Holsman Sends A Message To The NFL

Missouri State Rep. Jason Holsman has been hard at work with his legislative effort to end NFL blackouts in Missouri. The effort is finally coming to the forefront next week and already he's starting to get national attention and cooperation with other State Legislatures.

What I find even more interesting is that this effort will definitely see some pushback from the NFL. However, for now Holsman seems to be calling not only for support for his efforts but also trying to elicit a reaction from NFL head honchos.

I don't think it got enough play the first time around, so let's look at the State Rep's letter to NFL Commissioner Goodell:

MISSOURI HOUSE OF REPRESENTATIVES
REP. JASON R. HOLSMAN
DISTRICT 45

Dear Commissioner Goodell:

My name is Jason Holsman, and I represent the 45th district in the Missouri House of Representatives. Earlier this month, I filed House Bill 1986, which makes any professional sports franchise ineligible to receive public funding if that franchise is subject to a broadcast blackout due to a league-wide policy. This bill, if it becomes law, would obviously impact the NFL and teams like the Kansas City Chiefs and St. Louis Rams. I am writing to explain why I proposed this bill and why I believe that reform of the existing broadcast blackout rule is important.

The NFL's rationale for the blackout rule is simple: If games are not televised, fans will be forced to buy a ticket and attend games in person. This rationale is shortsighted and ignores economic reality. Our country, and in particular my constituents in Missouri, are hurting financially. At this time, many football fans - including die-hard fans like me - simply cannot afford to buy a ticket and attend the games. Rather than pressure fans to buy tickets, the blackout rule actually prevents fans from watching their teams altogether. The unintended consequence of the NFL's policy is to reduce viewership, upset fans, and potentially reduce the fan base. It is for these very reasons that Major League Baseball does not predicate their blackout policy on ticket sales.

The blackout rule is bad for already-struggling local economies. When games are not televised, fans stay home and restaurants and bars lose out on revenues from Sunday and Monday night crowds. Local television affiliates lose out on advertising revenues, as do advertisers whose commercials never air. Team merchandise sales fall, and that hurts local retailers as well as the NFL team franchise.

NFL teams receive millions of dollars of public assistance from state and local entities each year. The Kansas City Chiefs, my team, receives $3M in annual state appropriations, $2M annually from Kansas City, and $3.5M from Jackson County. These dollars are in addition to a one-time $25M tax credit from the State of Missouri for relocating the Chiefs training camp to St. Joseph, MO, and in addition to the revenues from a 3/8 cent sales tax which funds $250M worth of renovations to the Arrowhead stadium, constituting a significant amount of taxpayer money, and taxpayers deserve something in return for their investment.

For these reasons, I filed H.B. 1986. If passed, H.B. 1986 will preclude any professional sports team, which is subject to a broadcast blackout, from being eligible for public funding in the following year. I also drafted an amendment to this bill that guarantees existing, legally-obligated subsidies, tax levies, and contractual agreements, to the extent any exist. This bill only applies to future public assistance.

A national movement is underway to get sponsors onboard from various state legislatures. Based on my discussions with legislators from around the country, similar legislation has been, or will soon be, filed in New York, California, Pennsylvania, Michigan, and several other states. Over the next few weeks, we will announce more states that have joined this effort as more states file bills similar to H.B. 1986. It is my hope that the NFL and franchise owners will take this issue seriously, and decide to reverse the blackout rule at the next executive meeting.

Please understand that the aim of this bill is not to hurt the NFL or its teams. That is not my goal. I simply want a square deal for the taxpayers. I support providing NFL teams with taxpayer subsidies, but seek to protect the taxpayer's return on investment.

If you have any questions or would like to speak with me further about this issue, please call my office at (573) 751-6607.

Best Regards,

Jason R. Holsman
State Representative - District 45
Missouri House of Representatives