Scalping Sunday Ticket

Football season can be a confusing time for those fans away from their home market. The lazy Sunday you used to enjoy is now gone. Instead of being greeted by your team when you roll out of bed at noon and turn on the TV, you are greeted with the horror that is Baltimore v. Tennessee (no offense, Ravens or Titans fans). Of course, the NFL has provided a solution for its displaced fans for many years in the form of the Sunday Ticket package. For $280, DirecTV subscribers get (almost) every game live every week.

But there’s a catch. Unlike the other full season sports packages, NFL Sunday Ticket is only available on DirecTV. With a customer base of 13.5 million subscribers, DirecTV pal es in comparison to the approximately 90 million cable subscribers in the country. This means that a large portion of the television-viewing population cannot get the Sunday Ticket package. Even worse news, don’t expect Sunday Ticket to be available on cable anytime soon. Last year, DirecTV renewed its exclusive Sunday Ticket agreement with the NFL through 2010. The Rupert Murdoch- controlled company will now pay $700 million annually for the rights, while in contrast, CBS and Fox pay $622 and $715 million, respectively, for their games. While cable would have loved to get in on the action, DirecTV’s bid went above and beyond what any of the cable companies were willing to pay.

If this exclusivity deal seems a little monopolistic to you, you’d be right. In fact, one particularly litigious DirecTV customer brought a lawsuit against the NFL in 1998. In Shaw v. Dallas Cowboys, the plaintiff argued that the NFL’s joint agreement with DirecTV was a violation of Section 1 of the Sherman Act. The NFL countered with the argument that the selling of the rights was exempt from antitrust law under the Sports Broadcasting Act, which grants an antitrust exemption to “sponsored telecasts.” Sponsored telecasts refer to broadcasts financed by advertising, which is the category the regular broadcast games fall under. The NFL argued that the games available through DirecTV also fell under the exemption; however, the district court ruled that to apply the exemption to the Sunday Ticket games would effectively make the exception into the rule (this was later affirmed by the Third Circuit).

The suit evolved into a class action encompassing all Sunday Ticket subscribers. The parties eventually settled, with the plaintiffs getting a share of $7.3 million, discounts on NFL merchandise, and the opportunity to buy access to Sunday Ticket on a weekly basis. This initial agreement, however, was rejected by the district court because it was too favorable to the league (the NFL could rescind the weekly Sunday Ticket option after one season), and the attorneys’ fees were too high for the amount the plaintiffs actually received in the settlement (the attorneys got $3.7 million in fees while the 1.8 million members of the class had to split the settlement). The agreement was revised to increase the settlement pool by $1 million and also forced the NFL to offer the weekly Sunday Ticket package up until 2004.

So where does that leave you, the diehard football fan? Pretty much back where you started. For the immediate future, Sunday Ticket will still be in the firm grasp of DirecTV, but there are several possibilities for opening up Sunday Ticket access to the masses. While the simplest solution would be for the NFL to let cable companies offer Sunday Ticket, this could end up hurting cable customers in the long run. With Sunday Ticket available on cable, there would be a mass exodus from DirecTV, which could severely affect the ability of DirecTV to compete with cable. With less competition, cable companies would resort to their old monopolistic ways. This scenario is unlikely, as the NFL would not want to give up a single huge payment for several smaller payments. The NFL is also against the widespread offering of the Sunday Ticket package because it feels it would hurt ratings for the local broadcast games. So, any possible solution would have to balance the concerns of the NFL over local ratings, the necessity of maintaining a legitimate cable competitor, and the needs of the consumer.

Fortunately, a solution that satisfies all three of these concerns is already being utilized by another sport—baseball, with its MLB.TV service. MLB.TV, which, as of last year, already has a subscriber base of 850,000, provides streaming video of live baseball games to out-of-market fans, and this model easily could be adapted for the NFL. Instead of offering access to every game for every team, pricing instead could be on a per-team basis. This would prevent a decrease in local ratings and also insure that DirecTV’s subscriber base remains stable. Watching football is more of a social event than watching baseball, so many fans would prefer to watch the game on a regular television than on a computer. Still, by allowing broadcasting games online, the NFL would be able to give fans who don’t or can’t get DirecTV another viable viewing option.

For now, though, you’ll have to be content with heading out to your local sports bar to get your football fix. And maybe that’s not such a bad thing. Despite the overpriced food and drink, there’s nothing quite like taking in a game surrounded by tons of rabid football fans. Just try not to get into an argument with the guy wearing the Joey Harrington jersey sitting at the table next to you; he’s suffered enough.

Mets Fans Caught in the Middle of Television Dispute

"I can see Shea Stadium from my roof, but I can't watch a Mets game in my living room? That's just crazy!" opines Andre from Corona, Queens. Yes, it's a difficult time for New York sports fans. Thanks to the squabbling of Time Warner and Cablevision, 2.4 million New Yorkers have been without MSG, Fox Sports Network NY, and Cablevision's other sports networks since March 7. This of course also affects the 350,000 Time Warner subscribers here in upstate New York. While one would normally expect to see the FSN NY and MSG networks on channels 24 and 100, respectively, they have been replaced by College Sports TV and NBA TV while the two parties duke it out.

Up until Monday, many of you were probably unaware of the channel pull, because, let's face it, no one really wants to watch the Knicks right now. However, with the start of the baseball season on Sunday, many of you were anxiously waiting to see the new-look Mets play their season opener on Monday against the Reds. Alas, that never transpired.

You probably first tuned into ESPN and ESPN2, but there were other games on instead. "Oh, it's probably on MSG," you thought. But wait, NBA TV was there in its place.

At this point, you were probably screaming at your television set. You would not be able to see Pedro's and Beltran's first games as members of the Mets. You were going to have to wait to see the highlights on SportsCenter. While you were listened on the radio or constantly updated the score on the Internet, you missed the Mets doing what they do best-losing the game after the bullpen squandered the lead.

Now that we're all familiar with the pain that Mets fans are experiencing, let's get to the actual dispute between Time Warner and Cablevision. According to givebackmsg.com, a website run by Cablevision:

"MSG has attempted to negotiate a fair and reasonable rights deal with Time Warner Cable for MSG Network and FSN New York. Time Warner Cable has declined the offer to keep games on while the dispute is brought to binding arbitration. Instead, Time Warner Cable has pulled the plug on MSG Network and FSN New York. MSG is still prepared to live by the decision of an independent arbitrator and call[s] on Time Warner Cable to give the fans back their games."

Right on, MSG! Fight the good fight! Interested to know more about the "reasonable deal" that MSG had offered, I perused the site for a few minutes, only to find that there was no other information about this deal. Instead, there were only video testimonials from such impassioned Mets fans like Gregg from Queens, who proclaimed that "We deserve to be able to see ... the Mets; The Knicks too. I mean, c'mon."

Gregg has chosen to invoke the classic "I mean, c'mon," argument, which can be very convincing. However, that wasn't enough for me, so I sought out a different source. According to the New York Daily News, Cablevision wants Time Warner subscribers to pay 30% more per month for FSN NY and MSG. Time Warner refused this increase because no one wants to pay more to watch the Knicks' drive for a lottery pick, and Mets games are not worth nearly as much as Yankees games. Cablevision's offer to settle the dispute via binding arbitration was rejected by Time Warner because the company felt that going to arbitration would only lead to higher prices for its cable subscribers.

While each side has been involved in similar disputes in the past (Cablevision with the YES Network in 2002 and Time Warner with Disney in 2000), I can't really in good conscience side with a company that tried to derail New York's Super Bowl and Olympic bids, stop the Jets from getting a West Side stadium, and run the Knicks and the Rangers into the ground.

Let's not forget that this whole dispute was probably caused by Time Warner's investment in the new Mets network, which debuts in 2006. With the Mets off of MSG and FSN NY, Cablevision will only have the pitiful Knicks and Rangers to show on its networks. Who is going to pay 30% more per month to watch those games? Not me.

While the Mets may have self-destructed on Monday, it would be very ironic if the team completed a huge turnaround this season and made the playoffs when a large portion of its fan base only got to see a third of its games. However, don't despair, dear Mets fans. If you send a copy of this column into DirecTV, you'll get free installation and free HBO for six months, as well as all the Mets game you can handle. If you're still angry at Time Warner for taking away your Knicks and Mets games, you can find solace with fellow Knicks fan Harold from Englewood - "I'm a real diehard Knicks fan. Not being able to see any of the new Knicks and things like that, [not] being able to see Sweetney and all that other stuff, it really makes me mad."

All Ducked Out, No Wins to Show

Tucked into the confines of Autzen Stadium at the University of Oregon is the eighth wonder of the world. At least, that's what the Oregon athletic department would like you to believe. You see, the school recently completed the construction of a new locker room for the football team to the tune of $3.2 million.

Why did this locker room cost so much? Well, Oregon AD Bill Moos claims that the locker room "is the best anywhere, including the NFL."

Within the two-story complex, there are 120 state-of-the-art lockers. Each locker has its own personal ventilation system, and connections for video games and the Internet. In the main atrium area, there are three 60-inch plasma TVs, which run about $15000 each, as well as a complex lighting system. The players enter the locker room by means of a thumbprint scan.

Now if that didn't convince you to play football at Oregon, then maybe you'd like to hear about its indoor practice facility or its $100 million football stadium renovations or its aggressive marketing. You may have seen former Ducks quarterback Joey Harrington in Times Square a couple of years ago --- on a 10-story, $250,000 billboard. Then there's the "oh-so-delightful" new uniforms, a marriage of dark green and blinding neon colors.

Has all this spending translated into wins? Well, not yet. The Ducks opened the year with a four-game winning streak, including maybe the biggest upset in program history over then-No. 5 Michigan. The team then preceded to lose four of its next five games, with only one of these losses coming against a ranked opponent.

Now I know what you're thinking, "Hey, they only completed the locker room before the current season, they haven't brought in any new recruiting classes yet." You're right on the money. I am predicting now, based on no other evidence except for this locker room, that the Ducks will win the next five BCS titles.

I'm somewhat surprised by this season though. You think having the best locker room in the world would help the team on the field somehow, but apparently not. You see, the players still have memories from before the new locker room was completed, and they can't sleep at night, much less perform well on the field.

All this football spending is bound to make the other Oregon athletes a bit jealous.

What if you're on the basketball team? Will Oregon provide you with the same fiscal support it has been giving the football team? Absolutely. McArthur Court, the second-oldest basketball arena in the country and the current home of the Ducks hoops program, is being replaced by a brand-spanking new 100-million dollar arena.

How is Oregon able to afford all of this athletic spending? Well, the school counts among its alumni Phil Knight, chairman of Nike. Knight donated half the money for the football stadium renovation, and has his own honorary locker in the new locker room. Oregon players also benefit from the Nike connection by having the latest and greatest performance apparel, as the football uniforms can be plugged into special cooling systems on the sidelines (perhaps the only benefit to these god-awful uniforms. Who picked these colors? Neon? I'm surprised the other teams aren't blinded when Oregon walks on the field).

Our own university is in the midst of a $100 million athletics campaign. New facilities on campus include the wrestling center which opened last fall, and the new rowing center, and renovations to Helen Newman and Schoellkopf Halls are all coming soon. But this hardly compares to the pristine Ducks' facilities. If we want to be able to compete with Oregon, our athletic department needs to step it up. Of course, the first thing would be a new practice facility for the hockey team. I would suggest building it underground, perhaps in the synchrotron. Also, I think we need a new wrestling center.

"But Jon, we just built a wrestling center last year. It's the only one of its kind the nation." Yes, but two is always better than one.

And our Lindesth Climbing Wall? I mean, we only have the largest natural rock indoor climbing wall in North America. It's not even the largest one in the world. How does this university expect us to survive?

Also, while our logo may have gotten a makeover, I think we need to overhaul the Bear mascot -- how about making it look like a real bear? I mean, Monte the Grizzly Bear from the University of Montana was the 2002 Capital One Mascot of the Year. I recommend endowing the mascot costume, like we do with coaching positions, for the amount of $2 million, and installing some sort of candy-dispensing system in it. Then the Big Red Bear would surely be named to the next Capitol One All-America Mascot team.

Cornell had better start upping the spending now, because our women's lacrosse team needs to be ready when Oregon's team begins its first season of play in 2005. No doubt the Ducks will have specially-designed, state-of-the-art sticks from Nike, and we need to be able to counter that. But until I submit my athletics proposal to our Board of Trustees, Oregon will continue to be far and away the most prestigious institute of higher athletics in the country.

Like Football, This Space for Sale

Checking out the NFL schedule for opening week, I came across an interesting matchup: the Bank One Bears against the 49ers.

Now when did Bank One, a banking company when last I checked, acquire a football team?

In June, the Chicago Bears agreed to a multi-year sponsorship deal with Bank One Corp. to become the Bears' presenting partner. While selling stadium rights is now the norm, the Bears were unable to sell the naming rights to the newly renovated Soldier Field because it is a National Historic Monument. Fortunately for them, they reached an agreement with Bank One, and now Soldier Field will be littered with signage that reads "Bears Football presented by Bank One."

Now that the team name can be "presented", the only bastion in sports that remains (somewhat) commercial free is the uniform. Sure, the logo of the apparel company is on the jersey, but it is not displayed prominently. But sometime soon, I guarantee the team's logo will be displaced for some corporate sponsor.

If you think this will never happen, you obviously haven't looked at a European soccer jersey. You will be hard pressed to find the Manchester United crest on its jersey at first glance, as the Vodafone logo is prominently displayed across the center.

Just think of the possibilities here; the Yankees logo could easily be shrunken to accommodate a more prominent larger Adidas logo.

Don't stop at the uniforms, though. Maybe instead of the National Football League, it should be EA Sports presents the National Football League? All the major awards and trophies would be in play too. The Heisman Trophy is already sponsored by Suzuki, why not the Vince Lombardi Trophy or the Stanley Cup? If the O'Brien Trophy -- you know, the NBA Finals trophy-- were sponsored, people would actually know what its name was.

College football has taken the lead in the sponsorship department. Not only is the BCS Trophy sponsored (by Sears of all companies), but also almost every single bowl game has a corporate entity attached. We now have the opportunity to watch such wonderful games as the Continental Tire Bowl and the GMAC Bowl on New Year's.

College basketball could stand to make some more money by selling the naming rights to each different round of the NCAA tournament. How does the Nokia Play-In Game or the Tostitos Sweet 16 sound?

Then again, corporate naming rights can only bring in so much money. Manchester United has taken great strides in alternative money sources. The team offers a full line of financial products, such as mortgages, credit cards, and savings accounts. You can even earn bonuses when the team is doing well! They also have an official team betting partner, Ladbrokes.com (I'm not making this up), and of course a dedicated MU television station, appropriately labeled MU.tv.

Last Thursday the team opened up its own movie theater in attempt to further integrate itself into every aspect of its fans' lives. There is also an official team video game (not EA Sports' FIFA series, ManU has developed its own game).

What's next, weddings on the pitch at Old Trafford?

Of all the sports team in the U.S., the Yankees would have the best chance of being able to offer similar services. The team already has the YES Network, which could be used to pitch Yankees Mutual Funds and the Yankees Travel Agency.

This summer, the Red Devils (Man U, for you non-soccer buffs) sold its franchise player, David Beckham, to Real Madrid for $45 million. This happens over on this side of the pond, but not with big-time players. Maybe if it did, the Texas Rangers could find a team to buy A-Rod (Perhaps the Mets? They did clear out all that payroll). If this was more fashionable, the Buffalo Sabres and Ottawa Senators could have sold of some of their players off to avoid bankruptcy.

With every team trying to become a big moneymaker, it is the fans that suffer in the end, as ticket prices continue to climb out of the (semi) affordable range. Four tickets to a Knicks game at the uppermost part of the Garden cost $124, and of course that doesn't include parking, food, etc. Across the river at Shea, the Mets have introduced a ticket-pricing plan where box seats for a game against the Yankees cost $15 more than the same seats for when the Brewers are in town.

While it becomes increasingly more expensive to attend games in person, at least you can still watch your favorite team on television. Well, except if you're a Chicago Blackhawks fan, in which case there are no home games on television at all. Team CEO Bill Wirtz came up with that brilliant idea, and attendance skyrocketed this season to seventh lowest in the NHL.

So as the NFL season starts up this Thursday, be sure to mark September 29 on your calendar. That's when the Bank One Bears play their first game at the new Soldier Field on Monday Night Football. Or maybe by then it will be "Boom! Tough Actin' Tinactin" presents Monday Night Football.