It’s been about a week since the NFL has been facing federal scrutiny regarding its broadcasting deals. The most popular sports league in the US moved its most-viewed games of the season from network television to streamers, which attracted an investigation regarding the adherence to antitrust laws. But as it was thought that the investigation would be limited to the NFL, the FCC confirmed that the focus has always been broader than the NFL.

“You could make the argument that there are other sports leagues out there that are potentially pushing the limits of the Sports Broadcasting Act even further than what the NFL has,” FCC chair Brendan Carr confirmed to Bloomberg. “The NFL is something that everyone is aware of and focuses on. And so I speak of it just as shorthand.

But we are focused more broadly on other leagues as well.” So, MLB, NBA, and other American sports leagues are all in line to face federal scrutiny. And it has just added another layer to the already fragmented broadcasting deal done by MLB commissioner Rob Manfred. The issue originates from the 1961 Sports Broadcasting Act.

This equips the sports leagues to bundle their products on behalf of their teams and negotiate media deals collectively. However, while it helps the leagues in maximizing their revenue, the fans are the ones who are bearing the brunt. For instance, the NFL shifted its “Thursday Night Football” from Fox to Amazon Prime Video in 2022.

Feb 15, 2024; Tampa, FL, USA; MLB commissioner Rob Manfred talks with media at George M. Steinbrenner Field. Mandatory Credit: Kim Klement Neitzel-USA TODAY Sports Reportedly, the NFL’s bundled deal includes the “Thursday Night Football,” a wild-card playoff game, and Christmas Day games fetch around $400 million per year.

Similarly, MLB bundled its “Sunday Night Baseball” games to NBC till 2028 for around $200 million per year. Now, as per DOJ, the 1961 antitrust exemptions were applicable when the games would have been broadcast over free over-the-air television, not through a paid streaming platform. According to Carr, the law referred to “telecast,” which means offering the products through free over-the-air television.

The leagues, including MLB, are surely not adhering to this clause, thus attracting further scrutiny. As per the latest broadcasting deal of MLB, platforms like Netflix, NBC/Peacock, ESPN, Fox, TBS, Apple TV+, and MLB Network are all involved in a fragmented show of games. Fans may pay over $100/month for comprehensive access across all platforms.

The broadcasters blame the increased costs of the bundled packages. Now that the federal scrutiny is covering MLB as well, their path to centralize the broadcasting rights might take a hit. MLB’s NFL-style broadcasting plan is taking multiple blows For Manfred, the NFL is what MLB is following to implement its new broadcasting rights.

He is eyeing a bundled broadcasting package for all 30 teams, same as the NFL does. And in doing so, MLB has already become the official broadcasting partner via MLB.tv of seven teams. The Brewers, Cardinals, Marlins, Rays, Reds, Royals, and Tigers have all joined the league’s central TV umbrella.

Reportedly, there will be a total of 14 teams, whose broadcasting will be covered by MLB. This is the first step towards avoiding the regional sports networks in MLB. But is that possible or viable?

Teams that opted for the MLB Network are reportedly losing out on revenue. “Brewers owner Mark Attanasio estimated a minus-$20 million impact from the TV situation this season in terms of revenue/expenses. Called it a ‘$20 million surprise’ but one the team had budgeted for,” MLB insider Curt Hogg said.

Reduction in broadcasting revenue means a shrink in payroll, which itself dilutes the objective of MLB’s media plan. Moreover, teams like the Dodgers, who have multi-million dollar regional media deals, are highly unlikely to take a cut and join the MLB broadcasting bandwagon. And now with Federal scrutiny around the corner, MLB’s biggest challenge to survive its ambitious broadcasting plan is here.