advertisers,” said The Wall Street Journal. To meet that demand, the NFL has “increasingly sliced off smaller packages of games” for individual streaming services, resulting in a “more fragmented viewing experience” for consumers.
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Within the NFL, there’s a sense that the Murdoch family, which owns Fox Corporation, is the “key driver behind the DOJ probe,” said ESPN. Murdoch’s media empire has “turned the cost of streaming into a hobby horse issue,” said league insiders to the outlet. This comes amid a “growing bipartisan anti-streaming sentiment in Washington” and during a Trump administration that has “at times targeted the league.”
‘Revenge tour’
Trump has a “long history” of “weighing in on the fortunes of football,” said The Independent. He condemned former quarterback Colin Kaepernick’s refusal to stand for the national anthem and demanded the Washington Commanders return to their racially insensitive original name. But Trump’s “grievance” with the league “stretches back further, to at least 1984,” when he unsuccessfully attempted to launch a new franchise for the sport.
Trump has “tried to get into the NFL a couple times since then” — defeats that now fuel the president’s “revenge tour for the league humiliating him and permanently barring him from the cool kids’ table,” said Above the Law. “If they screw me over, I’m gonna show them,” Trump allegedly said in 2014, broadcaster Stephen A. Smith told ESPN. “I’m gonna get them all back. I’m going to run for president of the United States.”
The NFL is “absolutely using its power to squeeze the media,” and the media, in turn, is “passing that on to the consumer,” said Above the Law. But this administration let Ticketmaster’s monopoly “walk” and put itself behind a “consumer-crushing media merger” on behalf of Paramount’s purchase of Warner Bros. Discovery. In that context, Trump and his administration “don’t care about sports fans getting gouged.”
The difference between federal officials moving against the Sports Broadcasting Act now and Trump’s other tangles with the NFL is that there are Democrats “aligned" with the Department of Justice in this instance, said ESPN. Congress could repeal and pass new laws to further regulate NFL viewing options, but the lengthy legislative and legal process means fans “might not notice any significant difference to the way they watch games anytime soon.”
