Fans sue MLB over blackout policy

[CK SatGuy]

From The Huffington Post:

The opening salvo has been fired: a group of baseball fans has filed a class-action lawsuit against MLB (as well as DirecTV and Comcast) in regards to how the MLB divides up TV markets of various clubs, and the litany of blackouts that plague fans for local games. Here at AA, the MLB's blackout rules are something we have talked about time and time again. It's a situation that we, along with nearly every baseball fan in the country, absolutely despise and hope gets taken behind the woodshed. The official wording in the lawsuit states that MLB and its teams are an "illegal cartel" that make "agreements to eliminate competition in the distribution of games over the Internet and television." The lawsuit then goes on to go after the cable companies, saying their goal is "to divide the live-game video presentation market into exclusive territories, which are protected by anticompetitive blackouts. Not only are such agreements not necessary to producing baseball contests, they are directed at reducing competition in the live-game video presentation market, involving and protecting third parties who operate only in that separate market." Perhaps the more important part of this lawsuit is the calling of MLB's anti-trust exemption into question. MLB apparently doesn't want to have to resort to that though, because they don't want to go down that road and possibly have the exemption, which is unique to MLB among the other pro sports leagues, come under question. The NFL's request for a broad anti-trust exemption was denied in 2010. The same thing happened with the NHL in 2008. Whatever happens with this case, it will be one that fans across the country are going to keep their eyes on. The end result of this case could affect more than blackouts when all is said and done, however.

Fans Sue MLB Over Blackout Policy

 

[salsadancer7]

Excellent idea and I would be all for it.

 

[dangue]

I honestly have never understood the reasoning behind the blackout rules. Say I sub to MLB.tv and want to watch a game involving my local team, but am in a location where I can't watch via my traditional RSN; why can't I watch my local broadcast? And yes, I understand the broadcaster doesn't want to risk a split in viewership, but there's got to be a way to do it such that local fans don't miss out.

I would propose something along the following lines (which would probably be much more difficult to implement contractually in real life): if you want to watch a game involving a local team (based on your geography) then you must watch your geographic team's feed. But, unlike all the out of market feeds, you get the entirety of the local feed including commercials rather than the MLB.tv logo (just as if you were watching your local RSN).

The contracts get worked out between MLB, the teams, the RSNs and advertisers such that the RSNs get the viewer numbers from local viewers and those eyeballs get incorporated into their ratings for advertising pricing purposes. This would likely be the tough part in the whole change. But, while more complex, it would make fans much happier than the current blackout rules. It would likely entice a lot more subs to the MLB.tv package as well.

 

[Ramy]

I would love for blackouts in all sports to be done away with.

 

[Neutron]

Pro sports has pissed me off over the years with all of the lockouts and strikes. This would be a great way for all pro sports to try to reconnect with their fans.

 

[Will94]

The NBA and NHL are so much more reasonable with their blackouts. The area is something like 50 or 75 miles from the arena.

When Gerry Hunsicker was the Astros GM, he wouldn't allow their Saturday night games to be televised. They did their big promotions on Saturday night, and he wanted to maximize attendance. That makes some sense for the Houston metro area, but their territory is so ridiculously large, that it meant that the other team's telecast was blacked out in places like Tulsa, Little Rock, and El Paso. El Paso is a mere 746 miles down I-10 from Houston.

 

[SamCdbs]

Hopefully they and their lawyers will recive a sufficient sanction under Rule 11 (b) as to cause them to cease filing frivilious lawsuits.

A private business has the right to do as it wishes. Baseball has a complete anti-trust exemption.

 

[Derwin0]

While I hate blackout rules, MLB is free to do what they want with their property (media rights/copyrights).

 

[dangue]

Hopefully they and their lawyers will recive a sufficient sanction under Rule 11 (b) as to cause them to cease filing frivilious lawsuits.

A private business has the right to do as it wishes. Baseball has a complete anti-trust exemption.

And perhaps the point of the suit is to at the very least publicize the issue so that Congress will be shamed into reviewing the exemption.

 

[Mr Tony]

The issue is MLB has claimed every inch of the US by at least one team. I'm sure someone in Eastern Montana is going to drive to Seattle to see a Mariners game
NBA & NHL don't.

 

[Ramy]

How did MLB get that exemption in the first place and what does it mean exactly?

 

[SamCdbs]

And perhaps the point of the suit is to at the very least publicize the issue so that Congress will be shamed into reviewing the exemption.

And that would be sanctionable under Rule 11 (b).

(b) Representations to the Court. By presenting to the court a pleading, written motion, or other paper—whether by signing, filing, submitting, or later advocating it—an attorney or unrepresented party certifies that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances:

(2) the claims, defenses, and other legal contentions are warranted by existing law or by a nonfrivolous argument for extending, modifying, or reversing existing law or for establishing new law;