[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3817 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3817

    To exempt professional sports leagues from liability under the 
antitrust laws for certain conduct relating to the relocation of their 
     respective member teams; to establish procedures and remedies 
   applicable to such leagues with respect to the relocation of such 
                     teams, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 1998

Mr. Meehan (for himself and Mr. Bryant) introduced the following bill; 
 which was referred to the Committee on the Judiciary, and in addition 
     to the Committee on Commerce, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To exempt professional sports leagues from liability under the 
antitrust laws for certain conduct relating to the relocation of their 
     respective member teams; to establish procedures and remedies 
   applicable to such leagues with respect to the relocation of such 
                     teams, 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 Franchise 
Relocation Act of 1998''.

SEC. 2. DEFINITIONS.

    For purposes of this section:
            (1) Antitrust laws.--The term ``antitrust laws''--
                    (A) has the meaning given it 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 such 
                section 5 applies to unfair methods of competition; and
                    (B) includes any State law similar to the laws 
                referred to in subparagraph (A).
            (2) Home territory.--The term ``home territory'' means the 
        geographic metropolitan area within which a member team 
        operates and plays the majority of its home games.
            (3) Interested party.--The term ``interested party'' 
        includes, with respect to a member team--
                    (A) any political subdivision of a State that 
                provides, or has provided, financial assistance, 
                including tax abatement, for facilities (including a 
                stadium or arena) in which the member team plays;
                    (B) a representative of the political subdivision 
                with jurisdiction over the geographic area in which the 
                stadium or arena of the member team is located;
                    (C) the member team;
                    (D) the owner or operator of a stadium or arena of 
                the member team; and
                    (E) any other person who is determined by the 
                sports league of the member team to be an affected 
                party.
            (4) Member team.--The term ``member team'' means a team of 
        professional athletes--
                    (A) organized to play professional football, 
                basketball, soccer, or hockey; and
                    (B) that is a member of a professional sports 
                league.
            (5) Person.--The term ``person'' means any individual, 
        partnership, corporation, or unincorporated association, any 
        combination or association thereof, or any State or political 
        subdivision of a State.
            (6) Professional sports league.--The term ``professional 
        sports league'' means an association that--
                    (A) is composed of 2 or more member teams;
                    (B) regulates the contests and exhibitions of its 
                member teams; and
                    (C) has been engaged in competition in a particular 
                sport for a period of more than 7 years.
            (7) Stadium; arena.--The terms ``stadium'' and ``arena'' 
        mean the principal physical facility within which a member team 
        plays the majority of its home games.

SEC. 3. INAPPLICABILITY OF THE ANTITRUST LAWS.

    It shall not be unlawful under the antitrust laws for a 
professional sports league (or a member team of such league acting 
jointly with another member team of such league, under the authority of 
such league) to issue or enforce rules, or to enter into or carry out 
agreements, to permit or to restrict the relocation of any such member 
team.

SEC. 4. PROCEDURAL REQUIREMENTS.

    (a) Request for Approval.--
            (1) In general.--Not later than 210 days before the 
        commencement of the season in which a member team proposes to 
        play in a new location, any person seeking to change the home 
        territory of the member team shall submit a request for 
        approval of the proposed change to the appropriate professional 
        sports league.
            (2) Requirements.--Each request for approval submitted 
        under paragraph (1) shall--
                    (A) be in writing;
                    (B) be delivered in person or by certified mail to 
                each interested party not later than 30 days after 
                submission to the appropriate professional sports 
                league under paragraph (1);
                    (C) be made available by the date specified in 
                subparagraph (B) to the news media;
                    (D) be published by the date specified in 
                subparagraph (B) in 1 or more newspapers of general 
                circulation in the home territory of the member team; 
                and
                    (E) contain--
                            (i) an identification of the proposed 
                        location of the member team;
                            (ii) a summary of the reasons for the 
                        change in home territory, taking into 
                        consideration the criteria described in 
                        subsection (b)(2);
                            (iii) the date on which the proposed change 
                        is intended to become effective; and
                            (iv) a detailed description of--
                                    (I) the requirements specified in 
                                this subsection applicable to the 
                                submission of such request;
                                    (II) the procedures specified in 
                                subsection (b) applicable to requests 
                                submitted under this subsection;
                                    (III) the requirements specified in 
                                subsection (c) applicable to decisions 
                                on such requests;
                                    (IV) the requirements specified in 
                                subsection (d) applicable to notice of 
                                decisions on such requests; and
                                    (V) the relief available under 
                                section 5 to a prevailing interested 
                                party.
    (b) Procedures.--
            (1) Establishment.--Each professional sports league shall 
        establish rules and procedures for approving or disapproving 
        requests submitted under subsection (a), that shall--
                    (A) include criteria to be considered by the 
                professional sports league in approving or disapproving 
                such requests; and
                    (B) be made available upon request to any 
                interested party.
            (2) Criteria to be considered.--The criteria described in 
        paragraph (1)(A) shall include--
                    (A) the extent to which fan loyalty to and support 
                for the member team has been demonstrated, through 
                attendance, ticket sales, and television ratings, 
                during the tenure of the member team in the home 
                territory;
                    (B) the degree to which the member team has engaged 
                in good faith negotiations with appropriate persons 
                concerning the terms and conditions under which the 
                member team might continue to play its games in its 
                current home territory;
                    (C) the degree to which the ownership or management 
                of the member team has contributed to any circumstance 
                that might demonstrate the need for the relocation of 
                the member team;
                    (D) the extent to which the member team has, 
                directly or indirectly, received public financial 
                support by means of any publicly financed playing 
                facility, rent abatement, special tax treatment, any 
                other form of public financial support, any other 
                public benefits not generally available to businesses 
                as a whole within the jurisdiction, and the extent to 
                which such support continues;
                    (E) the adequacy of the stadium or arena of the 
                member team, and the willingness of the stadium or 
                arena authority and the local government to remedy any 
                deficiencies in the stadium or arena;
                    (F) whether the member team has incurred net 
                operating losses, exclusive of depreciation or 
                amortization, sufficient to threaten the continued 
                financial viability of the member team;
                    (G) whether any other member team in the 
                professional sports league is located in the home 
                territory of the member team;
                    (H) whether the member team proposes to relocate to 
                a territory in which no other member team in the 
                professional sports league is located;
                    (I) whether the stadium or arena authority, if 
                public, is opposed to the relocation;
                    (J) the effect that relocation will have on 
                contracts, agreements, or understandings between the 
                member team and public and private parties; and
                    (K) any other criteria considered to be appropriate 
                by the professional sports league.
    (c) Decision.--In determining whether to approve or disapprove a 
proposed request submitted under subsection (a), the professional 
sports league shall--
            (1) ensure that the requirements of subsection (a) have 
        been satisfied;
            (2) conduct a hearing at which interested parties shall be 
        afforded an opportunity to submit written testimony and 
        exhibits; and
            (3) keep a written record of such hearing and any testimony 
        and exhibits submitted under paragraph (2).
    (d) Notice of Decision.--Not later than 5 days after making a 
decision to approve or disapprove a request submitted under subsection 
(a), the professional sports league shall provide to each interested 
party, make available to the news media, and publish in a newspaper 
described in subsection (a)(2)(D), a notice that includes--
            (1) a statement of such decision; and
            (2) a detailed description of--
                    (A) the requirements specified in subsection (a) 
                applicable to the submission of such request;
                    (B) the procedures specified in subsection (b) 
                applicable to the request submitted under subsection 
                (a);
                    (C) the requirements specified in subsection (c) 
                applicable to the decision on such request;
                    (D) the requirements specified in this subsection 
                applicable to notice of the decision on such request; 
                and
                    (E) the relief available under section 5 to a 
                prevailing interested party.

SEC. 5. JUDICIAL REVIEW.

    (a) In General.--Compliance by a professional sports league with 
section 4 may be reviewed in a civil action commenced by an interested 
party, but only in accordance with this section.
    (b) Venue; Time Limitation.--Not later than 21 days after a 
professional sports league complies with section 4(d), a civil action 
under subsection (a) may be commenced in any judicial district of the 
United States, excluding a judicial district--
            (1) established in the State that contains--
                    (A) the home territory of the member team with 
                respect to which such action is commenced; or
                    (B) the proposed location of the member team; or
            (2) that includes any geographical area that is less than 
        75 miles from any part of such home territory.
    (c) Relief.--If the plaintiff prevails in a civil action commenced 
under subsection (a) against a professional sports league, the court 
shall enjoin such league--
            (1) to vacate the decision of such league to approve or 
        disapprove the request by the member team involved to change 
        its home territory; and
            (2) not to approve or disapprove such request until such 
        league complies with section 4.

SEC. 6. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
shall take effect on the date of the enactment of this Act.
    (b) Application of Amendments.--This Act shall not apply with 
respect to conduct occurring before the date of the enactment of this 
Act.
                                 <all>