I

104TH CONGRESS

1ST SESSION H. R. 2699

To require the consideration of certain criteria in decisions to relocate

professional sports teams, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 30, 1995

Mr. STOKES introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Commerce, for

a period to be subsequently determined by the Speaker, in each case for

consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To require the consideration of certain criteria in decisions

to relocate professional sports teams, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Fans Rights Act of

5 1995’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) professional sports teams foster a strong

9 local identity with the people of the cities and re-
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1 gions in which they are located, providing a source

2 of civic pride for their supporters;

3 (2) professional sports teams provide employ4 ment opportunities, revenues, and a valuable form of

5 entertainment for the cities and regions in which

6 they are located;

7 (3) there are significant public investments as8 sociated with professional sports facilities;

9 (4) it is in the public interest to encourage pro10 fessional sports leagues to operate under policies

11 that promote stability among their member teams

12 and to promote the equitable resolution of disputes

13 arising from the proposed relocation of professional

14 sports teams; and

15 (5) professional sports teams travel in inter16 state to compete and utilize materials shipped in

17 interstate commerce, and professional sports games

18 are broadcast nationally.

19 SEC. 3. DEFINITIONS.

20 As used in this Act—

21 (1) the term ‘‘home territory’’ means the geo22 graphic area within which a member team operates

23 and plays the majority of its home games, as defined

24 in the governing agreement or agreements of the rel25 evant league on November 1, 1995, or upon the
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1 commencement of operations of any league after

2 such date;

3 (2) the term ‘‘interested party’’ includes—

4 (A) any local government that has provided

5 financial assistance, including tax abatement, to

6 the facilities in which the team plays;

7 (B) a representative of the local govern8 ment for the locality in which a member team’s

9 stadium or arena is located;

10 (C) a member team;

11 (D) the owner or operator of a stadium or

12 arena of a member team; and

13 (E) any other affected party, as designated

14 by the relevant league;

15 (3) the term ‘‘local government’’ means a city,

16 county, parish, town, township, village, or any other

17 general governmental unit established under State

18 law;

19 (4) the terms ‘‘member team’’ and ‘‘team’’

20 mean any team of professional athletes—

21 (A) organized to play major league foot22 ball, basketball, hockey, or baseball; and

23 (B) that is a member of a professional

24 sports league;
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1 (5) the term ‘‘person’’ means any individual,

2 partnership, corporation, or unincorporated associa3 tion, any combination or association thereof, or any

4 political subdivision;

5 (6) the terms ‘‘professional sports league’’ and

6 ‘‘league’’ mean an association that—

7 (A) is composed of 2 or more member

8 teams;

9 (B) regulates the contests and exhibitions

10 of its member teams; and

11 (C) has been engaged in competition in a

12 particular sport for more than 7 years; and

13 (7) the terms ‘‘stadium’’ and ‘‘arena’’ mean the

14 principal physical facility within which a member

15 team plays the majority of its home games.

16 SEC. 4. CLARIFICATION OF ANTITRUST LAWS RELATED TO

17 THE RELOCATION AND RELOCATION DETER18 MINATION CRITERIA.

19 (a) APPLICATION OF ANTITRUST LAWS.—It shall not

20 be unlawful by reason of any provision of the antitrust

21 laws for a professional sports league to enforce rules au22 thorizing the membership of the league to decide that a

23 member club of such league shall not be relocated.

24 (b) CRITERIA FOR RELOCATION DECISIONS.—Not25 withstanding any other law, prior to making a decision
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1 to approve or disapprove the relocation of a member team,

2 a professional sports league shall take into consider3 ation—

4 (1) the extent to which fan loyalty to and sup5 port for the team has been demonstrated during the

6 team’s tenure in the community;

7 (2) the degree to which the team has engaged

8 in good faith negotiations with appropriate persons

9 concerning terms and conditions under which the

10 team would continue to play its games in the com11 munity or elsewhere within its home territory;

12 (3) the degree to which the ownership or man13 agement of the team has contributed to any cir14 cumstances that might demonstrate the need for the

15 relocation;

16 (4) the extent to which the team, directly or in17 directly, received public financial support by means

18 of any publicly financed playing facility, special tax

19 treatment, or any other form of public financial sup20 port;

21 (5) the adequacy of the stadium in which the

22 team played its home games in the previous season,

23 and the willingness of the stadium, arena authority,

24 or local government to remedy any deficiencies in

25 the facility;
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1 (6) whether the team has incurred net operat2 ing losses, exclusive of depreciation and amortiza3 tion, sufficient to threaten the continued financial vi4 ability of the team;

5 (7) whether any other team in the league is lo6 cated in the community in which the team is located;

7 (8) whether the team proposes to relocate to a

8 community in which no other team in the league is

9 located;

10 (9) whether the stadium authority, if public, is

11 opposed to the relocation; and

12 (10) whether there is a bona fide investor offer13 ing fair market value for the member team and

14 seeking to retain the team in the home territory.

15 SEC. 5. NOTICE OF PROPOSED CHANGE IN HOME TERRI16 TORY AND RIGHT OF FIRST REFUSAL.

17 (a) IN GENERAL.—Any person seeking to change the

18 home territory of a member team to a location other than

19 the location of such member team’s home territory shall

20 furnish notice of such proposed change not later than 180

21 days before the commencement of the season in which the

22 member team is to play in such other location.

23 (b) PARTIES ENTITLED TO RECEIVE NOTICE.—The

24 notice required under subsection (a) shall be furnished to

25 all interested parties.
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1 (c) REQUIREMENTS.—The notice shall—

2 (1) be in writing and delivered in person or by

3 certified mail;

4 (2) be made available to the news media;

5 (3) be published in 1 or more newspapers of

6 general circulation within the member team’s home

7 territory; and

8 (4) contain—

9 (A) an identification of the proposed new

10 location of such member team;

11 (B) a summary of the reasons for the

12 change in home territory based on the criteria

13 listed in section 4(b); and

14 (C) the date on which the proposed change

15 would become effective.

16 (d) OPPORTUNITY TO PURCHASE.—

17 (1) IN GENERAL.—During the 180-day notice

18 period under subsection (a), a local government, sta19 dium, arena authority, person, or any combination

20 thereof, may prepare and present a proposal to pur21 chase the member team to retain the team in the

22 home territory.

23 (2) MEMBERSHIP IN LEAGUE.—If a bid under

24 paragraph (1) is successful, the professional sports

25 league of the member team shall not prohibit mem-
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1 bership in the league on the basis that the new own2 ership of the member team is made up of multiple

3 owners or that the new ownership includes 1 or

4 more local governments.

5 (e) OPPORTUNITY TO INDUCE TEAM TO STAY.—Dur6 ing the 180-day notice period under subsection (a), a local

7 government, stadium authority, person, or any combina8 tion thereof, shall be given the opportunity to prepare and

9 present a proposal to induce the member team to remain

10 in its home territory.

11 (f) RESPONSE.—The response of the owner to any

12 offer made under subsection (d) or (e) shall—

13 (1) be in writing and delivered in person or by

14 certified mail; and

15 (2) state in detail the reasons for refusal of any

16 bona fide offer.

17 (g) DETERMINATION BY LEAGUE.—

18 (1) IN GENERAL.—The professional sports

19 league shall make a determination with respect to

20 the location of such member team’s home territory

21 before the expiration of the 180-day notice period re22 quired by this section.

23 (2) HEARINGS.—In making a determination

24 under this subsection, the professional sports league

25 shall conduct a hearing at which interested parties
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1 are afforded an opportunity to present oral or writ2 ten testimony regarding a change in the location of

3 a member team’s home territory. The league shall

4 keep a record of all such proceedings.

5 (3) CONSIDERATION OF PROPOSALS.—The pro6 fessional sports league shall take into account any

7 inducement proposal that has been offered under

8 subsection (e).

9 (h) CONSIDERATIONS.—In determining whether to

10 approve or disapprove the relocation of a member team,

11 a professional sports league shall take into consideration

12 the criteria listed in section 4(b).

13 SEC. 6. JUDICIAL REVIEW.

14 (a) IN GENERAL.—A decision by a professional

15 sports league to approve or disapprove the relocation of

16 a member team may be reviewed in a civil action brought

17 by an interested party.

18 (b) VENUE.—

19 (1) IN GENERAL.—Subject to paragraph (3),

20 venue shall be proper in any district court of the

21 United States having jurisdiction over the action

22 under section 1331 of title 28, United States Code.

23 (2) CHANGE OF VENUE.—Subject to paragraph

24 (3), upon the motion of any party, the district court

25 may, for the convenience of the parties or in the in-
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1 terests of justice, transfer an action brought under

2 this section to any district that has jurisdiction over

3 such action under section 1331 of title 28, United

4 States Code.

5 (3) LIMITATION.—No action may be brought

6 under this section in any United States district

7 court of the State that contains—

8 (A) the member club’s home territory; or

9 (B) the proposed location of such member

10 club.

11 (c) ADDITIONAL PROCEEDINGS.—In any case in

12 which the interested parties have not been afforded an op13 portunity to present oral or written testimony in accord14 ance with section 5(f), the district court may, by order,

15 require the relevant professional sports league to conduct

16 additional proceedings at which such testimony may be

17 presented, and to reconsider its decision to approve or dis18 approve the relocation based on such testimony. Not later

19 than 30 days after the date of any such order, the league

20 shall reconsider and resubmit its decision to the district

21 court, and the district court shall review such decision in

22 accordance with this section.

23 (d) NO WAIVER OF RIGHTS.—Nothing in this Act

24 shall be construed to require the waiver of any legal rights

25 in existence prior to the date of enactment of this Act.
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1 SEC. 7. INAPPLICABILITY TO CERTAIN MATTERS.

2 (a) IN GENERAL.—Nothing contained in this Act

3 shall—

4 (1) alter, determine, or otherwise affect the ap5 plicability or inapplicability of the antitrust laws, the

6 labor laws, or any other provision of law relating to

7 the wages, hours, or other terms and conditions of

8 employment of players in any professional sports

9 league, to any employment matter regarding players

10 in any such league, or to any collective bargaining

11 rights and privilege of any player union in any such

12 league;

13 (2) alter or affect the applicability or inapplica14 bility of the antitrust laws or any applicable Federal

15 or State law relating to broadcasting or telecasting,

16 including section 1291 of title 15, United States

17 Code, any agreement between any professional

18 sports league or its member teams, and any person

19 not affiliated with such a league for the broadcasting

20 or telecasting of the games of such league or its

21 member teams on any form of television;

22 (3) affect any contract, or provision of a con23 tract, relating to the use of a stadium or arena be24 tween a member team and the owner or operator of

25 any stadium or arena or any other person;
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1 (4) exempt from the antitrust laws any agree2 ment to fix the prices of admission to sports con3 tests;

4 (5) exempt from the antitrust laws any preda5 tory practice or other conduct with respect to com6 peting sports leagues that would otherwise be unlaw7 ful under the antitrust laws; or

8 (6) except as provided in this Act, alter, deter9 mine, or otherwise affect the applicability or inappli10 cability of the antitrust laws to any act, contract,

11 agreement, rule, course of conduct, or other activity

12 by, between, or among persons engaging in, conduct13 ing, or participating in professional football, basket14 ball, hockey, or baseball.

15 (b) DEFINITION.—As used in this section, the term

16 ‘‘antitrust laws’’ shall have the meaning given to such

17 term in the first section of the Clayton Act (15 U.S.C.

18 12) and in the Federal Trade Commission Act (15 U.S.C.

19 41 et seq.).

20 SEC. 8. ATTEMPTS TO INFLUENCE RELOCATION DECI21 SIONS.

22 It shall be unlawful for any person, including a mem23 ber team, owner, or affiliated party, or any State or politi24 cal subdivision, to make or offer to make a payment of

25 money or to provide or arrange with others for the provi-
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1 sion of other value to a league or to any of its members

2 in connection with a decision regarding the relocation of

3 a member team.

4 SEC. 9. EFFECTIVE DATE.

5 This Act shall apply to any relocation of the home

6 territory of a member team that occurs on or after Octo7 ber 1, 1995.

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