Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Movement to Black Out Blackout Rules Taking Baby Steps

Author: Scarinci Hollenbeck, LLC

Date: October 8, 2015

Key Contacts

Back

Sports fans living far away from their favorite teams’ home states and cities have long been forced to skip games, or pay more than what they’d like to watch their cherished organizations play. The blackout rules that spawned this dilemma are the subject of scorn among fans, many of whom are attempting to change how games are shown on television through lawsuits.

Fans’ battle against the blackout 

The major sports leagues’ various blackout rules have repeatedly been challenged by fans frustrated by the fact that if they don’t live close to where their home team plays, they have to choose between forgoing viewing out-of-market games completely or purchasing expensive bundle packages. To combat these limitations, fans filed class action suits against the NHL, the MLB, the leagues’ various organizations and broadcasters in 2012. While the lawsuit against the MLB and its broadcasters is ongoing, the case against the NHL ended with a settlement agreement which could ultimately affect the way that all four major sports are viewed in the U.S. 

A fan of the New York Mets living in the Midwest, for example, cannot purchase only Mets games at reduced prices. That individual would have to buy a bundle package that includes other teams, such as the New York Yankees, Boston Red Sox and a bevy of other teams the person might be mildly interested in at best, or at worst, hates. This could lead to that individual missing out on what is turning out to be a rare season in recent Mets history – a very unfortunate circumstance for that fan. 

However, the settlement in the class action against the NHL, and the unresolved nature of the suit against the MLB, could be signs of change regarding the blackout rules that have long frustrated fans such as the aforementioned hypothetical individual. 

The NHL settlement led to revisions to the league’s Game Center Live package. Fans can now choose to stream a single team’s games for $105 per season, rather than being forced to choose the league-wide package, which includes all 30 teams and costs $159 per season. Individuals who purchase the streaming option now have the option to watch their favorite team’s out-of-market games, without paying extra for every other organization’s matchups. However, in-market games remain blacked out on Game Center Live. Ultimately, the NHL settlement wasn’t a complete victory for fans, but rather, a baby step toward overcoming blackout rules. 

Blackout rules could constitute anti-competitive behavior 

One crucial detail to the settlement agreement between fans and the NHL, as well as the ongoing suit against the MLB, is the fact that U.S. District Court Judge Shira Scheindlin conceded that blackout rules are likely violations of antitrust regulations. This acknowledgement could ultimately influence the MLB case, and is the tiny detail that could result in big changes for the way fans view sports in the U.S. 

Fans’ demand for access to regional sports networks regardless of where they live is similar to the pressure on all sorts of cable companies to offer a la carte packages – with which subscribers can choose which channels they want. 

The MLB and NHL and their broadcasters aren’t the only organizations being accused of antitrust violations due to how they offer games. DirectTV’s NFL Sunday Ticket has also been hit with charges of anti-competitive practices by fans. A class-action lawsuit alleges that the satellite television provider’s arrangement with the NFL – which covers how markets are divided and blackout rules are enforced, as well as what all this will cost consumers – unfairly damages NFL fans who would like to purchase a package of their favorite teams’ games, rather than a bundle of league-wide match ups. 

The various challenges to blackout rules established by the three leagues and their broadcasting partners, subscribers’ overall preference for cable providers to move toward a la carte offerings and at least one judge’s opinion that these restrictive rules could constitute antitrust violations, seem to indicate that the argument for blacking out certain regions is weakening. However, the small step forward in the NHL settlement indicates massive overhauls aren’t in store in the coming months.

If you believe a league’s anti-competitive behavior is damaging you as a fan, contact a sports law attorney to learn more about what you can do. 

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Business Mediation: An Overview and Practical Tips post image

Business Mediation: An Overview and Practical Tips

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]

Author: Paul Grossman

Link to post with title - "Business Mediation: An Overview and Practical Tips"
Top 5 Causes Leading to Construction Defect Litigation post image

Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]

Author: Paul Grossman

Link to post with title - "Top 5 Causes Leading to Construction Defect Litigation"
How to Protect Your New Jersey Business When Going through a Divorce post image

How to Protect Your New Jersey Business When Going through a Divorce

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]

Author: Jay McDaniel

Link to post with title - "How to Protect Your New Jersey Business When Going through a Divorce"
10 Common Issues in Franchise Disputes post image

10 Common Issues in Franchise Disputes

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]

Author: Paul Grossman

Link to post with title - "10 Common Issues in Franchise Disputes"
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together post image

Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]

Author: Sean M. Pena

Link to post with title - "Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together"
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York post image

Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York

No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]

Author: Donald M. Pepe

Link to post with title - "Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!