ABC-CFA Deal Is Upheld by FTC Official

A Federal Trade Commission official dismissed a challenge by the FTC to ABC-TV’s exclusive rights to televise most college football games in the next five years.

The FTC’s Bureau of Competition, which argued that the $215-million agreement restricts the marketing of college sports, said that the decision of FTC administrative law judge James Timony will be taken to the full commission, which has the final say.

The complaint charged that the television agreement between ABC and the College Football Assn. was an “unreasonable restraint of competition” because it limits the choice of games fans have available on a given weekend.

The association represents 66 major college football powers. The Big Ten and Pacific 10 football conferences are not members of the association, but have separate agreements with ABC.

The commission staff had argued that because the association is a business and that all of its members receive profits under the television agreement, it should fall under FTC jurisdiction.

Timony wrote: “CFA, through its television contracts and other programs, fosters intercollegiate football and that in itself is a proper nonprofit purpose. The CFA’s television rights to college football games, with the proceeds going to the schools to help support their athletic programs, have a nonprofit educational purpose.”