FCC Chair Brendan Carr warned Friday that the NFL could lose its antitrust exemption if it places too many live games behind streaming paywalls, saying the agency is scrutinizing how leagues’ deals with streamers differ from traditional “sponsored telecasting.”
The exemption, granted under the Sports Broadcasting Act of 1961, lets teams pool TV rights into leaguewide packages. Carr told The NY Post the law applies to “sponsored telecasting,” and questioned whether distribution on platforms like Netflix or YouTube TV qualifies. “If it’s something else, then it’s not clear that the antitrust exemption applies,” he said. Carr also told Semafor there is “a point at which… they’ve just put too many games behind a paywall, and then that whole exemption collapses.”
The FCC last month solicited public comment on how the shift from broadcast TV to streaming has affected consumers — a possible precursor to deeper review. The agency highlighted rising costs for fans, who may spend as much as $1,500 annually to follow every pro football game, and noted that sports rights fees have “exponentially increased” since the 1960s. A recent Fox News survey found 72% of sports fans believe major events should remain on free broadcast TV.
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| Brendan Carr |
Carr said any enforcement action could involve the Department of Justice, the Federal Trade Commission or Congress, though he acknowledged there is “no concrete idea in mind” yet. He also raised the related question of whether broadcasters should be allowed some form of collective bargaining similar to leagues’ negotiated rights packages.
The NFL has argued that streaming increasingly replaces traditional broadcasters and described its distribution as accessible and fan-friendly. The FCC contrasted the modern rights market with 1961, when the NFL’s two-year deal with CBS was worth $9.8 million, compared with current deals valued at more than $10 billion per year.