Just over three months after the Senate Committee on Commerce, Science, & Transportation called executives from three of the four major North American professional sports leagues to Capitol Hill to testify about the difficulty fans face when trying to access live sports broadcasts, the House Judiciary Committee is now getting in on the action.
On Monday, two members of the House Judiciary Committee sent letters to the commissioners of the four major North American professional sports leagues — MLB, the NFL, NBA, and NHL — regarding the cost and difficulty of watching live sports as leagues transition from a linear-focused to a streaming-focused broadcast strategy, according to Evan Drellich of The Athletic.
Rep. Jim Jordan (R-OH), the committee’s chair, was one of the letter’s signatories, and when speaking to The Athletic, made clear that “everything’s on the table,” though the committee is still in the very early stages of exploring this topic.
“We always say everything’s on the table,” Jordan told The Athletic. “That includes hearings, that includes maybe legislation. We don’t know. We haven’t decided on any of that. We’re just at the first step, which is, what exactly is going on out there? How much does it really cost to the average fan?”
At issue is the federal antitrust exemption granted to professional sports leagues that allow them to bundle broadcast rights for each individual team into a national package. Without the exemption, which was signed into law in 1962, individual franchises would be forced to sell broadcast rights on their own.
It’s unlikely that we’d ever see a reality where individual franchises must sell their own media rights, but the federal antitrust exemption gives Congress leverage to urge the leagues to strike more consumer-friendly deals. After all, the reason an antitrust exemption is typically granted in the first place is to protect the public interest. If Congress feels the leagues are failing to uphold their end of the bargain, it will exert pressure.
When the Senate Commerce Committee held its hearing in May, the three league executives present all attempted to stress efforts they are making to meet fans where they are. The question is whether or not Congress is convinced.
“These leagues are making all kinds of money,” Jordan said. “Is this complicated, expensive system really what’s best when they have this antitrust exemption right now?”
Should Jordan see it as a relevant topic for the House Judiciary Committee, another congressional hearing with prominent league executives could very well be on the way.