NYSBA Weighs in on Streaming and the Sports Broadcasting Act

In 1961, the Sports Broadcasting Act was signed into law.  This act gave the major professional sports leagues the ability to negotiate collectively with broadcasters.  In other words, it gave professional sports leagues an exemption from federal antitrust laws so the leagues could negotiate a “joint agreement” between the teams and broadcast networks.  This led to the creation of “network packages” with broadcast networks.

Form a public policy perspective, the 1961 Sports Broadcasting Act ensured that professional sports games would remain on broadcast television.  While there have been issues with earlier “black-out” rules, for the most part, citizens have been able to see their favorite local sports teams on broadcast television or basic cable. 

Streaming has changed this situation.  Unfortunately, some major sports leagues are using the 1961 Sports Broadcasting Act to move entire packages of games to streaming services.  Today, consumers must subscribe to several expensive streaming services to watch their favorite team.  Moreover, it is simply difficult for a consumer to keep switching between subscription streaming services. 

When it was enacted, the 1961 Sports Broadcasting Act addressed a situation where the leagues wanted to negotiate for a network package that would be seen on broadcast television, which was provided to consumers for free.  It simply did not envision that the Sports Broadcasting Act would be used as a tool to move games and entire network packages to subscription-based streaming services.

NAB has raised these concerns.  NAB CEO Curtis LeGeyt stated:

“Across the country, broadcasters are standing with fans frustrated by the rising paywalls and growing confusion surrounding live sports.  For generations, free, over-the-air broadcast television has brought Americans together for the games that define our communities and our culture.  That access should not depend on a household’s income, broadband connection or ability to juggle multiple streaming subscriptions.

The Sports Broadcasting Act was enacted nearly seven decades ago to govern the relationship between major sports leagues and the nation’s broadcast networks, which were and remain freely available to all Americans.  More than six decades later, Congress should examine whether today’s increasingly fragmented sports marketplace is still serving fans.”

NYSBA, along with the other state broadcast associations, has endorsed a resolution asking Congress to reexamine the Sports Broadcasting Act:

“Now, therefore, be it resolved this 11th day of May 2026, by the broadcaster associations named below, representing all 50 States, the District of Columbia and the Commonwealth of Puerto Rico, that Congress review the Sports Broadcasting Act and examine whether increasingly exclusive sports streaming distribution practices serve the public interest and preserve broad fan access to sports programming.”

Apart from Congress, the FCC has an ongoing proceeding examining sports rights in this new digital streaming age. Earlier this year, it launched a proceeding looking at this very issue:

“It is against this backdrop that the Media Bureau issues this Public Notice today.  We would like for commenters to address the current and emerging trends in the distribution of live sports programming.  How does the present marketplace benefit or harm consumers?  How does the recent trends towards fragmentation facilitate or inhibit the ability of local broadcast television stations to meet their public interest obligations, including their production of local news and reporting? In what ways is the marketplace continuing to evolve and how will future changes impact consumer access to free over-the air news and information, including public safety information?  A broader range of questions are specified below.”

Simply stated, the waiver of the antitrust laws for sports rights packages made sense for consumers when it helped create network packages to be seen on free television.  However, applying the antitrust exemptions contained in the Sports Broadcasting Act harms consumers as the games are now hidden behind paywalls of multiple streaming services.  This is the beginning of a long struggle to protect American consumers and keep sports on local broadcasting.

You can see the resolution from 50 state broadcast associations here.

You can see NAB’s comment on the resolution here.

You can see the FCC’s Public Notice soliciting comment on this issue here.