Relates to broadcasting of professional sporting events of publicly funded stadiums

BILL NUMBER:S1726

Title of bill

An act in relation to broadcasting of professional sporting events of publicly funded stadiums

Purpose or general idea

This legislation would render ineligible for public funding, in the next State fiscal year, any professional sports team or franchise whose broadcast of a home sporting event was blacked out for any reason.

Summary of specific provisions

Section 1 provides that if the broadcast of a home game of professional sports team or franchise is blacked out, such team or franchise would be ineligible for public funding in the coming New York State fiscal year.

Section 1 further provides that under certain circumstances, irrespective of a blackout, a team or franchise may maintain its eligibility for public funding.

Justification

The National Football League (NFL) has a policy that it calls the "blackout rule." The rationale for the blackout rule is that if games are not televised, fans will need to buy tickets and fill up the stadium, thus increasing revenues that are not shared with the television networks. Additionally, a fuller stadium makes better television, and gives rise to more lucrative broadcast contracts and advertising contracts.

However, during these challenging fiscal times, the NFL's rationale ignores the reality that many fans are unable to afford high priced tickets and attend games. Thus, the blackout rule actually depresses professional sports viewership and shrinks the fan base and advertising revenues. Furthermore, blacked-out games have negative multiplier effects upon local economies. When games are not televised, fans do not attend the sports bars, restaurants and other gathering places where they would normally watch the game and engage in economic activity.

There are a number of NFL teams that receive public funding or have benefited from public financing of their stadiums. Since the taxpayers have funded, or will fund these teams and/or their stadiums, it seems only appropriate to cut off access to state funding where the teams remove the ability of taxpayers to see the games their state has subsidized.

This legislation would protect the taxpayers' return on their investment(s), by cutting off state funding to professional sports

teams or franchises who benefit from public subsidy, but do not broadcast local games.

Prior legislative history

2009-10: S.7103 - REFERRED TO CULTURAL AFFAIRS, TOURISM, PARKS AND RECREATION

A similar bill was introduced in the Missouri House of Representatives as H.B. 1986 earlier in the 2009-2010 Legislative Session. Furthermore, similar bills are in the process of introduction in the states of California, Florida, Michigan and Pennsylvania.

Fiscal implications

The State could potentially save hundreds of millions of dollars, as well as the fees necessary for the issuance of bonds for publicly funded stadiums.

Effective date

This bill will take effect immediately.