[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 952 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 952

  To expand an antitrust exemption applicable to professional sports 
     leagues and to require, as a condition of such an exemption, 
participation by professional football and major league baseball sports 
 leagues in the financing of certain stadium construction activities, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 4, 1999

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

_______________________________________________________________________

                                 A BILL


 
  To expand an antitrust exemption applicable to professional sports 
     leagues and to require, as a condition of such an exemption, 
participation by professional football and major league baseball sports 
 leagues in the financing of certain stadium construction activities, 
                        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 ``Stadium Financing and Franchise 
Relocation Act of 1999''.

SEC. 2. EXPANSION, MODIFICATION, AND CLARIFICATION OF ANTITRUST 
              EXEMPTIONS.

    (a) Definitions.--Section 5 of Public Law 87-331, commonly known as 
the ``Sports Broadcasting Act'' (15 U.S.C. 1295) is amended to read as 
follows:

``SEC. 5. DEFINITIONS.

    ``In this Act:
            ``(1) Antitrust laws.--The term `antitrust laws'--
                    ``(A) means antitrust laws, as that term is defined 
                in section 1 of the Clayton Act (15 U.S.C. 12); and
                    ``(B) includes antitrust Acts, as that term is 
                defined in section 4 of the Federal Trade Commission 
                Act (15 U.S.C. 44).
            ``(2) Construction.--With respect to a playing facility, 
        the term `construction' means the construction of a playing 
        facility that is not in existence at the commencement of the 
        construction.
            ``(3) Local governmental entity.--The term `local 
        governmental entity' means--
                    ``(A) a State; or
                    ``(B) a county, city or other unit of local 
                government.
            ``(4) Person.--The term `person' means any individual, 
        partnership, corporation, or unincorporated association, or any 
        combination or association thereof.
            ``(5) Playing facility.--The term `playing facility' means 
        a stadium or ballpark designed to seat a minimum of 35,000 
        spectators.
            ``(6) Renovation.--With respect to a playing facility, the 
        term `renovation' means the renovation of an existing playing 
        facility.
            ``(7) Sponsored telecasting.--The term `sponsored 
        telecasting'--
                    ``(A) except as provided in subparagraph (B), 
                includes all over-the-air, cable and satellite 
                transmissions; and
                    ``(B) does not include pay-per-view broadcasts.''.
    (b) Expansion, Modification, and Clarification of Exemptions.--The 
first section of Public Law 87-331, commonly known as the ``Sports 
Broadcasting Act'' (15 U.S.C. 1291) is amended to read as follows:

``SECTION 1. EXEMPTIONS FROM ANTITRUST LAWS OF AGREEMENTS COVERING THE 
              TELECASTING OF SPORTS CONTESTS, THE COMBINING OF 
              PROFESSIONAL FOOTBALL LEAGUES AND THE RELOCATION OF 
              SPORTS FRANCHISES.

    ``(a) Exemptions.--
            ``(1) In general.--Subject to subsection (b), the antitrust 
        laws shall not apply to any joint agreement described in 
        paragraph (2).
            ``(2) Joint agreements described.--A joint agreement 
        described in this paragraph is a joint agreement--
                    ``(A) by or among persons engaging in or conducting 
                the organized professional team sports of football, 
                baseball, basketball, or hockey, by which any league of 
                clubs participating in that professional sport sells or 
                otherwise transfers all or any part of the rights of 
                the member clubs of that league in the sponsored 
                telecasting of the games of that professional sport 
                that are engaged in or conducted by those member clubs;
                    ``(B) by which the member clubs of 2 or more 
                professional football leagues described in section 
                501(c)(6) of the Internal Revenue Code of 1986 and that 
                are exempt from taxation under section 501(a) of the 
                Internal Revenue Code of 1986 combine their operations 
                in an expanded single league that is exempt from income 
                tax by reason of such section 501(a), if that 
                agreement--
                            ``(i) increases the number of professional 
                        football clubs operating; and
                            ``(ii) contains provisions that are 
                        directly relevant to the combination of 
                        operations for such an expanded single league; 
                        or
                    ``(C) by which any league of clubs participating in 
                a professional sport referred to in subparagraph (A) 
                denies a member club the right to transfer the location 
                of the franchise of that member club.
    ``(b) Conditions on Exemptions.--
            ``(1) In general.--The exemption under subsection (a) for a 
        joint agreement described in subsection (a)(2)(A) shall apply, 
        with respect to a football league or major league baseball 
        league only if the league of football or major league baseball 
        clubs involved--
                    ``(A) agrees--
                            ``(i) to meet the requirement under 
                        paragraph (2);
                            ``(ii) not later than 90 days after the 
                        date of enactment of the Stadium Financing and 
                        Franchise Relocation Act of 1999, to establish 
                        a special trust fund into which the league will 
                        deposit an amount equal to 10 percent of the 
                        amounts received under that joint agreement for 
                        the sale or transfer of the rights in sponsored 
                        telecasting of the games of the professional 
                        sport of that league in the United States, on 
                        the condition that any funds in the trust fund 
                        that are not obligated during the 10-year 
                        period beginning on the date on which those 
                        funds are deposited in that trust fund shall be 
                        withdrawn from that trust fund and treated as 
                        gross revenues of the league;
                            ``(iii) to use the amounts in the trust 
                        fund established under clause (ii) only for 
                        financing, in accordance with this section, the 
                        construction or renovation of playing 
                        facilities from which games of the teams of 
                        that league will be televised; and
                            ``(iv) to make available to a local 
                        governmental entity, upon request of that 
                        entity, from the amounts in the trust fund 
                        established under clause (ii), assistance for 
                        the cost of the construction or renovation of 
                        playing facilities to be used by a member club 
                        in that league (if that construction or 
                        renovation was not completed prior to the date 
                        of introduction of the Stadium Financing and 
                        Franchise Relocation Act of 1999), up to a 
                        maximum of one-half of that cost, if--
                                    ``(I) the local governmental entity 
                                makes a commitment, under a lease or 
                                other written agreement entered into 
                                between the member club involved and 
                                the local governmental entity, to 
                                provide funds in an amount equal to at 
                                least one-half of the amount of funds 
                                to be provided for that purpose by the 
                                league; and
                                    ``(II) the amounts requested by the 
                                local governmental entity are available 
                                or become available for obligation from 
                                the trust fund established under clause 
                                (ii); and
                    ``(B) not later than the date specified in 
                subparagraph (A)(ii), notifies the Attorney General 
                that the league will establish a trust fund in 
                accordance with subparagraph (A).
            ``(2) Additional requirement.--If a league establishes a 
        trust fund under paragraph (1)(A), as a condition to receiving 
        an exemption under subsection (a)(2)(A), the league shall 
        exclude the amounts deposited in the trust fund from 
        designation as defined gross revenues of the league, or as any 
        other similar designation that describes revenues that are to 
        be shared by the member clubs or the players of the league.
            ``(3) Major league baseball.--
                    ``(A) In general.--The requirements of paragraphs 
                (1) and (2) shall apply to a league of major league 
                baseball clubs in the same manner as they apply to a 
                league of professional football clubs.
                    ``(B) Other exemptions.--Nothing in this subsection 
                is intended to affect any exemption from the antitrust 
                laws that may apply to major league baseball with 
                respect to activities that are not covered under this 
                Act.''.
    (c) Technical and Conforming Amendments.--
            (1) Area telecasting restriction limitation.--Section 2 of 
        Public Law 87-331, commonly known as the ``Sports Broadcasting 
        Act'' (15 U.S.C. 1292) is amended--
                    (A) by striking ``Sec. 2. Section'' and inserting 
                the following:

``SEC. 2. AREA TELECASTING RESTRICTION LIMITATION.

    ``Section''; and
                    (B) by striking ``described in the first sentence 
                of such section'' and inserting ``described in 
                subsection (a)(2) of that section''.
            (2) Intercollegiate and interscholastic football consent 
        limitations.--Section 3 of Public Law 87-331, commonly known as 
        the ``Sports Broadcasting Act'' (15 U.S.C. 1293) is amended by 
        striking ``Sec. 3. The first sentence of section 1 of this 
        Act'' and inserting the following:

``SEC. 3. INTERCOLLEGIATE AND INTERSCHOLASTIC FOOTBALL CONSENT 
              LIMITATIONS.

    ``The exemption under section 1(a)''.
            (3) Statutory construction.--Section 4 of Public Law 87-
        331, commonly known as the ``Sports Broadcasting Act'' (15 
        U.S.C. 1293) is amended by striking ``Sec. 4. Nothing'' and 
        inserting the following:

``SEC. 4. STATUTORY CONSTRUCTION.

    ``Nothing''.
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