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BUSINESS
National Football League

FCC eliminates NFL blackout rules

Roger Yu
USA TODAY
Jacksonville Jaguars quarterback Blake Bortles (5) gets a pass over the outstretched arm of San Diego Chargers inside linebacker Andrew Gachkar (59) during the first quarter of a NFL football game Sunday, Sept. 28, 2014, in San Diego. (AP Photo/Chris Carlson)

The Federal Communications Commission said Tuesday it repealed its sports blackout rule for the National Football League, eliminating a decades-old ban on airing local games that were not sold out.

The rule change may not trigger significant changes for football fans since almost all NFL games are sold out. The league may still establish its own blackout rules through private contracts they set with broadcasters and cable companies.

In their contracts that run until 2022, the NFL requires broadcast networks to black out a game if a team does not sell out tickets at least 72 hours before the game starts. And the NFL plans to keep the contract in place.

But the FCC's rule change, approved unanimously by all five commissioners, means the agency no longer prohibits cable and satellite operators from airing any sports event that had been blacked out on a local broadcast station. And now they theoretically would be free to air a local game -- one that has been blacked out on the local broadcast station -- by carrying the broadcast of another station outside the market that's airing the game.

"NFL teams have made significant efforts in recent years to minimize blackouts," the NFL said in a statement. "The NFL is the only sports league that televises every one of its games on free, over-the-air television. The FCC's decision will not change that commitment for the foreseeable future."

Vigorously opposed by broadcasters, the blackout rule is "no longer justified in light of the significant changes in the sports industry since these rules were first adopted nearly forty years ago," the FCC said in a statement.

In the early 1970s, NFL teams relied primarily on ticket sales to generate revenue and the rule was implemented to encourage fans to attend games. But the league has diversified its revenue base by reaping billions in advertising and programming licensing fees from networks.

Despite player concussions and other controversies surrounding its players and teams, the league's popularity is growing unabated and only two NFL games were blacked out last season.

"Blackouts of NFL games are increasingly rare," the FCC said. "The NFL is the most profitable sports league in the country, with $6 billion in television revenue per year."

Broadcasters have maintained that changing the rule could drive more games away from over-the-air stations to pay-TV providers, like satellite and cable operators.

Cable operators cheered the FCC's move. "We commend the commission's unanimous decision to eliminate the antiquated sports blackout rule," said the National Cable and Telecommunications Association, in a statement. "We encourage the FCC to continue its examination of outdated rules that no longer make sense."

Contributing: Tom Pelissero

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