[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1696 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1696

   To provide antitrust clarification, to reduce frivolous antitrust 
   litigation, to promote equitable resolution of disputes over the 
  location of professional sports franchises, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 1996

 Mr. Thurmond introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To provide antitrust clarification, to reduce frivolous antitrust 
   litigation, to promote equitable resolution of disputes over the 
  location of professional sports franchises, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Professional Sports Antitrust 
Clarification Act of 1996''.

SEC. 2. ACTIONS AUTHORIZED.

    (a) In General.--Notwithstanding any provision of the antitrust 
laws, and subject to section 3 and subsection (b) of this section, a 
professional sports league or its member franchises may establish and 
enforce rules and procedures for the purpose of deciding whether a 
member franchise may change its home territory.
    (b) Construction.--Nothing in this section shall be construed to 
exempt from the antitrust laws any conduct which would be unlawful 
under any antitrust law if engaged in by a single entity.

SEC. 3. REQUIREMENTS FOR ANTITRUST PROTECTION.

    (a) In General.--This Act applies to a professional sports league 
and its member franchises if such league--
            (1) establishes applicable rules and procedures to govern 
        whether a member franchise may change its home territory that 
        are available upon request to any interested party;
            (2) affords due process, including 180 days notice and an 
        opportunity to be heard, to interested parties prior to 
        deciding whether a member franchise may change its home 
        territory; and
            (3) promotes comparable economic opportunities by sharing 
        revenue among member franchises to account for disparities in 
        revenue received or costs saved due to direct or indirect 
        public benefits and subsidies, including publicly financed 
        facilities, rent abatement, special tax treatment, favorable 
        arrangements for parking, concessions, and other amenities, and 
        other public benefits not generally available to businesses as 
        a whole within the jurisdiction.
    (b) Rules and Procedures.--Rules and procedures established under 
subsection (a)(1) shall require consideration of various factors to 
protect the public interest, including--
            (1) the extent to which fan support for a member franchise 
        has been demonstrated through attendance, ticket sales, and 
        television ratings, during the period in which the member 
        franchise played in its home territory;
            (2) the extent to which the member franchise has, directly 
        or indirectly, received public financial support through 
        publicly financed facilities, rent abatement, special tax 
        treatment, favorable arrangements for parking, concessions, and 
        other amenities, and any other public benefits not generally 
        available to businesses as a whole within the jurisdiction, and 
        the extent to which such support continues;
            (3) the effect that relocation would have on contracts, 
        agreements, and understandings between the member franchise and 
        public and private parties;
            (4) the extent of any net operating losses experienced by 
        the member franchise in recent years and the extent to which 
the member franchise bears responsibility for such losses; and
            (5) any bona fide offer to purchase the member franchise at 
        fair market value, if such offer includes the continued 
        location of such member franchise in its home territory.

SEC. 4. JUDICIAL REVIEW.

    (a) Standard of Review.--The standard of judicial review shall be 
de novo in any action challenging the establishment and enforcement of 
rules and procedures for deciding whether a member franchise may change 
its home territory, except that the reviewing court shall give 
deference to actions of the professional sports league regarding 
compliance with paragraphs (1) and (3) of section 3(a).
    (b) Declaratory Actions.--A professional sports league or any 
interested party may seek a declaratory judgment with respect to 
whether paragraphs (1) and (3) of section 3(a) are adequately satisfied 
by the professional sports league for this Act to apply.
    (c) Limitation on Monetary Damages.--A judicial finding that a 
professional sports league did not comply with any provision of section 
3 shall result only in further proceedings by the professional sports 
league and shall not result in liability under the antitrust laws or 
monetary damages, if--
            (1) the professional sports league implemented a revenue 
        sharing plan in a good faith attempt to comply with section 
        3(a)(3) prior to the specific dispute in issue; or
            (2) a prior declaratory judgment held that the revenue 
        sharing plan of the professional sports league complied with 
        section 3(a)(3).
    (d) Venue.--In any action challenging the establishment and 
enforcement of rules and procedures to decide whether a member 
franchise may change its home territory, venue shall be proper only in 
the United States District Court for the District of Columbia, except 
that--
            (1) venue shall be proper only in the United States 
        District Court for the Southern District of New York if the 
        existing or proposed home territory of a member franchise is 
        located within 100 miles of the United States District Court 
        for the District of Columbia; and
            (2) venue shall be proper only in the United States 
        District Court for the Northern District of Illinois if--
                    (A) the existing home territory of a member 
                franchise is located within 100 miles of the United 
                States District Court for the District of Columbia or 
                the Southern District of New York; and
                    (B) the proposed home territory of the member 
                franchise is located within 100 miles of the United 
                States District Court for the District of Columbia or 
                the Southern District of New York.

SEC. 5. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``antitrust laws''--
                    (A) has the same meaning as in subsection (a) of 
                the first section of the Clayton Act (15 U.S.C. 12(a)), 
                except that such term includes section 5 of the Federal 
                Trade Commission Act (15 U.S.C. 45) to the extent that 
                such section relates to unfair methods of competition; 
                and
                    (B) includes any State law comparable to the laws 
                referred to in subparagraph (A);
            (2) the terms ``professional sports team'', ``team'', 
        ``member franchise'', and ``franchise'' mean any team of 
        professional athletes that is a member of a professional sports 
        league;
            (3) the terms ``professional sports league'' and ``league'' 
        mean--
                    (A) an association of 2 or more professional sports 
                teams that governs the conduct of its members and 
                regulates the contests and exhibitions in which such 
                teams regularly engage;
                    (B) whose decisions relating to franchise 
                relocation would otherwise be subject to the antitrust 
                laws; and
                    (C) that has combined franchise revenues of more 
                than $10,000,000 per year;
            (4) the term ``interested party'' means the member 
        franchise at issue, local and State government officials, 
        owners and operators of playing facilities, concessionaires, 
        and others whose business relations would be directly and 
        significantly affected by the franchise relocation at issue, 
        and representatives of organized civic and fan groups; and
            (5) the term ``playing facility'' means the stadium, arena, 
        or other venue in which professional sports teams regularly 
        conduct their contests and exhibitions.

SEC. 6. EFFECTIVE DATE.

    This Act applies to any action occurring on or after the date of 
enactment of this Act.
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