NFL Faces Antitrust Probe Over Media Rights Deals

The US Department of Justice has opened an investigation into the National Football League (NFL) over potential anticompetitive tactics, according to a government official. The investigation focuses on the affordability of NFL games for consumers and creating a level playing field for media providers.

The NFL is currently renegotiating its media rights deals with broadcast networks earlier than initially planned. The league is also considering a larger package of games with streaming giant Netflix. In response to the investigation, the NFL stated that its media distribution model is "the most fan and broadcaster-friendly in the entire sports and entertainment industry." The league noted that over 87% of NFL games are available on free, broadcast TV, with teams always shown on broadcast networks in their local markets.

Background on the Investigation

The probe comes as the cost of sports media rights has skyrocketed, leading to higher costs for consumers to watch games. The NFL is in the midst of an 11-year, $111 billion media rights agreement with broadcast networks CBS, NBC, and Fox, as well as Disney's ESPN and Amazon's Prime Video. However, the league is beginning to renegotiate its deals with broadcast partners, which could result in increased revenue for the NFL and a longer-term commitment from its current broadcast partners.

Recently, the NFL began renewal talks with Paramount Skydance's CBS for a deal that would keep a package of Sunday games on the broadcast network. CBS currently pays approximately $2.1 billion a year, and a potential increase in the renewed negotiations could see the network pay more than $3 billion in the next deal.

Streaming Deals and Their Impact

The NFL has entered into various streaming-only agreements to reach consumers without traditional TV packages. Amazon's Prime Video is the exclusive home of Thursday Night Football, and Netflix has hosted Christmas Day games in recent years. The league has also signed one-off exclusive streaming deals for certain games, including the playoffs, with streaming counterparts of legacy media companies like NBC's Peacock.

NFL Executive Vice President of Media Distribution Hans Schroeder has discussed the growing importance of streaming for the league's future. He noted that the league's Wild Card game, which aired exclusively on Peacock, was "the most transformative moment" in recent years.