Justice Department Investigates NFL’s Game Licensing Practices

The U.S. Justice Department has launched an investigation into the National Football League’s licensing practices, focusing on whether the league’s distribution of games across multiple paid platforms leads to excessive costs for consumers and stifles competition among providers. Sources familiar with the probe told CBS News that the inquiry centers on affordability for fans and ensuring a level playing field for media companies.

Historically, NFL games were broadcast free over the airwaves, but the landscape has shifted dramatically. The 1961 Sports Broadcasting Act allowed sports leagues to negotiate media rights collectively, sidestepping some antitrust concerns. Today, NFL games are spread across various platforms, including paid cable networks and streaming services, requiring fans to subscribe to multiple services to watch all games.

Senator Mike Lee, chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights, prompted the investigation with a letter last month. Lee questioned whether the NFL’s streaming package fees violate the Sports Broadcasting Act and called for a review of the league’s antitrust exemptions. “To watch every NFL game during the past season, football fans spent almost $1,000 on cable and streaming subscriptions,” Lee wrote.

The NFL’s media rights are divided among CBS, NBC, ESPN, Fox, and Amazon Video, which streams Thursday night games. Additionally, YouTube offers the “Sunday NFL Ticket,” allowing viewers to watch every Sunday game for a $240 seasonal fee.

Following Lee’s letter, the Federal Communications Commission sought public input on how changes in viewing habits and the rise of streaming services affect consumers and traditional media’s ability to serve the public interest. The FCC noted that the original packaging of teams’ television rights aimed to ensure financial stability and equitable revenue distribution among teams.

An NFL spokesperson responded to the investigation by stating that 87% of games are available for free and that games are always free in the local markets where teams play. “The NFL’s media distribution model is the most fan and broadcaster-friendly in the entire sports and entertainment industry,” the spokesperson said. “The NFL has for decades put our fans front and center in how we distribute our content.”

The Justice Department declined to comment on the investigation, and the White House referred inquiries back to the department. The Wall Street Journal was the first to report on the probe.

The investigation is ongoing, with officials examining whether the NFL’s current licensing arrangements constitute anticompetitive behavior that harms consumers and restricts fair competition among media providers.