MO state rep (Dem) goes after NFL blackout rule

[proud2BlibKansan]

Got this in an email today. Jason's bill says any pro sports team that blacks out games is not eligible for any public funding. This is a letter he sent to the NFL commissioner:

Dear Commissioner Goodell:

My name is Jason Holsman, and I represent the 45th district in the Missouri House of Representatives. Earlier this month, I filed House Bill 1986, which makes any professional sports franchise ineligible to receive public funding if that franchise is subject to a broadcast blackout due to a league-wide policy. This bill, if it becomes law, would obviously impact the NFL and teams like the Kansas City Chiefs and St. Louis Rams. I am writing to explain why I proposed this bill and why I believe that reform of the existing broadcast blackout rule is important.

The NFL's rationale for the blackout rule is simple: If games are not televised, fans will be forced to buy a ticket and attend games in person. This rationale is shortsighted and ignores economic reality. Our country, and in particular my constituents in Missouri, are hurting financially. At this time, many football fans - including die-hard fans like me - simply cannot afford to buy a ticket and attend the games. Rather than pressure fans to buy tickets, the blackout rule actually prevents fans from watching their teams altogether. The unintended consequence of the NFL's policy is to reduce viewership, upset fans, and potentially reduce the fan base. It is for these very reasons that Major League Baseball does not predicate their blackout policy on ticket sales.

The blackout rule is bad for already-struggling local economies. When games are not televised, fans stay home and restaurants and bars lose out on revenues from Sunday and Monday night crowds. Local television affiliates lose out on advertising revenues, as do advertisers whose commercials never air. Team merchandise sales fall, and that hurts local retailers as well as the NFL team franchise.

NFL teams receive millions of dollars of public assistance from state and local entities each year. The Kansas City Chiefs, my team, receives $3M in annual state appropriations, $2M annually from Kansas City, and $3.5M from Jackson County. These dollars are in addition to a one-time $25M tax credit from the State of Missouri for relocating the Chiefs training camp to St. Joseph, MO, and in addition to the revenues from a 3/8 cent sales tax which funds $250M worth of renovations to the Arrowhead stadium, constituting a significant amount of taxpayer money, and taxpayers deserve something in return for their investment.

For these reasons, I filed H.B. 1986. If passed, H.B. 1986 will preclude any professional sports team, which is subject to a broadcast blackout, from being eligible for public funding in the following year. I also drafted an amendment to this bill that guarantees existing, legally-obligated subsidies, tax levies, and contractual agreements, to the extent any exist. This bill only applies to future public assistance.

A national movement is underway to get sponsors onboard from various state legislatures. Based on my discussions with legislators from around the country, similar legislation has been, or will soon be, filed in New York, California, Pennsylvania, Michigan, and several other states. Over the next few weeks, we will announce more states that have joined this effort as more states file bills similar to H.B. 1986. It is my hope that the NFL and franchise owners will take this issue seriously, and decide to reverse the blackout rule at the next executive meeting.

Please understand that the aim of this bill is not to hurt the NFL or its teams. That is not my goal. I simply want a square deal for the taxpayers. I support providing NFL teams with taxpayer subsidies, but seek to protect the taxpayer's return on investment.



If you have any questions or would like to speak with me further about this issue, please call my office at [phone].


Best Regards,



Jason R. Holsman
State Representative - District 45
Missouri House of Representatives

[CurtEastPoint]

1. Oh, now, this is of vital importance, isn't it? n/t

[proud2BlibKansan]

3. It's a big deal in a lot of TV markets

He explains it well in his letter.

[devilgrrl]

5. If tax money is given to teams - I think it is somewhat important.

Pro Sports teams are welfare queens to the max.

[jmowreader]

25. If you owned a sports bar in a city with an NFL team, it would be

Another reason NASCAR is better than football: NASCAR has no blackout rule. The East St. Louis Pilot truck stop plays races from Gateway International Raceway in its TV lounge...and that truck stop is right across the road from the track.

Then again...if the Lions didn't have a blackout rule, no one would go to the stadium at all.

[Dappleganger]

2. This would really help Jacksonville...

support for the Jags has waned because of blackouts. Our market is very small, there's a high risk of the team moving out and each season the blackout has been in effect team support continues to drop. This is a working-class city with a small tax base and we need to be able to see the home games in bars/restaurants to garner support. They are trying some new season ticket price structures this year which may help some but it's still out of reach for many of us.

[proud2BlibKansan]

4. KC is a smaller market too

The Chiefs had their first game blacked out in almost 20 years this past season. The Rams had a couple blacked out as well. It's really not right when the taxpayers are funding the stadiums.

[Dappleganger]

6. It's been going on here for several years...

it depresses the entire city when we have blackouts occur. When you live in a football city it's one of those things which keeps even the poor man going, the ability to see the game and cheer along no matter where you are. There are many businesses who show the game and blackouts keep their business down.

[Lochloosa]

11. Well said Dappleganger. I can't afford the tickets even w/ the new price structures.

San Jose area here. Where are you?

[Dappleganger]

14. Just south of Mandarin

in Fruit Cove. Even single ticket prices are out of reach for us on a very tight budget. It's been at least 5 years since we've been able to afford to go to a game, which is a shame because every time we went it was so much fun!

Nice to 'meet' you! :)

[Lochloosa]

32. Nice to "meet" you also. I went to the Colts Thursday night game.

Through some friends, I was hired to hold the parabolic directional mic for NFL Network. I was on the sideline, Colts side, from the 40 to the goal line.

That was fun, even for an old guy like me. :evilgrin:

[Blue_Tires]

7. OK, i agree that the NFL blackout policy is horribly antiquated

and out of date (i remember living in Atlanta when people were HAPPY if the Falcons got blacked out)

but honestly -- there are bigger fish for this congress to fry right now...

[proud2BlibKansan]

10. This is a state representative proposing a bill to his state legislative assembly

Not Congress.

[MattBaggins]

23. Exactly. This is a big fish when one considers the econmoic times

Local municipalities are really strapped for cash and examining the funds given to prop up sports teams is a must if they are really going to balance budgets.

I for one could not care less about any sports and really see no reason my anyone should be giving my money to them; but I am willing to accept it if it is true that local sports has an overall positive effect on local economies.

[dmr]

8. I've always hated the blackout rule. When I lived in Miami

the whole town counted the days and hours to see if enough tickets were sold so we could see the Dolphins on TV. Sometimes at the last minute Joe Robbie or someone else would buy up the required tickets just so the game could be aired.

Back in the 80s some of the sports bars defied the black out and found a way to show it anyway. But the NFL, ever so vigilant, would shut them down, sometimes right in the middle of the game!

I loved going to Dolphin games, especially at the old Orange Bowl, but it's way too expensive for a family. When my nephew moved to West Palm Beach, we'd trek up there some Sundays to watch.

The Dolphins are one of the few things I miss about Miami. Sundays during the season evolved around the Dolphins.

I support Jason Holsman, he has the right idea. Local fans and area businesses are being screwed by not only the blackouts, but by the tax dollars they can ill afford.

[Dappleganger]

16. That's pretty much what happens in Jacksonville, too.

And the Dolphins are a GREAT team! I really believe that if the blackouts were permanently lifted team support ($$$) would go through the roof.

[Telly Savalas]

9. Public funding issues aside, the blackouts don't make economic sense for the NFL.

By now it's pretty clear that the blackouts don't incent people to buy tickets from the box office so they can freeze their asses off watching two of the worst teams in the league (especially when such tickets can be purchased on the secondary market for a fraction of the face value). So I don't see how the minimal boost in ticket sales can be sufficient to offset the loss of television revenue.

[proud2BlibKansan]

12. It's a very dumb policy

The NFL is especially greedy.

[Dappleganger]

15. It's a monopoly...

the NFL is a giant bully to small business owners nationwide (just look at what they tried in NOLA with the 'Who Dat' marketing).

[KharmaTrain]

13. Not A Chance With The NFL...

Their long range goal is to go with pay-per-view on all their games and find more ways to black out games not less. Wanna see your home team? Buy the NFL Network. The public be damned even if it was the tax payer's dime that built the stadium...that's the price of having the team. The NFL is notorious for mooching...getting a free farm system from the colleges and sweetheart contracts with almost every venue they play in. They've also worked hard to protect their TV rights and distribution.

Just another politician posturing during an election year...

[proud2BlibKansan]

17. No he's a good guy

He's getting a lot of positive press here. People are very supportive since few can afford to go to a game anymore.

[Dappleganger]

18. The Jags are one of the most heavily-subsidized NFL teams

by any city at this time. What does the taxpayer get out of this?

More blackouts and more requests (demands) by the team owner and the NFL.

[madmom]

19. Why the f*ck do they get public funding in the first place? They are multi million dollar corps !!!!

[proud2BlibKansan]

22. The Chiefs make their budget with the TV renewals alone

Everything else is gravy. Ticket sales, concessions, merchandise and outrageous parking fees are all profit.

So they don't need tax dollars to build stadiums.

[MattBaggins]

24. Yeah why am I paying for million dollar bits of fake grass

that I would get arrested for, if I took my kids to them and let them run around? How many kids parks could we build and maintain on the funds that professional sports teams get from taxpayers?

[proud2BlibKansan]

26. It's extortion

Your elected reps were threatened by the team owners.

It's been a big deal here for 40 years. The teams somehow managed to make a deal for $2 million a year in 'aid' from the city. This in addition to two beautiful stadiums just remodeled last year. This year the mayor is trying to take the 'aid' out of the city budget. And the teams are in an uproar. It's really ridiculous. The city doesn't have money for potholes or sewer repair but they are supposed to pay the pro teams for the honor of playing in a stadium the taxpayers paid for.

[jmowreader]

30. Here's the theory, and it looks good on the surface

"Build us a stadium. Make it seat 80,000 and 20,000 families of four will come to each game. Each family will put x dollars into the local economy through sales tax on football tickets. They will buy refreshments and that will add sales tax revenue. Many of them will buy souvenirs. Most of them will eat at a local restaurant on their way to the game and again when they leave. There will be parking revenue. We will employ x number of people. Our suppliers and contractors will employ people. We will buy our electricity and gas from the local utilities. Businesses will clamor to become the Official Whatever of the Home Team. We will buy outdoor advertising." The list goes on but you get the idea. "The presence of a football team will draw new business to town as the presence of entertainment is a draw to Fortune 500 corporations. The city's morale will improve." Once again, the list goes on. "And the stadium will be a multiuse facility."

And then they build the thing, and the team turns into the Second Coming of the Detroit Lions.

[Missy Vixen]

20. I think he has something here

If he manages to get legislation filed in every state that has at least one NFL team, Rep. Holsman will succeed in getting people to at least ask questions as to why the NFL (a multi-billion dollar corporation,) gets tax subsidies in a time we're cutting stuff like education and public transit.

I'm a huge NFL fan. This is a fairly precarious time for the league. Their viewership is up, but they are facing a lockout/strike over the players' collective bargaining agreement that could seriously damage the league. A suit was filed last week demanding the ability for former players to review the league's financials; if it goes forward, all hell will break loose.

It should be interesting. Thanks for the post!

[proud2BlibKansan]

21. He has networked with reps in several other states

I'll see if I can find a list.

[gratuitous]

27. Sorry, Mr. Holsman

But Kansas City Chiefs games will still be broadcast and the scores reported. As a LONG-suffering Chiefs fan, I'd sure like to see a blackout of such things (think of the children!), but I'm afraid the public will still have Kansas City games inflicted on them.

[proud2BlibKansan]

28. They blacked out a game this year

And so did St Louis. That's why he proposed this bill.

[gratuitous]

29. One game blacked out is a start

But I don't think the NFL would agree to black them all out, would they?

[proud2BlibKansan]

33. That's their rule

Yes I think they would.

[4lbs]

31. I like it, because the majority of the monies aren't even received due to ticket sales.

That NFL salary cap? Almost entirely funded via TV and 'Net broadcast contracts.

You would think the networks should support rescinding the blackout rule so they get more eyeballs on the TV screen, and thus better justify the costs of a 30-second commercial to advertisers.