BILL NUMBER:S1726

TITLE OF BILL:

An act
in relation to broadcasting of professional sporting events of publicly
funded stadiums

PURPOSE OR GENERAL IDEA:

This legislation would render ineligible for public funding, in the
next State fiscal year, any professional sports team or franchise
whose broadcast of a home sporting event was blacked out for any
reason.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 provides that if the broadcast of a home game of
professional sports team or franchise is blacked out, such team or
franchise would be ineligible for public funding in the coming New
York State fiscal year.

Section 1 further provides that under certain circumstances,
irrespective of a blackout, a team or franchise may maintain its
eligibility for public funding.

              

JUSTIFICATION:

The National Football League (NFL) has a policy that it calls the
"blackout rule." The rationale for the blackout rule is that if
games are not televised, fans will need to buy tickets and fill up
the stadium, thus increasing revenues that are not shared with the
television networks. Additionally, a fuller stadium makes better
television, and gives rise to more lucrative broadcast contracts and
advertising contracts.

However, during these challenging fiscal times, the NFL's rationale
ignores the reality that many fans are unable to afford high priced
tickets and attend games. Thus, the blackout rule actually depresses
professional sports viewership and shrinks the fan base and
advertising revenues. Furthermore, blacked-out games have negative
multiplier effects upon local economies. When games are not
televised, fans do not attend the sports bars, restaurants and other
gathering places where they would normally watch the game and engage
in economic activity.

There are a number of NFL teams that receive public funding or have
benefited from public financing of their stadiums. Since the
taxpayers have funded, or will fund these teams and/or their
stadiums, it seems
only appropriate to cut off access to state funding where the teams
remove the ability of taxpayers to see the games their state has
subsidized.

This legislation would protect the taxpayers' return on their
investment(s), by cutting off state funding to professional sports


teams or franchises who benefit from public subsidy, but do not
broadcast local games.

PRIOR LEGISLATIVE HISTORY:

2009-10: S.7103 - REFERRED TO CULTURAL AFFAIRS, TOURISM, PARKS AND
RECREATION

A similar bill was introduced in the Missouri House of Representatives
as H.B. 1986 earlier in the 2009-2010 Legislative Session.
Furthermore, similar bills are in the process of introduction in the
states of California, Florida, Michigan and Pennsylvania.

FISCAL IMPLICATIONS:

The State could potentially save hundreds of millions of dollars, as
well as the fees necessary for the issuance of bonds for publicly
funded stadiums.

EFFECTIVE DATE:

This bill will take effect immediately.