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Business Ethics in the News
NFL: Broadcast Blackouts and the Public Good
Friday, Nov. 1, 2013
In her final days as Chairwoman of the FCC, Mignon Clyburn has her sights set on nixing the FCC’s enforcement of broadcast blackouts. Most commonly used by the NFL, blackouts occur when a game has not been sold out, resulting in the game not being televised in areas within close proximity to the stadium. Roger Goodell, Commissioner of the NFL, defends the policy by claiming that blackouts drive people to games, in turn bolstering the stadium experience. In recent years, blackouts have come under heavy scrutiny causing the NFL to ease up on its definition of sold out: now standing at 85%. Leading the charge is a group of sports economists who claim that blackouts have no effect on ticket sales and only serve to punish consumers. While the NFL can bypass the FCC’s ruling by amending their contracts with providers, it still leaves the question: is the broadcast blackout an unethical business practice?
Patrick: The first thing that needs to be said is that using blackouts is a dumb business practice. Blackout rules force networks and sponsors, who stand to lose the most from a blackout, to buy thousands of tickets to meet the “sold out” requirement. Now, with the reports showing that they have no effect on attendance, it makes one wonder why this is even a question. But, is it ethical? Probably not. While there are a number of ways to approach this one, including the discrimination between local and national customers, the fact that most stadiums are funded with public money offers a quick fix. Local residents invest in the stadium to have the option of going out to watch the game, not to be forced to do so.
A Framework for Thinking Ethically (Markkula Center for Applied Ethics)
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