Sports Relocation Reform Act of 1996

Summary: Sports Relocation Reform Act of 1996 - Authorizes any U.S. professional sports league to establish a rule:  (1) authorizing the league membership to decide whether or not a member team may be relocated; and (2) requiring that any person seeking to change the home territory of a member team obtain league approval.  Makes the antitrust laws inapplicable to the enforcement or application of any such rules. 
Outlines procedural requirements for requests for approval of a proposed relocation, requiring each league to establish rules and procedures governing such requests.  Outlines criteria to be considered during such process, including fan loyalty and the extent to which the requesting team has entered into good faith negotiations of terms and conditions required to continue to play in the current territory.  Requires the league to conduct hearings in which interested parties are afforded an opportunity to submit written testimony and exhibits.  Provides for judicial review through a civil action filed in the U.S. District Court for the District of Columbia, with an exception for a team located in the District of Columbia area.  Authorizes such Court to remand the matter for further consideration by the league and enjoin any relocation until the league has completed such reconsideration.  Prohibits multiple lawsuits by other interested parties.

SECTION 1. SHORT TITLE.

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

SEC. 2. RELOCATION OF CERTAIN TEAMS.

    (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 by the 
                sports league of the member team to be an affected 
                party;
            (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 and 
                        taken as a whole 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, through attendance, ticket sales, 
                        and television ratings, 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, rent abatement, 
                        special tax treatment, any other form of public 
                        financial support, any other public benefits 
                        not generally available to businesses as a 
                        whole within the jurisdiction, and the extent 
                        to which such support continues;
                            (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;
                            (x) the effect that relocation would have 
                        on contracts, agreements, or understandings 
                        between the member team and public and private 
                        parties; and
                            (xi) 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 
        (c)(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 
                        league has reconsidered the matter in 
                        accordance with the order of the court under 
                        this paragraph.
                    (B) Limitation of court.--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 (c)(1).
                    (C) Prohibition of multiple lawsuits by other 
                interested parties.--An interested party shall have a 
                right of intervention in a civil action described in 
                paragraph (1), but may not file an additional civil 
                action after the initial civil action has been filed.