[Congressional Record Volume 141, Number 30 (Wednesday, February 15, 1995)]
[Senate]
[Page S2755]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     PROFESSIONAL GOLF ASSOCIATION TOUR AND POSSIBLE FTC COMPLAINT

  Mr. DOLE. Mr. President, I understand that the Federal Trade 
Commission is considering filing a complaint challenging the PGA Tour's 
conflicting event and media rights rules as unfair competition.
  I question whether the public interest would be served by eliminating 
the foundation for the success of the tour, which has worked well for a 
very long time and enjoys the support of players, fans, and sponsors. I 
understand that the PGA tour has generated more charitable 
contributions from its events than all other sports combined. I am 
concerned that forcing the tour to alter its rules may put these 
charitable activities at risk.
  Mr. President, I have today sent a letter to Federal Trade 
Commissioner Starek outlining my concerns. I ask unanimous consent that 
this be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                  U.S. Senate,

                                Washington, DC, February 15, 1995.
     Hon. Roscoe B. Starek, III,
     Commissioner, Federal Trade Commission,
     Washington, DC.
       Dear Commissioner Starek: I understand your staff in the 
     Bureau of Competition, after a four and one-half year 
     investigation of PGA TOUR, has recently recommended to the 
     Commission that a complaint be issued challenging the PGA 
     TOUR's conflicting event and media rights rules as unfair 
     methods of competition.
       I am familiar with the PGA TOUR's operations and its record 
     of growth, integrity and contributions to charity. PGA TOUR 
     has been able to generate more charitable contributions from 
     its events than all other professional sports combined. More 
     than $30 million in charitable donations were generated 
     through PGA TOUR events in 1994 alone. I am concerned that 
     forcing the PGA TOUR to alter its rules may put these 
     charitable activities at risk.
       Through years of experience, the players have learned that 
     the way to accomplish their objectives was to develop rules 
     which include the players' commitment to support their own 
     events. Only through this commitment, as expressed in the 
     conflicting event and media rules, will the sponsors and 
     broadcasters who provide the financial support for PGA TOUR 
     events risk investment in PGA TOUR tournaments. It is because 
     of the sponsors' and broadcasters' financial support that the 
     players, through PGA TOUR, are able to produce a ten-month 
     season of weekly tournaments with significant prize money for 
     not only the world's top money winners, but also young 
     aspiring players and players past their prime. Thus, it 
     appears to be clear that both the purpose and effect of the 
     rules in question are to increase output and competition, not 
     to limit competition unfairly.
       As you know, our antitrust laws do not prohibit reasonable 
     limitations among members of a league or organization of 
     competitors where the limitations are required to increase 
     output and competition. It is my understanding that the PGA 
     TOUR was investigated by the Antitrust Division of the 
     Department of Justice in the late 1970's and no action was 
     taken to challenge or change either these rules or other 
     conduct of the PGA TOUR.
       I appreciate your consideration of these concerns.
           Sincerely,
                                                         BOB DOLE,
                                                Republican Leader.
     

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