[Congressional Record Volume 143, Number 13 (Wednesday, February 5, 1997)]
[Extensions of Remarks]
[Pages E169-E170]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         GIVE FANS A CHANCE ACT

                                 ______
                                 

                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                      Wednesday, February 5, 1997

  Mr. BLUMENAUER. On Sunday, January 26, the Packers won the Superbowl. 
When they returned home to Green Bay, their fans stood in freezing 
temperatures for hours to catch a glimpse of their heroes.
  The Packers aren't an ordinary football team. Their fans aren't 
ordinary fans. And their community isn't an ordinary community--because 
1,915 residents of Green Bay and other ``Packer Backers'' own their 
football team. The Packers are a vital part of the glue that holds the 
Green Bay community together.

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  Together, these fans saved the team from bankruptcy. They have plowed 
profits from 175 consecutive sellouts directly back into the Packers. 
They cheered their team to 11 consecutive championships--and this 
year's Superbowl.
  The Green Bay Packers are unique, because NFL rules prohibit any more 
public ownership of teams.
  Other communities should be able to invest in their own livability--
to define what the community wants of, and for, itself. Other 
communities should be able to own the local sports team.
  That's why we should give fans a chance to own their teams by: 
Eliminating league rules against public ownership of teams; requiring 
teams to listen to their fans and the community before moving--a 
requirement which is found in existing league rules, but seems to 
receive little real attention; and tying the leagues' broadcast 
antitrust exemption to the requirements in this bill. This 
congressionally granted benefit allows teams to collaborate on the 
purchase of national broadcast time. The NFL earned $1.2 billion on 
broadcast rights last year.
  This bill doesn't do anything new or radical: It will allow more 
ownership structures like the Packers, the Boston Celtics, and the 
Florida Panthers. It will ensure that the leagues follow their own 
rules when it comes to making decisions about team relocations, and it 
will ensure that the sports leagues do not squander the benefits they 
have gained under the sports broadcasting anti-trust exemption.
  Community ownership strongly encourages fan loyalty, financial 
stability, and strong TV audiences at a time when fan loyalty is being 
tested by franchise moves. It is in the long-term, best interest of any 
professional league. More importantly, it is in the long-term interest 
of the communities who support them.
  I urge my colleagues to give fans a chance by supporting this 
legislation.


                    summary: give fans a chance act

       Sec. 1: This Act is called the ``Give Fans a Chance Act''. 
     Its purpose is to give communities the tools to invest in 
     their own livability by allowing them to purchase their home 
     sports team.
       Sec. 2: Allow Public Ownership of Teams
       Purpose: To allow more communities the opportunities Green 
     Bay, WI, has to own their professional sports team. In 
     addition, to help the leagues by stemming the tide of loyal 
     fans who are no longer glued to their TV sets or stadium 
     seats to watch their favorite teams. Football fan loyalty is 
     being tested by franchise moves and a proliferation of sports 
     on specialty cable channels. If those fans had a chance to 
     own their own teams, they would invest more time and money 
     into their future.
       Description: No professional sports league (football, 
     hockey, or basketball) may have a rule, policy, or agreement 
     that forbids any public ownership of teams, either by the 
     general public or by any governmental entity.
       Penalty: If the League ignores this provision, it will lose 
     its sports broadcast antitrust exemption. The antitrust 
     exemption allows teams to collaborate to sell broadcast 
     rights, thus increasing their value dramatically.
       Expected Impact: The NFL is the only league that has 
     specific rules forbidding public ownership of sports teams 
     (NFL Ownership Policies para. 2). The NFL earned $1.2 billion 
     as a result of the sport broadcast anti-trust exemption in 
     the 1995-1996 season.
       Sec 3: Relocation of Teams
       Purpose: To require teams to consider the needs and 
     interests of their communities in making relocation 
     decisions.
       Description: Requires a professional sports league, in 
     considering whether to approve or disapprove the relocation 
     of a member team, to take into consideration several 
     criteria; Fan loyalty; the degree to which the team has 
     engaged in good faith negotiations concerning terms and 
     conditions under which the teams would continue to play its 
     games in the home territory; the degree to which ownership of 
     management of the team has contributed to a need to relocate; 
     the extent to which the team benefits from public financing, 
     either federal, state or local; the adequacy of the stadium 
     in which the team played its home games in the previous 
     season and the willingness of the community to make changes; 
     the current financial standing of the team; whether there is 
     another team in either the home community or the community to 
     which the team will seek to locate; whether the community is 
     opposed to the relocation; and whether there is a bona fide 
     investor offering fair market value to purchase the team and 
     keep it in the home community.
       Expected Impact: All of the sports leagues will be expected 
     to use these criteria in evaluating the movement of member 
     teams. These criteria closely track current NFL policies 
     under Section 4.3 of the Constitution and By-Laws (adopted in 
     1984). Case law since the adoption of these policies suggest 
     that these criteria help bolster the NFL's ability to 
     evaluate franchise moves without running afoul of antitrust 
     law.
       Sec. 4. Opportunities for Communities to Purchase Team
       Purpose: To give communities a real opportunity to purchase 
     their team.
       Description: This section requires that a team proposing to 
     relocate give the affected home territory 180 days notice of 
     the proposed move. During the 180 days notice period, a local 
     government, stadium, arena authority, person, or any 
     combination may present a proposal to retain the team in the 
     home territory. The local community may also develop a 
     proposal to induce the team to stay without actually 
     purchasing the team. As noted under section 3, both the team 
     and the league are required to carefully consider any 
     proposals, and, if an ownership bid is successful, the league 
     may not oppose membership in the league based on the new 
     ownership structure. The team owner must provide a written 
     response to the offer, stating in detail any reasons why the 
     offer was refused.
       Penalty: If the team and/or the league refuse to abide by 
     these provisions, they will lose the antitrust exemption 
     under the Sports Broadcasting Act.
       Expected Impact: All Sports Leagues will be required to 
     give communities an opportunity to purchase a home team in 
     the case of proposed relocations.

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