Thesis
Unnecessary roughness?: the NFL's blackout policy and its 2012 revision
Master of Science (M.S.), Drexel University
Jun 2013
DOI:
https://doi.org/10.17918/etd-4140
Abstract
The National Football League has instituted blackouts on its games since 1961. A blackout is the restriction of a games broadcast, enforced only when an NFL franchise cannot sell out its stadium. Unsold tickets represent a loss to NFL owners, and thus the blackout serves as encouragement to the local fan base to sell out the stadium or else they cannot watch the game on television. In July 2012, the blackout rule was revised so that franchises can choose a set capacity level (minimum of 85%) that their stadium ticket sales must meet in order for a blackout to be avoided. Blackouts are intended to protect game day revenues, not only ticket sales but all other ancillary revenues from concessions, parking, programs, and merchandise. But do they merely impose unnecessary restrictions resulting in total societal loss? This study explores the impact of blackouts and proposes a paid viewing alternative be made available to fans. If the intention of blackouts is to protect gameday revenues, then the paid viewership will make-good the NFL franchise in revenues equaling that of a sellout. The Oakland Raiders are used as a case study, as they have been blacked out in 80 of 144 home games since moving to Oakland in 1995 (Gutierrez, 2012). Utilizing Nielsen overnight ratings and the Fan Cost Index for the Oakland Raiders, this study determines the costs to the viewer that will make-good the stadium when it is not sold out and also the local broadcast station that suffers ratings decreases when it is forced to air alternate programming during blackouts. This price is compared with survey data on willingness to pay, specifically by Raiders fans. The study finds that at a 20% buyrate (meaning if 20% of the viewers that normally watch the Raiders when they are televised also purchased the right to watch the team when it is blacked out), the price to stream a Raiders game on the internet when it would otherwise be blacked out is $31.16 per household (for the 2010 NFL season). For pay-per-view that price increases to $50.72. Survey data suggests fan willingness to pay is $13.23. While that is a considerable gap between willingness to pay and pay-per-view, the streaming price appears more palatable. Adding exclusive sideline footage instead of commercial breaks as part of the purchase, Raiders fans may be enticed to pay the additional dollars. Finally, the study explores the implications of the 2012 revision to the NFLs blackout policy from a franchise perspective and compares it to a paid viewing alternative solution. While the revision allows blackout avoidance at a minimum 85% stadium capacity instead of the original 100%, it also penalizes franchises for selling tickets beyond their chosen capacity level. Due to the unpredictable nature of ticket sales on a game-by-game basis, teams often incur penalty fees, and the set capacity level they chose before the season started is not optimal in minimizing penalties. Under a paid viewing alternative solution, franchises avoid penalty fees and allow the fans to control whether or not they see the game.
Metrics
58 File views/ downloads
40 Record Views
Details
- Title
- Unnecessary roughness?
- Creators
- Brian E. Laverty - DU
- Contributors
- Albert S. Tedesco (Advisor) - Drexel University (1970-)
- Awarding Institution
- Drexel University
- Degree Awarded
- Master of Science (M.S.)
- Publisher
- Drexel University; Philadelphia, Pennsylvania
- Resource Type
- Thesis
- Language
- English
- Academic Unit
- Television (and Media) Management; Cinema and Television; Drexel University; Antoinette Westphal College of Media Arts and Design
- Other Identifier
- 4140; 991014632423504721