[House Report 106-449]
[From the U.S. Government Publishing Office]
106th Congress Rept. 106-449,
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
MUHAMMAD ALI BOXING REFORM ACT
_______
November 4, 1999.--Ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 1832]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 1832) to reform unfair and anticompetitive practices in
the professional boxing industry, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2-
Purpose and Summary-............................................. 7
Background and Need for Legislation-............................. 8
Hearings-........................................................ 9
Committee Consideration-......................................... 9
Committee Votes.................................................. 10-
Committee Oversight Findings -................................... 10
Committee on Government Reform Oversight Findings-............... 10
New Budget Authority, Entitlement Authority, and Tax
Expenditures-.................................................. 10
Committee Cost Estimate-......................................... 10
Congressional Budget Office Estimate-............................ 10
Federal Mandates Statement-...................................... 13
Advisory Committee Statement-.................................... 13
Constitutional Authority Statement-.............................. 13
Applicability to Legislative Branch-............................. 13
Section-by-Section Analysis of the Legislation -................. 13
Exchange of Committee Correspondence -........................... 17
Changes in Existing Law Made by the Bill, as Reported-........... 18
Dissenting Views -............................................... 27
Amendment
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Muhammad Ali Boxing Reform Act''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Professional boxing differs from other major, interstate
professional sports industries in the United States in that it
operates without any private sector association, league, or
centralized industry organization to establish uniform and
appropriate business practices and ethical standards. This has
led to repeated occurrences of disreputable and coercive
business practices in the boxing industry, to the detriment of
professional boxers nationwide.
(2) State officials are the proper regulators of professional
boxing events, and must protect the welfare of professional
boxers and serve the public interest by closely supervising
boxing activity in their jurisdiction. State boxing commissions
do not currently receive adequate information to determine
whether boxers competing in their jurisdiction are being
subjected to contract terms and business practices which may
violate State regulations, or are onerous and confiscatory.
(3) Promoters who engage in illegal, coercive, or unethical
business practices can take advantage of the lack of equitable
business standards in the sport by holding boxing events in
States with weaker regulatory oversight.
(4) The sanctioning organizations which have proliferated in
the boxing industry have not established credible and objective
criteria to rate professional boxers, and operate with
virtually no industry or public oversight. Their ratings are
susceptible to manipulation, have deprived boxers of fair
opportunities for advancement, and have undermined public
confidence in the integrity of the sport.
(5) Open competition in the professional boxing industry has
been significantly interfered with by restrictive and
anticompetitive business practices of certain promoters and
sanctioning bodies, to the detriment of the athletes and the
ticket-buying public. Common practices of promoters and
sanctioning organizations represent restraints of interstate
trade in the United States.
(6) It is necessary and appropriate to establish national
contracting reforms to protect professional boxers and prevent
exploitive business practices, and to require enhanced
financial disclosures to State athletic commissions to improve
the public oversight of the sport.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to protect the rights and welfare of professional boxers
on an interstate basis by preventing certain exploitive,
oppressive, and unethical business practices;
(2) to assist State boxing commissions in their efforts to
provide more effective public oversight of the sport; and
(3) to promote honorable competition in professional boxing
and enhance the overall integrity of the industry.
SEC. 4. PROTECTING BOXERS FROM EXPLOITATION.
The Professional Boxing Safety Act of 1996 (15 U.S.C. 6301 et seq.)
is amended--
(1) by redesignating sections 9 through 15 as sections 17
through 23, respectively; and
(2) by inserting after section 8 the following new sections:
``SEC. 9. CONTRACT REQUIREMENTS.
``Within 2 years after the date of the enactment of the Muhammad Ali
Boxing Reform Act, the Association of Boxing Commissions shall develop
and shall approve by a vote of no less than a majority of its member
State boxing commissioners, guidelines for minimum contractual
provisions that should be included in bout agreements and boxing
contracts. It is the sense of Congress that State boxing commissions
should follow these ABC guidelines.
``SEC. 10. PROTECTION FROM COERCIVE CONTRACTS.
``(a) General Rule.--
``(1)(A) A contract provision shall be considered to be in
restraint of trade, contrary to public policy, and
unenforceable against any boxer to the extent that it--
``(i) is a coercive provision described in
subparagraph (B) and is for a period greater than 12
months; or
``(ii) is a coercive provision described in
subparagraph (B) and the other boxer under contract to
the promoter came under that contract pursuant to a
coercive provision described in subparagraph (B).
``(B) A coercive provision described in this subparagraph is
a contract provision that grants any rights between a boxer and
a promoter, or between promoters with respect to a boxer, if
the boxer is required to grant such rights, or a boxer's
promoter is required to grant such rights with respect to a
boxer to another promoter, as a condition precedent to the
boxer's participation in a professional boxing match against
another boxer who is under contract to the promoter.
``(2) This subsection shall only apply to contracts entered
into after the date of the enactment of the Muhammad Ali Boxing
Reform Act.
``(3) No subsequent contract provision extending any rights
or compensation covered in paragraph (1) shall be enforceable
against a boxer if the effective date of the contract
containing such provision is earlier than 3 months before the
expiration of the relevant time period set forth in paragraph
(1).
``(b) Promotional Rights Under Mandatory Bout Contracts.--No boxing
service provider may require a boxer to grant any future promotional
rights as a requirement of competing in a professional boxing match
that is a mandatory bout under the rules of a sanctioning organization.
``SEC. 11. SANCTIONING ORGANIZATIONS.
``(a) Objective Criteria.--Within 2 years after the date of the
enactment of the Muhammad Ali Boxing Reform Act, the Association of
Boxing Commissions shall develop and shall approve by a vote of no less
than a majority of its member State boxing commissioners, guidelines
for objective and consistent written criteria for the ratings of
professional boxers. It is the sense of Congress that sanctioning
bodies and State boxing commissions should follow these ABC guidelines.
``(b) Appeals Process.--A sanctioning organization shall not be
entitled to receive any compensation, directly or indirectly, in
connection with a boxing match, until it provides the boxers with
notice that the sanctioning organization shall, within 7 days after
receiving a request from a boxer questioning that organization's rating
of the boxer--
``(1) provide to the boxer a written explanation of the
organization's criteria, its rating of the boxer, and the
rationale or basis for its rating (including a response to any
specific questions submitted by the boxer); and
``(2) submit a copy of its explanation to the Association of
Boxing Commissions.
``(c) Notification of Change in Rating.--A sanctioning organization
shall not be entitled to receive any compensation, directly or
indirectly, in connection with a boxing match, until, with respect to a
change in the rating of a boxer previously rated by such organization
in the top 10 boxers, the organization--
``(1) posts a copy, within 14 days of such change, on its
Internet website or home page, if any, including an explanation
of such change, for a period of not less than 30 days; and
``(2) provides a copy of the rating change and explanation to
an association to which at least a majority of the State boxing
commissions belong.
``(d) Public Disclosure.--
``(1) FTC filing.--A sanctioning organization shall not be
entitled to receive any compensation directly or indirectly in
connection with a boxing match unless, not later than January
31 of each year, it submits to the Federal Trade Commission and
to the ABC--
``(A) a complete description of the organization's
ratings criteria, policies, and general sanctioning fee
schedule;
``(B) the bylaws of the organization;
``(C) the appeals procedure of the organization for a
boxer's rating; and
``(D) a list and business address of the
organization's officials who vote on the ratings of
boxers.
``(2) Format; updates.--A sanctioning organization shall--
``(A) provide the information required under
paragraph (1) in writing, and, for any document greater
than 2 pages in length, also in electronic form; and
``(B) promptly notify the Federal Trade Commission of
any material change in the information submitted.
``(3) FTC to make information available to public.--The
Federal Trade Commission shall make information received under
this subsection available to the public. The Commission may
assess sanctioning organizations a fee to offset the costs it
incurs in processing the information and making it available to
the public.
``(4) Internet alternative.--In lieu of submitting the
information required by paragraph (1) to the Federal Trade
Commission, a sanctioning organization may provide the
information to the public by maintaining a website on the
Internet that--
``(A) is readily accessible by the general public
using generally available search engines and does not
require a password or payment of a fee for full access
to all the information;
``(B) contains all the information required to be
submitted to the Federal Trade Commission by paragraph
(1) in an easy to search and use format; and
``(C) is updated whenever there is a material change
in the information.
``SEC. 12. REQUIRED DISCLOSURES TO STATE BOXING COMMISSIONS BY
SANCTIONING ORGANIZATIONS.
``A sanctioning organization shall not be entitled to receive any
compensation directly or indirectly in connection with a boxing match
until it provides to the boxing commission responsible for regulating
the match in a State a statement of--
``(1) all charges, fees, and costs the organization will
assess any boxer participating in that match;
``(2) all payments, benefits, complimentary benefits, and
fees the organization will receive for its affiliation with the
event, from the promoter, host of the event, and all other
sources; and
``(3) such additional information as the commission may
require.
``SEC. 13. REQUIRED DISCLOSURES FOR PROMOTERS.
``(a) Disclosures to the Boxing Commissions.--A promoter shall not be
entitled to receive any compensation directly or indirectly in
connection with a boxing match until it provides to the boxing
commission responsible for regulating the match in a State a statement
of--
``(1) a copy of any agreement in writing to which the
promoter is a party with any boxer participating in the match;
``(2) a statement made under penalty of perjury that there
are no other agreements, written or oral, between the promoter
and the boxer with respect to that match; and
``(3)(A) all fees, charges, and expenses that will be
assessed by or through the promoter on the boxer pertaining to
the event, including any portion of the boxer's purse that the
promoter will receive, and training expenses;
``(B) all payments, gifts, or benefits the promoter is
providing to any sanctioning organization affiliated with the
event; and
``(C) any reduction in a boxer's purse contrary to a previous
agreement between the promoter and the boxer or a purse bid
held for the event.
``(b) Disclosures to the Boxer.--A promoter shall not be entitled to
receive any compensation directly or indirectly in connection with a
boxing match until it provides to the boxer it promotes--
``(1) the amounts of any compensation or consideration that a
promoter has contracted to receive from such match;
``(2) all fees, charges, and expenses that will be assessed
by or through the promoter on the boxer pertaining to the
event, including any portion of the boxer's purse that the
promoter will receive, and training expenses; and
``(3) any reduction in a boxer's purse contrary to a previous
agreement between the promoter and the boxer or a purse bid
held for the event.
``(c) Information To Be Available to State Attorney General.--A
promoter shall make information required to be disclosed under this
section available to the chief law enforcement officer of the State in
which the match is to be held upon request of such officer.
``SEC. 14. REQUIRED DISCLOSURES FOR JUDGES AND REFEREES.
``A judge or referee shall not be entitled to receive any
compensation, directly or indirectly, in connection with a boxing match
until it provides to the boxing commission responsible for regulating
the match in a State a statement of all consideration, including
reimbursement for expenses, that will be received from any source for
participation in the match.
``SEC. 15. CONFIDENTIALITY.
``(a) In General.--Neither a boxing commission or an Attorney General
may disclose to the public any matter furnished by a promoter under
section 13 except to the extent required in a legal, administrative, or
judicial proceeding.
``(b) Effect of Contrary State Law.--If a State law governing a
boxing commission requires that information that would be furnished by
a promoter under section 13 shall be made public, then a promoter is--
``(1) not required to file such information with such State;
and
``(2) required to file such information with the ABC.
``SEC. 16. JUDGES AND REFEREES.
``No person may arrange, promote, organize, produce, or fight in a
professional boxing match unless all referees and judges participating
in the match have been certified and approved by the boxing commission
responsible for regulating the match in the State where the match is
held.''.
SEC. 5. CONFLICT OF INTEREST.
Section 17 of the Professional Boxing Safety Act of 1996 (15 U.S.C.
6308) (as redesignated by section 4 of this Act) is amended--
(1) in the first sentence by striking ``No member'' and
inserting ``(a) Regulatory Personnel.--No member''; and
(2) by adding at the end the following:
``(b) Firewall Between Promoters and Managers.--
``(1) In general.--It is unlawful for--
``(A) a promoter to have a direct or indirect
financial interest in the management of a boxer; or
``(B) a manager--
``(i) to have a direct or indirect financial
interest in the promotion of a boxer; or
``(ii) to be employed by or receive
compensation or other benefits from a promoter,
except for amounts received as consideration
under the manager's contract with the boxer.
``(2) Exceptions.--Paragraph (1)--
``(A) does not prohibit a boxer from acting as his
own promoter or manager; and
``(B) only applies to boxers participating in a
boxing match of 10 rounds or more.
``(c) Sanctioning Organizations.--
``(1) Prohibition on receipts.--Except as provided in
paragraph (2), no officer or employee of a sanctioning
organization may receive any compensation, gift, or benefit,
directly or indirectly, from a promoter, boxer, or manager.
``(2) Exceptions.--Paragraph (1) does not apply to--
``(A) the receipt of payment by a promoter, boxer, or
manager of a sanctioning organization's published fee
for sanctioning a professional boxing match or
reasonable expenses in connection therewith if the
payment is reported to the responsible boxing
commission; or
``(B) the receipt of a gift or benefit of de minimis
value.''.
SEC. 6. ENFORCEMENT.
Subsection (b) of section 18 of the Professional Boxing Safety Act of
1996 (15 U.S.C. 6309) (as redesignated by section 4 of this Act) is
amended--
(1) in paragraph (1) by inserting a comma and ``other than
section 9(b), 10, 11, 12, 13, 14, or 16,'' after ``this Act'';
(2) by redesignating paragraphs (2) and (3) as paragraphs (3)
and (4), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Violation of antiexploitation, sanctioning
organization, or disclosure provisions.--Any person who
knowingly violates any provision of section 9(b), 10, 11, 12,
13, 14, or 16 of this Act shall, upon conviction, be imprisoned
for not more than 1 year or fined not more than--
``(A) $100,000; and
``(B) if a violation occurs in connection with a
professional boxing match the gross revenues for which
exceed $2,000,000, an additional amount which bears the
same ratio to $100,000 as the amount of such revenues
compared to $2,000,000, or both.''; and
(4) in paragraph (3) (as redesignated by paragraph 2 of this
subsection) by striking ``section 9'' and inserting ``section
17(a)''; and
(5) by adding at the end the following:
``(c) Actions by States.--Whenever the chief law enforcement officer
of any State has reason to believe that a person or organization is
engaging in practices which violate any requirement of this Act, the
State, as parens patriae, may bring a civil action on behalf of its
residents in an appropriate district court of the United States--
``(1) to enjoin the holding of any professional boxing match
which the practice involves;
``(2) to enforce compliance with this Act;
``(3) to obtain the fines provided under subsection (b) or
appropriate restitution; or
``(4) to obtain such other relief as the court may deem
appropriate.
``(d) Private Right of Action.--Any boxer who suffers economic injury
as a result of a violation of any provision of this Act may bring an
action in the appropriate Federal or State court and recover the
damages suffered, court costs, and reasonable attorneys fees and
expenses.
``(e) Enforcement Against Federal Trade Commission, State Attorneys
General, Etc.--Nothing in this Act authorizes the enforcement of--
``(1) any provision of this Act against the Federal Trade
Commission, the United States Attorney General, or the chief
legal officer of any State for acting or failing to act in an
official capacity;
``(2) subsection (d) of this section against a State or
political subdivision of a State, or any agency or
instrumentality thereof; or
``(3) section 10 against a boxer acting in his capacity as a
boxer.''.
SEC. 7. ADDITIONAL AMENDMENTS.
(a) Definitions.--Section 2(a) of the Professional Boxing Safety Act
of 1996 (15 U.S.C. 6301(a)) is amended--
(1) in paragraph (10) by striking the period at the end and
inserting ``, including the Virgin Islands.''; and
(2) by adding at the end the following:
``(11) Effective date of the contract.--The term `effective
date of the contract' means the day upon which a boxer becomes
legally bound by the contract.
``(12) Boxing service provider.--The term `boxing service
provider' means a promoter, manager, sanctioning body,
licensee, or matchmaker.
``(13) Contract provision.--The term `contract provision'
means any legal obligation between a boxer and a boxing service
provider.
``(14) Sanctioning organization.--The term `sanctioning
organization' means an organization that sanctions professional
boxing matches in the United States--
``(A) between boxers who are residents of different
States; or
``(B) that are advertised, otherwise promoted, or
broadcast (including closed circuit television) in
interstate commerce.
``(15) Suspension.--The term `suspension' includes within its
meaning the revocation of a boxing license.''.
(b) State Boxing Commission Procedures.--Section 7(a)(2) of the
Professional Boxing Safety Act of 1996 (15 U.S.C. 6306(a)(2)) is
amended--
(1) in subparagraph (C) by striking ``or'';
(2) in subparagraph (D) by striking ``documents.'' at the end
and inserting ``documents; or''; and
(3) by adding at the end the following:
``(E) unsportsmanlike conduct or other inappropriate
behavior inconsistent with generally accepted methods
of competition in a professional boxing match.''.
(c) Renewal Period for Identification Cards.--Section 6(b)(2) of the
Professional Boxing Safety Act of 1996 (15 U.S.C. 6305(b)(2)) is
amended by striking ``2 years.'' and inserting ``4 years.''.
(d) Review of Suspensions.--Section 7(a)(3) of the Professional
Boxing Safety Act of 1996 (15 U.S.C. 6306(a)(3)) is amended by striking
``boxer'' and inserting ``boxer, licensee, manager, matchmaker,
promoter, or other boxing service provider''.
(e) Alternative Supervision.--Section 4 of the Professional Boxing
Safety Act of 1996 (15 U.S.C. 6303) is amended--
(1) by striking ``No person'' and inserting ``(a) No
person''; and
(2) by inserting at the end thereof the following:
``(b) For the purpose of this Act, if no State commission is
available to supervise a boxing match according to subsection (a),
then--
``(1) the match may not be held unless it is supervised by an
association of boxing commissions to which at least a majority
of the States belong; and
``(2) any reporting or other requirement relating to a
supervising commission allowed under this section shall be
deemed to refer to the entity described in paragraph (1).''.
(f) Health and Safety Disclosures.--Section 6 of the Professional
Boxing Safety Act of 1996 (15 U.S.C. 6305) is amended by adding at the
end the following new subsection:
``(c) Health and Safety Disclosures.--It is the sense of Congress
that a boxing commission should, upon issuing an identification card to
a boxer under subsection (b)(1), make a health and safety disclosure to
that boxer as that commission considers appropriate. The health and
safety disclosure should include the health and safety risks associated
with boxing, and, in particular, the risk and frequency of brain injury
and the advisability that a boxer periodically undergo medical
procedures designed to detect brain injury.''.
Purpose and Summary
The purpose of H.R. 1832, the Muhammad Ali Boxing Reform
Act, is to protect the rights and welfare of professional
boxers on an interstate basis by preventing certain exploitive,
oppressive, and unethical business practices, to assist State
boxing commissions in their efforts to provide more effective
public oversight of the sport, and to promote honorable
competition in professional boxing and enhance the overall
integrity of the industry.
The Muhammad Ali Boxing Reform Act amends the Professional
Boxing Safety Act of 1996 (15 U.S.C. 6301 et seq.) to establish
certain minimum requirements for contracts between boxers and
their promoters and managers. In particular, it limits
exclusive promotional rights to a maximum of 12 months and
prohibits a promoter or a sanctioning organization from
requiring a boxer to grant further promotional rights in order
to fight a match that is a mandatory bout. The bill also
prohibits promoters from having a financial interest in the
management of a boxer, and vice versa, although only for boxers
who fight over 10 rounds. It requires the establishment of
objective and consistent written criteria for the ratings of
professional boxers and requires a publishing of any change in
a top ten boxer's rankings.
Sanctioning organizations are required to submit to the
Federal Trade Commission (FTC), or post on the Internet, a
complete description of their ratings criteria, policies,
general sanctioning fee schedule, bylaws, and appeals
procedure. Officers and employees of sanctioning organizations
are prohibited from receiving any non-de minimis compensation
or gifts from a promoter, boxer, or manager, other than their
published fees for sanctioning a match and any reasonable
expenses. Sanctioning organizations are required to provide to
a State's boxing commission before a fight a statement of all
charges, fees, and costs the organization will assess any boxer
participating in that match, and all payments the organization
will receive for its affiliation with the event from all
sources.
Promoters are required to provide to the appropriate State
boxing commission copies of any agreements they have with a
boxer, a statement of all expenses that will be assessed the
boxer, any benefits the promoter is providing to sanctioning
organizations affiliated with the event, and any reduction in a
boxer's purse contrary to previous agreements, as well as
disclosing other sources of revenue. These disclosures are
protected by a confidentiality provision.
Judges and referees are required to be certified and
approved by State boxing commissions, and are also required to
disclose their sources of compensation for participating in a
fight. Unsportsmanlike conduct is added to the list of
suspendable offenses under the Act. The Association of Boxing
Commissions (ABC) is directed to develop and approve guidelines
on boxing contract requirements, uniform rules, and rating
criteria. The record keeping burden on the States is reduced by
extending boxing licenses from two years to four years.
Background and Need for Legislation
Boxing is perhaps the oldest sport in existence, dating
back to the Sumerians in 2600 BC. The ancient Greeks introduced
boxing to the Olympics in 688 BC, with participants required to
wear protective headgear and leather hand-coverings.
Unfortunately, the sport of boxing has been criticized for
being rife with fraud and corruption. Recently, the Miami
Herald reported that over 30 prizefights have been fixed or
tainted with fraud in the last 12 years (Sunday, October 31,
1999). Earlier this year, an investigation by the Los Angeles
Times argued that boxing rankings are sold by sanctioning
bodies, promoters pay for conventions for boxing's sanctioning
bodies as thinly disguised bribes, and boxing managers make
payments of up to twenty thousand dollars in cash to improve
their boxers' rankings and get more lucrative cable TV fights.
(Tuesday, May 18, 1999).
Similar concerns have been echoed by boxing's leaders.
Former heavyweight champion Muhammad Ali has called for Federal
legislation to protect boxers from the ``dishonest ways'' of
some promoters and managers. Boxing News has stated that
``Pure, unvarnished greed is killing the game. * * *. Boxing
desperately needs [a federal] law * * * to cut down on the
terrible corruption.'' (July 17, 1998) Another article noted
that ``Americans have more rights than any people on earth, but
our fight game has degenerated into such a dirty, incestuous
business that when you make noise, you get blackballed.''
(Boxing News, July, 1998)
Three years ago, Congress enacted legislation reported by
the Committee on Commerce to begin to clean up the sport. The
legislation (1) required that no professional boxing match may
be conducted without the supervision of a State authorized
boxing commission; (2) created a uniform system of
registration, licensing, and reporting through the Association
of Boxing Commissions; (3) implemented procedures for mutual
recognition, review, and appeal of boxer suspensions; (4)
established minimum safety standards (such as a pre-fight
physical exam by a physician, medical personnel present at
ringside, and health insurance for boxing injuries); and (5)
prohibited boxing commission employees from belonging to or
receiving compensation from those who sanction, arrange, or
promote professional boxing matches. Ironically, the Commerce
Committee's boxing legislation took effect one day after Mike
Tyson bit off the ear of Evander Holyfield, and one day before
Mr. Tyson's suspension was determined. Because of the uniform
system created, the suspension of Mr. Tyson by the Nevada
boxing commission was recognized nationwide, preventing Mr.
Tyson from fighting until the suspension was lifted.
On June 29, 1999, the Subcommittee on Telecommunications,
Trade, and Consumer Protection held a hearing on H.R. 1832, the
Muhammad Ali Boxing Reform Act. The hearing took place just
after an extremely controversial decision in the Holyfield-
Lewis heavyweight championship fight in which an International
Boxing Federation (IBF) judge awarded the title to Mr.
Holyfield, the IBF champion, instead of to Mr. Lewis, the World
Boxing Council (WBC) champion and clear apparent winner
according to some boxing commentators. In the words of one
hearing witness, the decision was ``highly influenced''.
Another witness said plainly, ``Lewis was robbed.''
H.R. 1832 has been strongly praised by a number of
enforcement officials and boxing journalists. Nineteen
bipartisan U.S. State Attorney Generals signed a letter
stating: ``[We] strongly endorse the Ali Act. * * * We believe
this legislation will curb anti-competitive and fraudulent
business practices and prevent blatant exploitation of
professional boxers.'' In a 1998 editorial, the International
Boxing Digest stated that, ``We support the new [boxing] bill,
and urge all honest people in professional boxing to do
likewise. Fighters need to be protected, and not simply from
what happens in the ring. This bill does it like it's never
done before.'' Ring Magazine concurred, stating, ``Imagine a
world in which fighters are not taken advantage of financially,
title shots are awarded to legitimate contenders, and bogus
alphabet organizations slowly fade from existence. [I]f the Ali
Act passes * * * that boxing heaven may just be located right
here on earth.'' (December, 1998 editorial)
The Committee believes that this legislation is needed to
reduce corruption and conflicts of interest in boxing, to
protect boxers from unethical practices in the sport, to assist
the States in regulating the sport, and to increase public
confidence in boxing's integrity. The Committee also believes
the legislation is necessary to make various improvements to
the Professional Boxing Safety Act of 1996 that have been
requested by the State regulators to provide them with more
flexibility and oversight.
Hearings
The Subcommittee on Telecommunications, Trade, and Consumer
Protection held a legislative hearing on H.R. 1832, the
Muhammad Ali Boxing Reform Act, on June 29, 1999. The
Subcommittee received testimony from the following witnesses:
Mr. Gregory P. Sirb, President, Association of Boxing
Commissions; Mr. Arlen D. Bynum, Legal Counselor, World Boxing
Council; Mr. Dan Goossen, President, America Presents; Mr. Tony
Holden, President, Next Media; and Mr. Alfonzo Daniels, a
Middleweight Boxer.
Committee Consideration
On September 24, 1999, the Subcommittee on
Telecommunications, Trade, and Consumer Protection met in open
markup session to consider H.R. 1832 and approved the bill for
Full Committee consideration, amended, by a roll call vote of
15 yeas to 1 nay. On September 29, 1999, the Full Committee met
in open markup session and ordered H.R. 1832 favorably reported
to the House, amended, by voice vote, a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House requires
the Committee to list the record votes on the motion to report
legislation and amendments thereto. There were no recorded
votes taken in connection with ordering H.R. 1832 reported. An
Amendment by Mr. Oxley, #1, to: (1) replace the 5 year time
limit on boxing contracts with a prohibition on sequential
coercive contracts; (2) reduce the time period for sanctioning
bodies to respond to rating criteria questions from 14 days to
7 days; and (3) add a provision to encourage State boxing
commissions to disclose to boxers relevant health and safety
risks, particularly with regard to the potential for brain
injuries and the advisability of obtaining periodic CAT scans,
was agreed to by a voice vote. An Amendment by Mr. Rush, #2, to
strike the provisions imposing penalties on persons who
violated the disclosure and conflict of interest provisions of
the Act, was not agreed to by a voice vote. A motion by Mr.
Bliley to order H.R. 1832 reported to the House, amended, was
agreed to by a voice vote, a quorum being present.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a legislative
hearing and made findings that are reflected in this report.
Committee on Government Reform Oversight Findings
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
1832, the Muhammad Ali Boxing Reform Act, would result in no
new or increased budget authority, entitlement authority, or
tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 2, 1999.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1832, the Muhammad
Ali Boxing Reform Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Mark Hadley
(for federal costs), Shelley Finlayson (for the state and local
impact), and Jean Wooster (for the private-sector impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 1832--Muhammad Ali Boxing Reform Act
Summary: H.R. 1832 aims to protect professional boxers from
unfair business practices of managers and promoters. The bill
would require the Association of Boxing Commissioners to
establish guidelines for minimum provisions that should be
included in boxing contracts: prohibit managers and promoters
from having shared financial interests; and require the Federal
Trade Commission (FTC) to provide information about
organizations that sanction professional boxing matches. H.R.
1832 would allow the FTC to charge the sanctioning
organizations fees to offset the costs of providing such
information. The bill also would make violations of certain
provisions of the Professional Boxing Safety Act of 1996
federal crimes. Finally, the bill would clarify that federal
laws that regulate boxing also apply in the United States
Virgin Islands.
Based on information from the FTC, CBO estimates that
enacting H.R. 1832 would have no significant impact on the
federal budget. Implementing the bill would require far less
than $500,000 a year in additional discretionary spending
during the 2000-2004 period. That cost would be at least
partially offset by fees, resulting in little or no net impact.
H.R. 1832 would affect direct spending and receipts, so pay-as-
you-go procedures would apply, but CBO estimates that those
effects would also be less than $500,000 a year.
H.R. 1832 contains an intergovernmental mandate as defined
in the Unfunded Mandates Reform Act (UMRA), however, CBO
estimates that the cost of complying with this mandate would
not be significant and would not exceed that threshold
established in that act ($50 million in 1996, adjusted annually
for inflation).
H.R. 1832 would impose several private-sector mandates on
the boxing industry, mainly on promoters and on organizations
that sanction professional boxers. In general, the new mandates
on promoters are aimed at protecting boxers from exploitation.
The bill also would impose disclosure requirements on
sanctioning organizations. CBO estimates that the total direct
costs of the private-sector mandates identified in this bill
would not exceed the statutory threshold established in UMRA
($100 million in 1996, adjusted annually for inflation) in any
of the next five years.
Estimated cost to the Federal Government: Based on
information from the FTC, CBO estimates that enacting H.R. 1832
would require new spending subject to appropriations of far
less than $500,000 a year during the 2000-2004 period, and that
such amounts would be at least partially offset by collections
of fees. The costs of this legislation fall within budget
function 370 (commerce and housing credit).
Enacting H.R. 1832 could increase governmental receipts
from the collection of criminal fines, but CBO estimates that
any such increase would be less than $500,000 annually.
Criminal fines are deposited in the Crime Victims Fund and are
spent in subsequent years. Thus, any change in direct spending
from the fund would also amount to less than $500,000 annually.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. CBO
estimates that any increases in governmental receipts and
direct spending would each total less than $500,000 a year.
Estimated impact on state, local, and tribal governments:
H.R. 1832 contains an intergovernmental mandate as defined in
UMRA, but CBO estimates that complying with the mandate would
not result in significant additional costs to states. State
boxing commissions would be required to establish procedures to
ensure that no boxer is permitted to box while under suspension
in any state due to unsportsmanlike conduct. Current law
already requires state boxing commissions to have procedures in
place to prevent boxers suspended for other reasons from boxing
in their states. Therefore, CBO estimates that the additional
costs to states to comply with this new requirement would not
be significant. Enactment of the bill would impose no other
costs on state, local, or tribal governments.
Estimated impact on the private sector: H.R. 1832 would
impose several private-sector mandates on the boxing industry.
The most costly mandate would put a one-year limit on certain
contracts between a boxer and a promoter, or between promoters
with respect to a boxer. The one-year limitation would apply to
those situations where a promoter secures promotional rights
from a boxer (or another promoter) as a condition for that
boxer to compete in a particular bout. Based on information
from industry sources, CBO expects that this limitation could
impose costs, in the form of lost revenues, on only a few
promoters.
The bill would require sanctioning organizations to make
several new disclosures to regulators and others in the boxing
industry. In addition, H.R. 1832 would impose mandates with
minimal costs on the Association of Boxing Commissioners,
mangers, licensees, matchmakers, judges, and referees. Based on
information from representatives of the boxing industry, CBO
estimates that the total direct costs of the private-sector
mandates identified in this bill would not exceed the statutory
threshold established in UMRA ($100 million in 1996, adjusted
annually for inflation) in any of the next five years.
Previous CBO estimate: On May 17, 1999, CBO transmitted a
cost estimate of S. 305, the Muhammad Ali Boxing Reform Act, as
ordered by the Senate Committee on Commerce, Science, and
Transportation on May 5, 1999. That bill also would have no
significant budgetary impact.
Estimate prepared by: Federal costs: Mark Hadley; impact on
state, local, and tribal governments: Shelly Finlayson; impact
on the private sector: Jean Wooster.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 designates the short title of the Act as the
``Muhammad Ali Boxing Reform Act''.
Section 2. Findings
Section 2 sets forth the findings for the Act.
Section 3. Purposes
Section 3 sets forth the purposes of the Act. The purposes
include protecting professional boxers from exploitive and
unethical business practices, assisting State boxing
commissions (including the Association of Boxing Commissions)
in providing more effective public oversight of boxing, and
promoting competition and integrity in boxing.
Section 4. Protecting boxers from exploitation
Section 4 amends the Professional Boxing Safety Act of 1996
to add several new sections.
Contract Requirements (Sec. 9).--A new section 9 directs
the ABC to develop and approve by a vote of a majority of the
commissioners guidelines for minimum contractual provisions to
be included in bout agreements and boxing contracts. The bill
as introduced contained a number of statutory minimum
requirements for contracts between boxers and promoters,
including mutual obligations between the parties, a minimum
number of professional boxing matches per year for the boxer,
and a specific period of time during which the contract will be
in effect, including any provision for extension of that period
due to the boxer's temporary inability to compete because of an
injury or other cause. The Committee reported bill permits more
long term flexibility by the States in determining appropriate
standard contract provisions over time. However, the Committee
expects that the ABC will look at these types of issues and
adopt standard minimum contract provisions that the States
should then follow.
Protection from Coercive Contracts (Sec. 10).--New section
10 protects boxers from coercive contracts. Coercive contracts
are deemed unenforceable against boxers. A contract contains a
coercive provision if it gives a promoter (other than the
boxer's current promoter) any rights over a boxer as a
condition for such boxer to be able to participate in a
particular boxing match, and the rights are for a period
greater than 12 months or the boxer would be fighting against
another boxer who has given rights to such promoter as a
condition for participating in a particular boxing match. Thus,
if a promoter owns the rights to a champion, and a second boxer
wants to fight the champion, then the champion's promoter can
acquire the rights to the second boxer, but only for up to 12
months. The promoter cannot then require a third boxer to grant
any rights as a condition for fighting that second boxer during
that period of time. It further provides that the 12 month
period of time can not be extended in a manner that is
enforceable against a boxer if such extension is made earlier
than 3 months before the 12 month period expires. With respect
to mandatory bouts required of a boxer to maintain a boxing
title or standing, if a boxer is required to compete in a
mandatory bout under the rules of a sanctioning organization,
then no future promotional rights can be required of such boxer
as a condition for participating in such bout.
Sanctioning Organizations (Sec. 11).--The bill creates new
section 11 governing sanctioning organizations, requiring the
ABC within 2 years of enactment to develop and approve by a
majority vote guidelines for objective and consistent written
criteria for the ratings of boxers. This section is intended to
help establish uniform and standard rules for rating boxing.
The Committee expects that the States and sanctioning bodies
will follow the ABC guidelines governing the ranking of boxers.
To help enforce this section, the provision requires a
sanctioning organization, in order to enforce the receipt of
any compensation in connection with a boxing match, to provide
to a boxer and the ABC (within 7 days of a request questioning
that boxer's ratings) a written explanation of the
organization's ratings criteria and the reasons for that
particular boxer's ratings. With respect to boxers that a
sanctioning organization ranksin its top ten in a particular
weight class, if the organization subsequently changes the rating of
such boxers, it must explain why such rating was changed and provide a
copy of the change and explanation to the ABC and post it on an
Internet website. Each year, sanctioning organizations must provide to
the FTC a complete description of their ratings criteria, policies, and
general sanctioning fee lists, the organization's bylaws, their appeals
procedures regarding a boxer's rating, and a list of the organization's
officials who vote on boxer ratings. Organizations must promptly notify
the FTC of any material change in any of these policies or procedures.
In lieu of such submissions to the FTC, an organization can fulfill
this disclosure requirement by posting the same information on an
Internet website that is generally accessible to the general public
with the information available in an easily usable and understandable
format.
Required Disclosures to State Boxing Commissions by
Sanctioning Organizations (Sec. 12).--The bill creates new
section 12 which requires sanctioning organizations to provide
to the State boxing commission responsible for regulating a
match a statement of all expenses that the organization will
assess any boxer in the match. This disclosure is intended to
include any charge made to the boxer's promoter or manager that
would come out of a boxer's purse or other earnings. The
organization is also required to disclose to such State
commission any payments or other benefits the organization
expects to receive from any source because of its affiliation
with the event.
Required Disclosures for Promoters (Sec. 13).--The bill
creates new section 13 to require boxing promoters to disclose
to the appropriate State boxing commission copies of any
written agreements the promoter has made with the participating
boxers, a statement that there are no other written or oral
existing agreements between such parties, any benefits provided
by the promoter to any sanctioning organizations affiliated
with the event, any charges that will be deducted from any of
the boxer's earnings (such as any training expenses or promoter
fees), and any reduction in a boxer's earnings contrary to a
previous agreement between a promoter and such boxer or
contrary to a bid on a boxing purse held for an event. A
promoter is required to provide to the boxer a detailed
disclosure of the specific amounts of any compensation or other
benefits a promoter is receiving from a match, any charges that
will be deducted from the boxer's earnings from the match, and
any reduction in the boxer's earnings contrary to a previous
agreement. All of the disclosures under this new section are
required to be made available upon request to law enforcement
officials of the State in which the match is held.
Required Disclosures for Judges and Referees (Sec. 14).--
The bill creates new section 14 to require judges and referees
to disclose to the appropriate boxing commission a statement of
all benefits (including any reimbursement) received from any
source for participation in a boxing match.
Confidentiality (Sec. 15).--The bill creates new section 15
to prohibit State boxing commissions and Attorney Generals from
disclosing any information which a promoter has furnished under
the new section 13 except to the extent required in a legal,
administrative, or judicial proceeding. If a State law normally
requires that the disclosures under section 13 be made public
(other than in such proceedings), then a promoter is not
required to furnish suchinformation to the State or State
boxing commission, but may instead file such information with the ABC.
Judges and Referees (Sec. 16).--The bill creates new
section 16 requiring that all referees and judges that
participate in boxing matches must be certified and approved by
the appropriate State boxing commission.
Section 5. Conflict of interest
The bill further amends the Professional Boxing Safety Act
of 1996, in the former section 9 (now section 17) which
prohibited conflicts of interest between boxing regulators and
boxers, by adding a new provision creating similar firewalls
between boxers and their promoters and managers. Specifically,
the new provision prohibits promoters from having any direct or
indirect financial interest in the management of a boxer, and
prohibits managers from having any direct or indirect financial
interest in the promotion of a boxer. The provision also
prohibits managers from being employed or receiving benefits
from a promoter in connection with a boxer except as specified
under the manager's contract with the boxer. These newly added
firewalls only apply to boxers that are engaging in fights of
10 rounds or more, as many boxers that fight fewer rounds
cannot afford to have separate managers and promoters. These
firewalls do not apply where a boxer chooses to act as his or
her own promoter or manager. The new provision also prohibits
sanctioning organizations from receiving any benefits or gifts,
directly or indirectly, from a promoter, boxer, or manager,
except of de minimus value or as payment of a published fee and
any connected reasonable expenses where such payment and
expenses are reported to the appropriate boxing commission.
Section 6. Enforcement
A new enforcement provision is added to the Professional
Boxing Safety Act (to previous section 10, now section 18),
which makes any person who knowingly violates the new
requirements of this Act subject to imprisonment of up to a
year, and fines of up to $100,000. If the violation is in
connection with a boxing match which generates gross revenues
in excess of $2,000,000, then the maximum fine is increased
proportionately. For example, if all the sales and television
revenues of a boxing match amount to $6,000,000 in revenues,
then the maximum fine would be $300,000. States are also now
allowed to bring civil actions on behalf of their residents for
violations of this Act, and boxers are allowed to bring private
rights of action to recover any damages suffered because of a
violation of the Act (including reasonable attorneys fees).
Section 7. Additional amendments
The bill makes several additional amendments to the
Professional Boxing Safety Act. The Committee recognizes that
the Virgin Islands should be included in the definition of
``State''. Several new definitions are also added to section 2.
Section 7 is amended to add unsportsmanlike conduct to the list
of offenses for which a boxer is suspended nationwide. It is
expected that this provision will only be applied for egregious
cases of unsportsmanlike conduct. Section 6 is amended to only
require that boxers renew their licenses every four years
instead of every two years, to reduce the record keeping
burdens on the States. Section 7 is amended to expand the
parties which are allowed to appeal their suspensions to
include boxing service providers. Section 4 is amended to allow
the ABC (or any other entity to which a majority of the State
boxing commission belongs to) to supervise a boxing match
directly, in lieu of a State boxing commission. Section 6 is
further amended to express the sense of Congress that State
boxing commissions should, when issuing identification cards to
boxers, make appropriate health and safety disclosures,
including the risks associated with boxing, including the risk
and frequency of brain injury and the advisability of
undergoing medical procedures designed to detect brain injury
(such as CAT scans).
Exchange of Committee Correspondence
Committee on Education and the Workforce,
Washington, DC, November 1, 1999.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Chairman Bliley: I am writing regarding H.R. 1832, the
Muhammad Ali Boxing Reform Act, which is within the
jurisdiction of the Committee on Commerce and in addition the
Committee on Education and the Workforce. The bill amends the
Professional Boxing Safety Act. I have no objection to this
bill being scheduled under suspension of the House Rules. The
Committee on Commerce ordered the bill favorably reported on
September 29, 1999.
Given the impending adjournment and since I support the
reported bill, I do not intend to call a full Committee meeting
to consider this bill; however, the Committee does hold an
interest in preserving its jurisdiction with respect to issues
raised in the bill and its jurisdictional prerogatives in
future legislation. As such, Members of the Education and the
Workforce would expect to be represented should the provisions
of this bill be considered in a conference with the Senate.
I would appreciate the inclusion of this letter in the
Report you file to accompany this bill. I thank you for your
attention to this matter and look forward to swift passage of
H.R. 1832.
Sincerely,
Bill Goodling, Chairman.
------
Committee on Commerce,
Washington, DC, November 2, 1999.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Bill: Thank you for your letter regarding your
Committee's jurisdictional interest in H.R. 1832, the Muhammad
Ali Boxing Reform Act.
In the past, our committees have worked cooperatively in
the enactment of the Professional Boxing Safety Act, and I
acknowledge your role as an additional committee of
jurisdiction. I appreciate your cooperation in moving the bill
to the House floor expeditiously and agree that your decision
to forgo further action on the bill will not prejudice the
Committee on Education and the Workforce with respect to its
jurisdictional prerogatives on this or similar legislation.
Further, I will support your request for conferees should this
bill be the subject of a House-Senate conference. I will also
insert a copy of your letter and this response in the
Committee's report on the bill and the Congressional Record
when H.R. 1832 is considered by the House.
Thank you again for your cooperation.
Sincerely,
Tom Bliley, Chairman.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
PROFESSIONAL BOXING SAFETY ACT OF 1996
* * * * * * *
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) * * *
* * * * * * *
(10) State.--The term ``State'' means each of the 50
States, Puerto Rico, the District of Columbia, and any
territory or possession of the United States[.] ,
including the Virgin Islands.
(11) Effective date of the contract.--The term
``effective date of the contract'' means the day upon
which a boxer becomes legally bound by the contract.
(12) Boxing service provider.--The term ``boxing
service provider'' means a promoter, manager,
sanctioning body, licensee, or matchmaker.
(13) Contract provision.--The term ``contract
provision'' means any legal obligation between a boxer
and a boxing service provider.
(14) Sanctioning organization.--The term
``sanctioning organization'' means an organization that
sanctions professional boxing matches in the United
States--
(A) between boxers who are residents of
different States; or
(B) that are advertised, otherwise promoted,
or broadcast (including closed circuit
television) in interstate commerce.
(15) Suspension.--The term ``suspension'' includes
within its meaning the revocation of a boxing license.
* * * * * * *
SEC. 4. BOXING MATCHES IN STATES WITHOUT BOXING COMMISSIONS.
(a) No person may arrange, promote, organize, produce, or
fight in a professional boxing match held in a State that does
not have a boxing commission unless the match is supervised by
a boxing commission from another State and subject to the most
recent version of the recommended regulatory guidelines
certified and published by the Association of Boxing
Commissions as well as any additional relevant professional
boxing regulations and requirements of such other State.
(b) For the purpose of this Act, if no State commission is
available to supervise a boxing match according to subsection
(a), then--
(1) the match may not be held unless it is supervised
by an association of boxing commissions to which at
least a majority of the States belong; and
(2) any reporting or other requirement relating to a
supervising commission allowed under this section shall
be deemed to refer to the entity described in paragraph
(1).
* * * * * * *
SEC. 6. REGISTRATION.
(a) * * *
(b) Identification Card.--
(1) * * *
(2) Renewal.--Each professional boxer shall renew his
or her identification card at least once every [2] 4
years.
* * * * * * *
(c) Health and Safety Disclosures.--It is the sense of
Congress that a boxing commission should, upon issuing an
identification card to a boxer under subsection (b)(1), make a
health and safety disclosure to that boxer as that commission
considers appropriate. The health and safety disclosure should
include the health and safety risks associated with boxing,
and, in particular, the risk and frequency of brain injury and
the advisability that a boxer periodically undergo medical
procedures designed to detect brain injury.
SEC. 7. REVIEW.
(a) Procedures.--Each boxing commission shall establish each
of the following procedures:
(1) * * *
(2) Procedures to ensure that, except as provided in
subsection (b), no boxer is permitted to box while
under suspension from any boxing commission due to--
(A) * * *
* * * * * * *
(C) failure of a drug test; [or]
(D) the use of false aliases, or falsifying,
or attempting to falsify, official
identification cards or [documents.] documents;
or
(E) unsportsmanlike conduct or other
inappropriate behavior inconsistent with
generally accepted methods of competition in a
professional boxing match.
(3) Procedures to review a suspension where appealed
by a [boxer] boxer, licensee, manager, matchmaker,
promoter, or other boxing service provider, including
an opportunity for a boxer to present contradictory
evidence.
* * * * * * *
SEC. 9. CONTRACT REQUIREMENTS.
Within 2 years after the date of the enactment of the
Muhammad Ali Boxing Reform Act, the Association of Boxing
Commissions shall develop and shall approve by a vote of no
less than a majority of its member State boxing commissioners,
guidelines for minimum contractual provisions that should be
included in bout agreements and boxing contracts. It is the
sense of Congress that State boxing commissions should follow
these ABC guidelines.
SEC. 10. PROTECTION FROM COERCIVE CONTRACTS.
(a) General Rule.--
(1)(A) A contract provision shall be considered to be
in restraint of trade, contrary to public policy, and
unenforceable against any boxer to the extent that it--
(i) is a coercive provision described in
subparagraph (B) and is for a period greater
than 12 months; or
(ii) is a coercive provision described in
subparagraph (B) and the other boxer under
contract to the promoter came under that
contract pursuant to a coercive provision
described in subparagraph (B).
(B) A coercive provision described in this
subparagraph is a contract provision that grants any
rights between a boxer and a promoter, or between
promoters with respect to a boxer, if the boxer is
required to grant such rights, or a boxer's promoter is
required to grant such rights with respect to a boxer
to another promoter, as a condition precedent to the
boxer's participation in a professional boxing match
against another boxer who is under contract to the
promoter.
(2) This subsection shall only apply to contracts
entered into after the date of the enactment of the
Muhammad Ali Boxing Reform Act.
(3) No subsequent contract provision extending any
rights or compensation covered in paragraph (1) shall
be enforceable against a boxer if the effective date of
the contract containing such provision is earlier than
3 months before the expiration of the relevant time
period set forth in paragraph (1).
(b) Promotional Rights Under Mandatory Bout Contracts.--No
boxing service provider may require a boxer to grant any future
promotional rights as a requirement of competing in a
professional boxing match that is a mandatory bout under the
rules of a sanctioning organization.
SEC. 11. SANCTIONING ORGANIZATIONS.
(a) Objective Criteria.--Within 2 years after the date of the
enactment of the Muhammad Ali Boxing Reform Act, the
Association of Boxing Commissions shall develop and shall
approve by a vote of no less than a majority of its member
State boxing commissioners, guidelines for objective and
consistent written criteria for the ratings of professional
boxers. It is the sense of Congress that sanctioning bodies and
State boxing commissions should follow these ABC guidelines.
(b) Appeals Process.--A sanctioning organization shall not be
entitled to receive any compensation, directly or indirectly,
in connection with a boxing match, until it provides the boxers
with notice that the sanctioning organization shall, within 7
days after receiving a request from a boxer questioning that
organization's rating of the boxer--
(1) provide to the boxer a written explanation of the
organization's criteria, its rating of the boxer, and
the rationale or basis for its rating (including a
response to any specific questions submitted by the
boxer); and
(2) submit a copy of its explanation to the
Association of Boxing Commissions.
(c) Notification of Change in Rating.--A sanctioning
organization shall not be entitled to receive any compensation,
directly or indirectly, in connection with a boxing match,
until, with respect to a change in the rating of a boxer
previously rated by such organization in the top 10 boxers, the
organization--
(1) posts a copy, within 14 days of such change, on
its Internet website or home page, if any, including an
explanation of such change, for a period of not less
than 30 days; and
(2) provides a copy of the rating change and
explanation to an association to which at least a
majority of the State boxing commissions belong.
(d) Public Disclosure.--
(1) FTC filing.--A sanctioning organization shall not
be entitled to receive any compensation directly or
indirectly in connection with a boxing match unless,
not later than January 31 of each year, it submits to
the Federal Trade Commission and to the ABC--
(A) a complete description of the
organization's ratings criteria, policies, and
general sanctioning fee schedule;
(B) the bylaws of the organization;
(C) the appeals procedure of the organization
for a boxer's rating; and
(D) a list and business address of the
organization's officials who vote on the
ratings of boxers.
(2) Format; updates.--A sanctioning organization
shall--
(A) provide the information required under
paragraph (1) in writing, and, for any document
greater than 2 pages in length, also in
electronic form; and
(B) promptly notify the Federal Trade
Commission of any material change in the
information submitted.
(3) FTC to make information available to public.--The
Federal Trade Commission shall make information
received under this subsection available to the public.
The Commission may assess sanctioning organizations a
fee to offset the costs it incurs in processing the
information and making it available to the public.
(4) Internet alternative.--In lieu of submitting the
information required by paragraph (1) to the Federal
Trade Commission, a sanctioning organization may
provide the information to the public by maintaining a
website on the Internet that--
(A) is readily accessible by the general
public using generally available search engines
and does not require a password or payment of a
fee for full access to all the information;
(B) contains all the information required to
be submitted to the Federal Trade Commission by
paragraph (1) in an easy to search and use
format; and
(C) is updated whenever there is a material
change in the information.
SEC. 12. REQUIRED DISCLOSURES TO STATE BOXING COMMISSIONS BY
SANCTIONING ORGANIZATIONS.
A sanctioning organization shall not be entitled to receive
any compensation directly or indirectly in connection with a
boxing match until it provides to the boxing commission
responsible for regulating the match in a State a statement
of--
(1) all charges, fees, and costs the organization
will assess any boxer participating in that match;
(2) all payments, benefits, complimentary benefits,
and fees the organization will receive for its
affiliation with the event, from the promoter, host of
the event, and all other sources; and
(3) such additional information as the commission may
require.
SEC. 13. REQUIRED DISCLOSURES FOR PROMOTERS.
(a) Disclosures to the Boxing Commissions.--A promoter shall
not be entitled to receive any compensation directly or
indirectly in connection with a boxing match until it provides
to the boxing commission responsible for regulating the match
in a State a statement of--
(1) a copy of any agreement in writing to which the
promoter is a party with any boxer participating in the
match;
(2) a statement made under penalty of perjury that
there are no other agreements, written or oral, between
the promoter and the boxer with respect to that match;
and
(3)(A) all fees, charges, and expenses that will be
assessed by or through the promoter on the boxer
pertaining to the event, including any portion of the
boxer's purse that the promoter will receive, and
training expenses;
(B) all payments, gifts, or benefits the promoter is
providing to any sanctioning organization affiliated
with the event; and
(C) any reduction in a boxer's purse contrary to a
previous agreement between the promoter and the boxer
or a purse bid held for the event.
(b) Disclosures to the Boxer.--A promoter shall not be
entitled to receive any compensation directly or indirectly in
connection with a boxing match until it provides to the boxer
it promotes--
(1) the amounts of any compensation or consideration
that a promoter has contracted to receive from such
match;
(2) all fees, charges, and expenses that will be
assessed by or through the promoter on the boxer
pertaining to the event, including any portion of the
boxer's purse that the promoter will receive, and
training expenses; and
(3) any reduction in a boxer's purse contrary to a
previous agreement between the promoter and the boxer
or a purse bid held for the event.
(c) Information To Be Available to State Attorney General.--A
promoter shall make information required to be disclosed under
this section available to the chief law enforcement officer of
the State in which the match is to be held upon request of such
officer.
SEC. 14. REQUIRED DISCLOSURES FOR JUDGES AND REFEREES.
A judge or referee shall not be entitled to receive any
compensation, directly or indirectly, in connection with a
boxing match until it provides to the boxing commission
responsible for regulating the match in a State a statement of
all consideration, including reimbursement for expenses, that
will be received from any source for participation in the
match.
SEC. 15. CONFIDENTIALITY.
(a) In General.--Neither a boxing commission or an Attorney
General may disclose to the public any matter furnished by a
promoter under section 13 except to the extent required in a
legal, administrative, or judicial proceeding.
(b) Effect of Contrary State Law.--If a State law governing a
boxing commission requires that information that would be
furnished by a promoter under section 13 shall be made public,
then a promoter is--
(1) not required to file such information with such
State; and
(2) required to file such information with the ABC.
SEC. 16. JUDGES AND REFEREES.
No person may arrange, promote, organize, produce, or fight
in a professional boxing match unless all referees and judges
participating in the match have been certified and approved by
the boxing commission responsible for regulating the match in
the State where the match is held.
SEC. [9.] 17. CONFLICTS OF INTEREST.
[No member] (a) Regulatory Personnel.--No member or employee
of a boxing commission, no person who administers or enforces
State boxing laws, and no member of the Association of Boxing
Commissions may belong to, contract with, or receive any
compensation from, any person who sanctions, arranges, or
promotes professional boxing matches or who otherwise has a
financial interest in an active boxer currently registered with
a boxer registry. For purposes of this section, the term
``compensation'' does not include funds held in escrow for
payment to another person in connection with a professional
boxing match. The prohibition set forth in this section shall
not apply to any contract entered into, or any reasonable
compensation received, by a boxing commission to supervise a
professional boxing match in another State as described in
section 4.
(b) Firewall Between Promoters and Managers.--
(1) In general.--It is unlawful for--
(A) a promoter to have a direct or indirect
financial interest in the management of a
boxer; or
(B) a manager--
(i) to have a direct or indirect
financial interest in the promotion of
a boxer; or
(ii) to be employed by or receive
compensation or other benefits from a
promoter, except for amounts received
as consideration under the manager's
contract with the boxer.
(2) Exceptions.--Paragraph (1)--
(A) does not prohibit a boxer from acting as
his own promoter or manager; and
(B) only applies to boxers participating in a
boxing match of 10 rounds or more.
(c) Sanctioning Organizations.--
(1) Prohibition on receipts.--Except as provided in
paragraph (2), no officer or employee of a sanctioning
organization may receive any compensation, gift, or
benefit, directly or indirectly, from a promoter,
boxer, or manager.
(2) Exceptions.--Paragraph (1) does not apply to--
(A) the receipt of payment by a promoter,
boxer, or manager of a sanctioning
organization's published fee for sanctioning a
professional boxing match or reasonable
expenses in connection therewith if the payment
is reported to the responsible boxing
commission; or
(B) the receipt of a gift or benefit of de
minimis value.
SEC. [10.] 18. ENFORCEMENT.
(a) Injunctions.--Whenever the Attorney General of the United
States has reasonable cause to believe that a person is engaged
in a violation of this Act, the Attorney General may bring a
civil action in the appropriate district court of the United
States requesting such relief, including a permanent or
temporary injunction, restraining order, or other order,
against the person, as the Attorney General determines to be
necessary to restrain the person from continuing to engage in,
sanction, promote, or otherwise participate in a professional
boxing match in violation of this Act.
(b) Criminal Penalties.--
(1) Managers, promoters, matchmakers, and
licensees.--Any manager, promoter, matchmaker, and
licensee who knowingly violates, or coerces or causes
any other person to violate, any provision of this Act,
other than section 9(b), 10, 11, 12, 13, 14, or 16,
shall, upon conviction, be imprisoned for not more than
1 year or fined not more than $20,000, or both.
(2) Violation of antiexploitation, sanctioning
organization, or disclosure provisions.--Any person who
knowingly violates any provision of section 9(b), 10,
11, 12, 13, 14, or 16 of this Act shall, upon
conviction, be imprisoned for not more than 1 year or
fined not more than--
(A) $100,000; and
(B) if a violation occurs in connection with
a professional boxing match the gross revenues
for which exceed $2,000,000, an additional
amount which bears the same ratio to $100,000
as the amount of such revenues compared to
$2,000,000, or both.
[(2)] (3) Conflict of interest.--Any member or
employee of a boxing commission, any person who
administers or enforces State boxing laws, and any
member of the Association of Boxing Commissions who
knowingly violates section [9] 17(a) of this Act shall,
upon conviction, be imprisoned for not more than 1 year
or fined not more than $20,000, or both.
[(3)] (4) Boxers.--Any boxer who knowingly violates
any provision of this Act shall, upon conviction, be
fined not more than $1,000.
(c) Actions by States.--Whenever the chief law enforcement
officer of any State has reason to believe that a person or
organization is engaging in practices which violate any
requirement of this Act, the State, as parens patriae, may
bring a civil action on behalf of its residents in an
appropriate district court of the United States--
(1) to enjoin the holding of any professional boxing
match which the practice involves;
(2) to enforce compliance with this Act;
(3) to obtain the fines provided under subsection (b)
or appropriate restitution; or
(4) to obtain such other relief as the court may deem
appropriate.
(d) Private Right of Action.--Any boxer who suffers economic
injury as a result of a violation of any provision of this Act
may bring an action in the appropriate Federal or State court
and recover the damages suffered, court costs, and reasonable
attorneys fees and expenses.
(e) Enforcement Against Federal Trade Commission, State
Attorneys General, Etc.--Nothing in this Act authorizes the
enforcement of--
(1) any provision of this Act against the Federal
Trade Commission, the United States Attorney General,
or the chief legal officer of any State for acting or
failing to act in an official capacity;
(2) subsection (d) of this section against a State or
political subdivision of a State, or any agency or
instrumentality thereof; or
(3) section 10 against a boxer acting in his capacity
as a boxer.
SEC. [11.] 19. NOTIFICATION OF SUPERVISING BOXING COMMISSION.
Each promoter who intends to hold a professional boxing match
in a State that does not have a boxing commission shall, not
later than 14 days before the intended date of that match,
provide written notification to the supervising boxing
commission designated under section 4. Such notification shall
contain each of the following:
(1) * * *
* * * * * * *
SEC. [12.] 20. STUDIES.
(a) Pension.--The Secretary of Labor shall conduct a study on
the feasibility and cost of a national pension system for
boxers, including potential funding sources.
* * * * * * *
SEC. [13.] 21. PROFESSIONAL BOXING MATCHES CONDUCTED ON INDIAN
RESERVATIONS.
(a) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) * * *
* * * * * * *
SEC. [14.] 22. RELATIONSHIP WITH STATE LAW.
Nothing in this Act shall prohibit a State from adopting or
enforcing supplemental or more stringent laws or regulations
not inconsistent with this Act, or criminal, civil, or
administrative fines for violations of such laws or
regulations.
SEC. [15.] 23. EFFECTIVE DATE.
The provisions of this Act shall take effect on January 1,
1997, except as follows:
(1) Section 9 shall not apply to an otherwise
authorized boxing commission in the Commonwealth of
Virginia until July 1, 1998.
(2) Sections 5 through 9 shall take effect on July 1,
1997.
DISSENTING VIEWS
We have a number of concerns regarding H.R. 1832, as
reported by the Committee on Commerce.
First, we take issue with sections 2 and 3 of the bill
regarding the congressional findings and purposes. These
sections unnecessarily denigrate promoters without there having
been any formal fact finding investigation as to whether these
statements are justified. We understand that what support there
is consists principally of allegations from boxers and
managers, who naturally are in an adverse economic relationship
with promoters. To take these allegations as true, and to give
these allegations the imprimatur of the United States Congress,
is simply unfair without a formal independent fact finding
investigation. These findings and purposes, to the extent they
denigrate all promoters, are not necessary and we would ask
that the inflammatory language be removed.
Second, the legislation takes away a boxer's and promoter's
freedom to contract. As Americans, one of the most fundamental
freedoms which we enjoy is the freedom to contract if we
determine that an agreement is in our best economic interest.
Baseball players sign seven (7) year contracts, but this bill
would limit a boxer's freedom to contract to five (5) years at
the most and in certain instances, it would limit him to one
(1) year, and in other instances, would prevent him from
signing with a promoter altogether. While we can imagine
certain situations where an uneducated boxer might be duped
into signing an agreement which is not in his best economic
interest, it seems to us that if the boxer is represented by a
licensed attorney or a manager who is licensed by a state
athletic commission, and the boxer and his attorney or manager
want to sign a six-year deal with a promoter because they have
determined that it is in their best interest, or if they want
to sign with a promoter for two years so that they get a shot
at the title, then this Congress should not stand in the way of
their freedom to contract. Accordingly, I would propose an
additional exception providing that the limitations on the
freedom to contract do not apply if the boxer is adequately
represented in his negotiations with the promoter.
Third, the legislation states that a promoter shall not be
entitled to receive any compensation in connection with a
boxing match until it provides certain information to the
boxing commission and the boxer. While we do not take issue
with a promoter being required to provide relevant information,
we simply do not see how you can stop a promoter from receiving
the benefit of, for example, a letter of credit which is being
used to pay the boxer his purse, nor do we see the wisdom of
preventing the boxer from being paid simply because the
promoter has not provided the required information. In other
words, this section should be revised to impose an obligation
on the promoter to provide relevant information and if he does
not, there should be a reasonable sanction.
Furthermore, we do not understand the logic of requiring a
promoter to file every contract he has with a boxer with the
commission. Suppose that a boxer has fought for a promoter
twenty (20) times and in each contract the boxer gets clip
rights that extend for ten (10) years. Under this provision,
the promoter would have to file not only the bout agreement for
the applicable bout, but each of the 20 other bout agreements
with the commission. Also, a promoter may have a sponsorship
deal with a boxer or a merchandise deal. It will be extremely
burdensome on promoters to have to file all these contracts
with the commission. The bottom line is that the promoter
should have to file the applicable bout agreement for the bout
and provide a written certification that there are no other
agreements with the boxer regarding the match.
We also do not understand the reasoning behind requiring
the promoter to disclose to the boxer how much compensation or
consideration a promoter has contracted to receive for a match.
The boxer and the promoter's interests are adverse and the
boxer is not entitled to this information. This information can
also be misleading and make a boxer think that a promoter is
actually retaining this revenue as profit. The promoter must,
however, pay not only all of the boxers' purses from such
revenue as well as any fees to other promoters, but also all of
the other expenses of the bout, and then the promoter either
makes a profit or incurs a loss on the fight.Additionally, the
promoter has the overhead of his company which he must pay for a bottom
line profit or loss. The boxer simply is not entitled to this
information because he is not taking the risk of the promotion. If,
however, the boxer is getting an upside payment or is receiving part of
the profit from the promotion, then of course the promoter should have
to disclose the relevant information to the boxer so that he can verify
that he is receiving what he is entitled to.
Fourth, we are concerned with section 5 of the bill because
it would also eliminate the freedom to contract. We understand
that for certain promotions, promoters, boxers and managers
sometimes enter into joint venture arrangements whereby they
agree to share their compensation. For example, in exchange for
a piece of promoter's profit in a promotion, the boxer and
manager may agree to share a portion of the purse. In other
situations, the amount of the guaranteed purse is reduced in
consideration for a piece of the upside after certain revenue
targets are met. We believe that there is nothing wrong with
this practice provided that the boxer is adequately
represented. Accordingly, we would provide an exception to this
section so that it is not applicable if the boxer is adequately
represented by an attorney provided that the relationship
between the promoter and the manager is disclosed to the boxer.
This would allow for the flexibility to enter into more complex
arrangements like joint ventures on promotions.
Fifth, we take issue with section 6 of the bill with
respect to the imposition of criminal penalties. We believe
that the civil remedies are more than adequate and there has
been no demonstration that criminal sanctions are warranted. If
civil remedies subsequently prove to be inadequate, Congress
can then address at that time the need for criminal sanctions.
This bill generally affects the contractual rights of promoters
and boxers and the remedy for a violation should be a
contractual one, not criminal.
Sixth, the bill as currently drafted only applies to
promoters, yet the version which was passed by the Senate also
imposed rules regulating the contractual relationship between
broadcasters and boxers. It is well known that certain
broadcasters have been entering into exclusive long term
relationships with boxers. In these cases, the broadcasters
become the de facto promoter of the boxer, but they are not
licensed and do not have to disclose their contracts with the
boxers or report to the athletic commissions. In certain well
publicized instances, boxers who have signed with two different
broadcasters have been precluded from fighting each other
because neither broadcaster is willing to allow their boxer to
fight on the other broadcaster's network. When this same
situation arises between two rival promoters, the rules of the
sanctioning organizations provides the mechanism of a purse
offer, i.e., the public auction of the promotional rights to a
fight, so that the boxers can fight each other. We submit that
the rules adopted by the Senate with respect to broadcasters
should not only be adopted here, but also they should be
expanded to provide for same disclosures imposed on promoters
to the athletic commissions. Additionally, we should create a
mechanism, similar to a purse offer, so that the boxers who are
signed with different broadcasters be allowed to fight each
other.
Finally, after soccer, boxing is probably the second most
recognized sport internationally. Because of the global nature
of the sport, we are very concerned that our rules will impose
an undue burden on U.S. promoters, whereas foreign promoters
will not be subject to these rules. These rules will place U.S.
promoters at a disadvantage with their foreign competitors. For
example, these rules will not prevent a foreign promoter's
freedom to contract under the laws of a foreign country or
prevent a foreign promoter from entering into more flexible
financial arrangements with their boxers. We would urge that
these rules be expanded to govern, to the extent possible, the
activities of foreign promoters if they are exploiting bouts in
the United States. This will help to level the playing field
and will help to ensure that U.S. promoters do not take their
promotions abroad.
Edolphus Towns.
Bobby L. Rush.