Economic Analysis: The FCC Could Ban the NFL Name “Redskins”

The U.S. pastime, football, is a multi-billion dollar industry generating billions in revenue and watched, virtually, by an entire nation. The Federal Communications Commission (FCC) is now considering a petition, seriously considering, banning broadcasters from saying one of the oldest monikers in the sport’s history. They are considering whether or not the name of the Washington area professional football team, the “Redskins” is offensive to Native Americans.

This is a professional American sports team which was created in 1932 to represent the nation’s capital in Washington D.C. The team is valued at $1.56 billion dollars, and according to Forbes, generated revenues in excess of $352 million last year.  There major team sponsors are companies like Sprint Nextel (S: NYSE) and Anheuser-Busch (BUD: NYSE).

The FCC, is a Federal agency that is tasked to enforce broadcasts and indecency violations. They recently received a petition from John Banzhaf III to not allow the local area radio station, in Washington D.C., to be able to renew its license to use the “Redskins” name. He claims the word is not only profane and hateful but that it is downright racist. In his complaint he says it is “akin to broadcasting obscenity.”

FCC Chairman, Tom Wheeler, says his agency will take a good look at this petition and act accordingly. Wheeler says there are a lot of names and description, used in the past that are simply “inappropriate” in today’s world. The FCC feels the name of one of the oldest National Football League (NFL) is one of those.

What can the FCC do? Place a ban on the name by ruling it indecent which means the Redskins name will be banned on radio, television and the internet.

There has been a lot of protests not to change the name and prevent FCC intervention. Even United States President Barack Obama has voiced his opinion about whether or not to change the name. Team owner, Daniel Snyder has vowed to fight this and make sure it does not happen.

There are some television football analysts like former New York Giants Super Bowl winning quarterback Phil Simms and Tony Dungy, a former Super Bowl winning coach who have announced they will no longer use the term Redskins on air. Mike Ditka, the former coach of the Chicago Bears, says this whole concept is “so stupid it’s appalling.”

Even the U.S. Senate has gotten involved with over half asking the NFL to endorse a name change. The local area paper, the Washington Post, which is read nationally, has said they will stop using the team name. However, one can still see the Washington Redskins in the sports section of not only that paper but many others throughout the nation. In June, the U.S. Patent and Trademark Office decided not to renew the patent on the logo as they ruled it disparaging. The Washington Redskins Football team is appealing this decision in the U.S. Supreme Court.