U.S. Review of Sports Broadcasting Act Threatens Franchise Valuation Models

The U.S. Congress held a hearing in June to review the Sports Broadcasting Act of 1961, as Sports Illustrated first reported. The legislative exception allows professional sports leagues to sell broadcasting rights collectively rather than individually, a legal framework that has been a primary driver in the skyrocketing valuations of sports franchises and their media assets.

In response to the review, streaming giants Amazon, Netflix, and YouTube have formed the Streaming Access and Choice Alliance (SACA). The alliance aims to influence the government's analysis of the 1961 law, as streaming platforms prefer negotiating directly with leagues to maintain event exclusivity rather than dealing with individual teams. Meanwhile, traditional broadcasters view the preservation of these rights as critical, as live sports remain one of the few remaining assets capable of drawing massive real-time audiences.

The Federal Communications Commission (FCC) has opened a consultation regarding market fragmentation. Sports Illustrated reports that the FCC noted NFL games appeared across ten different services in 2025, forcing consumers to purchase numerous subscriptions to access content. This fragmentation has led U.S. officials to question if the 1961 exception should still apply to streaming and satellite distribution.

This regulatory scrutiny arrives as Liga MX attempts to move toward the same centralized model the U.S. is now questioning. Liga MX Commissioner Mikel Arriola recently stated at the Expansión Summit that the league's board has authorized the centralization of television rights for its 18 teams, a move intended to increase business value and reduce economic disparities between clubs by 2028. Arriola cited the growth of the Premier League and Spain's La Liga as benchmarks for the potential value increase associated with centralized rights.