Sports Antitrust Reform Act of 1996

Summary: Sports Antitrust Reform Act of 1996 - Amends the Clayton Act to: (1) authorize a professional sports league to establish a rule authorizing the league membership to decide whether or not a member team may be relocated outside of its home territory and requiring anyone seeking to change the home territory of that member team to obtain the league's approval; and (2) make the antitrust laws inapplicable to any such rule. 
Sets forth requirements regarding:  (1) requests for relocation approval; (2) procedures for approving or disapproving requests (including criteria to be considered, such as the extent to which fan loyalty and support for the member team have been demonstrated, the extent to which the member team has received public financial support, and whether the stadium or arena authority (if public) is opposed to the relocation); (3) hearings; and (4) judicial review.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sports Antitrust Reform Act of 
1996''.

SEC. 2. APPLICATION OF THE ANTITRUST LAWS TO PROFESSIONAL SPORTS.

    The Clayton Act (15 U.S.C. 12 et seq.) is amended by adding at the 
end the following new section:

``SEC. 27. APPLICATION OF THE ANTITRUST LAWS TO PROFESSIONAL SPORTS.

    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `home territory' means the geographic 
        metropolitan area within which a member team operates and plays 
        the majority of its home games;
            ``(2) the term `interested party' includes, with respect to 
        a member team--
                    ``(A) any political subdivision of a State that 
                provides, or has provided, financial assistance, 
                including tax abatement, for facilities (including a 
                stadium or arena) in which the member team plays;
                    ``(B) a representative of the political subdivision 
                with jurisdiction over the geographic area in which the 
                stadium or arena of the member team is located;
                    ``(C) a member team;
                    ``(D) the owner or operator of a stadium or arena 
                of a member team; and
                    ``(E) any other person who is determined to be an 
                affected party by the sports league of the member team;
            ``(3) the term `member team' means a team of professional 
        athletes--
                    ``(A) organized to play professional football, 
                basketball, or hockey; and
                    ``(B) that is a member of a professional sports 
                league;
            ``(4) the term `person' means any individual, partnership, 
        corporation, or unincorporated association, any combination or 
        association thereof, or any State or political subdivision of a 
        State;
            ``(5) the term `professional sports league' means an 
        association that--
                    ``(A) is composed of 2 or more member teams;
                    ``(B) regulates the contests and exhibitions of its 
                member teams; and
                    ``(C) has been engaged in competition in a 
                particular sport for a period of more than 7 years; and
            ``(6) the terms `stadium' and `arena' mean the principal 
        physical facility within which a member team has played the 
        majority of its home games.
    ``(b) Establishment of Rule.--
            ``(1) In general.--Subject to the requirements set forth in 
        this section, any professional sports league may establish a 
        rule--
                    ``(A) authorizing the membership of that league to 
                decide whether or not a member team of that league may 
                be relocated outside of the home territory of that 
                member team; and
                    ``(B) requiring that any person seeking to change 
                the home territory of that member team obtain the 
                approval of the appropriate professional sports league.
            ``(2) Inapplicability of antitrust laws.--Notwithstanding 
        any other provision of law, the antitrust laws shall not apply 
        to the enforcement or application by a professional sports 
        league of any rule established pursuant to paragraph (1).
    ``(c) Procedural Requirements.--
            ``(1) Request for approval.--
                    ``(A) In general.--Not later than 210 days before 
                the commencement of the season in which a member team 
                proposes to play in a new location, any person seeking 
                to change the home territory of that member team shall 
                submit a request for approval of the proposed change to 
                the appropriate professional sports league.
                    ``(B) Requirements.--Each request for approval 
                submitted under subparagraph (A) shall--
                            ``(i) be in writing;
                            ``(ii) be delivered in person or by 
                        certified mail to each interested party by not 
                        later than 30 days after submission to the 
                        appropriate professional sports league under 
                        subparagraph (A);
                            ``(iii) be made available by the date 
                        specified in clause (ii) to the news media;
                            ``(iv) be published by the date specified 
                        in clause (iii) in 1 or more newspapers of 
                        general circulation within the home territory 
                        of the member team; and
                            ``(v) contain--
                                    ``(I) an identification of the 
                                proposed location of the member team;
                                    ``(II) a summary of the reasons for 
                                the change in home territory based on 
                                the criteria described in paragraph 
                                (2)(B); and
                                    ``(III) the date on which the 
                                proposed change would become effective.
            ``(2) Procedures.--
                    ``(A) Establishment.--Each professional sports 
                league shall establish rules and procedures for 
                approving or disapproving requests submitted under 
                paragraph (1), that shall--
                            ``(i) include criteria to be considered by 
                        the professional sports league in approving or 
                        disapproving such requests; and
                            ``(ii) be made available upon request to 
                        any interested party.
                    ``(B) Criteria to be considered.--The criteria 
                described in subparagraph (A)(i) shall include--
                            ``(i) the extent to which fan loyalty to 
                        and support for the member team has been 
                        demonstrated during the tenure of the member 
                        team in the home territory;
                            ``(ii) the degree to which the member team 
                        has engaged in good faith negotiations with 
                        appropriate persons concerning the terms and 
                        conditions under which the member team would 
                        continue to play its games in the home 
                        territory of the member team;
                            ``(iii) the degree to which the ownership 
                        or management of the member team has 
                        contributed to any circumstance that might 
                        demonstrate the need for the relocation of the 
                        member team;
                            ``(iv) the extent to which the member team 
                        has, directly or indirectly, received public 
                        financial support by means of any publicly 
                        financed playing facility, special tax 
                        treatment, or any other form of public 
                        financial support;
                            ``(v) the adequacy of the stadium or arena 
                        of the member team, and the willingness of the 
                        stadium or arena authority and the local 
                        government to remedy any deficiencies in the 
                        stadium or arena;
                            ``(vi) whether the member team has incurred 
                        net operating losses, exclusive of depreciation 
                        or amortization, sufficient to threaten the 
                        continued financial viability of the member 
                        team;
                            ``(vii) whether any other member team in 
                        the professional sports league is located in 
                        the home territory of the member team;
                            ``(viii) whether the member team proposes 
                        to relocate to a territory in which no other 
                        member team in the professional sports league 
                        is located;
                            ``(ix) whether the stadium or arena 
                        authority, if public, is opposed to the 
                        relocation; and
                            ``(x) any other criteria considered to be 
                        appropriate by the professional sports league.
            ``(3) Hearings.--In determining whether to approve or 
        disapprove a proposed request submitted under paragraph (1), 
        the professional sports league shall--
                    ``(A) conduct a hearing at which interested parties 
                shall be afforded an opportunity to submit written 
                testimony and exhibits; and
                    ``(B) keep a written record of that hearing and any 
                testimony and exhibits submitted under subparagraph 
                (A).
    ``(d) Judicial Review.--
            ``(1) In general.--A decision by a professional sports 
        league to approve or disapprove a request submitted under 
        paragraph (1) may only be reviewed in a civil action filed by 
        an interested party in accordance with this subsection.
            ``(2) Venue.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an action under this subsection may 
                be filed only in the United States District Court for 
                the District of Columbia.
                    ``(B) Exception.--If the home territory of the 
                member team or the proposed home territory of the 
                member team is located within a 50-mile radius of the 
                District of Columbia, an action under this subsection 
                may be filed only in the United States District Court 
                for the Southern District of New York.
            ``(3) Time.--
                    ``(A) Filing.--An action under this subsection 
                shall be filed not later than 14 days after the date of 
                the formal vote of the professional sports league 
                approving or disapproving the proposed relocation.
                    ``(B) Review.--Not later than 30 days after the 
                filing of the action in accordance with subparagraph 
                (A), the district court shall issue an order with 
                respect to that action.
            ``(4) Standard of review.--The scope of judicial review in 
        any action under this subsection shall be limited to a 
        determination of whether--
                    ``(A) in deciding whether to approve or disapprove 
                a proposed relocation, the professional sports league 
                failed to comply with this section; and
                    ``(B) the decision of the professional sports 
                league to approve or disapprove a proposed relocation 
                was arbitrary or capricious.
            ``(5) Relief granted by court.--
                    ``(A) In general.--In any action under this 
                subsection, if the district court makes a determination 
                described in subparagraph (A) or (B) of paragraph (4), 
                the court shall--
                            ``(i) remand the matter for further 
                        consideration by the professional sports 
                        league; and
                            ``(ii) enjoin any relocation of the member 
                        team at issue until the professional sports 
                        team has reconsidered the matter in accordance 
                        with the order of the court under this 
                        paragraph.
                    ``(B) Limitation.--The court may not grant any 
                relief in any action under this subsection other than 
                enjoining or approving enforcement of the decision by 
                the professional sports league to approve or disapprove 
                a request submitted under paragraph (1).''.