Blackouts Be Gone! Lawsuit Names Selig, MLB TV Networks

[JockJones]

I didn't see a topic started for this, sorry if someone already did. We'll see if this amounts to anything.

 

Here we are. Still. Years later. It's 2012. We can watch anything we want anywhere we want on any device we want at any time we want. Except baseball games. If you live in Iowa, you can't see the Brewers, Cardinals, Cubs, Royals, Twins or White Sox. It's just as ugly in Vegas: no A's, Angels, Diamondbacks, Dodgers, Giants or Padres. Baseball continues to black out televised games in these areas because of territorial-rights rules conceived when TV was black and white and people actually watched commercials.

 

Since then, television-based revenue has become baseball's lifeblood, bringing in far more than ticket sales, merchandising, concessions and sponsorships. Live sports programming is DVR-proof and immensely valuable to advertisers, enough that a club in bankruptcy, the Los Angeles Dodgers, fetched $2.15 billion when sold in April. The revocation of the current blackout rules grows unlikelier by the billion.

 

Unless, that is, four fans and an armada of lawyers can reverse the most inane, arcane rule in sports.

 

On the first page of a complaint filed May 9 in Manhattan, two words aim squarely for Major League Baseball's jaw and deliver a swift blow: "Illegal cartel."

 

The basis of the argument is simple: By dividing up territories and setting fixed prices, MLB is in violation of the Sherman Act. If baseball is indeed breaking antitrust laws, its entire business model goes kaboom. And so while lawsuits stream into 245 Park Avenue frequently, this is one, according to a number of sources, the league is taking very seriously.

 

http://sports.yahoo.com/news/mlb%E2%80%99s-blackout-problem-keeps-sport-in-dark-ages.html

[MWV]

As much as I loathe MLB blackout restrictions, I'm hoping that eventually the Cubs can use these television marketing tools to the same advantage that teams like the Yankees, Rangers and Dodgers have. To have that potential revenue stream for the organization litigated away would be frustrating (although blackouts are frustrating, too!).

It seems as though it may be another case of the Cubs getting to the party a bit late.

 

Hire new FO that understands how to build through amateur draft and IFA ---> New CBA

 

Get out from under current broadcasting contract ---> No more lucrative, exclusive TV deals

 

As the post above notes, we'll see if this amounts to anything.

[Andy]

There's nothing wrong with having a blackout rule. Teams being able to have a blackout territory 3 states away where no one living there has any reasonable way of getting the regional sports network necessary to watch said team? Yes, there's plenty wrong with that.

[imb]

well [expletive], sorry i couldn't make the 9 hour drive to houston for the game, guys. guess ill just look at the boxscore on my computer

[Sammy Sofa]

Sorry, but I want the Cubs to get that phat TV cash. Go away, lawsuit.

[CyHawk_Cub]

Sorry, but I want the Cubs to get that phat TV cash. Go away, lawsuit.

 

Same here. There's ways to get around blackouts & watch games.

[Soul]

Sorry, but I want the Cubs to get that phat TV cash. Go away, lawsuit.

 

Same here. There's ways to get around blackouts & watch games.

 

StoogeTV sucks, but yeah there are ways.

[Benchwarmer]

I am so on board with this lawsuit. I know the blackout rule is supposedly protecting the local team's advertisers and hometeam, but that's crazy. If a Cubs game starts at 1:20 and there are no other games until 7PM EST, which franchise is losing money or fans because of telecasting the game?

 

CSN shows more games than WGN and if you're a CSN subscriber, aren't you paying for the privilege to watch the Cubs anyway. Bud is wrong on this. Don't try to sell me a MLB package, when I could care less about the Mariners, the Rays, etc..

[Pushfrog98]

I am so on board with this lawsuit. I know the blackout rule is supposedly protecting the local team's advertisers and hometeam, but that's crazy. If a Cubs game starts at 1:20 and there are no other games until 7PM EST, which franchise is losing money or fans because of telecasting the game?

 

CSN shows more games than WGN and if you're a CSN subscriber, aren't you paying for the privilege to watch the Cubs anyway. Bud is wrong on this. Don't try to sell me a MLB package, when I could care less about the Mariners, the Rays, etc..

This is about how I feel... Though, my views are solely based on the mlb.tv package I purchased. I get to watch a few weekend games as long as they start at the right time. Since a majority of the home games are day games, I can't watch those unless my boss is out. If they play St. Louis at all, I can't watch those games at all.

 

I dropped cable because it was costing an arm and a leg for what I was getting. It was "cheaper" to get mlb.tv and just have DSL, but I can't watch anything!

[Clem Fandango]

Sorry, but I want the Cubs to get that phat TV cash. Go away, lawsuit.

 

Same here. There's ways to get around blackouts & watch games.

 

Why/How would adjusting the blackout restrictions to proper zoning areas prevent them from getting their own network? I don't follow why this prevents them from still obtaining that.

[ManCrushOnNomar]

I don't understand how blackouts earn the team more money. Can someone smarter than me explain the business behind it?

[Guest]

Cable providers pay more for the exclusivity, because they make more by forcing people to higher pricing tiers to get those channels the games are on.

[SouthSideRyan]

I don't understand how blackouts earn the team more money. Can someone smarter than me explain the business behind it?

 

The network(s) carrying the games charge so much to the cable provider to carry their channel in their packages. A large draw of many networks which broadcast baseball is the exclusive rights to those games. Right now, if you live in Chicago, the only way you get non-WGN/WCIU games is to subscribe to a cable package which includes Comcast Sportsnet. If you have the option of buying mlb.tv to get your Cubs fix, cable subscriptions go down, CSN cannot charge as much because they're not drawing in subscribers, and if CSN can't charge as much, they aren't making as much on the Cubs, thus they won't pay out the same for their TV contract.

 

ETA: shut up TT

[Guest]

If it makes you feel better, your explanation is a lot better than mine.

[ManCrushOnNomar]

I don't understand how blackouts earn the team more money. Can someone smarter than me explain the business behind it?

 

The network(s) carrying the games charge so much to the cable provider to carry their channel in their packages. A large draw of many networks which broadcast baseball is the exclusive rights to those games. Right now, if you live in Chicago, the only way you get non-WGN/WCIU games is to subscribe to a cable package which includes Comcast Sportsnet. If you have the option of buying mlb.tv to get your Cubs fix, cable subscriptions go down, CSN cannot charge as much because they're not drawing in subscribers, and if CSN can't charge as much, they aren't making as much on the Cubs, thus they won't pay out the same for their TV contract.

 

ETA: shut up TT

I get that for in-market, but what about for areas that don't have access to cable providers who carry said networks? Wouldn't they stand to make MORE money if they didn't black out those weird blackout zones with no access to baseball?

[javy knows my name]

YES, I knew there was an antitrust violation to be found here. This is really good news.

 

Now if only they could get them to stop being assholes on youtube...

[javy knows my name]

That says (friendly). They are (friendly) on youtube.

 

Mod edit: leave something to the imagination

[Guest]

I don't understand how blackouts earn the team more money. Can someone smarter than me explain the business behind it?

 

The network(s) carrying the games charge so much to the cable provider to carry their channel in their packages. A large draw of many networks which broadcast baseball is the exclusive rights to those games. Right now, if you live in Chicago, the only way you get non-WGN/WCIU games is to subscribe to a cable package which includes Comcast Sportsnet. If you have the option of buying mlb.tv to get your Cubs fix, cable subscriptions go down, CSN cannot charge as much because they're not drawing in subscribers, and if CSN can't charge as much, they aren't making as much on the Cubs, thus they won't pay out the same for their TV contract.

 

ETA: shut up TT

I get that for in-market, but what about for areas that don't have access to cable providers who carry said networks? Wouldn't they stand to make MORE money if they didn't black out those weird blackout zones with no access to baseball?

 

I could be wrong, but I'm pretty sure that the vast majority of people blacked out of MLB.tv and Extra Innings are capable of getting that team's channel from their cable provider. It might cost an arm and a leg, but it's available.

[jersey cubs fan]

I don't understand how blackouts earn the team more money. Can someone smarter than me explain the business behind it?

 

The network(s) carrying the games charge so much to the cable provider to carry their channel in their packages. A large draw of many networks which broadcast baseball is the exclusive rights to those games. Right now, if you live in Chicago, the only way you get non-WGN/WCIU games is to subscribe to a cable package which includes Comcast Sportsnet. If you have the option of buying mlb.tv to get your Cubs fix, cable subscriptions go down, CSN cannot charge as much because they're not drawing in subscribers, and if CSN can't charge as much, they aren't making as much on the Cubs, thus they won't pay out the same for their TV contract.

 

ETA: shut up TT

I get that for in-market, but what about for areas that don't have access to cable providers who carry said networks? Wouldn't they stand to make MORE money if they didn't black out those weird blackout zones with no access to baseball?

 

I could be wrong, but I'm pretty sure that the vast majority of people blacked out of MLB.tv and Extra Innings are capable of getting that team's channel from their cable provider. It might cost an arm and a leg, but it's available.

 

I don't think that is true.

 

My problem is the blackouts that occur when you already pay for the GD channel.

[Guest]

YES, I knew there was an antitrust violation to be found here. This is really good news.

 

Now if only they could get them to stop being [expletive] on youtube...

Problem is that baseball is exempt from anti-trust laws.

 

I understand the principle, but they need to fix it so more people can watch and not less.

[Ding Dong Johnson]

If you live in Iowa, you can't see the Brewers, Cardinals, Cubs, Royals, Twins or White Sox.

I never understood that phrasing. Those are the teams I can watch.

[mul21]

 

I could be wrong, but I'm pretty sure that the vast majority of people blacked out of MLB.tv and Extra Innings are capable of getting that team's channel from their cable provider. It might cost an arm and a leg, but it's available.

 

That's definitely not true. From the OP:

 

Here we are. Still. Years later. It's 2012. We can watch anything we want anywhere we want on any device we want at any time we want. Except baseball games. If you live in Iowa, you can't see the Brewers, Cardinals, Cubs, Royals, Twins or White Sox. It's just as ugly in Vegas: no A's, Angels, Diamondbacks, Dodgers, Giants or Padres. Baseball continues to black out televised games in these areas because of territorial-rights rules conceived when TV was black and white and people actually watched commercials.

 

There's no way they they have access to all of CSN, Fox Wisconsin, Minnesota, KC, and St. Louis in Iowa where you can't watch those on MLB.TV. Certain areas of the state probably have access to some of those channels, but it would take actual to figure out who does and doesn't that MLB just takes the easy way out and blacks out everybody.

[Andy]

I checked Hawaii just for the heck of it and every West Coast team is blacked out.

[javy knows my name]

I checked Hawaii just for the heck of it and every West Coast team is blacked out.

 

hahahaha nice

[Guest]

 

I could be wrong, but I'm pretty sure that the vast majority of people blacked out of MLB.tv and Extra Innings are capable of getting that team's channel from their cable provider. It might cost an arm and a leg, but it's available.

 

That's definitely not true. From the OP:

 

Here we are. Still. Years later. It's 2012. We can watch anything we want anywhere we want on any device we want at any time we want. Except baseball games. If you live in Iowa, you can't see the Brewers, Cardinals, Cubs, Royals, Twins or White Sox. It's just as ugly in Vegas: no A's, Angels, Diamondbacks, Dodgers, Giants or Padres. Baseball continues to black out televised games in these areas because of territorial-rights rules conceived when TV was black and white and people actually watched commercials.

 

There's no way they they have access to all of CSN, Fox Wisconsin, Minnesota, KC, and St. Louis in Iowa where you can't watch those on MLB.TV. Certain areas of the state probably have access to some of those channels, but it would take actual to figure out who does and doesn't that MLB just takes the easy way out and blacks out everybody.

 

Again, I'm not sure, and Bob or another Iowa poster could probably clarify, but I think that statement is referring to being blacked out from MLB.tv and EI. Not all cable providers may offer those RSNs, but for example, I know you can have a DirecTV package that contains all the regional RSNs. My understanding(or maybe assumption) is that if you're in the blackout area, that those RSNs would have those games available and not be blacked out.