Kerry to probe baseball’s deal with DirecTV

[JI7]

Sen. John Kerry (D-Mass.) will hold a hearing today questioning how a potential $700 million deal between DirecTV and Major League Baseball might affect fans.

The Senate Committee on Commerce, Science and Transportation will question baseball and satellite officials about the controversial deal, which Kerry argued would leave many cable subscribers without access to games.

Under the proposed deal with MLB, out-of-market games would run only on homes with DirecTV satellite service. That would leave Sox fans with cable access living outside New England in the dark, Kerry said yesterday on a conference call. “Red Sox nation is affected,” he said. “And obviously others who have the same kind of passion for other teams.”

Earlier this month Kerry sent a letter to the Federal Communications Commission asking it to investigate the deal.
DirecTV declined to comment.


http://business.bostonherald.com/businessNews/view.bg?articleid=191072

[Faux pas]

1. My God, can't they leave ANYTHING alone? I live for baseball

season. My 76 yr old mom isn't going to happy either. Crap + tax.

Nail 'em Kerry.

[Sherman A1]

2. Just my opinion

but, I consider ALL major league sports to be about the same as Pro Wrestling. I consider them to be nothing more than scripted (fixed) entertainment. It's about the money and how much they can weasel out of the taxpayer and the public. If folks enjoy them that's fine with me, but I have no interest in watching or paying for them either through tickets or through taxes to build their stadiums.

[Faux pas]

3. I've loved baseball (and have to confess, the players) since I

was 10 yrs old. Old loves die hard. I couldn't care less about football, basketball, etc. I don't even consider wrestling a sport.

[tkmorris]

4. That's fine

But the idea that major sports are orchestrated is just lunacy. There is no way to keep a conspiracy that large secret. It just isn't so.

[NewYorkerfromMass]

5. Just my opinion, but

shouldn't we let everyone tune in an decide for themselves?

[Sherman A1]

11. Never said we shouldn't let people watch or enjoy what they wish.

I don't watch or attend, but I do get saddled with the bill for the great stadiums that will bring yet another redevelopment to save downtown. Just somehow never seems to do so...

[TayTay]

6. This is Kerry's opening statement (Short)

Kerry Tells Parties in Baseball Deal to Put Fans First


WASHINGTON D.C. – Senator John Kerry will chair a Full Committee Hearing called “Exclusive Sports Programming: Examining Competition and Consumer Choice,” today at 10:00 a.m., in room 253 of the Russell Senate Office Building.


Below is Senator Kerry’s statement, as prepared for delivery:

I would like to welcome our witnesses. We are conducting this hearing today to discuss sports programming in general -- and baseball in particular – a very popular topic this time of year in Massachusetts and all over the country.

Last year, baseball fans were able to buy what are called “out of market games” through their cable and satellite providers. The package of games is called “Extra Innings,” and allows fans to follow their home team. So Red Sox’s fans living in Washington or California could still get access to most Red Sox games for about what it costs a family of four to attend a game.

Press reports indicated that Major League Baseball was close to announcing an exclusive deal with DirecTV for carriage of these games. We will evaluate this deal.

Yogi Berra was once heard to say, "You've got to be very careful if you don't know where you are going -- because you might not get there."

That sentiment is as timely now as ever. We want to examine where the parties are going - and whether this deal will get them there. Is this type of deal in the best interest of consumers? Does it serve the sports fans? These are legitimate questions.

Baseball is an integral part of American culture. Commissioner Selig himself has said that baseball is a social institution with enormous social responsibility. I agree with him.

Recognizing that, baseball has benefited from an array of favorable Government policies. The sport enjoys a broad antitrust exemption. It allows them to negotiate carriage deals, and gives them tremendous market power.

They receive Billions of hard earned tax dollars to support stadium construction. Right now, only a few blocks away from here, the new Washington Nationals stadium is being built. One Economist estimates that between 1989- 2001 16 baseball-only stadiums were constructs at a total cost of $4.9 billion. $3.7 billion of that cost borne by public revenues -- taxpayer money.

We should support baseball, and in return, I believe baseball should serve the public interest. It is fair to expect baseball to provide broad access to their games.

Last year, it cost a family of four almost $180 to attend a Major League Baseball game. For too many families and people living on fixed incomes, the cost of attending a game is getting out of reach. Still, a record total of 76 million fans attended Major League Baseball games last year.

We are now less than a week away from the baseball season and over 250,000 people will lose access to their team’s games.

Let me say at the outset, I am concerned about exclusive carriage deals in the sports industry. These deals may be good for the short-term financial interests of the sports leagues; they may improve the competitive position of the cable or satellite firms that get the rights -- I have no doubt that there are business advantages --

But we need to discuss the impact of these business changes on baseball fans as well. I am concerned when fans lose access to their favorite team; or, as we will discover today, they are forced to change their TV service just to see games. That is wrong. That is a sign that the system is not working.

The sports leagues have tremendous market power. We need to ensure that the deals that are cut serve the public interest.

Yogi Berra also was heard saying, "You can observe a lot just by watching."

Well, the American people are watching, and fans are watching, and they have not been shy to express their feelings about this deal. Truth be told, baseball fans all over this country are disappointed and some are outraged.

As we stand here today, approximately 260,000 baseball fans that currently pay a premium to see their team will lose access to those games – unless they switch to DirecTV.

Baseball is important to America. I believe that baseball fans living outside the state of their favorite team should continue to have access to Major League games without having to cancel their current service.

Why should fans have to do that? We have heard from many fans that do not have the ability to switch to satellite if they want to. That is not fair, and I’m not sure it is in the long term interest of the sport.

With today’s hearing, we will get the facts on the record. And I urge the parties to work together, in good faith, to ensure we have broad carriage of the Extra Innings package this year.

I welcome our witnesses.

[ProSense]

8. Thanks for posting this. n/t

[ProSense]

7. Background on the deal

here.

[warren pease]

9. Just outrageous...

I read about this in a column in the SF Chronicle a couple of weeks ago and just about blew a fuse.

I had DirecTV for a couple of years when we first bought the place we're in now, and bought the out of market baseball package. But the neighbor's trees have since grown and cut off the path to the satellite, so we ended up switching to Comcast. Which was fine because they had something called Extra Innings, which was the same thing as the DirecTV option. Now that's history, the trees continue to make the signal impossible to receive, and I want my damn baseball.

This might be a good time for one of Congress; periodic examinations of baseball's cozy anti-trust exemption, which has been key in allowing the sport's owners to collude and connive without normal constraints re price fixing and market manipulation.

I hope Kerry can get some traction on this issue. I wouldn't pretend it's the most urgent thing on the Senate's agenda. Still, a hell of a lot of people who love baseball are going to get screwed if this deal is allowed to stand.

You can email him at: http://kerry.senate.gov/v3/contact/email.cfm


wp

On edit: added Kerry email URL

[nolabels]

10. I can't believe this, no tongue and cheek crack about an "inside baseball" yet !

:shrug: