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891 2,2_ PROFESSIONAL FOOTBALL

GOVERNIVIEN LEAGUE MERGER t°

Storage

HEARINGS

BEFORE

ANTITRUST SUBCOMMITTEE

(Subcommittee No. 5)

OF THE

COMMITTEE ON THE JUDICIARY

HOUSE OF REPRESENTATIVES

ru

ru EIGHTY-NINTH CONGRESS U-)

nj SECOND SESSION

-0 ON

0

0 -.:',71TrI,A S. 3817

r-R TO AUTHORIZE THE MERGER OF TWO OR MORE PROFES-

'SIONAL FOOTBALL LEAGUES, AND TO PROTECT FOOTBALL

CONTEST BETWEEN SECONDARY SCHOOLS FROM PROFESSIONAL FOOTBALL TELECASTS

AND SIMILAR BILLS

,H.R. 17661, H.R. 17675, H.R. 17679, H.R. 17698, H.R. 17765, H.R. 17791,

H.R. 17806, H.R. 17929, H.R. 17977, H.R. 18038, H.R. 18039, H.R. 18040,

H.R. 18047, HR. 18060, H.R. 18120, H.R. 18121, H.R. 18123, H.R. 18124,

H.R. 18131, H.R. 18145, H.R. 18177, H.R. 18198, H.R. 18226, H.R. 18258,

AND H.R. 18424

OCTOBER 6, 11, AND 13, 1966

Serial No. 22

Printed for the use of the Committee on the Judiciary

GOVERNMENT PRINTING OFFICE

70-605 WASHINGTON: 1966
V

*qr. r

. • •

COMMITTEE ON THE JUDICIARY

EMANUEL CELLER, New York, Chairman

MICHAEL A. FEIGHAN, Ohio

FRANK CHELF, Kentucky

EDWIN E. WILLIS, Louisiana

PETER W. RODINO, JR., New Jersey

BYRON G. ROGERS, Colorado

HAROLD D. DONOHUE, Massachusetts

JACK B. BROOKS, Texas

WILLIAM M. TUCK, Virginia

ROBERT T. ASHMORE, South Carolina

JOHN DOWDY, Texas

BASIL L. WHITENER, North Carolina

HERMAN TOLL, Pennsylvania

ROBERT W. KASTENMEIER, Wisconsin

JACOB H. GILBERT, New York

JAMES C. CORMAN, California

WILLIAM L. ST. ONGE, Connecticut

GEORGE F. SENNER, JR., Arizona

DON EDWARDS, California

WILLIAM L. HUNGATE, Missouri

HERBERT TENZER, New York

JOHN CONYERS, JR., Michigan

GEORGE W. GRIDER, Tennessee

ANDREW JACOBS, JR., Indiana

BESS E. DICK, Staff Director

WILLIAM R. FOLEY, General Counsel

GARNER J. CLINE, Counsel

HERBERT FUCHS, Counsel

WILLIAM P. SHATTUCK, Counsel

BENJAMIN L. ZELENKO, Counsel

CHARLES J. ZINN, Law Revision Counsel

DONALD G. BENN, Associate COUn8a

MARTIN R. HOFFMANN, Associate Counsel

JOHN W. DEAN III, Associate Counsel

WILLIAM M. McCULLOCH, Ohio

RICHARD H. POFF, Virginia

WILLIAM C. CRAMER, Florida

ARCH A. MOORE, JR., West Virginia

WILLIAM T. CAHILL, New Jersey

CLARK MAcGREGOR, Minnesota

CHARLES McC. MATHIAS, JR., Maryland.

CARLETON J. KING, New York

EDWARD HUTCHINSON, Michigan

ROBERT McCLORY, Illinois

HENRY P. SMITH III, New York

SuBoommnika, No. 5

EMANUEL CELLER, New York, Chairman.

PETER W. RODINO, JR., New Jersey

BYRON G. ROGERS, Colorado

HAROLD D. DONOHUE, Massachusetts

JACK B. BROOKS, Texas

ROBERT W. KASTENMEIER, Wisconsin

JAMES C. CORMAN, California

KENNETH R. HARKINS, Chief Counsel

LHONARD APPEL, Associate Counsel

R. FREDERICK JETT, Associate Counsel

MARTIN R. HOFFMANN, Associate Counsel

II

WILLIAM M. McCULLOCH, Ohio

WILLIAM C. CRAMER, Florida

CHARLES MCC. MATHIAS, JR., Maryland

CLARK MAcGREGOlt, Minnesota

.›C* r):•,)
CONTENTS

Text of bills— Page

S. 3817 3

Senate Report 1654 4

H.R. 17661 (Mr. Cramer) 7

H.R. 17675 (Mr. Gerald R. Ford) 7

H.R. 17679 (Mr. Laird) 8

H.R. 17698 (Mr. Minshall) 9

H.R. 17765 (Mr. Mathias) 9

H.R. 17791 (Mr. Boggs) 10

H.R. 17806 (Mr. Poff) 11

H.R. 17929 (Mr. Leggett) 12

H.R. 17977 (Mr. MacGregor) 12

H.R. 18038 (Mr. Rodino) 13

H.R. 18039 (Mr. Rogers of Colorado) 14

H.R. 18040 (Mr. Corman) 15

H.R. 18047 (Mr. O'Neill of Massachusetts) 15

H.R. 18060 (Mr. Morris) 16

H.R. 18120 (Mr. Dowdy) 17

H.R. 18121 (Mr. Duncan of Tennessee) 18

H.R. 18123 (Mr. King of New York) 18

H.R. 18124 (Mr. Dingell) 19

H.R. 18131 (Mr. Willis) 20

H.R. 18145 (Mr. Dole) 21

H.R. 18177 (Mr. Gilbert) 21

H.R. 18198 (Mr. St. Onge) 22

H.R. 18226 (Mr. McClory) 23

H.R. 18258 (Mr. Moore) 24

H.R. 18424 (Mr. Conyers) 24

Statement of—

Boggs, Hon. Hale, a Representative in Congress from the State of

Louisiana 101

Cramer, Hon. William C., a Representative in Congress from the

State of Florida 28

Kastenmeier, Hon. Robert W., a Representative in Congress from the

State of Wisconsin 27

MacGregor, Hon. Clark, a Representative in Congress from the State

of Minnesota 29

Rodino, Hon. Peter W., Jr., a Representative in Congress from the

State of New Jersey 25

Rogers, Hon. Byron G., a Representative in Congress from the State

of Colorado 26

Rozelle, Pete, commissioner, National Football League; accompanied

by Lamar Hunt, president, Kansas City Chiefs, American Football

League; Texas Schramm, president, Dallas Cowboys, National Football League; and Hamilton Carothers, counsel 31, 110

Additional information—

National Football League:

Prepared statement of Commissioner Rozelle 36

Comments from news media re NFL—AFL merger 38-42

Rozelle, Pete, commissioner, NFL, letter, July 1, 1966, to Mr.

K. S. Adams, Jr., Houston Oilers Football Club, Houston,

Tex 48

Recapitulation of Basic Terms Agreed to by the Member Clubs

of the National Football League and the American Football

League 80

III
1V CONTENTS

Additional information—Continued

National Football League—Continued

Recapitulation of Terms Agreed to by the Member Clubs of the

National Football League and the American Football League

Having Particular Relation to Two-Team Operations in New Page

York City and the San Francisco-Oakland Area.. 82

Additional Understandings Between Particular Member Clubs 83

Carothers, Hamilton, Covington & Burling, letter, October 4,

1966, to Robert K. Johnson, Antitrust Division, Department

of Justice 84

Joint Committee Agenda, July 20-21, 1966 84

Joint Committee Meeting Minutes, the Plaza Hotel, New York

City, July 20, 1966 84

Joint Committee Meeting Minutes, the Plaza Hotel, New York

City, July 21, 1966 85

Comparison of NFL-AFL Constitutions and Bylaws 86

National Football League Minutes of Annual Meeting (Recessed

Session), the Plaza Hotel, New York City, June 30, 1966_____ 92

Leahy, M. E., general counsel, memorandum to member clubs

of the National Football League, re NFL-Atlanta transaction,

August 12, 1966 96

Woodward, Milt, president, American Football League, letter,

August 19, 1966, to Mr. Pete Rozelle, commissioner, National

Football League 96

Woodward, Milt, memorandum to Daniel L. Martin, re amendments of the AFL bylaws since the last printing in February

1964 97

List of American Football League owners 99

Rozelle, Pete, commissioner, NFL, memorandum to club presidents and general managers, re appointment of committee,

July 8, 1966 99

Rozelle, Pete, commissioner, NFL, letter, August 25, 1966, to

Hon. Emanuel Celler_ 111

Proposed amendments to AFL-NFL merger bill 112-121

CBS Television network contract with NFL, January 24, 1964__ 131

Lanchner, Bertrand M., CBS Television Network, letter as of

May 22, 1964, to National Football League 180

Lanchner, Bertrand M., CBS Television Network, letter, January

28, 1966, to Marshall Leahy, enclosing copies of the revised

NFL contract covering the years 1966, 1967, and 1968 183

Lindemann, Carl, Jr., National Broadcasting Co., letter, January

15, 1965, to Joe Foss, commissioner, American Football

League, enclosing contract for television and radio rights to all

AFL football games for the 1965-69 seasons 243

Other proposed amendments to AFL-NFL merger bill:

Carothers proposed amendment 123

Subcommittee counsel proposed amendment 123

Rodino, Hon. Peter W., Jr., proposed amendment 260

Prepared statements:

Boggs, Hon. Hale, a Representative in Congress from the State

of Louisiana 102

Dingell, Hon. John D., a Representative in Congress from the

State of Michigan 106

Dole, Hon. Robert, a Representative in Congress from the State

of Kansas 108

Leggett, Hon. Robert L., a Representative in Congress from the

State of California 108

Mc Gee, Hon. Gale, a U.S. Senator from the State of Wyoming 108

Minshall, Hon. William E., a Representative in Congress from

the State of Ohio 106

Morris, Hon. Thomas G., a Representative in Congress from the

State of New Mexico 107

Sports Illustrated article, June 20, 1966 55

Stanton, Roger, publisher, the Football News, letter, October 4, 1966,

to Hon. Emanuel Celler 100
PROFESSIONAL FOOTBALL LEAGUE MERGER

THURSDAY, OCTOBER 6, 1966

HOUSE OF REPRESENTATIVES,

SUBCOMMIIvrEE No. 5 OF THE

COMMIIThE ON THE JUDICIARY,

Washington,D.C.

The subcommittee met at 10:50 a.m., pursuant to call, in room 2141,

Rayburn House Office Building, Hon. Emanuel Celler (chairman of

the committee) presiding.

Present: Representatives Celler, Rodino, Rogers Donohue, Brooks,

Kastenmeier, Conyers, McCulloch, Cramer, and MacGregor.

Also present: Kenneth R. Harkins, chief counsel, Antitrust Subcommittee: Martin Hoffmann, associate counsel.

The CHAIRMAN. The committee will be in order.

Is Mr. Rozelle present?

Mr. LOVRE. Mr. Chairman, my name is Harold Lovre, a former

member of this body and now attorney for the American Football

League. Mr. Rozelle and his attorney, Hamilton Carothers, are on

their way now and should be here any time.

Mr. ROGERS. Mr. Chairman, why can we not proceed with your

statement? Mr. Rodin° has one, and others have statements; then

we can proceed with Mr. Rozelle.

The CHAIRMAN. The Chair will read a statement the members who

have statements may make them and then we will adjourn.

Today we commence hearings on S. 3817, a bill to authorize the

merger of two or more professional football leagues and to protect

football contests between secondary schools from professional football

telecasts. This bill passed the Senate on September 26, 1966.

In addition, the hearings will consider 25 similar bills that have

been introduced in the House. In summary, these bills have two

objectives—they would amend the provisions of a law passed in 1961

providing antitrust exemptions for the telecasting of professional

sports contests: First, the bills would exempt from the antitrust laws

a joint agreement by the member clubs of the professional football

leagues to combine operations in an expanding single league; and second, the bills would withhold any antitrust exemption to any joint

agreement among professional football clubs or leagues which would

permit the telecast of professional football games on a Friday after

6 p.m. or on any Saturday from the second Friday in September

through the second Saturday in December, in communities where high

school football teams were playing on Friday night or college football

teams were playing on Saturday. Basically, this second provision

extends present professional football telecast blackout rules so as to

protect high school football contests on Friday night.

1
2 PROFESSIONAL FOOTBALL LEAGUE MERGER

The Antitrust Subcommittee intends to explore thoroughly the extent of the antitrust immunity requested, and the results that would

flow from any such grant of immunity. For many years, the Antitrust Subcommittee has been concerned with the functioning of U.S.

business.under the policies established in our antitrust legislation.

Exemption from our antitrust policies is something that is given only

with the greatest reluctance and only upon a showing of an overriding

need therefor, and that it would be in the public interest.

There has been virtual unanimity among all commentators as to the

positive values afforded to the United States by the antitrust laws.

The Attorney General's National Committee to Study and Antitrust

Laws, which published its report in 1955, stated:

Antitrust is a distinctive American means for assuring the competitive economy

on which our political and social freedom under representative government in

part depend * * *. They reinforce our ideal of careers open to superior skills

and talent, a crucial index of a free society.

The antitrust laws have been a valuable protection to individuals

possessing the superior skills and talents that are required to participate in professional football exhibitions.

The policies embodied in the antitrust laws generally have been considered to be of such great importance in the American business world

that exemptions have been granted only after the most thoroughgoing

examination. And when the Congress has seen fit to exempt industries from the antitrust laws, the normal procedure is for Congress to

erect a mechanism or procedure which would serve to perform the same

functions that competition under the antitrust laws is expected to perform. For this reason, when industries have been granted an antitrust

exemption, the Congress has invariably established governmental

boards or agencies to insure that the interests of the participants and

the general public are protected. Without antitrust exemptions, the

impersonal forces of competition would be relied upon to provide such

protections.

The Antitrust Subcommittee, if an antitrust exemption is to be

granted, must consider carefully what is to take the place of the antitrust laws as a safeguard to the interests of the general public as well

as the participants in professional football. Should a governmental

regulatory body be established? Is the office of the commissioner of

professional football adequate to protect the interests of the players

and the general public if an antitrust exemption is granted?

These hearings are complicated by the present legal posture of

organized professional team sports. In 1922, the Supreme Court

ruled that the antitrust laws do not apply to the business of organized

professional baseball. Much water has gone over the dam since 1922.

Many changes have been wrought in the concept of interstate commerce. With respect to organized professional football, however, as

well as the business of professional boxing, hockey, and basketball,

the Supreme Court has ruled that the provisions of the antitrust laws

are fully applicable. In its opinions, the Supreme Court has recognized that its rulings, as they affect football and baseball may be

"unrealistic, inconsistent or illogical." It concluded, however, that

the orderly way for errors or discriminatory treatment between football and baseball to be eliminated is through the legislative process.

In the Radovitch, case, the Supreme Court said:
PROFESSIONAL FOOTBALL LEAGUE MERGER 3

We, therefore, conclude that the orderly way to eliminate error or discrimination, if any there be, is by legislation and not by court decision. Congressional processes are more accommodative, affording the whole industry hearings

and an opportunity to assist in the formulation of new legislation. The resulting product is therefore more likely to protect the industry and the public alike.

'The whole scope of congressional action would be known long in advance and

effective dates for the legislation could be set in the future without the injustices

of retroactivity and surprise which might follow court action. Of course, the

doctrine of Toolson and Federal Baseball must yield to any congressional action

and continues only at its sufferance.

Notwithstanding these statements by the Court, I have always been

of the view that, should another baseball case reach the Supreme Court,

the Supreme Court would withdraw the antitrust exemption previously granted and treat baseball in the same fashion as it has treated

the other organized professional team sports businesses. At the

present time the baseball exemption is again before the Supreme Court.

The State of Wisconsin is appealing the decision that involves the

move of the Braves from Milwaukee to Atlanta. These hearings,

of course, since they apply only to the business of professional football,

are not intended to affect in any manner the Court's decision in the

baseball case.

Finally, I will note that in 1957, soon after the initial decision in

the 1?adovitch case, professional football requested an exemption from

the antitrust laws. In those hearings, representatives of professional

football stated that continued subjection to the antitrust laws threatened the existence of the professional football exhibition business.

Since that time, however, professional football, even though subject

to the antitrust laws, has made prodigious strides in its development.

Football is now one of the most important spectator sports in the

United States. The Antitrust Subcommittee must be very careful

that this outstanding growth in professional football is not arrested

by precipitous legislation.

At this point in the record, I insert copies of the bills that are the

subject of this hearing.

(The bills, and S. Rept. 1654, follow:)

[ S. 3817, 89th Cong., 2d sess.]

AN ACT To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate 4nd House of Representatives of the United States

,of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291) , is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in 'section 1 of the Act of October 15, 1914,

.as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply :

"('a) to any joint agreement by or among persons engaging in or conducting 'the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional football,

baseball, backetball, or hockey contests 'sells or otherwise transfers all or

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.

"(:b) 'to a joint agreement by which the member clubs of two or more

professional football leagues combine their 'operations in an expanded single

league, if such 'agreement increases rather than decreases the number of professional football clubs 'so operating, and the provisions of which are directly relevant thereto."
4 PROFESSIONAL FOOTBALL LEAGUE MERGER

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEe. 3. Section 1 (a ) of this Act shall not apply to any joint agreement described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday

in September and ending on the 'Second Saturday in December in any year from

any telecasting station located within seventy-five miles of the games site of any

intercollegiate or interscholaStic football contest scheduled to be played on such

a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion a

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

Passed the Senate September 26, 1966.

Attest:

EMERY L. FRAZIER,

Secretary.

[ S. Rept. 1654, Calendar No. 1621, 89th Cong., 2d sm.]

The Committee on the Judiciary, to which was referred the bill ( S. 3817) to,

authorize the merger of two or more professional football leagues, and to protect

football contests between secondary schools from professional football telecasts,

having considered the same, reports favorably thereon with amendments and

recommends that the bill as amended do pass.

AMENDMENTS

Amendment No. 1: On page 1, line 5, strike out all after the word "by" and

insert in lieu thereof "amending the first section thereof to read as follows :"

Amendment No. 2 : On page 1, strike out lines 6 and 7.

Amendment No. 3: On page 1, line 8, insert quotation marks before the word

"That".

Amendment No. 4: On page 2, line 13, strike the word "any" and insert in lieu

thereof the word "a".

Amendment No. 5: On page 2, line 15, strike the word "where" and insert in

lieu thereof the word "if".

Amendment No. 6: On page 2, line 17, after the word "operating" strike out

the period and insert the following: ", and the provisions of which are directly

relevant thereto."

Amendment No. 7: On page 2, line 19, after "1", strike out "in line 2 of" and

insert in lieu thereof the words "where such words appear the second time in".

Amendment No. 8: On page 2, line 20, after the word "by" strike out the words

"inserting a new section 3" and insert in lieu thereof the words "amending section 3 to read".

Amendment No. 9: On page 2, line 21, strike the quotation mark and insert

"SEC. 3."

Amendment No. 10: On page 3, line 18, strike the word "daily".

Amendment No. 11: On page 3, line 19, strike the word "March" and insert

in lieu thereof the word "August".

PURPOSE OF AMENDMENTS

The purpose of the first three amendments is to make technical corrections in

the bill.

The purpose of amendments 4, 5 and 6 is to limit the exemption from the antitrust laws to those provisions of a joint agreement by which two or more pro-
PROFESSIONAL FOOTBALL LEAGUE MERGER 5

fessional football leagues combine their operations into a single league which

are directly relevant to the accomplishment of such combination.

The purpose of amendments 10 and 11 is to give the high schools a more reasonable time period in which to schedule their football games and to require only

that such schedule be published in a newspaper of general circulation, either a

daily or weekly.

PURPOSE

The purpose of the proposed legislation as amended is to exempt from the

antitrust laws the merger of two or more professional football leagues in a single

combined league and to provide protection to interscholastic football contests

from the telecasting of professional football games at those times traditionally

used for the playing of such interscholastic contests.

STATEMENT

The proposed legislation is necessary to permit the planned merger of the

American Football League and the National Football League into a single professional football league. The proposed legislation would permit the two leagues

to combine their operations without fear that the antitrust laws would apply

to that act.

An essential element in this planned merger seeking congressional sanction

and upon which it is conditioned, is that the merger results in increasing, rather

than decreasing, the number of professional football clubs, operating in the

United States.

The committee is advised that the plan for an expanded league assures that all

24 of the existing professional football teams will continue to operate in their

present locations. The committee was further advised absent the merger, there

was danger that some of the less favorably situated franchises in both existing

leagues faced dissolution or transfers to other cities.

One of the results of the merger will be the bringing of professional football

teams to new cities. In addition to the two new teams added this year—Miami

and Atlanta—the merger calls for two additional franchises by 1968 and two more

franchises later.

The agreement provides for a world championship game in January 1967 between the leaders of the two existing leagues. In addition, it is provided that

there will be preseason contests beginning in 1967 between teams in the two

leagues and regular season interleague play beginning in 1970. The merger will

improve player strength and financial resources of weaker teams in both

leagues.

The committee discussed the effect of the proposed merger on the football

players and agreed that the proposed legislation did not in any way diminish their

existing rights. The committee was advised that while bonuses to college players will be reduced, such action will make possible relatively higher salaries

for players generally, based on proven ability in professional football, will eliminate inequities which were said to be demoralizing established players, and

will substantially increase player salary minimums. The retention of all existing teams and the addition of new franchises will increase the overall employment opportunities for professional football players and coaches.

The committee realizes the concern of professional football at this time for

congressional action. An organzied professional sports league is entitled to have

reservations about proceeding with such measures in the absence of clarifying

legislation. Possible injunctive actions or potential treble damage liability,

accumulating with each step taken, may make the entire plan impracticable.

The proposed bill would not extend to the combined league any greater antitrust immunity than that now existing for the existing professional football

leagues. The proposed legislation does not seek to resolve any of the antitrust

problems of professional football or the other professional team sports.

It is the intent of the committee that the new league will commence operations

with no greater antitrust immunity than the existing individual league now

enjoy. The sole effect of this legislation is to permit the combination of the two

leagues to go forward without fear of antitrust challenge based upon a joint

agreement between the member clubs of two leagues to combine in a single league

and to conduct their affairs as members of a single league.

The proposed legislation also extends to high schools the same protection from

the telecasting of professional football games that has already been accorded

to the colleges. That protection prohibits the telecasting of a professional foot-
6 PROFESSIONAL FOOTBALL LEAGUE MERGER

ball game from a telecasting station located within 75 miles of the game site of

a college or high school game. The protection extends from 6 o'clock p.m. on the

second Friday in September until the second Saturday in December.

In the committee discussion it was pointed out that the existing law does not

prohibit the telecasting of a game by a individual football club independently of

the league. The high schools and colleges have expressed concern that this practice by an individual club might increase in the future to the detriment of attendance of high school and college games on Friday nights and Saturdays.

The committee was informed that during the last 11 years there have been

only five telecasts of a league game on a Friday night These five games were not

nationally telecast, but to an individual city.

The committee views the practice of telecasting professional football games

at those times traditionally used for the playing of high school and college games

as a serious threat to the scholastic athletic programs. The committee intends

to maintain a close scrutiny on this practice with a view of determining at a

later date whether further legislation is necessary to circumscribe such a practice.

The committee is of the opinion that the merger of the two football leagues

and the protection given high school football contests would be of benefit to the

public and organized professional football, and recommends that S. 3817, as

amended, be considered favorably.

CHANGES IN EXISTING LAW

In compliance with subsection (4) of rule XXIX of the Standing Rules of the

Senate, 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 italic, existing law in which no change is proposed is shown

in roman) :

ACT OF SEPTEMBER 30, 1961-75 STAT. 732

That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended'

(38 Stat. 717), shall not apply:

(a) to any joint agreement by or among persons engaging in or conducting the

organized professional team sports of football, baseball, basketball, or hockey,

by which any league of clubs participating in professional football, baseball, basketball, or hockey contests sells or otherwise transfers all or any part of the rights

of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case may be, engaged in or conducted by such clubs.

(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single league, if

if such agreement increases rather than decreases the number of professional"

football clubs 80 operating, and the provisions of which are directly relevant

thereto.

SEC. 2. Section 1 of this Act shall not apply to any joint agreement described

in section 1(a) of this Act which prohibits any person to whom such rights

are sold or transferred from televising any games within any area, except within

the home territory of a member club of the league on a day when such club is.

playing a game at home.

SEC. 3. Section 1(a) of this Act shall not apply to any joint agreement described

in section 1 of this Act which permits the telecasting of all or a substantial part

of any professional football game on any Friday after 6 o'clock postmeridian or

on any Saturday during the period beginning on the second Friday in September.

and ending on the second Saturday in December in any year from any telecasting

station located within seventy-five miles of the game site of any intercollegiate

or interscholastic football contest scheduled to be played on such a date if—

(1) such intercollegiate football contest is between institutions of higherlearning both of which confer degrees upon students following completion of

sufficient credit hours to equal a four-year course, [and] or

(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified underthe laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, orthe equivalent, and

((2)] (3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a (daily] newspaper of general circulation prior to (March] August 1 of such year as being regularlyscheduled for such day and place.
PROFESSIONAL FOOTBALL LEAGUE MERGER 7

[H.R. 17061, 89th Con,g., 2d sees.]

(MR. CRAMER)

A BILL To amend the Act of September 30, 1961 (75 Stat. 732)

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section 1

of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal Trade

Commission Act, as amended (38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional football, baseball, basketball, or hockey contests sells or otherwise transfers all

or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockety, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number of

professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in

section 1 ( a ) of this Act which permits the telecasting of all or a substantial part

of any professional football game on any Friday after 6 o'clock post meridian or

on any Saturday during the period beginning on the second Friday in September

and ending on the second Saturday in December in any year from any telecasting

station located within seventy-five miles of the game site of any intercollegiate

or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a daily newspaper of general circulation prior to March 1 of such year as being regularly scheduled

for such day and place."

[H.R. 17075, 89th Cong., 2d sees.]

(MR. GERALD R. FORD)

A BILL To amend the Act of September 30, 161 (75. Stat. 732)

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled, That the antitrust laws as defined in

section 1 of the Act of October 15, 1914, as amended (38 Stat. 730), or in the

Federal Trade Commission Act, as amended (38 Stat. 717), shall not apply:

" (a ) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional football, baseball, basketball, or hockey contests sells or otherwise transfers all

or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.
8 PROFESSIONAL FOOTBALL LEAGUE MERGER

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number

of professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in section 1(a) of this Act which permits the telecasting of all or a substantial part of

any professional football game on any Friday after 6 o'clock postmeridian or on

any Saturday during the period beginning on the second Friday in September

and ending on the second Saturday in December in any year from any telecasting station located within seventy-five miles of the game site of any intercollegiate

or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion of

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place."

[H.R. 17679, 89th Cong., 2d Bess.]

(MR. LAIRD)

A BILL To amend the Act of September 30, 1961 (75 Stat. 732), relating to professional

athletics

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled, That the antitrust laws, as defined in

section 1 of the Act of October 15, 1914, as amended (38 Stat. 730), or in the

Federal Trade Commission Act, as amended (38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number

of professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in section 1(a) of this Act which permits the telecasting of all or a substantial part

of any professional football game on any Friday after 6 o'clock postmeridian

or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any year from any telecasting station located within seventy-five miles of the game site of any intercollegiate or interscholastic football contest scheduled to be played on such a

date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses
PROFESSIONAL FOOTBALL LEAGUE MERGER 9

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a daily newspaper of general circulation prior to March 1 of such year as being regularly scheduled

for such day and place."

[H.R. 171608, 89th Cong., 2d gess.]

(MR. MINSHALL)

A BILL To amend the Act of September 30, 1961 (75 Stat. 732)

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section

1 of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal

Trade Commission Act, as amended (38 Stat. 717), shall not apply:

"(a) •to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number of

professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall apply not only to any joint agreement described in section 1(a) of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock post meridian or on any Saturday during the period beginning on the second Friday

in September and ending on the second Saturday in December in any year from

any telecasting station located within seventy-five miles of the game site of any

intercollegiate or Interscholastic football contest scheduled to be played on such

a date if—

"(1) such intercollegiate football contest is between institutions of higher learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place."

[H.R. 17765, 89th Cong., 2d sees.]

(MR. MATFIIAS)

A BILL To amend the Act of September 30, 1961 (75 Stat. 732)

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of September 30, 1961 (75 Stat. 732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the antitrust laws, as defined in section 1 of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended (38 Stat. 717), shall not apply:
10 PROFESSIONAL FOOTBALL LEAGUE MERGER

" (a ) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number

of professional football clubs so operating."

(2) by insrting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in

section 1(a) of this Act which permits the telecasting of all or a substantial part

of any professional football game on any Friday after 6 o'clock postmeridian or

on any Saturday during the period beginning on the second Friday in September

and ending on the second Saturday in December in any year from any telecasting

station located within seventy-five miles of the game site of any intercollegiate

,or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion of

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place."

[H.R. 17791, 89th Cong., 2d Bess.]

(MR. BOGGS)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291) , is amended—

(1) by inserting a new section 1 as follows:

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section 1

of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal Trade

Commission Act, as amended (38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number

of professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1(a) of this Act shall not apply to any joint agreement described in

section 1 of this Act which permits the telecasting of all or a substantial part of

any professional football game on any Friday after 6 o'clock postmeridian or
PROFESSIONAL FOOTBALL LEAGUE MERGER 11

on any Saturday during the period beginning on the second Friday in September

and ending on the second Saturday in December in any year from any telecasting station located within seventy-five miles of the game site of any intercollegiate

•or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion of

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for such

day and place."

[H.R. 17806, 89th Cong., 2d sess.]

(MR. POFF)

A BILL To amend the Act of September 30, 1961 (,75 Stat. 732)

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United States

,of America in Congress assembled, That the antitrust laws, as defined in section 1

of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal Trade

Commission Act, as amended (38 Stat. 717 ) , shall not apply:

" ( a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather decreases the number of professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in section 1(a) of this Act which permits the telecasting of all or a substantial part of

any professional football game on any Friday after 6 o'clock postmeridian or on

any Saturday during the period beginning on the second Friday in September

and ending on the second Saturday in December in any year from any telecasting

station located within seventy-five miles of the game site of any intercollegiate

or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon 'students following completion of

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place."
12 PROFESSIONAL FOOTBALL LEAGUE MERGER

[H.R. 17929, 89th Cong., 2d ‘sess.]

(MR. LEGGETT)

A BILL To amend the Act of September 30, 1961 (.75 Stat. 732)

Be it enacted by the Senate and House of Represertatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section 1

of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal Trade

Commission Act, as amended (38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any join agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number of

professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in

section 1(a) of this Act which permits the telecasting of all or a substantial part

of any professional football game on any Friday after 6 o'clock post-meridian or

on any Saturday during the period beginning on the second Friday in September

and ending on the second Saturday in December in any year from any telecasting

station located within seventy-five miles of the game site of any intercollegiate

or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion of

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football conteSt, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place."

[H.R. 179717, 89th Cong., 2d sem]

(MR. MACGREGOR)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291) , is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

" (a ) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.
PROFESSIONAL FOOTBALL LEAGUE MERGER 13

"(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement

described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second

Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the gamesite of any intercollegiate or interscholastic football contest scheduled to beplayed on such date if—

"(1) such intercollegiate football contest is between institutions of higherlearning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified underthe laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum,

or the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

[H.R. 18038, 89th Cong., 2d sess.]

( MR. RODINO)

A BILL To authorize the merger of two or more professional football leagues, and toprotect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914, asamended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basket--

ball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the.

case may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which aredirectly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words.

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday

in September and ending on the second Saturday in December in any year from

any telecasting station located within seventy-five miles of the game site of anyintercollegiate or interscholastic football contest scheduled to be played on such_

a date if70-005-06--2
14 PROFESSIONAL FOOTBALL LEAGUE MERGER

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion of

sufficient credit hours to equal 'a four-year course, or

(2) in the ease of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the 'twelfth grade of the Standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

[H.R. 18039, 89th Cong., 2d sem.]

(MR. ROGERS OF COLORADO)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Sena,te and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291 ) , is amended—

(1) by amending the first section thereof Ito read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the 'organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" 'after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEC. 3. Section 1(a) of this Act shall not apply to any joint agreement de- scribed in section 1 of this Act which permits the telecasting of all or a sub- stantial part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the game site of any intercollegiate or interscholastic football contest scheduled to be played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game site were announced through publication in a newspaper of general circula- tion prior to August 1 of such year as being regularly scheduled for such day and place."
PROFESSIONAL FOOTBALL LEAGUE MERGER 15

[H.R. 18040, 89th Cong., 2d sess.]

(MR. CORMAN)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Represntatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914, as

amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey. by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of professional football clubs so operating, and the provisions of which are directly

relevant thereto."

(2) by inserting "(a)" after the words, "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"Sac. 3. Section 1(a) of this Act shall not apply to any joint agreement described in section 1 of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday

in September and ending on the second Saturday in December in any year from

any telecasting station located within seventy-five miles of the game site of

any intercollegiate or interscholastic football contest scheduled to be played on

such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

[H.R. 18047, S9th Cong., 2d sees.]

(MR. O'NEILL OF MASSACHUSETTS)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the Umited States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291) , is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or
16 PROFESSIONAL FOOTBALL LEAGUE MERGER

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the casemay be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of professional football clubs so operating, and the provisions of which are directly

relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement

described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second

Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the game

site of any intercollegiate or interscholastic football contest scheduled to be

played on such date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

[H.R. 18060, 89th Cong., 2d sess.]

(MR. MORRIS)

A BILL To authorize the merger of two or more professional football leagues, and to protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717) shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting

the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement de- scribed in section 1 of this Act which permits the telecasting of all or a sub- stantial part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second
PROFESSIONAL FOOTBALL LEAGUE MERGER 17

Friday in September and ending on the second Saturday in December in any year

from any telecasting station located within seventy-five miles of the game site

of any intercollegiate or interscholastic football contest scheduled to be played on

such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum,

or the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such day

and place."

[H.R. 18120, 89th Cong., 2d Bess.]

(MR. DOWDY)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate amd House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

.as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

.(38 Stat. 717) , shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or any

part of the rights of such league's member clubs in the sponsored telecasting

of the games of football, baseball, basketball, or hockey, as the case may be,

engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second

Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the game

site of any intercollegiate or interscholastic football contest scheduled to he

played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion of

sufficient credit hours to equal a ;four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are 'accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum,

or the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

clay and place."
18 PROFESSIONAL FOOTBALL LEAGUE MERGER

[H.R. 18121, 89th Cong., 2d sess.]

(MR. DUNCAN OF TENNESSEE)

A BILL To amend the Act of September 30, 1961 (75 Stat. 732)

Be it Onacted by the Senate and House of Representatives of the United

States of America in Congress assembled, That the Act of September 30, 1961

(75 Stat. 732), is amended—

( 1 ) by inserting a new section 1 as follows:

"Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section 1

of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal.

Trade Commission Act, as amended (38 Stat. 717), shall not apply:

"(a) to any joint 'agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, 'basketball, or hockey contests sells or otherwise transfers

all or part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number

of professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2;

(3) by inserting a new section 3 as follows:

"Section 1 of this Act shall not apply to any joint agreement described in

section 1(a) of this Act which permits the telecasting of all or a substantial

part of any professional footbal game on any Friday after 6 o'clock postmeridian

or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any year from any telecasting station located within seventy-five miles of the game site of any

intercollegiate or interscholastic football contest scheduled to be played on such

a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest ta

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum,

or the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place."

[H.R. 18123, 89th Cong., 2d sess.]

(MR. KING OF NEW YORK)

A BILL To authorize the merger of two or more professional football leagues, and to'

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291) , is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting

the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.
PROFESSIONAL FOOTBALL LEAGUE MERGER 19

"(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

protessional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting " ( a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEC. 3. Section 1(a) of this Act shall not apply to any joint agreement de- scribed in section 1 of this Act which permits the telecasting of all or a sub- stantial part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday

in September and ending on the second Saturday in December in any year from

any telecasting station located within seventy-five miles of the game site of any

intercollegiate or interscholastic football contest scheduled to be played on

such date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient cerdit huors to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

[H.R. 18124, 89th Cong., 2d sess.]

(MR. DINGELL)

A BILL To authorize the merger of two or more professional football leagues, and to protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act,

as amended (38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1 (a ) of this Act shall not apply to any joint agreement described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock post- meridian or on any Saturday during the period beginning on the second Friday in

September and ending on the second Saturday in December in any year from

any telecasting station located within seventy-five miles of the game site of any

intercollegiate or interscholastic football contest scheduled to be played on such a

date if—
20 PROFESSIONAL FOOTBALL LEAGUE MERGER

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announecd through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

[H.R. 18131, 89th Cong., 2d sess.]

(MR. WILLIS)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

.of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

AS amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, 'baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"Sc. 3. Section 1(a) of this Act shall not apply to any joint agreement described in Section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second

Friday in September and ending on the second Saturday in December in any year

from any telecasting station located within seventy-five miles of the game site of

any intercollegiate or interscholastic football contest scheduled to be played on

such a date if—

"(1) such intercollegiate football contest is 'between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such day

and place."
PROFESSIONAL FOOTBALL LEAGUE MERGER 21

[H.R. 18145, 89th Cong., 2d sess.]

(MR. DOLE)

A BILL To amend the Act of September 30, 1061 (75 Stat. 732)

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732), is amended—

(1) by inserting a new section 1 as follows:

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws as defined in section

1 of the Act of October 15, 1914, as amended (38 Stat. 730) , or in the Federal Trade

Commission Act, as amended (38 Stat. 717) , shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or any

part of the rights of such league's member clubs in the sponsored telecasting

of the games of football, baseball, basketball, or hockey, as the case may be,

engaged in or conducted by such clubs.

"(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, where such agreement increases rather than decreases the number

of professional football clubs so operating."

(2) by inserting "(a)" after the words "section 1" in line 2 of section 2 ;-

( 3) by inserting a new section 3 as follows :

"Section 1 of this Act shall not apply to any joint agreement described in

section 1 (a ) of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday

In September and ending on the second Saturday in December in any year from

any telecasting station located within seventy-five miles of the game site of any

intercollegiate or interscholastic football contest scheduled to be played on such

a date If—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such a day and place."

[H.R. 18117, 89th Cong., 2d sess.]

(MR. GILBERT)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United Statesof America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional foot-
22 PROFESSIONAL FOOTBALL LEAGUE MERGER

ball, baseball, basketball, or hockey contests sells or otherwise transfers all

,or any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"Sze. 3. Section 1(a) of this Act shall not apply to any joint agreement

'described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second

Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the game

site of any intercollegiate or interscholastic football contest scheduled to be

played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion of

sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is between secondary schools, bcth of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a newspaper of general

(circulation prior to August 1 of such year as being regularly scheduled for

such day and place."

[H.R. 18198, 89th Cong., 2d Bess.]

(MR. ST. ONGE)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914, as

amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

4(38 Stat. 717), shall not apply.

"(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball,

or hockey, by which any league of clubs participating in professional football, baseball, basketball, or hockey contests sells or otherwise transfers all

or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

'case may be, engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SFe. 3. Section 1(a) of this Act shall not apply to any joint agreement

described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second
PROFESSIONAL FOOTBALL LEAGUE MERGER 23

-Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the game

site of any intercollegiate or interscholastic football contest scheduled to be played

,on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum,

or the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such day

• and place."

[H.R. 18228, 89th Cong., 2d sess.]

(MR. MCCLORY)

_A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and Hose of Representatives of the United States

,of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

:732; 15 U.S.C. 1291 ) , is amended—

(1) by amending the first section thereof to read as follows:

• "That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

. as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717) , shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting

the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

- baseball, basketball, or hockey contests sells or otherwise transfers all or

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.

" (b ) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting " (a )" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement

'described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the first Friday in

• September and ending on the second Saturday in December in any year from any

telecasting station located within seventy-five miles of the game site of any intercollegiate or interscholastic football contest scheduled to be played on such

•date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under the

laws of the State or States in which they are situated and offer courses continuing through the twelfth grade of the standard school curriculum, or the

equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

• site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such day

and place."
24 PROFESSIONAL FOOTBALL LEAGUE MERGER

[H.R. 18258, 89th Cong., 2d seas.]

(MR. MOORE)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.-

732 ; 15 U.S.C. 1291), is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914..

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

" (a ) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or.

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or any

part of the rights of such league's member clubs in the sponsored telecasting

of the games of football, baseball, basketball, or hockey, as the case may be,

engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of professional football clubs so operating, and the provisions of which are directly

relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such wordsappear the second time in section 2;

(3) by amending section 3 to read as follows:

"SEc. 3. Section 1(a) of this Act shall not apply to any joint agreement

described in section 1 of this Act which permits the telecasting of all or a substantial part of any professional football game on any Friday after 6 o'clock

postmeridian or on any Saturday during the period beginning on the second

Friday in September and ending on the second Saturday in December in any

year from any telecasting station located within seventy-five miles of the game

site of any intercollegiate or interscholastic football contest scheduled to be

played on such a date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the ease of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a newspaper of general

circulation prior to August 1 of such year as being regularly scheduled for

such day and place."

[H.R. 18424, 89th Cong., 2d sees.]

(MR. CONYERS)

A BILL To authorize the merger of two or more professional football leagues, and to

protect football contests between secondary schools from professional football telecasts

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of September 30, 1961 (75 Stat.

732; 15 U.S.C. 1291) , is amended—

(1) by amending the first section thereof to read as follows:

"That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply:

"(a) to any joint agreement by or among persons engaging in or conducting

the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or any
PROFESSIONAL FOOTBALL LEAGUE MERGER 25

part of the rights of such league's member clubs in the sponsored telecasting

of the games of football, baseball, basketball, or hockey, as the case may be,

engaged in or conducted by such clubs.

"(b) to a joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an expanded single

league, if such agreement increases rather than decreases the number of

professional football clubs so operating, and the provisions of which are

directly relevant thereto."

(2) by inserting "(a)" after the words "section 1" where such words

appear the second time in section 2;

(3) by amending section 3 to read as follows:

"Sue. 3. Section 1( a) of this Act shall not apply to any joint agreement described in section 1 of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock postmeridian

or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any year from any telecasting station located within seventy-five miles of the game site of any intercollegiate or interscholastic football contest scheduled to be played on such a

date if—

"(1) such intercollegiate football contest is between institutions of higher

learning both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a newspaper of general circulation prior to August 1 of such year as being regularly scheduled for such

day and place."

The CHAIRMAN. Mr. Rodino.

STATEMENT OF HON. PETER W. RODINO, Jib., A REPRESENTATIVE

IN CONGRESS FRO1VI THE 10TH DISTRICT OF NEW JERSEY

Mr. RODINO. Mr. Chairman, I wish to compliment the chairman, first

of all, for the statement which he has presented to this committee which

shows, again, the nature of our chairman: The fact that he proceeds

in these matters in a way to be fair and in a way to insure that the things

that this committee does is in a manner that we can all be proud of.

At the outset I would like to express appreciation to the chairman

of the Judiciary Committee and this subcommittee for scheduling this

hearing at a time when the agenda in Congress is, of course, very

crowded.

We are considering today, however, a matter of considerable urgency

on which, in my judgment, prompt action is essential in the public

interest.

The situation briefly is this: The clubs of the National Football

League and American Football League have developed a plan to combine into a single and large league, and I am sure that the testimony

today will show that his plan offers many exciting benefits to sports

fans across the country. Yet, it is now clear that the clubs may not

be able to go ahead with this plan in view of serious uncertainty under

our antitrust laws. In the absence of legislation they face a prospect

of long, complex, and uncertain litigation. I believe we in the Congress have a responsibility to clarify the law, so I have introduced H.R.

18038 which is similar to S. 3817 already passed by the Senate. The
26 PROFESSIONAL FOOTBALL LEAGUE MERGER

bill will simply permit the football clubs to go ahead with this highly

desirable expanded league. It does not deal at all with a host of other

complex issues involving the application of antitrust laws to professional sports generally, so these issues are not pertinent to the present

bill. They can be considered later when there is more time.

I am pleased, too, that many other bills and similar bills have been

introduced by the distinguished majority and minority leaders in the

House, and by many colleagues on this subcommittee and the full

Judiciary Committee.

I believe millions of sports followers will be disappointed if the plan

for an enlarged and improved league is abandoned because of inaction

or delay of the Congress. Certainly, the reaction of the public and the

press that has come to my attention and the attention of many has been

overwhelmingly favorable.

Arthur Daley, the veteran sports columnist of the New York Times,,

summed up the matter very well with these words which I quote:

Everyone presently involved will benefit. Owners, coaches, team members and

fans. The merger will bring stability in pro football to the mutual benefit of

all concerned.

So, my main hope today, Mr. Chairman and members of the committee, is that we will give prompt consideration to this legislation

while there is yet time to act at this session.

Thank you, Mr. Chairman.

Mr. ROGERS. Mr. Chairman?

The CHAIRMAN. Mr. Rogers?

STATEMENT OF HON. BYRON G. ROGERS, A REPRF,SENTAlivz IN

CONGRESS FROM THE FIRST DISTRICT OF COLORADO

Mr. ROGERS. First, may I pay my respects to the chairman for his

fairness and willingness to proceed with the proposals which are now.

in S. 3817. I have introduced a similar bill, H.R. 18039, with the objective, of trying to clear up the situation that exists in football. May I

point out, Mr. Chairman, to begin with, this proposal only relates to

football and has no relation whatsoever to baseball, and I trust that

throughout the hearings will thus be confined.

As a representative of the Denver community I can attest to a strong

public support for the plan for an expansion of a nationwide football

league.

Unfortunately, the Denver Broncs are not as yet one of the leaders

in the AFL—in fact, they won their first game Sunday—but the facts

about the new league indicate many arrangements which will help the

Broncs compete on more even terms with other franchises, which now

may be more favorably situated.

This will add security and stability to teams such as the Broncos

and will mean better football games for the public.

The plan not only preserves and strengthens existing franchises, but

will bring professional football to fans in new cities, as well as to the

fans in Denver. Fans everywhere, are looking forward to the proposed world championship game and to competition between teams in

the two leagues.
PROFESSIONAL FOOTBALL LEAGUE MERGER 27

The antitrust laws obviously are intended to serve, not obstruct, the

public interest. The plan for an expanded football league will bring

many benefits to the public. It is clearly appropriate for the Congress

to clarify the law; to permit the clubs to put this plan into effect.

For these reasons I have introduced H.R. 18039 and joined many of my

colleagues who have introduced similar bills. The time for action is

short, but there is sufficient time if we really want to preserve and

strengthen this sport and add to the enjoyment it brings to many

communities.

May I add, Mr. Chairman, that at the present time my community

is considering the question of the construction of a municipal stadium.

If this legislation is approved I am sure that it would aid and assist

the football fans in having adequate and larger facilities to carry on

their activities in the Denver community. Therefore, Mr. Chairman, I

appreciate your letting us have these hearings. I point out that the

two large daily papers in the Rocky Mountain area, the Rocky Mountain News and the Denver Post, have written favorable editorials urging the passage of this legislation.

The CHAIRMAN. Mr. Donohue?

Mr. DONOHUE. Nothing at this time.

The CHAIRMAN. Mr. Conyers?

Mr. CONYERS. I do not have a statement.

Mr. KASTENMETER. Mr. Chairman?

The CHAIRMAN. Mr. Kastenmeier.

STATEMENT OF HON. ROBERT W. ICASTENMEIER, A REPRESENTATIVE IN CONGRESS FROM THE SECOND DISTRICT OF WISCONSIN

Mr. KASTENMEIER. Mr. Chairman, I just comment briefly. I MIL

in wholehearted support with the chairman's statement and am particularly pleased the chairman mentioned the move of the Braves

from Milwaukee to Atlanta and the suit the State of Wisconsin presently has.

I 'hate to be in disagreement with my colleague from Colorado, but

I do think that all professional sports are involved in this hearing,

and to what extent we do not know.

To permit a merger in one case could prejudice in another matter, in

courts or otherwise, in which monopolistic practices of another professional sport are under examination, as is the case in the MilwaukeeBraves case.

It is not only this case, Mr. Chairman, but I think there are other

matters that require our very thoughtful and cautious concern here as

we commence these hearings today. I hope we will not move precipitously in these twilight zones during the last hours of the session.

Mr. ROGERS. Mr. Chairman, in response to the gentleman from Wisconsin, it is my understanding that so far as this legislation is concerned as it relates to baseball, there is no intention to affect baseball

nor does baseball claim to have any intention other than to support this

legislation. It would not interfere with any suits that may be pending. I am informed that baseball itself supports this legislation. We

certainly do not want to upset any rights that Milwaukee may have,

nor do we intend to litigate those matters in this hearing.
28 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. KASTENMEIER. Mr. Chairman, if the gentleman will yield. Of

course, professional baseball would not object to a merger in other

sports that would be inconsistent with its own practices.

The CHAIRMAN. Mr. McCulloch?

Mr. McC-caLocH. Mr. Chairman, I would like to ask my colleague

from Colorado a question—and off the record.

(Discussion off the record.)

The CHAIRMAN. Mr. Cramer?

STATEMENT OF HON. WILLIAM C. CRAMER, A REPRESENTATIVE

IN CONGRESS FROM THE 12TH DISTRICT OF FLORIDA

Mr. CRAMER. Mr. Chairman, very briefly, I introduced and supported the compromise bill which passed the other body just recently

and which is a substantial cutback from the Senate bill, S. 950, passed

the year before. This new bill has the objective of excluding the

merger of the two leagues from the antitrust law, and is very restrictive

in nature.

I will say to my distinguished colleague from Ohio and my distinguished colleague from Colorado that, yes, Miami, too, hopes that this

national championship game will be played; as a matter of fact, they

have already put in a bid for its location, so there is a considerable

interest in the legislation.

The question of whether the merger would be in violation of the

antitrust laws as an agreement in restraint of trade remains uncertain.

The two leagues have agreed to the terms of such a merger.

The accumulated treble damages that could arise if this uncertainty,

is not settled, should somebody bring a law suit challenging the merger

could exceed the combined income of all franchises and literally wipe

out professional football. The objective basically of this legislation

is to get rid of this uncertainty and to legalize, in effect, without question, the merger of the two leagues.

It is highly questionable whether, in view of the uncertain situation

without legislation, a responsible sports organization involving 26 or

more franchises in 25 or more cities can afford to, and in a good business

sense would, go ahead with the merger itself without legislation being

passed.

The bill would have the effect of permitting the new merged league

to begin operations in 1967, free from the possibility of a legal challenge based solely on the agreement for an expanded league as announced this past June.

And incidentally, the bill protects, and properly so, attendance at

high school and college football games by not permitting the telecasting of professional football games on any Friday evening after 6 p.m.

So, I think it is possible to get a good bill out and I hope we do.

Mr. MACGREGOR. Mr. Chairman.

The CHAIRMAN. Mr. MacGregor?
PROFESSIONAL FOOTBALL LEAGUE MERGER 21)

STATEMENT OF HON. CLARK MacGREGOR, A REPRESENTATIVE IN

CONGRESS FROM THE THIRD DISTRICT OF MINNESOTA

Mr. MACGREGOR. Mr. 

Chairman, 

less than 2 weeks ago the Senate

passed the bill S. 3817. Immediately thereafter I introduced in the

House of Representatives a bill identical to the bill passed by the

Senate. The purpose in so doing is to facilitate its adoption in the

House of Representatives and to avoid the necessity of a conference

between the two bodies and to speed this matter to conclusion should

this committee decide that the action is wise.

I am particularly impressed with the provisions in the Senate bill

which provide an absolute protection for high school football. In

my area of the country, and I am sure in all areas of the country, there

is a great deal of interest in and a great deal of benefit derived from

the highly competitive nature of high school football.

An essential element in this planned merger seeking congressional

sanction and upon which it is conditioned, is that the merger results in

increasing rather than decreasing the number of professional football

clubs operating in the United States.

The plan for an expanded league assures that all 24 of the existing

professional football teams will continue to operate in their present

locations. Without the merger, there was danger that some of the less

favorably situated franchises in both existing leagues face dissolution

or transfers to other cities. One of the results of the merger will be

the bringing of professional football teams to new cities. In addition

to the two new teams added this year—Miami and Atlanta—the merger

calls for two additional franchises by 1968 and two more franchises

later. Cincinnati, Mr. Chairman, and Seattle, as well as other cities

are hotly in contention for these new franchises.

I was impressed with the Chairman's statement here that we must

be careful that the recent outstanding growth in professional football

not be arrested by legislation.

Mr. Chairman, as one Member of the House who is pleased to have

an NFL team in his congressional district, who has been a, rabid fan

of the Minnesota Vikings—and indeed of professional football generally—and as one who has carefully studied every facet of this problem, I am convinced that this legislation will result in an expansion,

not a constriction, of franchises and competition.

I think it is most important to note that in addition to the NFL and

the AFL we have at the present time other professional football

leagues. Nothing in this proposal will in any way diminish the opportunity of those other professional leagues, and perhaps more still to

come, from growing and participating fully in this exciting sport.

May I say to my distinguished colleague from the State of Colorado,

his poor Broncos are one up on the Vikings, we haven't won a game

yet this year.

Thank you, Mr. Chairman.

The CHAIRMAN. The bells have rung, a quorum is asked for in the

House.

We will resume with the other football witnesses on Tuesday next,

at 10 o'clock.

(Thereupon, at 11 :25 a.m., the subcommittee recessed to reconvene

at 10 a.m., Tuesday, October 11, 1966.)

PROFESSIONAL FOOTBALL LEAGUE MERGER

TUESDAY, OCTOBER 11, 1966

HOUSE OF REPRESENTATIVES

SUBCOMMITTEE N-0. 5,

COMMITTEE ON THE JUDICIARY,

TV ashingt on, D.C.

The subcommittee met at 10:10 a.m. pursuant to recess, in room

2141, Rayburn House Office Building, Hon. Emanuel Celler (chairman of the committee) presiding.

Present: Representatives Celler, Rodino, Rogers, Donohue, Kastenmeier, Cramer, and MacGregor.

Also present: Kenneth R. Harkins, chief counsel, Antitrust Subcommittee, and Martin Hoffmann, associate counsel.

The CHAIRMAN. The committee will came to order.

Mr. Rozelle, you have submitted a statement. I take it you want to

read it is that correct?

Mr. ROZELLE. Yes, Mr. Chairman.

The CHAIRMAN. You may proceed.

STATEMENT OF PETE ROZELLE, COMMISSIONER, NATIONAL FOOTBALL LEAGUE; ACCOMPANIED BY LAMAR HUNT, PRESIDENT,

KANSAS CITY CHIEFS, AMERICAN FOOTBALL LEAGUE; TEXAS

SCHRAMM, PRESIDENT, DALLAS COWBOYS, NATIONAL FOOTBALL

LEAGUE; AND HAMILTON CAROTHERS, COUNSEL •

Mr. ROZELLE. Mr. Chairman and members of the Antitrust Subcommittee of the House of Representatives, professional football will

always be most appreciative of this opportunity for hearings extended

by Chairman Celler and the members of this committee. Your recognition of the urgency of our problem and your willingness to review it

at this time are most gratifying.

I am here today to respectfully urge this committee to act promptly

and to act favorably on S. 3817, a bill of very limited scope. By doing

so, you will be making possible a plan for major league professional

football in America which has the support of millions of sports fans

and which will be beneficial to the colleges and the high schools as

well.

I shall not attempt today to set before you every reason both practical and legal, for the passage of this bill, nor will I attempt to set

forth every factor which supports our plan for a single league. I

will answer any questions you may have at the close of my statement.

Should certain questions fall into areas with which others have greater

familiarity, they can be answered by others here today.

31
32 PROFESSIONAL FOOTBALL LEAGUE MERGER

I have with me Mr. Lamar Hunt, principal founder of the American

Football League and current president of the Kansas City Chiefs of

that league. I also have with me Texas Schramm, president of the

Dallas Cowboys of the National Football League. These two gentlemen have an established experience in football club operations and

played the lead role in developing the single-league plan which this

bill will permit to become effective.

On the basis of our present evaluation of the liabilities that might

be accumulated through governmental and/or private litigation, I

feel I must say very candidly at this time that if legislation is not

passed by the Congress, it will be my strong, although reluctant, recommendation to the presidents of the 24 clubs comprising the National

Football League and American Football League that they should not

proceed with the plan.

I am going to limit my comments simply to the four basic elements

of the matter before this committee:

First, I would like to comment on what the bill does and what it

does not do.

Secondly, I want to point out some of the many benefits which this

single-league plan will bring to the public, to the local fans of professional football clubs, to civic stadium authorities, and the players

themselves.

Third, I want to emphasize what is going to happen within a very

short period of time if this plan is not made possible.

Fourth, I want to briefly comment on why this bill is necessary

and why we urge it be enacted during the present session of Congress.

S. 3817, as passed by the Senate, has two basic purposes. The basic,

vital purpose of this bill is to clarify the status under the antitrust

laws of our announced plan to bring into existence a single, nationwide

professional football league consisting of all present clubs of both the

National Football League and the American Football League and

other franchises to be added later.

The bill would make this possible by declaring that the simple act

of the clubs of both present leagues in bringing their operations within

the structure of a single league will not in itself be subject to challenge

under the antitrust laws.

It does no more than this.

In the words of the Senate report, it "would not extend to the

combined league any greater antitrust immunity than that now existing for the existing professional football leagues." Expressed another

way, it would not give the expanded league any greater antitrust immunity than that which other single-league professional sports, such

as basketball or hockey, now have.

The only item exempted from the application of the antitrust laws

would be the agreement among the member clubs of the two leagues

to combine into a single league. All other applications of the antitrust laws to professional sports, which various versions of the sports

bill have attempted to clarify, would remain as they are. But we need

this intermediate and thoroughly limited measure now in order to

give us the ability to go forward with the plan. The orderly expansion and growth of professional football, as opposed to a disorderly

contraction, depend on this.
PROFESSIONAL FOOTBALL LEAGUE MERGER 33

Secondly, the bill would extend to the high schools of America

the same protections against Friday night or Saturday telecasts of

professional football games as that presently given college football.

The plan for the expanded league is embodied in an agreement between the member clubs of the two leagues which was entered into

during the first week of June of this year. That agreement has been

filed with counsel for this committee.

I will outline for you its principal features:

1. Every franchise of both leagues will remain in its present location.

2. Two new franchises will be added by the 1968 season, making a

total of 26 teams.

3. Studies will then be made of the feasibility of adding two more

franchises.

4. A world championship game between the champions of the two

present leagues will be established beginning in January 1967.

5. Following this championship game, a player selection system

will be instituted by the combined league with priority of selection

determined by the won-loss record of each team during the 1966 season.

6. Preseason games will be played between the teams of the two

present leagues beginning with the 1967 season.

7. By 1970, there will be full integration of the combined league

schedule with regular season games being played by the clubs of the

two present leagues.

8. During the period prior to 1970, each league will continue to operate under existing television contracts. Beginning in 1970, there

will be an equal division of television income among all clubs of the

combined league.

Professional football unquestionably has widespread public support. We appreciate this and, furthermore, we recognize the debt

that goes with it in meeting fan desires. The pro football fans have

told us in recent years that—

they wanted a championship game between the leagues;

they decried what they considered wild spending for unproven

talent;

they didn't like the increasing indication that the stronger teams

would continue to dominate the various divisions and conferences

of the leagues.

These were their basic points.

We believe we have met these demands and more in every phase of

this plan. There is no alternative way of meeting these public interests and establishing them on a permanent basis.

The advantages of this plan to many different interests are clear.

Among these, I refer to the following:

1. Professional football operations will be preserved in the 23 cities

and 25 stadiums where such operations are presently being conducted.

This alone is a matter of considerable public interest—to local economies, stadium authorities, and consumers. Without the plan, franchise moves and/or franchise failures will occur as a matter of course

within the next few years. •

2. The plan will guarantee additional professional football franchises for a number of new cities: Professional football will then be
34 PROFESSIONAL FOOTBALL LEAGUE MERGER

even more national in scope, more so than any other professional sport.

Without the plan, contraction rather than expansion will be the ultimate consequence, as the developing economic conditions in professional football successively put more and more franchises into difficulty.

Professional football experienced this once before in the All-American

Conference days and is again heading toward the same end.

3. By placing all the existing major league professional football

franchises under one league structure, under a common set of bylaws

and on substantially the same basis of economic opportunity, there

will be a return to the primary objective of professional football—

a type of football competition the public enjoys. With all franchises

operating under the same player squad limits, the same pension

plan, with equal access to player trades, with equal television income,

participation in a player draft, and equally attractive visiting teams,

football competition rather than ability to withstand losses can be

made the dominant element of the game. Conditions can be created

where all clubs, including those in less favorably situated cities

'

can

have an equal run at success in competition with such cities as New

York, Los Angeles, and Chicago.

4. Under the plan, a drafted player will receive a minimum income

of $12,000 in his first year of competition.

5. It will substantially increase insurance and pension plan benefits

to all AFL players.

6. The later player selection meeting will eliminate interference with

the college football program and improve the relationship between

amateur and professional athletics.

Our plan does not involve a merger in any traditional business or

antitrust sense. All clubs of both leagues remain under their present

ownership and there are no exchanges of stock or business assets.

What it is, in essence, is an agreement between the member clubs of

the two leagues to play games with one another and to conduct their

affairs in the manner in which professional sports leagues operate.

But the implementation of the plan makes a broad series of accompanying commitments necessary. Stadium commitments, television

commitments, new franchise commitments, the application of a common set of bylaws to the clubs of both leagues, and literally thousands

of contract relationships are broadly involved in the plan.

Before even the first of these is undertaken, we must have reasonable

assurance that the new league can continue on a permanent basis free

of endless litigation directed at each action taken or not taken.

As the newspapers have already made clear, possible injunctive suits

and potential treble damage liability, accumulating with each step

taken, make the plan extremely hazardous in the absence of congressional approval. The Antitrust Division of the Department of Justice

has authorized us to state that they have serious concern about the

plan, but they have not yet decided whether to bring suit.

It is conceivable that the sum total of financial risks resulting from

legal action could easily be larger than the total value and net assets

of all the existing franchises. This is what led me to emphasize at

the outset that I would have no responsible alternative, but to recommend that we not proceed.

The consequences of continuing as separate entities are clear. Clubowners in both leagues know it, but current conditions offer no escape.
PROFESSIONAL FOOTBALL LEAGUE MERGER 35

Both leagues must, if they are to preserve their public image of

major league status, secure a fair share of the football talent emerging

from the colleges each year. But such talent is in limited supply and,

in the last analysis, the competition is not between the two leagues but

between the individual clubs of the two leagues.

The results would be player costs soaring ever upward, increasing

internal deterioration of both leagues, increasing inequalities of team

play within each league and the development of conditions where

the ability to field representative football teams will depend solely on

the franchise's willingness and ability to stand increasing losses.

These are not simply self-serving speculations. The familiar

process is already well underway. No competitive abstractions drawn

from other business contexts can alter these results. Factors of income increases, when they have occurred in the past or should they

occur in the future, will do not more than advance the struggle to

higher income and loss levels.

Today some clubs of both leagues have already withdrawn from the

player market. Others, under the pressure of having to remain competitive within their own leagues and with a determination to be

among those clubs which survive, are bidding for players at prices

which have no relation to football economics.

Indeed, many clubs are assuming deferred payment obligations of

such dimensions, that if this practice continues, active player payrolls

in future years will be only a minor element of player costs. This is

simply a process of exchanging future obligations for present survival, a process which will make future survival even more questionable.

Statistics of individual player contracts have been furnished on a

confidential basis to your committee counsel. I can only say that

where bonus commitments and deferred payment obligations to single players have exceeded the entire gross road game receipts of a

member club, survival in football is shortly going to depend solely on

each league's ability to carry its own failing franchises.

The need for this bill is clear. So also is its urgency. We must immediately designate at least one new city for expansion in order to

permit that new franchise to develop its organization to participate in

the draft scheduled for January.

We must immediately begin making television and other arrangements for the championship game scheduled for this coming January.

We must immediately begin preparing for the draft to follow the

championship game. We can do none of these things without your

prompt support followed by early action in the House of Representatives.

Mr. Chairman, I would like your consideration to add for the record

certain comments from newsmen, newspaper editorials, players and

athletic officials that have been printed in the newspapers throughout

the country in recent months. I would like to simply pass this up and

have your consideration that it be inserted in the record.

The CHAIRMAN. You will have that privilege.

(Mr. Rozelle's prepared statement and the comments from the news

media are as follows:)
36 PROFESSIONAL FOOTBALL LEAGUE MERGER

STATEMENT OF COM MISSIONER ROZELLE

Mr. Chairman and members of the Antitrust Subcommittee of the House of

Representatives:

Professional football will always be most appreciative of this opportunity

for hearings extended by Chairman Celler and the members of this Committee.

Your recognition of the urgency of our problem and your willingness to review it

at this time are most gratifying.

I am here today to respectfully urge this Committee to act promptly and to act

favorably on S. 3817, a bill of very limited scope. By doing so, you will be

making possible a plan for major league professional football in America which

has the support of millions of sports fans and which will be beneficial to the

colleges and the high schools as well.

I shall not attempt today to set before you every reason, both practical and

legal, for the passage of this bill nor will I attempt to set forth every factor

which supports our plans for a single league. I will answer any questions you

may have at the close of my statement. Should certain questions fall into areas

with which others have greater familiarity, they can be answered by others here

today. I have with me Mr. Lamar Hunt, principal founder of the American

Football League and current President of the Kansas City Chiefs of that League.

I also have with me Texas Schramm, President of the Dallas Cowboys of the

National Football League. These two gentlemen have an established experience

in football club operations and played the lead role in developing the single league

plan which this bill will permit to become effective.

On the basis of our present evaluation of the liabilities that might be accumulated through governmental and/or private litigation, I feel I must say very

candidly at this time that if legislation is not passed by the Congress it will be

my strong, although reluctant, recommendation to the presidents of the twentyfour clubs comprising the National Football League and American Football

League that they should not proceed with the plan.

I am going to limit my comments simply to the four basic elements of the

matter before this Committee.

First, I would like to comment on what the bill does and what it does not do.

Second, I want to point out some of the many benefits which this single-league

plan will bring to the public, to the local fans of professional football clubs, to

civic stadium authorities, and the players themselves.

Third, I want to emphasize what is going to happen within a very short period

of time if this plan is not made possible.

Fourth, I want to briefly comment on why this bill is necessary and why we

urge it be enacted during the present session of Congress.

S. 3817, as passed by the Senate, has two basic purposes. The basic, vital

purpose of this bill is to clarify the status under the antitrust laws of our

announced plan to bring into existence a single, nationwide professional football

league consisting of all present clubs of both the National Football League and

the American Football League and other franchises to be added later. The bill

would make this possible by declaring that the simple act of the clubs of both

present leagues in bringing their operations within the structure of a single

league will not in itself be subject to challenge under the antitrust laws.

It does no more than this.

In the words of the Senate Report, it "would not extend to the combined

league any greater antitrust immunity than that now existing for the existing

professional football leagues." Expressed another way, it would not give the

expanded league any greater antitrust immunity than that which other singleleague professional sports, such as basketball or hockey, now have. The only

item exempted from the application of the antitrust laws would be the agreement among the member clubs of the two leagues to combine into a single league.

All other applications of the antitrust laws to professional sports, which various

versions of the Sports Bill have attempted to clarify, would remain as they are.

But we need this intermediate and thoroughly limited measure now in order to

give us the ability to go forward with the plan. The orderly expansion and

growth of professional football, as opposed to a disorderly contraction, depend

on this.

Second, the bill would extend to the high schools of America the same protections against Friday night or Saturday telecasts of professional football games

as that presently given college football.
PROFESSIONAL FOOTBALL LEAGUE MERGER 37

The plan for the expanded league is embodied in an agreement between the

member clubs of the two leagues which was entered into during the first week

of June of this year. That agreement has been filed with counsel for this Committee. I will outline for you its principal features:

(1) Every franchise of both leagues will remain in its present location.

(2) Two new franchises will be added by the 1968 season, making a total of

26 teams.

(3) Studies will then be made of the feasibility of adding two more franchises.

(4) A world championship game between the champions of the two present

leagues will be established beginning in January 1967.

(5) Following this championship game, a player selection system will be instituted by the combined league with priority of selection determined by the

won-loss record of each team during the 1966 season.

(6) Pre-season games will be played between the teams of the two present

leagues beginning with the 1967 Season.

(7) By 1970, there will be full integration of the combined league schedule

with regular season games being played by the clubs of the two present leagues.

(8) During the period prior to 1970, each league will continue to operate under existing television contracts. Beginning in 1970, there will be an equal

division of television income among all clubs of the combined league.

Professional football unquestionably has widespread public support. We appreciate this and furthermore we recognize the debt that goes with it in meeting fan desires. The pro football fans have told us in recent years that—

they wanted a championship game between the leagues.

they decried what they considered wild spending for unproven talent.

they didn't like the increasing indication that the stronger teams would

continue to dominate the various divisions and conferences of the leagues.

These were their basic points.

We believe we have met these demands and more in every phase of this plan.

There is no alternative way of meeting these public interests and establishing

them on a permanent basis.

The advantages of this plan to many different interests are clear. Among

these, I refer to the following:

(1) Professional football operations will be preserved in the 23 cities and 25

stadiums where such operations are presently being conducted. This alone is

a matter of considerable public interest—to local economies, stadium authorities,

and consumers. Without the plan, franchise moves and/or franchise failures

will occur as a matter of course within the next few years.

(2) The plan will guarantee additional professional football franchises for a

number of new cities. Professional football will then be even more national

in scope, more so than any other professional sport. Without the plan, contraction rather than expansion will be the ultimate consequence, as the developing economic conditions in professional football successively put more and more

franchises into difficulty. Professional football experiehced this once before

in the All America Conference days and is again heading toward the same end.

(3) By placing all the existing major league professional football franchises

under one league structure, under a common set if bylaws and on substantially

the same basis of economic opportunity, there will be a return to the primary

objective of professional football—a type of football competition the public enjoys. With all franchises operating under the same player squad limits, the

same pension plan, with equal access to player trades, with equal television income, participation in a player draft, and equally attractive visiting teams, football competition rather than ability to withstand losses can be made the dominant

element of the game. Conditions can be created where all clubs, including those

in less favorably situated cities, can have an equal run at success in competition

with such cities as New York, Los Angeles and Chicago.

(4) Under the plan, a drafted player will receive a minimum income of $12,000

in his first year of competition.

(5) It will substantially increase insurance and pension plan benefits to all

AFL players.

(6) The later player 'selection meeting will eliminate interference with the

college football program and improve the relationship between amateur and professional athletics.

Our plan does not involve a merger in any traditional business or antitrust

sense. All clubs of 'both leagues remain under their present ownership and there

are no exchanges of stock or business assets. What it is, in essence, is an agree-
38 PROFESSIONAL FOOTBALL LEAGUE MERGER

ment between the member clubs of the two leagues to play games with one another and to conduct their affairs in the manner in which professional sports

leagues operate.

But the implementation of the plan makes a broad series of accompanying commitments necessary. Stadium commitments, television commitments, new franchise commitments, the application of a common set of bylaws to the clubs of both

leagues, and literally thousands of contract relationships are broadly involved

in the plan. Before even the first of these is undertaken, we must have reasonable assurance that the new league can continue on a permanent basis free of endless litigation directed at each action taken or not taken. As the newspapers

have already made clear, possible injunctive suits and potential treble damage

liability, accumulating with each step taken, make the plan extremely hazardous

in the absence of Congressional approval. The Antitrust Division of the Department of Justice has authorized us to state that they have serious concern

about the plan although they have not yet decided whether to bring suit.

It is conceivable that the sum total of financial risks resulting from legal action

could easily be larger than the total value and net assets of all the existing

franchises. This is what led me to emphasize at the outset that I would have

no responsible alternative but to recommend that we not proceed.

The consequences of continuing as separate entities are clear. Club owners in

both leagues know it, but current conditions offer no escape.

Both leagues must, if they are to preserve their public image of major league

status, secure a fair share of the football talent emerging from the colleges each

year. But such talent is in limited supply and, in the last analysis, the competition is not between the two leagues but between the individual clubs of the two

leagues. The results would be player costs soaring ever upward, increasing

internal deterioration of both leagues, increasing inequalities of team play

within each league and the development of conditions where the ability to field

representative football teams will depend solely on the franchise's willingness

and ability to stand increasing losses.

These are not simply self-serving speculations. The familiar process is already

well under way again. No competitive abstractions drawn from other business

contexts can alter these results. Factors of income increases, when they have

occurred in the past or should they occur in the future, will do no more than advance the struggle to higher income and loss levels.

Today some clubs of both leagues have already withdrawn from the player

market. Others, under the pressure of having to remain competitive within

their own leagues and with a determination to be among those clubs which survive, are bidding for players at prices which have no relation to football economics. Indeed, many clubs are assuming deferred payment obligations of such

dimensions that if this practice continues active player payrolls in future years

will be only a minor element of player costs. This is simply a process of exchanging future obligations for present survival, a process which will make

future survival even more questionable.

Statistics of individual player contracts have been furnished on a confidential

basis to your Committee counsel. I can only say that where bonus commitments

and deferred payment obligations to single players have exceeded the entire

gross road game receipts of a member club, survival in football is shortly going

to depend solely on each league's ability to carry its own failing franchises.

The need for this bill is clear. So also is its urgency. We must immediately

designate at least one new city for expansion in order to permit that new

franchise to develop its organization to participate in the draft scheduled for

January. We must immediately begin making television and other arrangements for the championship game scheduled for this coming January. We must

immediately begin preparing for the draft to follow the championship game.

We can do none of these things without your prompt support followed by early

action in the House of Representatives.

REACTION TO THE NFL-AFL PLAN

Press reaction to the National Football League-American Football League

announcement of June 8, 1966, has been quite favorable. The plan for our

single enlarged nationwide professional football league has evoked widespread

public approval:

Gene Ward, New York Daily News, June 13: "Gus and Gussie fans * * *

came out the big winners, and it couldn't happen to nicer people. Gus and Gussie
PROFESSIONAL FOOTBALL LEAGUE MERGER 39

are going to see more and better football * * * they get to keep all their televised football * * * they are going to see the long-awaited world championship

show between the kingpins of each loop * * * they are going to see clashes

between NFL and AFL clubs * * * you can just bet me if you don't think the

Giants and Jets will pack 'em in * *

Bob August, the Cleveland Press, June 9: "The Nation's football fans will

benefit and increased interest will be assured. By 1970 * * * pro football will

operate on a scale never achieved before * * * the players should do very well in

the new organization * * * pro football should be better for it in years to come."

Arthur Daley, New York Times, June 10: "The longer a grandstand quarterback thinks about [the agreement] the more convinced he becomes that everyone presently involved will benefit—owners, coaches, team members, and

fans * * *. This [championship game] can be developed into the finest attraction

on the sports calendar * * *. The merger will bring stability into pro ball to the

mutual benefit of all concerned."

Lloyd Larson, Milwaukee Sentinel, June 11: "Football recognizes that expansion is desirable and feasible. And in the process of spreading the 'gospel' to

previously untapped areas, it will not cause any established territory to suffer.

It all adds up to * * * a strong desire to build more and more good will, probably an entertainment organization's most important asset."

Washington Post, an editorial, June 12: "It is a match that should benefit all

concerned. The threat of the dollar sign overwhelming the sense of sport is

lessened * * *. Best of all, once the merger is complete, the teams can devote

their full attention to providing the fans with good football."

Washington Evening Star, an editorial, June 18: "The merger, which becomes

fully effective in 1970, seems in fact to be to everybody's benefit, with the exception of the rookie players and possibly the television networks * * *. For

everyone else involved, everything came up roses * * . The owners, it would

seem, thought things over like rational men and decided that the continuing

escalation of their war made negotiations necessary."

Bob Maisel, Baltimore Sun, June 26: "The merger of the National and American football leagues was good for both, and for the sport of pro football " *[it]

was a sensible and progressive step."

Boston Globe, June 9, Herb Ralby : "Football fans greeted the news with

enthusiasm. Now they would be able to see, live, the star players they had read

about and watched on television in the rival league." Neil Singelais : "Players

and coaches alike—the people who makes their living from football—couldn't

disguise their elation."

Charles Heaton, Cleveland Plain Dealer, June 9: "It all adds up to even

more exciting days for the Browns and pro football."

Jack Murphy, San Diego Union, June 10: "In the case of San Diego, it was a

gain of almost inestimable value * * *. Looking at the merger from a broader

perspective, the immediate advantage is the championship game to be played

in January, 1967 * * * it will rank with the Kentucky Derby as the premier

spectacle of the American sports scene * * * [it] will be assured of the largest

viewing audience in the history of sport."

Sandy Grady, Philadelphia Evening Bulletin, June 10: "The winners, of course,

are the fans * * *."

Lewis F. Atchison, Washington Evening Star, June 9: "It meant the end of

those fabulous, but outrageous, bonuses for unproven rookies * * *. It also

saved some shaky franchises in both leagues from eventually going over the

financial cliff * * * spiraling expenses and a fixed income could only end in

disaster * * *. Had the leagues continued on their separate ways both would

have gone broke, eventually, despite television money."

David Condon, Chicago Tribune, June 11: "No longer will the pro owners

defy a law of economics that eventually would have ruined them all."

Arthur Daley, New York Times, June 10: "Fantastic [bonus] payments kept

driving the owners ever closer to financial suicide; they handed coaches sacred

cows who made their jobs more awkward; they caused resentment among

established stars to the disruption of team morale and they made a shabbier

over-all package to hand the fans. And this dollar warfare showed signs of

escalating into a cruel and ruthless battle to the death. The end came just in

time* * *."

Paul Zimmerman, Los Angeles Times, June 12: "The formula [saved] the NFL

and AFL from self destruction * * * the pro conflict [was] sheer absurdity."

Robert L. Burnes, St. Louis Globe-Democrat: "* * * an all-out financial war

could bring ruin to both leagues * * * the Bench Warmer is happy to see both

leagues come to their senses."
40 PROFESSIONAL FOOTBALL LEAGUE MERGER

Many players as well as sports editors and columnists recognized that while

rookie bonuses may not now reach the tremendous sums paid to a few college

stars in the recent past, the agreement will be beneficial for players generally, as

it benefits the sport as a whole.

Comments by players, Kansas City Chiefs, Len Dawson: "For the fans and all

connected with the game, this is the best thing that could happen. Now we can

return to the purpose of pro football—to entertain, and, at the same time, prove

who really plays it best." Aaron Brown: "That's the greatest news I've heard

in years." Jim Tyrer : "This probably saved the game." (Quoted in Kansas City

Times, June 9.)

Comments by players, Dallas Cowboys. Pettis Norman: "In the long run, it

will probably help both leagues." Frank Clarke: "Now we can give the people

who have been supporting pro football and have made it what it is a better show."

Ralph Neely: "It's a terrific thing * * *. I think there will be better football and

more interest." (Quoted in Dallas Times Herald, June 9.)

Comments by players, St. Louis Cardinals. Larry Stallings: "It was the only

logical thing they could have done. The club owners were going to kill themselves." Sonny Randle: "It was getting out of hand, and something had to happen to correct the situation. Football would have been ruined in an all-out war

between leagues and players." (Quoted in the St. Louis Post Dispatch, June 9.)

Bob Skoronski, player representative, Green Bay Packers: "This should upgrade the entire pay scale for the proven player. Fighting between the two

leagues was not healthy * * *. This makes the entire future of pro football

much better * * * the competition should be tremendous." (Quoted in the

Green Bay Press Gazette, June 9.)

Tom Hall, Minnesota Vikings: "The veterans will * * * like the college kids

getting reasonable bonuses again. It should help the morale of teams; the relationships between rookies and veterans. And it means players will be sticking

around longer." Mick Tinkelhoff, Vikings: "It certainly will mean more college

players will be drafted. (Quoted in Minneapolis Tribune, June 9.)

Len Dawson, Kansas City quarterback: "It's something all the players wanted.

The big bonuses were good for the collegiate players but they were not a good

thing (over-all). They often produced had team morale." (Quoted by United

Press, June 23.)

Dallas Morning News, June 19: "Curley Johnson of the New York Jets 'likes

the idea of a merger * * * It means more money for everyone, he says, and when

the AFL pension plan is brought on a level with the NFL plan, it could mean a

retirement income of better than $800 a month for men like Curley Johnson.'"

Pat Richter, Washington Redskins: "Naturally, the big bonuses create some

bad feeling. Now everybody will be on a par. It will be good for team atmosphere." (Quoted in Washington Post, June 9.)

Billy Martin, Atlanta Falcons: "I think the merger will be better for all players, salaries will be comparable, and rookies will have to prove themselves."

Quoted in Atlanta Constitution, June 9.)

John Gordy, player representative, Detroit Lions: "A player is back to bargaining on his own ability * * *. The proven player is in a better position. Maybe

he will get the money they were giving to the rookies." (Quoted by Associated

Press, June 9.)

David Condon, Chicago Tribune, June 11: "A few graduating college AllAmericans may find themselves in the same position you were when leaving the

alma mater: having to work for a living. The days of the big bonuses are over.

Yet the days of the big salaries may only be beginning. As pro football becomes

more popular, established stars will be rewarded with larger checks and increased

benefits. That's the way it should be * * *. Now pro football can go back to

paying for proven merchandise."

Larry Benz, Atlanta Falcons: "I think it's good for the players and can upgrade both leagues." (Quoted in Cleveland Press, June 9.)

Steve Weller, Buffalo Evening News, June 9: "* * * the majority of players

probably will benefit in the long run. There will be more money for sensible

expenditures."

Roosevelt Taylor, Chicago Bears: The agreement will be a "wonderful thing."

The projected expansion and merger will be beneficial to players just out of

college because "the rookies will have a better opportunity to make their club."

(Quoted in New Orleans Times-Picayune, June 18.)
PROFESSIONAL FOOTBALL LEAGUE MERGER 41

The agreement's impact upon colleges also prompted favorable comment:

Fritz Chrisler, athletic director, University of Michigan: "You have to be delighted with anything that gets away from what has been happening [in signing

of players]. They bothered the kids. They were even down to the high schools.

It had to bother the colleges. The merger should alleviate this situation, and

anything that will do that is good." (Quoted by the Associated Press, June 9.)

Paul Zimmerman, sports editor, Los Angeles Times, June 10: "Leading the

rejoicing over peace in pro football should be the colleges. Recruiting before the

season ended and the pressure put on top stars by a swarm of bird-dogging scouts

from the two pro leagues had coaches and athletic directors up in arms. The

common draft should put an end to such problems."

Milt Bruhn, coach, University of Wisconsin: "It had reached a ridiculous

point with that rivalry between the AFL and NFL. At my opening football

practice this spring there were seven different pro teams represented, some by

as many as three different scouts * * * [now] there'll be less pressure on the

college players." (Quoted in Boston Globe, June 14.)

Boston Globe, June 9: "College coaches in the area, like Harvard's John Yovicsin, Boston University's Warren Schmakel, and Northeastern's Joe Zabilski, felt it

would be a stimulant to college and that it would increase attendance * * *

Schmakel added, 'It was the only sensible thing to do. The way things were going the morale of the veteran players was hurt more and more by those fabulous

bonuses given to the college players' * * * 'It's wonderful for Boston,' remarked

Yovicsin, 'and it's a great thing for the American Football League * * * neither

league could afford a lengthy war.'"

After it became apparent that the plan for a combined league was in jeopardy

because of antitrust uncertainties, a substantial number of editorial writers supported legislation to clarify the law and permit the clubs to go ahead with the

plan:

Kansas City Star, September 23: "The much-lauded peace merger of last June

between the National and American football leagues now appears to need immediate congressional approval * * *. So pro football is asking Congress, in a

separate bill with bipartisan sponsorship, to grant antitrust immunity only

to the actual steps required to effect the merger * * *. It seems a reasonable

request. We only hope Congress won't delay too long in the huddle."

Chicago Tribune, September 28: "The merger offers many advantages * * *

[it] cannot be accomplished if a legal cloud hangs over it * * *. We feel it would

be in the interest of the game if the House acted promptly on the legislation."

Buffalo Evening News, September 21: "If the AFL—NFL merger is accomplished and the leagues expand into new cities as planned, the players can't help

but benefit, far more than if a half dozen existing clubs collapse * * *. If Congress doesn't cooperate there are going to be a lot of disappointed if not irate

football followers."

Denver Post, September 25: "Legislative proposals are before the U.S. Congress

which would facilitate the merger and expansion of the two major professional

football leagues. These proposals will by no means solve all of pro football's

problems but they appear—at this time—to be a reasonable solution to one of the

more urgent requirements of the game * * * if Denver is to retain a position

in the expanded league, congressional action may be decisive."

San Diego Union, September 20: "When professional football was faced with

a crisis that threatened its existence, its leaders acted with enlightenment. (The

agreement) was an exciting development for communities as well as fans * * *

but a cloud remains * * * a bill assuring (the agreement) is held up in the

House * * * favorable action on the Senate bill is essential in this formative

year for the new football league."

Long Beach (California) Press-Telegram, September 23: "A bill to allow professional football to proceed without being endangered by antitrust prosecution

is now pending in Congress * * * it is to be hoped that Congress will move

speedily in resolving this problem * * * the fans will be the ultimate losers if the'

merger is scuttled."

Pontiac ( Michigan) Press, September 26: "Professional football is in dire

danger. Sensing the predicament and its importance. a Senate committee has

already leaped into action and suggested necessary legislation to save the sport

* * * the modification of existing antitrust laws has been equitably and thoughtfully drawn. The public has accepted this sport so completely (the bill) deserves

immediate attention."
42 PROFESSIONAL FOOTBALL LEAGUE MERGER

Pasadena Independent, September 26: "Pro football is only asking that it be

relieved of an immediate antitrust threat so that it may proceed with plans which

everyone close to the sport wants * * * there is no real reason why Congress

should not expedite the bill."

Associated Press radio column, September 22: "The news (of the agreement)

was warmly greeted by pro football fans * * * however, there have been roadblocks in the plan to get things moving * * * the chief fear is an antitrust objection that can cause a monkey wrench to be thrown into (the plan). A bipartisan

bill for immunity has been prepared in both houses in Washington. And many

sports fans are hoping the measure will pass."

San Gabriel Valley Daily Tribune, September 23: "Our primary interest in

success of the merger is whether it will improve the game viewed by the spectators. We believe it will * * * The merger (would) be advantageous to the

fans, the players, and the clubs * * * therefore we urge our Legislators to get

moving * * * if the bill can clear Congress by mid-October, merger plans can

proceed on schedule."

The CHAIRMAN. Does that conclude your preliminary statement?

Mr. ROZELLE. Yes, Mr. Chairman.

The CHAIRMAN. On page 4 of your statement, near the top of the

page you say that the only item to be exempted from the application

of the antitrust laws would be agreements among the member clubs of

the two leagues to combine into a single league.

Is that quite accurate? For example, it would not only be the agreement to bring the two leagues together

'

but it would also involve all

operations under the arrangement that you may make with the two

leagues together, is that not so?

Mr. ROZELLE. We take the position, Mr. Chairman, that it simply

gives us the right to operate as a single organization, that the practices

of that individual organization could be challenged by the Government or private parties just as they can be challenged today.

The CHAIRMAN. Do you not wish the antitrust exemptions to apply

to your bylaws and your constitution?

Mr. ROZELLE. No, Mr. Chairman. We are seeking 

The CHAIRMAN. Are you sure of that, Mr. Rozelle ? For example,

do you mean to say that you do not want the antitrust laws to apply to

the assignment of players, to player drafts, to player trades, to minimum salaries, to squad limits, to pension plans? You do want the

exemption to apply to that, don't you, and you want it to apply to television, 

do you not?

Mr. ROZELLE. We have a present exemption with regard to television.

The CHAIRMAN. Do you also want it to apply to closed-circuit television and pay television, too?

Mr. ROZELLE. No, Mr. Chairman, we are not seeking that.

The CHAIRMAN. Many of the documents that you submitted seem

to indicate that you are going into pay television, particularly for the

championship games. Now, would you want exemption from the antitrust laws for that also?

Mr. ROZELLE. No, we would not, and we will not have pay television

for the championship game.

The CHAIRMAN. Don't you think you should consult your lawyer on

that?

Mr. CAROTHERS. Mr. Chairman

'

the Senate bill as passed, read in

light of its report, makes it clear that the immunity granted extends

solely to the acts which put these two leagues together as a single

league. The Senate report says, "The proposed bill would not extend

to the combined league any greater antitrust immunity than that now

existing for the existing professional football leagues."
PROFESSIONAL FOOTBALL LEAGUE MERGER 43

The CHAIRMAN. What do the words on page 2, line 16 of the Senate

bill, mean? Do you have the bill before you?

"And the provisions of which are directly relevant thereto"?

Mr. CAROTHERS. That language was added by the Senate committee

to insure that the limited objective which we urged upon that committee would be achieved.

If we go ahead with this transaction, we carry a double burden.

We carry a burden of not only being vulnerable to the extent that any

single sports league is vulnerable under the antitrust laws, but we

would carry with us the historical fact that every practice that we

engaged in as a single league could be attributable to an agreement

dated June 8, 1966. Our sole request, as we have stated to both committees and as this committee report makes clear, is to permit us to

begin operations as a single league.

Mr. RODINO. Will the chairman yield?

The CHAIRMAN. Yes.

Mr. RODINO. Reading further in the Senate report on page 3, and

this intrigues me because as I understood your request, it was simply

that the joint agreement between the two leagues would be that which

would be exempted; that is, the merger, the bringing together of the

two leagues. But that would not be seeking through this merger to

resolve any antitrust problems that might arise which presently could

arise within the two leagues.

Mr. CAROTHERS. Our draft system as the practice of a single league

could be challenged under the antitrust laws under this bill. It could

not be challenged on the basis that an agreement of June 8, 1966, made

it a practice of a single league.

The CHAIRMAN. Mr. Carothers, to my mind, as a lawyer, I would

say that if it would just give you approval of the agreement, it would

give you an empty right; it would be just as worthless as a wine cellar

without a corkscrew. You would get nothing out of it; it would mean

nothing.

Your joint agreement, for example, I am reading on page 3, speaks

of the following: "To develop the mechanics and establish the principles under which the plan will be implemented."

You have to implement this plan. You want exemption from the

antitrust laws for the implementation of the plan and the implementation would involve all those factors I have elucidated—the draft, the

division of the funds from television and possibly pay television, and

the draft, player trades, the boycott, and so forth. If you did not

have all that, what would be the good of the bill? It would not be

worth anything.

Mr. CAROTHERS. But the exemption would only extend to those acts

as acts of bringing the two leagues together. It would not extend to

the practices of the league as a single league.

Let's take basketball today. Basketball has a single league; it has

a draft system. We do not know whether that draft system is vulnerable under the antitrust laws—

The CHAIRMAN. I think it is vulnerable. The football case makes

it clear that basketball and hockey are subjetc to our antitrust laws.

The statements seem to imply that there was immunity from those

sports • that is not true, and even—

Mr. ROZELLE. We di i not mean to imply that, Mr. Chairman.
44 PROFESSIONAL FOOTBALL LEAGUE MERGER

The CHAIRMAN. On page 3, in the words of the Senate report:

* * * Would not extend to the combined league any greater antitrust immunity

than that now existing for the existing professional football leagues.

Incidentally, that is not quite accurate, because the National Football League is now subject to the antitrust laws.

Mr. ROZELLE. Mr. Chairman, we say here "any greater antitrust

immunity." We do have antitrust immunity in the area of television.

That is the only reason that wording was in the Senate report.

The CHAIRMAN. You only have limited immunity?

Mr. ROZELLE. Yes, sir.

The CHAIRMAN. Then you say, expressed another way, the bill would

not give the expanded league any greater antitrust immunity than

that which other single-league professional sports such as basketball or

hockey now have.

I don't think that is quite accurate.

Mr. ROZELLE. Mr. Chairman, they, too, have immunity in the area

of television.

The CHAIRMAN. In the football case, the court implied that those

sports were subject to the antitrust laws. However, Mr. Harkins has

some questions.

Mr. HARKINS. Mr. Rozelle, to start, one phase of this problem is, in

fact, that there is no merger agreement at the present time, is that not

true?

Mr. ROZELLE. There is nothing signed, Mr. Harkins. There is an

agreement.

Mr. HARKINS. You have a document that you submitted to the committee which is entitled, "Recapitulation of Basic Terms Agreed to by

the Member Clubs of the National Football League and the American

Football League." Is this the agreement you are referring to?

Mr. ROZELLE. Yes, sir; it expresses the understanding that has been

reached between the two leagues.

Mr. HARKINS. But there is no executed document.

Mr. ROZELLE. There has been nothing signed; no, sir.

Mr. HARKINS. Is there a legal obligation upon the league to proceed

at this time?

Mr. CAROTHERS. There is an understanding that the situation will be

reviewed as it progresses. The ultimate decision will be made by 24

franchises collectively.

The CHAIRMAN. But at the present time there is no legal document

in existence binding anybody?

Mr. CAROTHERS. That document that you have, counsel, expresses

the understanding reached between the two leagues in total. I mean

by that that there are no signed agreements which have not been

submitted.

The CHAIRMAN. You could not enforce this agreement because nobody has signed anything. There is no present obligation. Don't

Quibble with me, Mr. Carothers, because I don't think that is helpful.

There is no present obligation; nobody has signed that document.

Mr. HARKINS. Not only is there no obligation, you have not even

agreed in principle on all the understandings you will have to have

to have a merger agreement; is that true?

Mr. CAROTHERS. May I speak to that, counsel?

Mr. HARKINS. Yes.
PROFESSIONAL FOOTBALL LEAGUE MERGER 45

Mr. CAROTHERS. In an ordinary business merger one company acquires the assets of another and that is the sum total of the transaction.

Mr. HARKINS. When do they have an agreement to merge?

Mr. CAROTHERS. I do not think the term "merger" is applicable.

Here every club is going to remain under its present ownership.

Mr. HARKINS. So there is no merger.

Mr. CAROTHERS. The putting of these two leagues together is a

process of applying to a single league all the rules that the National

Football League currently has in operation in its own single league.

Now, quite obviously that requires agreement on the constitution

and bylaws on squad limits, and a whole host of side agreements which

have no relevance to the antitrust laws, but are just steps in making

a single league operable.

Mr. HARKINS. But they are steps that are relevant to the combining

of the two leagues, is that right?

Mr. CAROTHERS. We have to agree on expansion cities; we have to

agree on where we will play the championship game; we will have

to agree on television arrangements; we will have to do all of those

and those could not be put in the basic document. So they are still

to come.

Mr. HARKINS. But until these additional agreements are made

'

the

parties are free to go their respective ways, is that true, without liability?

Mr. CAROTHERS. Yes, I presume that is a correct statement. But

these clubs have entered into this understanding in good faith and

they intend to abide by it.

Mr. HARKINS. They have an agreement in principle, in your document, "Recapitulation of Basic Terms." Your transmittal memorandum stated:

A number of additional understandings will be put in writing when time

permits. For example, there will have to be formal agreements with respect

to monetary payments. The joint committee will also have certain responsibilities in developing additional understandings to be effective during the interim

period, some of which have to be cleared with the league membership. None

of these will have any antitrust significance independent of the combination

itself and, in most eases, no antitrust significance whatsoever.

This is your statement.

Mr. CAROTHERS. Yes.

Mr. HARKINS. This is an accurate reading of your statement?

Mr. CAROTHERS. Yes, sir.

Mr. HARKINS. It is true, is it not, that document did not subject the

league or the club to any legal obligations under the antitrust laws?

Mr. CAROTHERS. We are already defendants in a $12 million lawsuit

based on actions not taken as a result of that agreement of June 8.

The CHAIRMAN. That does not make the claim valid just because

the suit was filed.

Mr. CAROTHERS. That is correct, sir.

Mr. HARKINS. You do not have a merger as of June 8, do you?

Mr. CAROTHERS. No, sir.

Mr. HARKINS. You do not have an organized plan as of June 8, do

you?

Mr. CAROTHERS. Yes; we do have an organized plan.

Mr. HARKINS. In operation?

70-605---66 4
46 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. CAROTHERS. No, we have delayed implementation of it until

this committee has had an opportunity to look at it.

Mr. HARKINS. Then, is it part of the organized plan to have additional understandings which until made you will have no obligations

amongst each other to go forward?

Mr. ROZELLE. The first step would be jointly selecting the two new

expansion cities. That should have been done

Mr. HARKINS. If you do not agree on that, what happens?

Mr. ROZELLE. We must jointly agree.

Mr. HARKINS. You don't have a merger unless you have that joint

agreement, right?

Mr. ROZELLE. You mean we could not have expansion if we could not

jointly agree?

Mr. HARKINS. You would not even have a combination.

Mr. Roz-ELT,E. I don't understand that, sir.

Mr. HARKINS. The purpose of this line of questioning is to see to

what extent you have reached an agreement to merge the two leagues,

to combine the two leagues. And the further thrust of the questioning

is to see if there is any obligation on the members at this time to go

forward on the basis of the understandings that have been reached

at this time.

Mr. ROZELTM. I think to some extent it is a matter of semantics. If

you wish to say we do not have a signed agreement and that therefore

it lacks legality, I would agree with you.

We have an agreement, the 24 people have accepted it, given their

word to it, we feel obligated to continue unless circumstances force

us to drop the plan.

Mr. HARKINS. But as commissioner of football, you have had occasions arise where you have relied upon the fact that the merger is

wholly executory at this time. In fact, you pointed this out to Mr.

K. S. Adams of the Houston Oilers Football Club in connection with

alleged tampering of player contracts. Do you remember this?

Mr. ROZELLE. Yes.

Mr. HARKINS. The Houston Oilers is a member club of the AFL,

is that not so?

Mr. ROZELLE. Yes.

Mr. HARKINS. And you were writing this letter as the commissioner

of the NFL?

Mr. ROZELLE. Yes.

Mr. HARKINS. In this letter you stated:

The plan for an expanded league at this time is wholly executory. Neither

league is in a position to take steps to implement it earlier than January 1967.

We committed ourselves to the Justice Department prior to the announcement

of the plan and confirmed this commitment in writing by letter which, I understand, was cleared with both leagues.
PROFESSIONAL FOOTBALL LEAGUE MERGER 47

What is this commitment you have with the Department of Justice

with respect to this merger?

Mr. ROZELLE. I would have our counsel speak on that.

I would like to make one point, however, Mr. Harkins. This is

necessarily being done in stages, when you talk about it being implemented. Certain things have already been done. The American Football League for this present season has altered some of its playing

rules, revised some provisions of its constitution and bylaws to conform with those of the National Football League, and removed the

title of commissioner and replaced that office with the title of president. In other words, steps that could be taken have been taken.

Others we feel must await consideration by this committee.

Mr. HARKINS. You do not feel, though, that the steps that have

been taken have resulted in a combination this far? The combination

that you seek to have--

Mr. ROZELLE. No we do not.

Mr. CAROTHERS. May I just add to that, that we conferred with the

Antitrust Division promptly—the same day of the announcement--

to give them an opportunity to evaluate it. We agreed with them

that we would do none of the implementing steps which we would

ordinarily have done until they had a chance to evaluate it.

As a result, we have had a responsibility to report to them when

any step was taken which had permanent significance or in any way

antitrust significance.

Mr. HARKINS. You have an agreement with the Department of Justice with respect to this?

Mr. CAROTHERS. We have an agreement to report to them and notify

them in advance of taking any of our joint steps.

Mr. HARKINS. With whom in the Department of Justice did you

make this agreement?

Mr. CAROTHERS. With Mr. Turner.

Mr. HARKINS. You refer to a letter, to this commitment by a letter.

I have not found such a letter in the documents you furnished to the

committee.

Mr. CAROTHERS. Yes, sir; Mr. Turner, of course, has the letter and

I have a copy.

Mr. HARKINS. Will you supply a copy for the record?

Mr. Chairman, I offer this document.

The CHAIRMAN. It will be accepted for the record.

(The letter to the Houston Oilers Football Club follows:)
48 PROFESSIONAL FOOTBALL LEAGUE MERGER

THE NATIONAL

1 ROCKEFELLER PLAZA,

1 July 1966

Mr. K. S. Adams, Jr.

Houston Oilers Football Club

6910 Fannin Street

Houston 3„ Texas

Dear Mr. Adams:

FOOTBALL LEAGUE

NEW YORK 20 . JUdson 2-5265

There has recently been called to my attention a number of newspaper articles in the Houston newspapers. I suggest that you

may be operating under some misunderstanding.

The plan for an expanded league is at this time wholly executory.

Neither league is in a position to take any steps to implement it

earlier than January 1967. We committed ourselves to the Justice

Department prior to the announcement of the plan and confirmed

this commitment in writing by letter which, I understand, was

cleared.with both leagues. Until league attorneys advise to the

contrary, this situation must continue with respect to all phases

of the operations of both leagues.

As a consequence, You are undei no impediment with respect to

player contract negotiations which did not exist before the plan

was announced. Within the limitations of your own league's

Constitution and By-Laws and ordinary legal principles,you are

free to conduct the affairs of the Houston Oilers in any fashion

you think best.

I think it only fair to warn you, however, that litigation between

franchises has often resulted when a club of one league has tampered with the contract of a player who still has playing time under

his contract with a club of another league. In some instances,

there have been substantial recoveries against the offending club.

PR:te

Sincerely,

PETE ROZE E

Commissioner

cuvo-v---c.A-t)

.44t ‘‘(.0 4n3
PROFESSIONAL FOOTBALL LEAGUE MERGER 49

'(IMr. Carothers subsequently submitted the letter to Mr. Turner,

which _follows:)

June 9, 1966

Drlivr,r,'d by hand

June 10, .1966

The Honorable Donald F. Turner

Assistant Attorney General

Antitrust Division

Department of Justice

Washington, D. C.

Res National Football League/American _Football League 

Dear Mr. Turner:

This will confirm our conversation concerning

the timing of the plan announced yesterday by the above

professional football leagues.

Initially, it should be understood that this

is not a merger or consolidation in any traditional

busineso sense. No exchanges of stock are required and

there will be no transfers of business assets. Each

present franchise remains under its present ownership.

The leagues are seeking prompt Congressional

endorsement of their plan and hope that legislation

clarifying the application of the antitrust laws to

professional football will be passed. At the end of the

present session the matter will be reviewed on the basis

of conditions as they then exist.

. Th3 first positive steps towards effectuation

of the plan will not take place before January 1967 when

a world championship gams will be played, followed by a

single player draft. Until then, the two leagues will

operate under their present league alignments and without

intor-league play. While individual league drafts have

formerly been held in November, their postponement until

after tho college season and college bowl game schedule

is in accordance with the expressed wishes of both the

colleges and members of interested Congressional committees.
50 PROFESSIONAL FOOTBALL LEAGUE MERGER

The Honorable Donald F. Turner

June 9, 1966

Page Two

During the interim period prior to full

integration of the leagues, Commissioner Rozelle will

serve as administrator of a committee to be designated

by the two leagues to confer on details of the plan's

implementation. No money will be paid and the pinn will

remain purely executory while arrangements for imi,-

menting the plan are being explored. You will be informed

of any additional proposed interim steps taken for

implementing the plan.

As I trust I made clear, the plan announced is

a single package which will ultimately stand or fall as

such. No variations are contemplated. Unless it becomes

possible to proceed with the plan as announced, an

expanded National Football League will not be possible.

Sincerely yours,

(Signed) GERHARL A. GISNII,

GAGiash

bcc: Mr. Rozelle

Mr. Hunt
PROFESSIONAL FOOTBALL LEAGUE MERGER 51

Mr. HARKINS. The proposal was negotiated for the AFL by Lamar

Hunt, the owner of the Kansas City Chiefs, and for the NFL by Mr.

Texas Schramm, general manager of the Dallas Cowboys; is that

correct?

Mr. ROZELLE. That is correct.

Mr. HARKINS. Is it true that the various owners for the past 2 or

3 years have had discussions to eliminate rivalry between the leagues?

Mr. ROZELLE. Yes; there were discussions. You have had club

presidents in each league, perhaps having similar business or social

contacts, talking informally for several years, usually those who were

more vitally interested in establishing a single league than others

were at that time.

Mr. HARKINS. So there have been negotiations, or at least

discussions 

Mr. ROZELLE. Not negotiations; I would term them informal

discussions.

Mr. HARKINS. On March 30, 1966, were you informally advised by

legal counsel, Mr. Carothers, to go ahead with the negotiation for a

combined league?

Mr. ROZELLE. Yes; that is correct. He said that discussions could

be entered into.

Mr. HARKINS. Are you familiar with the article by Mr. Schramm

that appeared in the June 20, 1966, issue of the Sports Illustrated?

Mr. ROZELLE. Yes.

Mr. HARKINS. And in general, does this article accurately set forth

the course of the negotiations?

Mr. ROZELLE. It does.

Mr. HARKINS. Would you agree that the primary objective of the

negotiations was peace between the leagues and a necessity of avoiding

an all-out war?

Mr. ROZELLE. I would say that the primary purpose for the plan

would be as follows:

To bring order and stability to professional football and to insure

competitive equality on the playing field, which we were losing.

I think that beyond that the personal reasons among the 24 club

presidents could roughly be put into 3 categories. I believe that all of

them shared the points that I just gave you. But there would be

three basic reasons:

1. You would have some clubs in both leagues feeling that continued escalation of player costs in this competition would result in

them either being forced to sell, fold, or move their franchise; in other

words, money was a factor.

2. I do not feel, however, when you review the names of some of

the people having professional football teams, that you could reasonably say that money would be the main factor for all of them. I think

in the case of certain types of owners, this is an avocation. Some people of means collect stamps, others might have boats, others would like

a football team. I think as an avocation they were losing interest

because of the litigation and controversies. It was not entertaining

for them.

3. You also have management people who coach as well. In the National Football League you might refer to George Halas of Chicago

or Vince Lombardi of Green Bay. They very strongly felt that con-
52 PROFESSIONAL FOOTBALL LE AGUE MERGER

tinuation of excessive bonuses and payments to players would cause

a complete deterioration of interest and morale on the playing field;

the veterans would become even more discontented.

Frankly, the players receiving these sums would lose the vital interest that has made the game great, lose their interest on the playing

field. That was the motivating factor, I would say, in the case of those

two coached clubs.

So you have different schools of thought that led to this decision.

Mr. HARKINS. This "all-out war" phrase is taken from the article

by Mr. Schramm in Sports Illustrated. That refers to the competition you have described in the competition for players?

Mr. ROZELLE. Yes; and raiding of veteran players, perhaps in both

leagues.

Mr. ROGERS. Mr. Chairman, may I inquire at this point?

When you speak of the competition for players, or equalization between the league; is this one of the objectives of this proposal that

we are now considering?

Mr. ROZELLE. It is one of the main objectives, Mr. Rogers. The

football franchise located in your constituency, the Denver Broncos,

has not over the last 6 years, I believe this is an accurate statement,

signed either their first or second draft choices. This has materially

affected the playing of the Denver team. This has also happened to

teams in the National Football League.

The intent of the draft was completely negated and some teams were

either unable to sign the quality players that their low standing in the

league entitled them to, because of competition in the other league,

or they would draft for signability. They would take a lesser player

feeling they would have a better opportunity of signing him.

Mr. ROGERS. What you are saying is that the system that has been

used has not made it possible for the competitive situation to exist

among the teams within the league?

Mr. ROZELLE. That is correct.

Mr. ROGERS. And that what you propose to do here is have a system

which will equalize it so that you can have competitive teams throughout both the leagues?

Mr. ROZELLE. Yes, sir; the player selection system enabled a community with some 78,000 people, Green Bay, Wis., to develop over a

period of years one of the finest football teams in the history of professional football to compete with teams from New York, Los Angeles,

and Chicago. That is what the selection system did for Green Bay.

But a Green Bay, and I would also question Denver and perhaps certain others today in the NFL, could not progress in that manner if they

were starting today under present circumstances.

Mr. ROGERS. Thank you.

Mr. HARKINS. Mr. Chairman, to return to the Sports Illustrated

article by Mr. Schramm:

At one place the article contains a summary called the major points

of the merger. It lists seven points.

Would you say that these seven points are accurately set forth?

Mr. ROZELLE. I assume that they are the major points. Certainly

there are others, as you are aware of through the documents we have

given you, but apparently 
PROFESSIONAL FOOTBALL LEAGUE MERGER 53

Mr. HARKINS. Do you have the article?

Mr. ROZELLE. I don't have the Sports Illustrated story here.

Mr. HARKINS. Point No. 6 says that American Football League

clubs will pay an indemnity of $18 million to the National Football

League over the next 20 years; is that accurate?

Mr. ROZELLE. Yes; that is $50,000 a year plus interest, per team, over

20 years will be paid.

The CHAIRMAN. What does that mean? What is the reason for

that $18 million to be paid over 20 years as an indemnity? It says the

American Football League will pay that to the National Football

League over a period of 20 years. Explain that, what does that all

mean?

Mr. ROZELLE. It simply means that in negotiating the single league,

this was requested of the American Football League clubs by the National Football League clubs and it was accepted by the American

Football League clubs.

The CHAIRMAN. The league that pays the indemnity; namely, the

American Football League, will not exist as a separate entity for 20

years, it is going to merge?

Mr. ROZELLE. That is correct.

The CHAIRMAN. How can it pay an indemnity if it is merged

Mr. ROZELLE. Each clubThe CHAIRMAN. What is the reason for the indemnity? I am

curious.

Mr. ROZELLE. I think it was the thinking on the part of some people

in the National Football League that the plan for equal division of

television which is part of this, would help the present American

Football League clubs; that more established teams would be playing

AFL teams 

The CHAIRMAN. This is the payment for television rights?

Mr. ROZELLE. No I am just saying this was just a payment for becoming part of the National Football League.

The CHAIRMAN. In other words, the American League is probably

the weaker and therefore it will enjoy greater privileges and greater

strength by joining in this league and therefore they must pay $20

million to the National Football League, which accords them or makes

possible this advantage; is that what is means?

Mr. ROZELLE. I guess that is a correct statement, Mr. Chairman.

The CHAIRMAN. How did you figure $18 million?

Mr. ROZELLE. It was a negotiated figure.

The CHAIRMAN. And that is in addition to other television arrangements that might be made from year to year or other periods with the

broadcasting chains?

Mr. ROZELLE. Starting 1970, there would be, of course, television

arrangements made to accommodate 26 or 28 teams, and all television

income would be shared equally among those teams, whether the team

would be located in New York City, Green Bay or Denver.

The CHAIRMAN. Later we will ask you something about pay TV

and there is some very interesting material on that score. Would

that be in addition to the sharing o f pay TV, this $18 million also?
54 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. ROZELLE. In regard to pay television: (1) Pay television is

specifically excluded, as you will recall, in the 1961 television statute.

in. other words, it is specifically excluded from antitrust immunity

operating as a league, a pay television program and (2) the National

Football League's present contract with CBS prohibits any form of

pay television.

The CHAIRMAN. We will come to that in a moment.

Go ahead, Mr. Harkins.

(The article from Sports Illustrated follows:)
PROFESSIONAL FOOTBALL LEAGUE MERGER 55

Sports Illustrated

JUNI 20. 1•••

HERE'S

HOW IT HAPPENED

EX SCHRAMM as told to TEX MAULE

•

The end of the costly, six-year war between the National and American Football leagues was the result of long secret

talks. The general manager of the Dallas Cowboys, who was the NFL's principal negotiator, now reveals the details.

The 

peace talks that led to agreement

betweeriihe National l-ootball

League and the American began and

.ended near a statue of a Texas Ranger at

the Love Field airport in Dallas, Texas.

They started on April 6 of this year,

when Lamar Hunt, the owner of the

Kansas City Chiefs and one of the

founders of the American Football

League, interrupted a trip from Kansas

City to Houston to meet me at the Dallas airport. I was waiting for him as inconspicuously as possible in the shadow

of the Ranger's statue; at this point we

did not want to be seen together.

A little over two months later we got

off a plane from Washington together

and parted at the statue of the Ranger.

The deal between the two leagues had

been completed after difficult negotiation, and Lamar looked up at the

statue and said, "Here we are back at

the Ranger again, but it doesn't make

Al hls Dallas home, Schramm explains that

thus Oil Is no formal writ,on place pact.

any difference if anyone sees us or not

this time."

There has been considerable speculation on what finally brought about a

peace. Some think that when the Giants

signed Pete Gogolak, the Buffalo kicker,

and the AFL began to retaliate, the two

leagues ran for cover to avoid spending money. Some people think that this

happened because of the Roman Gabriel case on the Coast or the John Brodie case in Houston. But the negotiations were well under way before Gogolak was 'signed or Gabriel was aprrM2etr-b-i-dakland or John Brodie,

the San Francisco quarterback, visited

Houston. In fact, the Gogolak, Gabriel

and Brodie cases were stumbling blocks

to negotiation.

There had been serious discussion between individual owners in the two

leagues for two or three years. You

• would hear that Sonny Werblin of New

York had been talking to Carroll Rosenbloom of Baltimore or that Ralph

Wilson of Buffalo had discussed peace

with Art Modell. A certain amount of

ground work had been laid before my

meeting with Lamar in Dallas.

I had always thought that if a proper

plan could be worked out, peace was

feasible. Sometime late in FebruaLy,in a

telephone conversation I had with Dan

Reeves, the owner of the Los Angeles

Rams, we explored the possibilities of a

deal and tried to figure out what might

be the essentials acceptable to the NFL

owners. After talking it over with Dan,

I called Pete Roselle.

Pete and I decided that we should

keep the early stages of a peace plan limited to the people most directly involved

—Wellington Mara of the New York

Giants and Lou Spadia of the San Francisco 49ers, the NFL owners in two-team

cities—until it was developer! further.

We felt that if the NFL could come up

with an acceptable plan that was good

for the sport, it could then be presented

to the American Football League. If they

liked it, fine. If not, we could settle down

to an all-out war. At the continued
56 PROFESSIONAL FOOTBALL LEAGUE MERGER

HOW IT continued

moment we were half fighting and half

making love. We wanted the decks

cleared.

Pete and I outlined a plan to Mara

in a telephone conversation in early

March; it was, in rough outline, the

same plan that was eventually accepted

by both leagues. Wellington was something less than enthusiastic, but he said

that if the basics of the plan were strong

enough so that the rest of the owners

accepted it, the special New York problems could probably be solved.

Then I flew out to San Francisco to

try to convince Lou Spadia that a deal

could work. Lou's problem in San Francisco was a tough one. New York had

shown that it was feasible for two pro

clubs to exist in that city, since the

Giants were sold out on season tickets

and the Jets had a healthy season-ticket

sale of their own. San Francisco, on the

other hand, is not as big as New York

and past history had raised some questions about the success of a two-team

market. Lou met me at the airport, and

we drove to Palo Alto for lunch.

Lou pointed out, reasonably enough,

that he did not mind competing with

the Oakland Raiders in San Francisco

as long as they were in the AFL and he

was in the NFL with exclusive use of

NFL teams as opponents. He was not

so sure that two NFL clubs could succeed in that area. He pointed out that

San Francisco proper is an area bounded on three sides by water, with very

little room for growth. The 49ers played

in San Francisco's 41-year-old Kezar;

the Raiders played in Oakland across

the Bay and the growth area in northern

California was there.

I had arrived at the airport at 11 in the

morning, and Lou took me back at 5 in

the afternoon. After six hours of discussion Lou was, to put it mildly, still not

enthusiastic. But he understood what

we were trying to do, and he agreed not

to put any stumbling blocks in our way.

The next step was to discuss the whole

thing with the NFL attorneys before

approaching anyone in the American

Football League. I talked to Hamilton

Carothers, a mem-157ToTTlirrns uThigTa

firm of Covington & Burling, on March

30. After he and Pete and I went over

the various legal and political aspects of

the thing at some length by phon‘lis_

saidizo ahead, informally. Then Pete and

I went over the fisf-o—f American Football League owners, looking for the

best one with whom we could negotiate.

We wanted an owner who had prei-•

tige, the desire for peace, time to work

on the problem, no personal prejudices

—and who could keep his mouth shut.

Lamar filled the requirements perfectly,

and also he was one of the founders of

the league. As a small unpremeditated

plus, he lives only a few blocks from

me in Dallas—which was to simplify our

meetings later on.

So on Monday, April 4, I called Lamar in Kansas City and asked him if he

could meet me in Dallas. He said he

would arrange his travel from K.C. to

an AFL meeting in Houston so that he

would have an hour and a half layover

in Dallas. His plane arrived in Dallas a

little after 7 in the evening, and we met

under the Ranger statue, then went out

and sat in my car in the parking lot. I

laid out the general plan for him and he

listened intently, asking a question now

and then for clarification. I told him

that this was not just conversation, that

Rozelle knew about it and approved,

but I explained that only a few of our

owners were aware of it and suggested

that he keep it as confidential as possible for a while, at least until we resolved the problem of the two-team

market. Pro football owners are individualists and competitors who like to

compete in public. At this stage 24 owners would have made the discussions too

unwieldy, so I suggested to Lamar that I

be his only direct contact in the NFL and

he would be mine in the AFL.

I did not hear from Lamar before going on a brief vacation. In the meantime,

at the AFL meeting in Houston, Joe

Foss resigned and was replaced by Al

Davis. None of this seemed to be too

important at the time. I went to Clint

Murchison's island on April 12, with my

wife and the Roaches and four other

couples, and stayed there until April 17,

when my wife and I flew on to Jamaica.

During this time another problem had

developed. Wellington Mara had come

across information that Sonny Werblin

was negotiating for the sale of the New

York Jets. Also there were newspaper

stories that Barron Hilton would sell

the San Diego Chargers. One of the early

problems in the peace talks was whether

the Jets and Raiders would stay in New

York and Oakland. Since these things

had a bearing on the situation Lamar

Hunt was informed of them. Lamar

investigated the stories and reported to

continued

Wooed by NFL, Linebacker Tommy Noble

enjoyed party at New York's Latin Quarter.

After spiriting Aaron Brown away from NFL

sitter, Lamar blunt signed hint for AFL fee^
PROFESSIONAL FOOTBALL LEAGUE MERGER 57

SOME SIGHTS YOU WON'T SEE ANYMORF

V '7

4 ' -

When Halfback Ron Medved was married to AcIrlan Montbroussous, NFL babysitter John Merrill (left) went along. arranged honeymoon, later signed him.

NFL baby-sltier Maurice Murphy (410 established Joint Occupancy of End

Robert Dunlevy's Washington hotel room, stayed until he 'pined Cowboys.
58 PROFESSIONAL FOOTBALL LEAGUE MERGER

HOW IT HAPPENED rorteinued

us that they would not affect the talks.

Meanwhile, Spadia in San Francisco

was growing more and more unhappy,

and Pete and Wellington flew out to San

Francisco to talk to him on April 21

or 22. I was supposed to go from Jamaica to Panama on May 1 for some fishing, but I canceled the trip so that I

could return to Dallas and resume the

talks with Lamar. As it turned out, I

came back on April 29 because of a flood

that nearly washed my house away.

My next meeting with Lamar was in

his home at 9 a.m, on the morning of

May 3. His home is not far from the

Dallas Cowboy office, so the meeting was

convenient and inconspicuous. At this

meeting we discussed the questions as

they existed at the time—primarily to resolve the New York and San FranciscoOakland area problems, and for the

first time I told Lamar how much I personally thought it might cost the AFL.

He didn't show much emotion. Luckily,

he is a very quiet, unruffled personality.

I could not have had a better man to negotiate with. I'm emotional, and I have

a tendency to lose my temper. The few

times I lost it with Lamar, he simply sat

quietly and never flared back.

After this meeting he said he would

need another week to think over the proposal. He called me the following Monday, and we met at his home again on

Tuesday, May 10. Until this meeting

Lamar had been noncommittal. Now he

felt any problems could be solved, and

for the first time I thought we had a

good chance for success. I called Pete

and told him of Lamar's reaction.

The NFL meeting was scheduled for

Washington beginning May 16. Pete

suggested that I come to New York early

so that we could have a meeting with

Wellington and Lou Spadia. The meeting took place at the Plaza on the

evening of May 13 at 9 p.m., and it

did not go too well. Lou was still unenthusiastic, and Wellington seemed less

receptive than he had been previously.

I did not know at the time that he was

contemplating signing Pete Gogolak.

The next day I had lunchmith Rozelle,

and we came to the conclusion that the

time was not ripe to present the idea to

the league meeting. We decided that we

would approach the owners one or

two at a time and sound them out in

general terms. This way we could get a

go-ahead without any premature publicity or a big stir.

Then on Tuesday at the meeting Well

dropped his Gogolak bomb. His signing

of the Buffalo place kicker was perfectly legal and aboveboard, but it obviously came at a bad time for peace negotiations. Far from triggering an agreement

between the leagues, it almost ended the

possibility of peace. At a time when we

wanted the owners in as harmonious a

mood as possible, it created division and

anger. And, of course, it created even

more problems for Lamar.

I talked to Carroll Rosenbloom and

Art Modell, who had talked to AFL

owners a year ago, and to Edward Bennett Williams, Vince Lombardi and Dan

Reeves, explaining to them the real prospects for a deal and asking their help in

talking to the other owners so that there

would be no open division at the meeting. They agreed that the prime objective

At this New York discussion Well

said he would go along with us, and

Spadia said he thought it would be agreeable to the 49ers under certain conditions. But he wanted to review the entire

matter with the controlling stockholders

of the 49ers, the widows of club founders Vic and Tony Morabito. He set up a

meeting with them for Tuesday, May 24.

I flew back to Dallas Saturday night,

May 21, and started a string of almost

sleepless nights. Pete decided during the

next week to discuss with club presidents

the details of the proposed plan, leading

to final approval. Tuesday, May 24, I

flew back to New York, ostensibly to discuss a club TV problem but actually to

meet with Pete and some of the othqr

owners. He net up meetings with the

Rooneys, Jerry Wolman, Bill Ford, Modell and Mugs Halas, all of whom came

THE MAJOR POINTS

OF THE MERGER

I Pete Roselle (above) will be commissioner.

2 The leagues will play a world championship game this season.

3 AU existing franchises remain at present sites.

4 A common draft will be held in January 1967.

5 Two franchises will be added by 1968, one stocked by the NFL, one by the AFL, but

both franchise payments will be made to NFL.

fi AFL clubs to pay indemnity of $18 million to NFL over 10 years.

7 Mterleague preseason gatnes will be played in 1967, single' schedule in 1970.

was peace and they did a fine job. I

called Lamar and told him not to panic

about the Gogolak thing.

On the last day of the league meeting

Pete told the owners of the possibility of

a deal and named a group to meet in New

York the next day. Its members were

Mara, Spadia, Lombardi, Rosenbloom,

Modell, Stormy Bidwill of the St. Louis

Cardinals and me. I was expected back in

Dallas that day, so I called my wife and

told her to tell anyone who called that I

had stayed over for the Preakness. I had

to remember to watch the Preakness on

TV in case anyone asked me about it.

to New York, and outlined the deal for

the other owners on the telephone. Everything went smoothly until we got to

San Francisco. After his meeting with

the widows, Lou Spadia had renewed

reservations.

So Pete caught a plane to San Francisco Thursday evening, May 26, and

met with Spadia on the 27th. He called

me in Dallas later that day to say everything looked O.K., and I suggested that

become to Dallas for a couple of days so

that we could finalize the general terms

of the plan. Pete came in that night for a

quiet weekend, and I told my daughter
PROFESSIONAL FOOTBALL LEAGUE MERGER

not to mention that he was there. She

nicknamed him "Sneaky Pete," but she

kept quiet. She could not help overhearing our talk, though, as Pete called various club presidents, and at one point

she asked incredulously, "Mom, are they

talking about peace?" My wife had to

threaten her with mayhem if she did not

keep quiet.

So Saturday, Sunday and Monday,

with Pete working on a borrowed typewriter, we made notes on the plan, and

Pete called all the owners, developing a

common ground everyone agreed on.

By Monday—Memorial Day—we had it

all squared away. The American Football League had not heard this version

yet, so Sunday night I called Lamar

Hunt, who was in Indianapolis for the

500, and asked him if he could come directly to my house in Dallas after the end

of the race the next day. He said he could.

Lamar was having trouble with some

of his people at this time. They seemed

to feel that the NFL was setting some

kind of booby trap for them. For the first

time Pete talked to Lamar on the phone

that Sunday night to reassure him of the

good faith of the NFL and to let him

know that this was not just conversation

with me. Lamar was delayed the next day

when the 500 was held up by the big accident. He was supposed to get to Dallas

about 7:30, and I was waiting nervously

for him to call. Pete had gone back to

New York. About 7:50 the phone rang

and I jumped a foot, but it was Clint

Murchison, the Cowboy owner. I told

him I was waiting for Lamar's call and

that he had startled me. Some 20 minutes later the phone rang again. It

was Clint again, and all he said this time

was "Boo!"

Lamar finally called about a quarter

after 9, but we were both too tired to

meet that night, so he came around the

next morning, May 31. I gave him a

yellow pad and a pencil and then explained the plan using the five pages of

notes that Pete and I had produced.

Lamar made no comment as I talked,

other than to question points for clarification. When I had finished, I said,

"There it is. If you accept, this deal has

been approved by every NFL club. If

you have to alter it too much, it will

blow up."

I ought to make it clear here that Lamar and I, in all the hours we talked

about this, never argued bitterly. We were

on the same side of the fence, doing our

best to reach a reasonable settlement

for both leagues.

After this meeting Lamar went to New

York, to the Regency Hotel, with his

notes. He was to meet with Ralph Wilson

and Billy Sullivan there. This, incidentally, was the first time I knew Lamar

had a committee. My discussions were

always with him alone. I heard from him

again later in the week, by telephone.

He gave me a list of 26 points of differences or additions. Some were minor,

some were not.

1 called Pete in New York, and we

went over the 26 points. Either they

presented no NFL problems, or Pete

took them up with the clubs involved by

phone. About a third of Lamar's points

were acceptable, another third were not

and that left a third to be worked out.

A lot of the differences involved simple

problems of wording. Even now, there is

no formal written agreement between the

two leagues other than a few notations

made by the participants.

After I talked to Pete I called Lamar.

It seems a roundabout way to do things,

but that's the way it went for a few hours.

Pete and Lamar were about 10 blocks

apart in New York, and they negotiated

by phone through me in Dallas.

My next meeting with Lamar in person

was on Sunday night, June 5, at my home.

We went over the master plan, point by

point, and we went over the replies to the

AFL's 26 points and by the time we finished that session, at 11:45 p.m., there

were only a few items of disagreement

left. The big bone of contention was on

a question of expansion. The NFL and

the AFL would each add a team during

the four years before the actual combining of the leagues. The NFL owners

wanted the AFL to provide the players

for the new AFL team, but the payment

for the new franchise would go directly

to the NFL. That was the way it was

settled.

Finally Lamm- left to fly to New York

early the next morning, and that day,

Monday, June 6, we were in almost constant telephone contact, clarifying points.

We reached tentative accord around midnight, Dallas time. I called Pete, and he

got the approval of the NFL owners by

phone by late morning on Tuesday, June

7. It had been planned to appoint committees from both leagues to clear up details and handle the release of the story

in a deliberate fashion, but by now rumors were flying and stories were appear59

ing hourly that contained incorrect information. Pete talked to our Washington attorneys, and they advised that we

release the news in proper form as soon

as possible. They set up dates with Senator Philip Hart and Representative

Emanuel Celler for Pete, and the original

plan was accelerated. Then we arranged

to meet in Washington with attorneys,

and I called Lamar in New York.

We tried a little cloak-and-dagger here,

reasoning t ha t TriTrordrslittwed1;15-trr •

Washington some alert reporter might

discover what was up. "We'll take a suite

at the Sheraton-Carlton under a fictitious

name," I told Lamar. "When you get

there, go right up. Don't register under

your own name." He agreed and hung up.

Unfortunately, I had forgotten to give

him the fictitious name.

A friend of mine made the reservation

for us under the name of "Ralph Pittman." Pe_ts_urixe41...i-4arly afternoon,

signed in as Ralpl_LP,Itlagja.,and then he

went to the leaue attorney's office, where

1 joined him that evening. I suddenly

realized that Lamar did not know the

name under which we registered, so. I

called the desk at the Sheraton and probably created instant confusion. "If a

Lamar Hunt comes in and asks for Pete

Rozelle or Tex Schramm," I said, "tell

him that they are in the Ralph Pittman

suite. I am registered there, but my name

is Schramm."

Fortunately for all of us, Lamar's plane

was delayed, and by pure coincidence he

arrived in the lobby of the hotel just as

Pete and the attorneys and I returned to

the hotel, around 9 p.m. Then we all

went to the Ralph Pittman suite and

worked until 3 a.m. on the wording of

the publicity release. Pete, late Tuesday

afternoon, had conferred with Senator

Hart on the legal and political aspects

of the plan, and Wednesday afternoon

he talked with Representative Celler.

We set up the press conference at the

Warwick in New York for 6 p.m. Wednesday, and we were 15 minutes late

because of traffic on Sixth Avenue. Maybe we were a long time coming to this

peace, too. But I'm sure it is not too late.

After long and difficult .negotiations

involving concessions by people in both

the American and the National Football

leagues and recommendations by our

attorneys, we feel the plan devised and

announced is one that the public wants.

It should bring about a better and more

orderly era in professional football. amp
60 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. HARKINS. Mr. Chairman, Mr. Rozelle, the document entitled

"Recapitulation of Basic Terms," which you delivered to the committee, on page 7, subparagraph 5, says:

"The present AFL clubs will pay a total of"—and then it has a

blank—"including principal and interest."

Is the figure that should be inserted there $18 million?

Mr. ROZELLE. I would like to have our counsel speak to that, because there are tax ramifications, Mr. Harkins.

Mr. CAROTHERS. One of the reasons that this is not an executed document at this time is that agreements for exchange of monetary

amounts were agreed to, but as always happens in a transaction of

this character, later tax consequences are discovered, and as a result

the figure that will go into that agreement will be a figure representative of payments agreed upon minus whatever the tax consequences

of the exchanges are.

Roughly speaking, it would be in the neighborhood of, I would estimate, $22 million.

Mr. HARKINS. This indemnity, then, is a tax-free indemnity?

Mr. CAROTHERS. No, sir.

Mr. HARKINS. It is going from $18 to $22 million. I do not understand your explanation.

Mr. CAROTHERS. The figure will include a figure that represents $18

million plus basically the residue after taxes of the franchise expansion sum derived from the 26th franchise.

Mr. HARKINS. This will be an amount of money to be paid by the

present American Football League clubs to the present National Football League clubs?

Mr. CAROTHERS. Over a 20-year period, and it represents principal

of roughly $50,000 per AFL clubs per year plus interest.

Mr. HARKINS. This document, "Recapitulation of Basic Terms,"

indicates that the two leagues believe that -unification cannot be

achieved before 1970. That is your objective?

Mr. ROZELLE. Full unification; yes, sir.

Mr. HARKINS. During the interim period prior to 1970, the "Basic

Terms" outline different procedures in provisions (a) through (q) for

a number of different operations. Is this, in fact, accurate?

Mr. ROZELLE. Yes.

Mr. HARKINS. For example, regular season games between the

two leagues will not be played before 1970?

Mr. ROZELLE. Yes.

Mr. HARKINS. However, preseason games will begin in 1967?

Mr. ROZELLE. Yes.

Mr. HARKINS. Before 1970, the clubs of the two leagues will not be

permitted to have a player trade?

Mr. ROZELLE. That is correct.

Mr. HARKINS. In 1967, however, a championship playoff game is

contemplated?

Mr. ROZELLE. Yes.

Mr. HARKINS. Would it be necessary to have a merger for the two

leagues to have a championship playoff game?

Mr. ROZELLE. Legally, no. Factually, we feel, yes, for the following

reasons:
PROFESSIONAL FOOTBALL LEAGUE MERGER 61

One, we do not feel that you can, in effect, hit each other over the

head for all but one day of the year. You cannot have raiding of

players and compete as aggressively as we have been doing and then

get together and play a football game.

As an example, if you had squad raiding between the leagues_, it

would be tantamount to the Brooklyn Dodgers and Baltimore—rather,

the Los Angeles Dodgers, Chairman Celler—and the Baltimore Orioles

meeting in the world's series a year from now and the Dodgers then

having Palmer, McNally, and Bunker pitching for them. We just do

not feel that, from a practical standpoint, it can be done.

Two, we feel if the game is to be successful, it must be highly competitive, and we feel to be competitive over the long run we must have

a single draft to insure balanced competition for that game.

Mr. HARKINS. Do you think there would be any interest this year

in a championship game between the two leagues?

Mr. ROZELLE. Yes.

Mr. HARKINS. Are they equally balanced now?

Mr. Rozn-J.E. I do not think anyone can answer that until they play,

Mr. Harkins.

Mr. HARKINS. But you do not have to merge to find out?

Mr. ROZELLE. Legally, no.

Mr. HARKINS. As Commissioner, you are to be responsible for the

television arrangements for the championship playoff game?

Mr. ROZELLE. Yes.

Mr. HARKINS. And you have discussed with the joint committee that

has been established the possibility of carrying this championship

game on closed-circuit television?

Mr. ROZELLE. I did not originate that, Mr. Harkins. A member of

the committee raised the question. It was discussed and completely

rejected by myself.

The CHAIRMAN. Pay television would yield to the owners far more

money than free,open TV.

Mr. ROZELLE. Since the players recieve most of the money from such

telecasts, they would receive most of the money. However I do not

think it would be compatible to put that game on a pay-TV basis. I

think it has to be carried on free television.

The CHAIRMAN. If we pass this bill in effect, would we not be putting

the imprimatur of approval upon your leagues, or your merged

leagues, to conduct the world championship games with the use of

closed-circuit or pay television?

Mr. ROZELLE. We do not feel that it would, and if there are any

questions in your mind, we would settle for a very firm declaration to

the contrary in the committee report on this bill.

Chairman CELLER. I did not get that.

Mr. ROZEILE. We do not feel that approval of the bill will have that

effect, but if you had any reservations, we would certainly be satisfied

with a strong statement to the contrary in your committee report.

The CHAIRMAN. I do not know what effect the statement in the

committee report would have. Would you agree that you would

not use pay television for your championship games?

Mr. ROZELLE. I certainly would, Chairman Celler. We have no

plans to use pay-TV other than as we did on one occasion in the past.

We did have theater closed-circuit television in the city of Chicago,

70-605-66-5
62 PROFESSIONAL FOOTBALL LEAGUE MERGER

when we had the NFL championship game there in, I believe, 1963.

In that instance, the live telecast was not carried in the city of Chicago.

But I would certainly agree that we would have our game carried on

free regular network television.

Mr. HARKINS. Mr. Chairman.

The CHAIRMAN. Yes, Mr. Harkins.

Mr. HARKINS. Mr. Rozelle, at the July 21, 1966, meeting of the joint

committee did Mr. Wilson point out that the closed-circuit television

of the championship games could mean $25 to $30 million in revenue?

Mr. ROZELLE. He expressed that as his opinion. I advised him I

felt that was not a valid estimate, No. 1; and, No. 2, that we would not

have closed-circuit or pay television on that game.

Mr. HARKINS. Will you identify Mr. Wilson for us?

Mr. ROZELLE. Mr. Wilson is president of the Buffalo Bills.

Mr. HARKINS. I will continue reading the minutes:

An informal poll indicated that four of the members present were, in favor of

the Rose Bowl as the site for the game; one preferred Miami and one was open

on the matter.

Mr. Sullivan suggested that the formula used for the Army-Navy game which

made tickets available to Congressional people could be considered for this game.

Commissioner Rozelle suggested that it might be possible to try closed circuit

television on an experimental basis in Los Angeles if the game were held in the

Rose Bowl.

He also pointed out that the blackout policy would create pressure from the

Los Angeles press. It was agreed to send out newspapers there in advance for

reaction to the Rose Bowl as a site for the game.

Commissioner Rozelle agreed to check with the Rose Bowl people on its availability and report back to the committee. He recommended doing nothing regarding television arrangements at this time.

Is that an accurate statement of what transpired?

Mr. ROZELLE. Yes; it is, Mr. Harkins. As I explained, the only consideration in my mind given to pay television was that cited in the case.

If the game were played in Los Angeles, and the live telecast were not

carried there, then we would consider doing as was done in Chicago in

1963.

Mr. HARKINS. If this merger goes through, will professional football games be moved from free TV to pay TV?

Mr. ROZELLE. We have no plans to do that. That will not be done.

MT. HARKINS. However 

Mr. ROZELLE. The 1961 statute, Mr. Harkins, does not give us immunity from antitrust problems in that regard.

Mr. HARKINS. The statute does not apply to contracts made by individual clubs, does it?

Mr. ROZELLE. That is correct.

Mr. HARKINS. Television has been a matter that has been of crucial

importance throughout the negotiations for this merger proposal; is

that right?

Mr. ROZELLE. No; I would say that is not correct.

Mr. HARKINS. However, television does figure in the Basic Terms

that have been provided?

Mr. ROZELLE. From the standpoint that the agreement provided that

television income would be shared equally among all clubs starting in

1970, that is correct.

M. HARKINS. The Basic Terms, for example, in section 4 (d) , provide that until 1970 each league will have independent responsibility

for its television arrangements?
PROFESSIONAL FOOTBALL LEAGUE MERGER 63

Mr. ROZELLE. Yes.

Mr. HARKINS. However, after 1970 there will be an equal division

from all leagues increasing the television income among all the clubs

in the expanded league?

Mr. ROZELLE. Yes; that is primarily because of the existing television commitments of each league.

Mr. HARKINS. This applies to only free television income and does

not apply to any pay or closed-circuit television, is that not so?

Mr. ROZELLE. Yes; because pay television income was just not considered, Mr. Harkins. Our plans are to have 

Mr. HARKINS. Was not considered?

Mr. ROZELLE. In discussions between the AFL and the NFL, the

only thing considered was the plan starting in 1970 to be on commercial

television and share the money equally among the 26 or 28 teams that

may exist at that time.

Mr. HARKINS. However, the annual meeting of the National Football League in the Plaza Hotel, New York, on June 30, 1966, there

were discussions of this among the National Football League owners?

Mr. ROZELLE. Within the NFL, yes.

Mr. HARKINS. And page 6 of the minutes state as follows:

Commissioner Rozelle announced that the Giants and the 49ers had agreed to

waive television indemnification, a point in the recapitulation of terms discussed

in yesterday's meeting.

Mr. Leahy discussed the division of regular season television income (Point

3(c) of terms) explaining that this meant that everyone would be committing

to a single network with equal division of income; that everyone would be committing to an arrangement whereby any club organizing its own network would

pool and divide its income; this excludes pay and closed circuit television—every

club would be free to arrange pay television on its own, subject to whatever

rules are adopted by the league on this matter.

Is that an accurate statement of what Mr. Leahy said at that meeting?

Mr. ROZELLE. Yes, the reference there, Mr. Harkins, was to having

a form of theater or pay television, if it ever came about, in the home

city, when the home team was playing at home within the so-called

blacked-out area. But that could be only done with the permission of

other teams in the league.

Mr. HARKINS. Mr. Modell also "suggested and it was agreed that this

should include network preseason game income. Mr. Modell also suggested that pay and closed circuit television income be pooled also."

Is that accurate?

Mr. ROZELLE. Yes.

Mr. HARKINS (reading). "Following discussion it was agreed that

this point does not include pay television."

Mr. ROZELLE. That is correct.

Mr. HARKINS (reading) : "Mr. Schramm stated this was the understanding by all parties concerned."

Have the NFL and AFL, the negotiating parties, discussed this at

the negotiations?

Mr. SCHRAMM. No we did not discuss pay television at all.

Mr. HARKINS. What do the minutes mean when the minutes say 

"Mr. Schramm stated this was the understanding by all parties concerned?"

Mr. SCHRAMM. Our discussions were limited only to free television.

We did not even discuss pay television.
64 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. ROGERS. Mr. Chairman, may I interrupt at that point?

As I understand from what Mr. Rozelle has said, there is no intention at the present time of having the closed-circuit television in

operation within the combined league is that an accurate statement?

Mr. ROZELLE. The only plan is for free network television. Our

present thinking is that because of the logistics of handling perhaps

13 or 14 games on a Sunday afternoon, it would require at least 2

networks.

Mr. ROGERS. But since you do not have any plan ot have the closed

television setup, there would be no objection, as I take it from what you

have to say, for the law to ban the TV closed circuit in this operation.

Would there be any objection to that?

Mr. ROZELLE. Well, we would certainly accept a position that we

were not given clearance for pay television by this. The only thinking

that has been conducted in the National Football League for which I

can speak in recent years has been the possibility someday in the future

of simply enlarging the stadium, in effect, when a team is playing at

home and that area is blacked out by having some form of local pay

television, if it ever becomes practical.

But elsewhere, outside of the city where the game is being played,

all of our plans are directed toward free, network television.

Mr. ROGERS. Well, there has been some claim that if this legislation

was passed, that it would really do away with the regular broadcast

of television and eliminate our sit-ins and those who stay at home from

looking at the game unless he has the pay.

Mr. ROZELLE. That is why I suggested to Chairman Celler that, if

he has any concern about this bill giving us that right, some strong

language in the committee report to the effect that it does not give

us that right will be perfectly satisfactory.

The CHAIRMAN. I think you went further and said you would be

willing to have the act itself proscribe pay television.

Mr. ROZELLE. Yes, sir; we would like to discuss the language, but

if the committee report itself would not be strong enough, certainly

we would have no objection to adding it to the act.

Mr. ROGERS. Thank you.

The CHAIRMAN. Proceed.

Mr. HARKINS. Mr. Chairman, Mr. Rozelle, notwithstanding the circumstances that your plans are still nebulous and that perhaps pay

television will be restricted to operations of individual clubs, is it not

so, that the basic terms as submitted as the agreement, which is the

subject of this proposed legislation, contemplates that after 1970 each

club will be free to arrange pay television on its own, subject to whatever rules are adopted by the league?

Mr. ROZELLE. The only thing that has ever been considered, Mr.

Harkins, was the idea that, if pay television became feasible, the League

might have a form of pay television in the city where the game is

played and where free television is not carried so as to not compete

with attendance at the game.

Mr. HARKINS. In fact, there are arrangements regarding the pooling of income from television. I will continue reading the minutes

of the annual meeting:

An informal poll regarding the pooling of pay television income showed that

thirteen clubs were in favor of this and two passed on the matter at this time.
PROFESSIONAL FOOTBALL LEAGUE MERGER 65

Commissioner Rozelle recommended that the Joint Committee check this with

the AFL Joint Committee.

Have you checked it, at this time, with the AFL Joint Committee?

Mr. ROZELLE. No; it has not been discussed with them.

This was simply a thought for the future that was brought up at the

meeting rather late. So long as we are talking about sharing, if pay

television ever comes about, why do we not agree now to share it?

There was discussion on the matter, but it was certainly not a discussion of the demand to go into pay television. It was simply if it ever

came about, why do we not now agree that it be shared equally?

Mr. HARKiNs. But this is relevant to the joint agreement that is

being submitted here for clearance in bill S. 1387, is that not right?

Mr. ROZELLE. I do not know if it is relevant or not, Mr. Harkins,

but I will repeat again, we have no plans for pay television. I will say

that the club presidents certainly have considered it, as has everyone

in sports. We would be most agreeable to discussing with you language for the committee report or for the bill itself that would satisfy

your concern in the matter of pay television.

Mr. MACGREGOR. Mr. Chairman, if I may for just a moment, may

I have the floor just to ask a question or two?

The CHAIRMAN. Yes.

Mr. MACGREGOR. I think the record should be clear in connection

with Mr. Rozelle's statement about this question of pay television in

expanding the number of spectators in an area that can see the

game.

Do you, Mr. Rozelle, have the situation among NFL and AFL

clubs, where you have sold out the stadium in that particular area,

you have other people who would like to see the game but who are

denied that opportunity because they live in the blacked out area and

because they cannot get a seat to the stadium?

Mr. ROZELLE. Yes, that has been discussed, as a method of expanding the size of the stadium through local theater or some form of pay

television.

Mr. MACGREGOR. And is it correct that the discussions referred to

by counsel have been on the part of participants in the NFL and AFL

from the standpoint of the desire to expand the opportunity for people

to see the game?

Mr. ROZELLE. That is the context in which it was discussed.

Mr. MACGREGOR. Thank you, Mr. Chairman.

Mr. HARKINS. Mr. Rozelle, in addition to the recapitulation of

basic terms, you have submitted another document entitled, "Recapitulation of Terms Agreed to by the Member Clubs of the National Football League and the American Football League Having Particular

Relation to Two-Team Operations in New York City and the SanFrancisco-Oakland area."

These two areas are the two communities where the National Football League and the American Football League are in direct competition each having a franchise in the same area?

ROZELLE. Yes.

Mr. HARKINS. The special terms applicable to the New York Giants

and the New York Jets, in paragraph 3, provide that for the regular

season games after 1969, "every effort will be made to avoid direct

conflicts between the away game of either team on television and the

home game of the other."
66 PROFESSIONAL FOOTBALL LEAGUE MERGER

At the present time are away games of the Jets televised in New

York City when the Giants are playing at home?

Mr. ROZELLE. Yes.

Mr. HARKINS. After 1969 do you think the people of New York City

will be able to watch away games of the Jets on television on the same

day that the Giants are playing at home?

Mr. ROZELLE. Yes.

Mr. HARKINS. Then what is the meaning of "every effort will be

made to avoid direct conflicts between the away game of either team

on television and the home game of the other?"

Mr. ROZELLE. This is a reference to scheduling, Mr. Harkins. In

other words, we will attempt to schedule the away New York team in

a time zone that will permit the telecast to come into New York City in

a manner to avoid a direct—in other words, let's say, from 2 to 4:30

conflict.

Mr. HARKINS. SO, in the fixing of this schedule you are not concerned with a blackout on the day and date; it is just to avoid a direct

conflict in playing time?

Mr. ROZELLE. To avoid direct conflict. As you will note here, it is a

best effort to avoid the conflict as much as possible.

Mr. HARKINS. Paragraph 4 of the special terms provides "That

following unification of the two leagues, the New York Giants and

New York Jets respectively, will be guaranteed that all of their regular season road games will be televised live back in Nek York City."

Mr. ROZELLE. Yes.

Mr. HARKINS. How will this provision work with the requirements

of paragraph 3?

Mr. ROZELLE. In paragraph 3(1) in the first place, it is a best effort. Secondly, as I pointed out, it is to avoid as much of a head-on

conflict as possible by scheduling the away team in a time zone that

would not result in its telecast coming back in at the exact time and

completely overlapping the playing of the game in New York City.

Mr. HARKINS. Then I take your testimony to mean that the people

of New York City will be able to see professional football on television when the other club is playing a home game?

Mr. ROZELLE. If they are not, I think we will be in serious difficulty

with the people of New York City. We are going to make every effort,

which is why I feel we will probably have to go to two networks, to assure that each of the 26 or 28 teams has all of its road games brought

back to its home city, just as we do in the National and American

Football Leagues today.

Mr. HARKINS. The special terms with respect to San Francisco and

Oakland, in paragraph 6 provide that following unification in 1969, no

road games of either club will be televised back to either home city on

the day when the other team is playing a game at home "without the

consent" of the home team.

Mr. ROZELLE. I think if you will take paragraph 6, Mr. Harkins, and

several other paragraphs in this agreement involving San Francisco

and Oakland, you will find that there is a complete impasse, which was

the only logical way that we could reach agreement at the time the

matter was being discussed. We have 4 years for something to give.

But certainly you will also see here that each team is guaranteed that

the road games will come back, I believe.
PROFESSIONAL FOOTBALL LEAGUE MERGER 67

Mr. HARKINS. You have that in paragraph 8.

Mr. ROZELLE. In other words, they are in conflict. We realized that

we had an impasse and something will have to be worked out, perhaps

in the manner we discussed in New York, to have the San Francisco

team that is at home, attempt to have the Oakland team play in the

East, so that its telecast will come into the area prior to the playing of

the San Francisco game, and vice versa.

Mr. HARKINS. From the document submitted it appears that the

agreement presently reached is that there can be no television of an

away game of one of the San Francisco-Oakland teams when the other

team is playing at home without the consent of the team playing at

home.

Mr. ROZELLE. Also, if you read paragraph 8, you will reach the conclusion I just gave you, an impasse. Paragraph 8 states contrary to

paragraph 6, "following unification after 1969, the San Francisco 49ers

and Oakland Raiders will be guaranteed that all of the road games

will be televised back to their home city."

Mr. HARKINS. That is an inconsistency.

Mr. ROZELLE. It could not be more SO.

Mr. HARKINS. Why is there a difference in the special terms for

New York City from special terms for the San Francisco-Oakland

area?

Mr. ROZELLE. Because in discussions with representatives of those

four teams, there was different thinking.

Mr. HARKINS. I see. But this is something to be worked out, you

are going to work it out, but until you do, you do not have a consolidated agreement, do you?

Mr. ROZELLE. We have a number of things that must be resolved by

1970. If we go ahead with the plan, we will have 4 years to achieve

this, and I am sure we will need every minute of it.

Mr. HARKINS. At the present time, the people of San Francisco have

an opportunity to watch on television away games of the 49ers on days

that the Raiders are playing at home?

Mr. ROZELLE. That is correct.

Mr. HARKINS. What do you think the situation is going to be after

1969?

Mr. ROZELLE. My feeling is that this will continue. If it does not,

we will be in difficulty with the people of the Bay area, just as we will

be with the people in the New York area.

Mr. HARKINS. Do you think it is likely that the 49ers are going to

(rive their consent?

Mr. ROZELLE. I merely say that, in my opinion, the Oakland Raiders

and San Francisco 49ers both will come back to the Bay area when

the team is playing away.

The CHAIRMAN. So it is inconsistent.

Mr. ROZELLE. It is in conflict. We realized it was an impasse and

realized it is something that has to be worked out in the next few years.

Mr. 1-1AmoNs. So this agreement that is the subject of this legislation has things to be worked out?

Mr. ROZELLE. Yes, sir; prior to 1970.

Mr. HARKINS. If we give you approval of this agreement at this

time, why is not the Congress giving you a blank check?
68 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. ROZELLE. Because we feel that we are not asking for a blank

check. We feel that the Senate report makes it very clear on page 3

that it would not extend to the combined league any greater antitrust

immunity than that now existing for the existing professional football leagues. We feel that in the committee report, and if necessary

adding language to the bill itself, the same clarification can be made

in the House side.

Mr. RODINO. Mr. Chairman, just to make this point more clear, because I want to understand this. Our counsel did put this question

which bothers him, which is of concern to all of us. You talk of not

having any more antitrust immunity than you have now, if you do have

any antitrust immunity in any area. Therefore, what you are seeking

from this so-called merger, as I see it, is merely an exemption from

what could be antitrust litigation as to just the act of bringing the

two leagues together into one single league. However, should there

arise as a consequence any antitrust implications, you are not seeking

at this time through this agreement immunity from such antitrust

problems; is that right?

Mr. ROZELLE. That is absolutely correct.

The CHAIRMAN. I think you ought to be very careful in that answer,

and your counsel had better answer that rather than you, because you

might get yourself into a lot of difficulty.

Mr. RODIN°. I would like to have that answered, because as I see

this, and I do not know whether I look at all the things involved, but

this is the way I read the language of the bill. The report that the

Senate has written properly interprets the legislative proposal before

us, and I agree with it. It seems to be merely a joining of the two

leagues which are presently separate leagues, because of—and using

the words of the counsel—because of the all-out war which could exist,

which in my opinion could destroy the very competition we are seeking

to preserve. We want to see football expand. Because of all these

things you come to us now and say, there is some apprehension among

the leagues into entering into this agreement, because of prospective

litigation that could arise merely from the getting together or the combining of these two leagues.

Mr. ROZELLE. That is what we are seeking. Today the National

Football League could be challenged by the Government or private

individuals on the basis of its draft, on the basis of its television practices, or at least those practices not exempt through the 1961 act. It

could be challenged on the 75-mile territorial limits in our constitution;

it could be challenged on the right of the commissioner to take steps

to preserve public confidence in professional football. It could be

challenged today on all of those matters either by the Government or

by private individual.

Further, if this bill passed, we could still be challenged. We simply

ask exemption so that we would not be challenged for the act of becoming a single league, not for the specific practices as such a single

league.

Baseball, backetball, hockey could be challenged today on their

practices just as we could, and if this bill were passed, all of us could

still be challenged on certain things we were not exempt from.

The CHAIRMAN. All I would say, Mr. Rozelle, if you will forgive

me, is that you are just getting an empty right, if that is all you are
PROFESSIONAL FOOTBALL LEAGUE MERGER 69

seeking. It would not be worth a tinker's dam, with all respect to

the Senate.

Mr. RoDiNo. Mr. Chairman, is it not, however, the reason you are

seeking this and promptly, although hopefully we can deliberate on it,

long enough to be able to justify whatever action we take, is it not because there is presently this apprehension among the two leagues and

the clubs that you could be sued? There could be this litigation and,

therefore, even though this may be the empty right that the chairman

is thinking about or describing, that this is what you seek?

Mr. ROZELLE. That is what we seek. I feel that the position taken

and made very clear by the Department of Justice, the fact that one

$12 million suit has already been filed, based strictly upon our announcement of June 8. Others are being contemplated., strictly on the

basis of our announcement of June 8, which lends some weight to our

concern and has caused me to state unequivocably here today that unless legislation is passed, it will be my recommendation and the only

responsible one I could make, although I would make it most reluctantly to the 24 clubs, that they not proceed.

Mr. CRAMER. Will the gentleman yield?

The CHAIRMAN. GO ahead.

Mr. CRAMER. I was interested in the chairman's observation that the

bill as drafted, if it means what you suggested it means, is not worth a

tinker's dam.

There are some litigants up in Chicago who think it is worth $12

million.

Mr. ROZELLE. Yes, sir.

Mr. CRAMER. There are some suggested other litigants who think it

is worth quite a bit of money.

Mr. ROZELLE. I saw a figure of $25 million here.

Mr. CRAMER. You are declaring immune the merger itself; is that

correct?

Mr. ROZELLE. Yes, sir.

Mr. CRAMER. SO as I understand it, what you are after is to, in effect,

put into law what the chairman says he thinks the law is anyway

The CHAIRMAN. Will the gentleman 

Mr. CRAMER (continuing). And that is to exclude from the antitrust laws the merger itself to prevent treble damages relating to the

merger itself. Now, if it is not illegal to merge, the chairman himself,

as I understand, feels it is not illegal to merge, then why legislate so

that there would not be the risk of additional treble damage, millions

of dollars worth of suits.

So far more than a tinker's dam is worth $12 million a litigant.

The CHAIRMAN. The Chairman's point of view is as follows: You

say that you want this bill passed so that you will not be troubled with

suits like the one you mentioned involving treble damages equaling

$12 million. That is the result of operations that would exist after

the merger has been approved and adopted, and therefore you want

immunization from the antitrust laws for your operations of the league

after the merger has been approved. That is one of the results that

you say you want this bill to do. You want to avoid these treble damage suits, among other reasons that you offer.

Now, those treble damage suits flow from players' objections, players' reluctance to do what you want them to do under your arrange-
70 PROFESSIONAL FOOTBALL LEAGUE MERGER

ments after the merger goes through. Therefore you want to get immunization from actions after the merger. That is what you seek.

Otherwise, to my mind this thing is of no value or use to you.

Mr. ROZELLE. I would like to have our counsel speak to that, if I may,

Mr. Chairman.

Mr. CAROTHERS. We are willing to assume the burden of defending

any practice in which we engage as a practice engaged in by a single

league.

In the present context, we would for the indefinite future be bearing;

the burden of not only defending our practices as a single league under the antitrust laws, but the fact that the single league was created

by this transaction. -We would carry a double burden. We would be

defending ourselves not in the sense that basketball may have to defend itself or hockey may have to defend itself. We would carry for

the indefinite future the burden of defending, not a draft as a proper

practice for a single league, but suits based on the fact that draft would

never have existed were it not for the fact that two leagues were put

together by agreement in 1966.

The CHAIRMAN. Mr. Carothers, one of the objectives of the antitrust law is to have a free flow of competition. That is the real objective of the antitrust laws.

Now, if you have these two leagues merged, you could not have competition for the acquisition of players. That is what you are trying

to prevent, prevent these players asking what in your estimation are

exorbitant salaries or wages and you want to be sure that you can

cut them down.

You do' not want a situation if a player asks an amount: from a team

of the National League and that team refuses, he goes to the American

League and he gets it. You do not want that cutthroat competition

to exist. But that is the lack of competition that would flow after the

approval of the merger by Congress, you want immunization from

that.

Mr. CARoTHERs. Yes, but we do not want immunization from challenge of any of our practices as the practice of a single league. That is

a problem that the sports bill would have dealt with and that is not

before us today.

May I say that among the purposes of the antitrust laws, I would

include an ultimate interest in consumers and in this instance, the

ultimate consumer favors this transaction. Another purpose of the

antitrust law is to prevent very large businesses and dominant businesses from driving smaller businesses out of existence and that is precisely the results which will be achieved if this transaction does not go

through.

The CHAIRMAN. There are many reasons for the antitrust laws.

You have just itemized a few of them. However, counsel may continue.

Mr. 

Mr. 

DONOHUE. 

HARKINS. Mr. 

May 

Chairman

I 

-

interrupt at this point?

What is the basis of this $12 million suit that someone has brought,

and who has it been brought against?

Mr. ROZELLE. It is an illustration of the type of problems 

Mr. DorroHuE. What is the basis of the suit?

Mr. ROZELLE. The suit is based on the fact that by the agreement

of June 8-
PROFESSIONAL FOOTBALL LEAGUE MERGER 71

Mr. DONOHUE. What are the terms of that agreement? I understand

there was no legal agreement.

Mr. ROZELLE. No agreement has been executed, but the agreement

which Mr. Harkins has discussed sets forth the terms of the understanding between the two leagues.

Mr. DoNomerE. My understanding of Mr. Harkins' questions is that

there was no legal agreement drawn • is that so, Mr. Harkins?

Mr. HARKINS. That is my understanding.

Mr. CAROTHERS. That suit is based on the fact that there is less

likelihood of the

Mr. DONOHUE. As a lawyer, you know that you must have some basis

of an action that you seek to bring against someone else. Now tell

me what does the plaintiff in this suit allege in the action that he has

brought against the Denver Broncos.

Mr. ROZELLE. Yes, it is against the Denver Broncos.

Mr. ROGERS. They got served with a summons.

Mr. DoNoircrE. Yes, but I was wondering what does their bill of

complaint allege?

Mr. ROZELLE. The complaint alleges that they would have gotten

a franchise in Chicago in the American Football League in the absence

of the agreement between these two leagues.

Mr. DONOHUE. Well, would you not say if you were a judge and

you were asked to pass upon the issue, that this action is prematurely

brought because there is no legal or binding agreement? Would you

not as a .judge be inclined to rule that way on the issue?

Mr. CAROTHERS. Yes, I would. But to the extent we go ahead with

this program, we may solve that deficiency in his case.

Now, may I point out also that expansion by the terms of this agreement is to be a joint activity of the two present leagues. They are to

agree on the cities in which to go in. Any determination they may

make as to a particular city gives someone else the same opportunity

to claim that they would have gone into their city in the absence of

this understanding between the two leagues.

Those suits arise from our inactivity, not from any actions taken

which may be vulnerable under the antitrust laws, but from the prospect that some action will not be taken.

Mr. ROGERS. This suit did not involve them all, he did not file a

suit against the league, did he?

Mr. ROZELLE. Yes.

The CHAIRMAN. This results as a division of territory; is that

correct?

Mr. CAROTHERS. No, sir.

The CHAIRMAN. From division of the franchise cities?

MT. CAROTHERS. No, sir.

The CHAIRMAN. What is the basis for the suit?

Mr. CAROTHERS. The basis of the suit is that they were about to get

a franchise in the American Football League in the city of Chicago.

Now the merits or demerits of that claim, I am not in a position to

comment on at the present time.

As a result of this agreement, they will not get a franchise in Chicago, in their opinion.

The CHAIRMAN. Who gives the franchise?

Mr. CAROTHERS. They were dealing with an American Football

League franchise.
72 PROFESSIONAL FOOTBALL LEAGUE MERGER

The CHAIRMAN. So the members of the American Football League

in someway got together and said that this applicant should not get a

franchise in Chicago is that it?

Mr. CAROTHERS. No. Today, my knowledge of this case is limited

to the complaint itself. Essentially the National Football League

has not been involved in this matter whatsoever, and yet it is brought

into it now by reason of the fact that we entered into an agreement

which they make the basis of their antitrust claim.

Mr. CRAMER. Mr. Chairman, I think it is an interesting question

to evaluate whether or not the merger itself, the prospects of it, and

this legislation dealing with that subject in any way triggered the suit.

Now, I have before me the article in the Washington Post reporting

the suit on September 9, and Nussbaum, who I understood brought

the suit, formerly operated a Chicago semipro team, said:

"Our suit frankly was prompted by the stand taken yesterday by

the Government." Meaning contemplated no action on this legislation.

Is that not correct.?

Mr. SCHRAMM. That is correct.

Mr. CRAMER. So I think the time sequence speaks for itself. It was

announced no action would be taken on this legislation a suit was

filed, and the complainant bringing the suit brought it because it was

announced that there would be no action on this bill.

Mr. CAROTHERS. And I may point out that the suit itself alleges that

there is carrying out this plan will be no action by the AFL.

Mr. CRAMER. This legislation would prevent suits to be brought contesting the merger as such?

Mr. CAROTHERS. Yes.

Mr. CRAMER. So it just seems to me that if it is agreed generally

that the merger itself is not or should not be subject to an antitrust suit

and there has been an antitrust suit brought and here are others possible that you testified, then the only way to clear the air is the pass

the legislation. Is that your basic point?

Mr. CAROTHERS. Yes, sir.

The CHAIRMAN. Provided it is in the public interest to pass the law.

Mr. CRAMER. Obviously, I did not think that was contested, that it

would be in the public interest to permit the merger itself.

Now, may I ask one more question? We have had a lot of letters

from high school football coaches. I think the record should be clear.

As I understand today, there is no protection relating to television

professional games when high school games are played on Friday

night is that correct?

Mr. ROZELLE. That is correct.

Mr. CRAMER. So as of today high school teams have no protection

whatsoever against television competition in the area where the high

school game is played is that correct?

Mr. ROZELLE. That is correct.

Mr. CRAMER. This bill would give them such protection, would it

not?

Mr. ROZELLE. Yes.

Mr. CRAMER. So I fail to see, except for some argument about the

dates that should be included, I fail to see why any high school coach

would not be wholeheartedly in support of the legislation as it relates

to completion, television professional play when their games are going
PROFESSIONAL FOOTBALL LEAGUE MERGER 73

on, because this for the first time gives the high schools protection

against it.

Mr. ROZELLE. Yes, sir.

Mr. CRAMER. And I understand that the leagues themselves are

proponents of this proposal, are they not?

Mr. ROZELLE. Yes.

The CHAIRMAN. The high schools would be represented. They

have asked to be heard on this.

Mr. CRAMER. I understand that, but I do not think that the record

should be distorted, as apparently it has in some quarters by the mail

and telephone calls I am getting relating to the facts that this bill

provides for high schools for the first time some protection. If

they want to argue about the dates, that is all right. Maybe they

should be adjusted. I introduced a bill but I am not wedded to the

specific dates included of the second Friday in September and ending

the second Saturday in December. I think it should be clearly understood that the high schools for the first time are getting protection.

Mr. ROZELLE. Yes, sir.

The CHAIRMAN. The high schools seem to accept the Senate version,

but now they are objecting because of the dates.

Mr. CRAMER. I understand.

The CHAIRMAN. We will hear them and see what they have to say.

Mr. DONOHUE. Will the gentleman yield?

Mr. CRAMER. Yes, I will yield.

Mr. DONOHUE. At the present time does the American League have

control over its individual teams? The individual teams within the

league?

Mr. ROZELLE. Yes.

Mr. DONOHUE. And I do understand that it is the understanding

that the teams, the professional teams, shall not engage in playing

their games while there is a college or high school game going on?

Mr. ROZELLE. There was a provision in the 1961 statute that no professional telecast as part of a single network plan would be carried

in an area within 75 miles of where a college game is being played

from the second Friday in September to the second in December.

Mr. DONOHUE. Have all of your individual teams lived up to that?

Mr. ROZELLE. They have, and more importantly the network, because this is law, takes special care to black out such areas, they have

taken it as their responsibility.

Mr. DONOHUE. Correct me if I am wrong. Did not the Washington

Redskins attempt to play games on the same day that a college or

high school game was being played?

Mr. ROZELLE. Two or three years ago I was forced to schedule the

New York Giants to play a home game on a Friday night, because

they share occupancy of their stadium with the New York Yankees.

The only home game they could have during the first 5 weeks of our

season because of baseball was a Friday night.

The Redskins were scheduled into New York that night. That

was not broadcast around the country, but it was brought back to

Washington.

Mr. DONOHUE. Why was it scheduled? Because of the present law?

Mr. ROZELLE. It conflicted with some high school games, as I under-
74 PROFESSIONAL FOOTBALL LEAGUE MERGER

stand it, being played in the Washington area that night. The high

schools have no protection under law as it is now, but this bill would

(rive it to them.

Mr. DONOHUE. What happened as a result of that incident? Was

the game played?

ROZELLE. The game was played and televised in Washington—

only Washington, and I assume it is the only Friday night telecast

of a Redskin game that has been seen in Washington since the inception of the club and perhaps the only one that would be here for another

10 or 15 years.

• Mr. DONOHUE. But it did happen?

• Mr. ROZELLE. Yes.

Mr. DONOHUE. And it could happen again?

• Mr. ROZELLE. It could happen again, yes, because of the problem

of scheduling during the overlapping period of football and baseball.

Mr. MACCrREGOR. It could not happen if we had passed this legislation?

Mr. ROZELLE. As part of the package telecast, it could not, but the

club would have the right, as an individual organization, to bring it

back to its season ticketholders in Washington.

Mr. MACGREGOR. Unless we amended the legislation?

Mr. ROZELLE. Unless it were amended.

The CHAIRMAN. Mr. Harkins?

Mr. HARKINS. Mr. Rozelle, before we return to the television provisions let us explore exactly what S. 3817 purports to afford in the

way of antitrust immunity, because it might be possible that you do

not want as much as this bill seemingly offers to you.

The bill says that the antitrust laws as defined shall not apply to

a joint agreement by which the member clubs of two or more professional football leagues combine their operations in an expanded

single league if such agreement increases rather than decreases the

number of professional clubs so operating and the provisions of which

are directly relevant thereto.

You have submitted this document called "Recapitulation of Basic

Terms," also containing "Recapitulation of Special Terms." This

document is an agreement as far as you have an agreement. It embodies an understanding that is sort of nebulous in some respects, but

this is the agreement that is the subject of the legislation; is that not

right?

Mr. CAROTHERS. Yes.

Mr. HARKINS. Now, these basic terms, when it talks about the joint

committee, says in section 4(c) "A joint committee will be established

and the members thereof will be appointed by each league with Commissioner Rozelle as Chairman. The purpose of the committee will be:

"(1) to develop the mechanics and establish the principles under

which the plan will be implemented;

"(2) to resolve inconsistencies between the present NFL and AFL

constitutions and bylaws with the objective of achieving a common

Constitution and Bylaws at the earliest possible date."

Now, this is a part of the agreement, is it not?

Mr. ROZELLE. Yes.

Mr. HARKINS. And this is part of the agreement that is going to be

exempted from the antitrust laws, is it not?

Mr. CAROTHERS. Yes.
PROFESSIONAL 'FOOTBALL LEAGUE MERGER 75

Mr. HARKINS. The constitution and bylaws have, been examined by

the joint committee and they have been compared, and you have.submitted a copy of the comparison of the NFL and AFL constitutions

and bylaws, and in the process of doing this, you are writing a new

constitution and bylaws, are you not?

Mr. ROZELLE. Yes.

Mr. HARKINS. And this new constitution and bylaws are stemming

from this agreement, are they not?

Mr. ROZELLE. Yes.

Mr. HARKiNs. And this agreement will be exempt from the antitrust laws? You just said so.

Mr. CAROTHERS. Yes; it will be, Mr. Harkins.

Mr. HARKINS. Once you have adopted the new constitution and bylaws, you will have exempted from the antitrust laws the player selection system. is that not right?

Mr. CAROTHERS. No, sir.

Mr. HARKINS. And you will have exempted from the antitrust laws

your provisions for the reserve clause, is that not right?

Mr. CAROTHERS. No, sir.

Mr. HARKINS. And you will have exempted from the antitrust laws

your player contract form, is that not right?

Mr. CAROTHERS. NO, Sir.

Mr. HARKINS. And you will have the duties of the commissioner, or

the president as he is going to be named, and the power to determine

conduct that is detrimental to football, exempted from the antitrust

laws; is that right, or wrong?

Mr. CAROTHERS. No, sir.

Mr. HARKINS. It is not right, in your opinion?

Mr. CAROTHERS. That's right.

Mr. HARKINS. You are not asking for that at this point, is that your

testimony?

Mr. CAROTHERS. No, sir.

Mr. HARKINS. All the rest of the terms, the waiver rules, territorial

rights, removal of teams, entry of new clubs, television, all the pro- visions of your constitution and bylaws, as I read the bill and this

agreement, would be exempted from the antitrust laws.

As I understand your testimony, this is not what you want. Will you

explain to the committee why you believe that the bill does not as presently drafted exempt the constitution and bylaws as amended

from the antitrust laws?

Mr. CAROTHERS. Let me review a bit.

We began discussions with you as counsel for this committee last

June, and throughout the discussions that have taken place we have uniformly adhered to the limited nature of our objective. On occa- sion we have in fact, invited you to come up with language which we

thought would best meet this limited objective.

When those invitations were not accepted, we deferred the problem

in the same terms to the Senate committee staff. The committee itself, wishing to insure that only our limited objective was achieved,

added "and the provisions of which are directly relevant there."

That is relevant to the combining of the operations. And in explaining the intent of that language, they used the following in the

committee report:
76 PROFESSIONAL FOOTBALL LEAGUE MERGER

It is the intent of the committee that the new league will commence operations. • •

The CHAIRMAN. Will you yield on that point?

Mr. CAROTHERS. Yes, Sir.

The CHAIRMAN. Please read, page 2, line 14 of the bill. You will

notice in the Senate they struck out the word "any," meaning any

joint

agreement. 

and they added the word "a." This refers to a 

agreement. They apparently specify the agreement that Mr. Harkins,

counsel, has adverted to. That limits it to an agreement. It does

not refer to any agreement which was in the bill originally. That

makes a big difference.

Mr. CAROTHERS. Well, that same committee added "and the provisions of which are directly relevant to the combination."

And in describing why they did that, they say it is the intent of

the committee that the new league will commence operations with no

greater antitrust immunity than the existing individual leagues now

enjoy.

The CHAIRMAN. That is why—I think we are at variance here as

to what these words all mean. I think you want to study this most

carefully, Mr. Carothers, because you may be getting far less than

you think you are getting.

Mr. CAROTHERS. We have agreed to accept far less than we would

like to have, and I would have thought that—

The CHAIRMAN. But the bill is giving you far more than what you

are asking for now.

Mr. CAROTHERS. May I read the next sentence in the committee report?

The sole effect of this legislation is to permit the combination of the two

leagues to go forward without fear of antitrust challenge based upon a joint

agreement between the member clubs of the two leagues to combine in a single

league and to conduct their affairs as members of a single league.

Now I do not know how that could be stated with more positiveness.

Mr.

Now, 

Mr. Chairman?

The CHAIRMAN. I do not think the bill can be interpreted that way,

Mr. Carothers. However, you and I may differ.

Mr. CAROTHERS. Let me also add the difficulties in trying to deal with

a legislative matter like this on an itemization of what is exempt and

what is not. Let us take an ordinary business merger.

You combine the assets of two business organizations. You do not

have to exempt the fact that the combined operation is selling goods or

anything else—everyone understands what is contemplated.

Now, when you combine two sports leagues, the only technique for

combining them is to institute within that league structure the rules

that one of the leagues as a single league had. To try to itemize exemptions for this single league establishing new franchises and for this

single league making its television arrangements and for this single

league establishing a draft system as a single league, such as basketball

has, or as either league has individually, would require a statute in

which you spelled out item by item 100 details which are for no other

purpose than to create a single league conducting its affairs as a single

league with no greater antitrust immunities than any single professional sports league now has.

The CHAIRMAN. Mr. Carothers, I admit that when the matter is

placed before the Antitrust Division of the Department of Justice
PROFESSIONAL FOOTBALL LEAGUE MERGER 77

whether two entities should merge, they do not always anticipate everything that could happen under the merger, but the Department of Justice usually envisions what could happen under the merger and they

might restrict the merger because of what could possibly happen, what

is possible under the merger.

That is how they figure it down there. In order to resolve this controversy, we will have the head of the Antitrust Division here and he

will let us have his version of exactly what these words mean. That

will settle any controversy between you and any member of the committee.

Mr. RODINO. Mr. Chairman?

The CHAIRMAN. Mr. Rodino.

Mr. RODINO. Mr. Rozelle, there is this question that lies in the mind

of the chairman and between you and others as to what this language

really means. My understanding is that this language came about as

a result of discussions you had with the Senate committee.

Mr. CAROTHERS. Yes.

Mr. RODINO. And that you requested assistance in drafting of the

language and then the committee assisted you in drafting this kind

of language?

Mr. CAROTHERS. In connection with our dealings with the chairman

and his counsel in the past, we have expressed precisely our objective

in a letter to the chairman in order to indicate the very limited purposes we were seeking to achieve.

Mr. RODINO. Well, if that is then the substance of the difficulty,

would you object to the writing of that kind of specific language that in

our minds would then leave no room for doubt and give you that which

you say you are seeking, and that is simply an exemption from the

putting together of these two leagues into a single league.

Mr. ROZELLE. For most of the last 4 months we have sought such assistance from staff counsel and we would be very happy to have it now.

Mr. CAROTHERS. But let me make it clear that what we are seeking

is the beginning of this league with a clean slate as of the date it becomes a single league. We ask no immunities for anything that the

league does as a single league.

Mr. RODINO. Why you made that abundantly clear in my mind and

assert that this is what you are seeking and this was the reason why I

was interested, too, in seeing that these hearings were held, so that we

might get to the core of this question, because you spelled out the problems that would arise should not this occur and should not this take

place within an immediate, reasonable time.

Mr. ROZELLE. We would be pleased to accept any clarification of

wording that would meet our very restricted aim in this legislation.

Mr. CRAMER. Would the gentleman yield on that point?

Mr. RODIN°. I yield?

Mr. CRAMER. As I understand it then, you are willing to accept the

Senate language?

Mr. ROZELLE. Yes, sir.

Mr. CRAMER. Striking "any" and putting in "a" and adding the

words "which are directly relevant thereto," meaning relevant to the

combination of theiroperations.

Mr. CAROTHERS. Which may include innumerable implementing

steps.
78 PROFESSIONAL FOOTBALL LE AGUE MERGER

Mr. CRANIER. But not in your operations after the combination is

formed?

Mr. CAROTHERS. That is correct, sir.

Mr. CRAMER. I think that—what the misunderstanding is, you are

not asking for exemption after the combination is formed. You are

asking for exemption solely for the combination itself.

MT. CAROTHERS. That is correct, sir.

Mr. CRAmER. And you think this language accomplishes that?

Mr. CAROTHERS. And I think the Senate report makes it absolutely

clear how limited it is.

Mr. CRAMER. I don't think it could be much clearer:

It is intended that the new league will commence operation with no greater

antitrust immunity than the existing individual leagues now enjoy. The sole

effect of this legislation is to permit the combination of the two leagues to go

forward without fear of an antitrust challenge based upon a joint agreement

between the clubs to combine in a single league and to conduct their affairs

as members of a single league.

As I understand your testimony further, you think the Senate language accomplishes it. It appears there is pretty much agreement

that if it accomplishes this and nothing else, there is not much reason

to object to it. So, I would assume that if additional language could

be considered, -that would accomplish this beyond a doubt, you would

not object, to that, would you?

Mr. CAROTHERS. No, sir; although I think the statements we have

made here this morning clarify any questions of what the intent of

this bill is and forever foreclose us from claiming in any proceeding

that the immunities are broader than that which we have announces

we are seeking.

Mr. HARKINS. Mr. Chairman, do I understand your testimony to

be that if a bill would come out from which is specifically excluded

any antitrust immunity or antitrust exemptions to the constitution

and bylaws and to the operations under it, that you would be satisfied?

Mr. CAROTHERS. Yes, although I think that is already achieved.

The difficulty is in attempting to itemize what involves the interest of

28 franchises in entering into 28 stadium contracts, making television

arrangements, and so forth. You cannot itemize—

The CHAIRMAN. Leave out television. Let television out. Would

you be willing to have itemized this not being within the immunization, player selections, reserve 

Mr. HARKINS. All the provisions of the constitution and bylaws?

Mr. CAROTHERS. We would accept the principle that our draft system is not immunized from antitrust challenge to the extent it is the

practice of a single league.

The CHAIRMAN. Now you are hedging.

Mr. CAROTHERS. No, sir. We cannot put two leagues into one league

without applying to them the practices of the single league.

The CHAIRMAN. How about territorial rights? How about removal

of teams? Formation of new clubs? Player contract forms? Would

you say those items should not have immunity from the antitrust

laws?

Mr. CAROTHERS. That is the problem of attempting itemization.

The CHAIRMAN. That is what we are getting at, this whole business

is itemization.
PROFESSIONAL FOOTBALL LEAGUE MERGER 79

Mr. CAROTHERS. The objective here is to give us the privilege of

being a single league.

The CHAIRMAN. You say all—the nub of this whole discussion is

that all you want is approval of a merger, ipso facto, a merger. You

do not want any approval as to what may happen after the merger

is consummated with reference to these actions that have been set forth

by counsel, like the territory restrictions, reserve clause, player drafts,

boycotts, and what-have-you?

Mr. CAROTHERS. Except to the extent that they can not be challenged

as resulting from the merger. That is the key.

Mr. ROGERS. Mr. Chairman, that is the key to the thing and the

only one, as I understand. At the present time the question of franchises and things of that nature is something limited to each respective

league. The fact is that you may have a merger here, and they want

to make sure that the league's operation shall continue and not in any

violation of any antitrust law, nor do they ask for any exemption,

other than the fact that they may combine themselves together is not to

constitute a violation.

Mr. CRAMER. Will the gentleman yield?

In other words anything that has been suggested here for itemization not to be excluded from the antitrust laws can be raised in the future; the only thing this bill does would be to prevent the merger itself from being an actionable event in determining whether antitrust

has been violated.

Mr. CAROTHERS. To put us in the same posture we would have been

in if we had expanded by 10 teams instead of merging 2 leagues.

Mr. CRAMER. So you take a single league, you expand it by 10 teams,

you would be subject to antitrust as it relates to that expanded league

itself.

, Mr. CAROTHERS. That is correct, sir.

Mr. CRAMER. So what you are saying is if you combine the two

leagues, that merger itself is not an actionable event in questions of

determining these questions of player drafts and everything else?

Mr. CAROTHERS. Yes, sir.

Mr. CRAMER. That is what the Senate report says clearly.

The CHAIRMAN. You have the language, the conditions which are

relevant. That language is as broad as the barn door.

Mr. CRAMER. It is directly relevant to the combination, to the merger

itself, not necessarily to all the contract teams.

The CHAIRMAN. The House has gone in session. We have no permission to sit.

Mr. Rozelle, we will resume these hearings Thursday morning at

10 o'clock.

Mr. CRAMER. Mr. Chairman, may I ask a question?

The CHAIRMAN. The question is?

Mr. CRAMER. No point of order has been raised relating to sitting.

I would like to ask whether we could go into executive session on the

antiriot bill at this time, due to the lateness of the session and necessity for action.

The CHAIRMAN. We will not go into executive session. I have said

to the gentleman from Florida, we will have an executive meeting in

which we will take that up.

Mr. CRAMER. This is the next to the last week of the session, as I

understood yesterday.
80 PROFESSIONAL FOOTBALL LEAGUE MERGER

The CHAIRMAN. We will hold a meeting so that the gentleman will

be satisfied.

Mr. CRAMER. If we do not act sometime, Mr. Chairman, say tomorrow for instance, we do not have these meetings set tomorrow.

The CHAIRMAN. We have a holiday called Columbus Day. Some

of the members must go back to their homes.

Mr. CRAMER. I would hope, Mr. Chairman, you would set an executive session following Thursday's hearing, sometime. You cannot

say, yes, we are going to do it and then not do it. It looks like what

are you doing is you are saying 

The CHAIRMAN. If two men ride a horse, one man must ride behind.

I am riding this horse.

Mr. CRAMER. I am just trying to help you get the horse moving.

The CHAIRMAN. The committee stands adjourned until Thursday at

10 o'clock.

(Whereupon, at 12:10 p.m., the subcommittee recessed, to reconvene

at 10 a.m., Thursday, October 13, 1966.)

(The Recapitulation of Basic Terms Agreed to by the Member

Clubs of the NFL and the AFL; Recapitulation of Terms Agreed to by

the Member Clubs of the NFL and the AFL Having Particular Relation to Two-Team Operations in New York City and the San Francisco-Oakland Area; letter dated October 4, 1966, from Hamilton

Carothers, to the Antitrust Division of the Department of Justice;

Joint Committee Agenda; Joint Committee Meeting Minutes July 20 

and July 21, 1966; Comparison of NFL—AFL Constitution and Bylaws; Minutes of the Annual Meeting, June 30, 1966; Resolution adopted July 1, 1966; Memorandum re NFL—Atlanta Transaction; and

several related letters referred to are as follows:)

Accompanying is a statement of the terms of the agreement between the

member clubs of the two leagues. These are the terms which were negotiated

on behalf of the two leagues this spring and summer and basically accepted by

the clubs of the two leagues in principle if not in final statement. Agreements

embodying these terms have not yet been formally executed.

The basic agreement is set forth in the first document. The second document

sets forth additional terms relating to single league operations in the two-team

cities. The additional items state understandings between the teams in the same

metropolitan areas which are of minor consequence and have no basic bearing

on the inter-league agreement.

A number of additional understandings will be put in writing when time

permits. For example, there will have to be formal agreements with respect

to the monetary payments. The Joint Committee will also have certain responsibilities in developing additional understandings to be effective during the interim period, some of which will have to be cleared with the league membership.

None of these will have any antitrust significance independent of the combination itself and, in most cases, no antitrust significance whatever.

HAMILTON CAROTHERS.

RECAPITULATION OF BASIC TERMS AGREED To BY THE MEMBER CLUBS OF THE

NATIONAL FOOTBALL LEAGUE AND THE AMERICAN FOOTBALL LEAGUE

(1) Pete Rozelle will be Commissioner of the expanded league. Until June 1,

1976, any successor to Pete Rozelle as Commissioner must be approved by the

affirmative vote of at least 12 of the 15 present member clubs of the NFL. All

other vote requirements and procedures for the selection of a successor to Commissioner Rozelle will be deipermined by mutual agreement of the two leagues.

(2) It is contemplated that all present member clubs of both leagues will

remain in their present locations, including the New York Giants and New

York Jets in New York City, the San Francisco 49'ers in San Francisco and

the Oakland Raiders in Oakland.

(3) Because of individual league contract commitments, full unification of all

phases of the expanded league's operations cannot be achieved before 1970.

Beginning in 1970, there will be:
PROFESSIONAL FOOTBALL LEAGUE MERGER 81

(a) A unified league schedule providing for mixed regular season games

between clubs of the two present leagues (in connection with any such

future realignment of the league, factors of geography, natural rivalries,

stadium size, gate attendance, weather circumstances, team strength, and

conflicts with baseball in the use of league stadiums shall all be taken into

consideration in such fashion as not to unfairly prejudice any franchise of

the realigned league) ;

(b) Full integration of the player pension plans of the two leagues to

provide for a common plan applicable to all players of the expanded league;

(c) Equal division of all regular season and preseason network television

income among all clubs of the expanded league; and

( d) Studies of the feasibility of adding at an early date two additional

franchises (in addition to the two franchises referred to in Paragraph

(4) (m) to be added in 1967-68) for a combined league total of 28 franchises

in 27 cities.

4) During the interim period prior to 1970:

( a) Pete Rozelle will be Commissioner over both leagues.

( b) The two leagues will remain as separate entities for general administration purposes except in areas where unification of their operations has

been achieved during this period.

(c) A joint committee will be established and the members thereof will

be appointed by each league with Commissioner Rozelle as Chairman. The

purpose of this committee will be—

(1) to develop the mechanics and establish the principles under which

the plan will be implemented;

(2) to resolve inconsistencies between the present NFL and AFL

constitutions and bylaws with the objective of achieving a common

Constitution and Bylaws at the earliest possible date.

(d) Until 1970, each league will have independent responsibility for its

own television arrangements, including independent determination of its

own patterns of telecast.

(e) Regular season games between teams of the two leagues will not be

played before 1970 because of existing television contract commitments.

(1) Pre-season games between teams of the two leagues will be played

beginning in 1967. For 1967, 1968, and 1969, respectively, each AFL club

will play at least one pre-season game per year with an NFL team. To the

extent that telecasts of such games are determined to be feasible, pre-season

games between teams of the two leagues may be telecast to the visiting team's

home city only.

(g) Player trades between clubs of the two leagues will not be permitted

before 1970.

(h) A championship playoff game between the champions of the two leagues

will be played each year beginning in January 1967. Site and date of this

game shall be selected by the two leagues. Television arrangements for

this game will be the responsibility of Commissioner Rozelle. A formula (to

be mutually agreed upon) shall determine the allocation of the income to

player shares, tne pension funds of the two leagues, the participating clubs,

etc. Remaining income resulting from this game will be divided equally

between the two leagues.

(i) A common draft will be held beginning in January of 1967. Priority

of selection will be determined by each club's loss-won record during the

1966 season without regard to present league affiliations.

(j) Individual clubs of the respective leagues will retain their negotiation

rights with respect to all previously drafted but unsigned college players,

i.e., "redshirts".

(k) Through additional funding by the AFL, it will bring its player pension plan into conformity with the NFL's pension plan as in effect on June

1, 1966. This is to be fully accomplished by September 1, 1970.

(1) By September 1, 1970, the AFL will have in effect pension plans for its

front office employees and coaches comparable to those now in effect for the

NFL.

(m) Of the two new franchises to be added by the expanded league for

operation no later than 1968, one will be stocked with players furnished

by the present AFL clubs and will play its regular season games within the

present AFL league structure during the period prior to 1970. The other

will be stocked with players furnished by the present NFL clubs and will play

its regular season games within the present NFL league structure during
82 PROFESSIONAL FOOTBALL LEAGUE MERGER

the period prior to 1970. The two leagues will mutually agree on a plan that will stock these two new franchises with players in a manner that will

bring the respective teams in on a par as relates to player strength and financial considerations. The two leagues will also mutually agree on the

two cities to be selected for these additional franchises and then mutually

agree which cities are to go into each league. It is understood that the

AFL clubs reserve a veto right with respect to the selection of the franchise which will field a team within the present AFL league structure during the interim period.

(n) Both new franchises and all changes to AFL club ownership after

February 1, 1967 will be made subject to present NFL policies with respect

to member club ownership, i.e., no corporate ownership, no public stock own- ership, and at least 51% ownership by a single individual.

( o) Any change of ownership of an AFL club must have the approval

of Commissioner Rozelle.

(p) No franchise of either league may be transferred from its present

location without approval of the other league.

(q) The two leagues will promptly agree on squad limits to become

applicable to all clubs in the expanded league for the 1966 and subsequent

seasons, it being mutually understood that in the absence of agreement

between the two leagues a 40-man squad limit• will be acceptable to the

present member clubs of the AFL.

(5) The present AFL clubs will pay a total of $— million principal and interest.

(6) All clubs of both leagues will contribute equally to all costs and expenses incurred or resulting, directly or indirectly, from this plan, or any measures

taken in implementation thereof, from June 8, 1966 on.

(7) Wherever applicable, the foregoing provisions shall be subject to the

terms of the common Constitution and Bylaws to be adopted.

RECAPITULATION OF TERMS AGREED To BY THE MEMBER CLUBS OF THE NATIONAL

FOOTBALL LEAGUE AND THE AMERICAN FOOTBALL LEAGUE HAVING PARTICULAR

RELATION TO TWO-TEAM OPERATIONS IN NEW YORK CITY AND THE SAN FRANCISCO-OAKLAND AREA

NEW YORK GIANTS—NEW YORK JETS

(1) In any realignment of the league taking place after 1969, the New York Giants and the New York Jets will not be assigned to the same conference

without mutual consent.

(2) Following unification of the league schedule after 1969, neither the New York Giants nor the New York Jets may be required to play any regular season

home games on days other than Sunday without their consent, nor will either

team be required to play more games on the road than at home.

(3) In the scheduling of regular season games of the New York Giants and

the New York Jets after 1969, every effort will be made to avoid direct conflicts

between the away game of either team on television and the home game of

the other.

(4) Following unification of the two leagues, the New York Giants and the

New York Jets, respectively, will be guaranteed that all of their regular season

road games will be televised live back to New York City.

SAN FRANCISCO FORTY-NINERS—OAKLAND RAIDERS

(1) In any realignment of the league taking place after 1969, the San Francisco

49'ers and the Oakland Raiders will not be assigned to the same conference,

unless the conferences are divided into smaller numerical groupings, e.g., divisions, in which case the San Francisco 49'ers and the Oakland Raiders may

be in the same conference but not in the same division, i.e., the smallest numerical

grouping.

(2) The San Francisco 49'ers will have the right of first refusal on which

California team (Oakland Raiders excepted) is to be included in their own smallest numerical grouping. In the event of a waiver by the San Francisco 49'ers of

its right to have the Los Angeles Rams included within its division, then the

Oakland Raiders may be assigned to the same division as the Los Angeles Rams.
PROFESSIONAL FOOTBALL LEAGUE MERGER 83

(3) Following unification of the league schedule after 1969, the Oakland

Raiders' and the Los Angeles Rams will not play more than one regular season

game with each other during any five-year period unless they are in the same

smallest numerical grouping for standing purposes.

(4) Following unification of the league schedule after 1969, neither the San

Francisco 49'ers nor the Oakland Raiders may be required to play any regular

season home games on days other than Sunday without its consent.

(5) Following unification of the league schedule after 1969, the San Francisco

49'ers and the Oakland Raiders will not be required to play at home on the same

day without their mutual consent.

(6) Following unification of the league schedule after 1969, no road games of

either the San Francisco 49'ers or the Oakland Raiders, respectively, may be

televised back to either home city on any day when the other team is playing a

game at home, without the consent of the team playing the home game.

(7) Following unification of the league schedule after 1969, neither the San

Francisco 49'ers nor the Oakland Raiders will be required to play more games on

the road than at home.

(8) Following unification of the league schedule after 1969, the San Francisco

49'ers and the Oakland Raiders, respectively, will be guaranteed that all of their

regular season road games will be televised live back to their home cities.

(9) Following unification of the league schedule after 1969, the San Francisco

49'ers and the Oakland Raiders will not be required to play the same opponent

at home on successive weekends without the consent of both the San Francisco

49'ers and the Oakland Raiders.

ADDITIONAL UNDERSTANDINGS BETWEEN PARTICULAR MEMBER CLUBS

Following ithification of the league schedule after 1969, whenever either the

San Francisco 49'ers team or the Oakland Raiders team is playing at home on a

day when the other team is not playing at home, the home team may, where such

practice is otherwise authorized, utilize pay television or closed circuit television in the blacked out area only without any requirement of consent by the

other. At all other times, including specifically days when both teams are playing

at home, the use of pay television or closed circuit television by either will require the consent of the other.

The San Francisco 49'ers and the Oakland Raiders will, during 1967 and each

year thereafter (unless this arrangement is terminated by mutual agreement),

play one preseason game with each other, the site of each such game to be determined by mutual agreement and the proceeds of the game to be divided

equally.

Within the restrictions of their existing stadium contracts, for the years 1967

through 1969, the San Francisco 49'ers and the Oakland Raiders, respectively,

will have equal rights to play in Kezar Stadium and in Oakland Stadium, respectively, on the same terms and conditions. During all years thereafter,

neither team may play in the home stadium of the other without the consent of

the other.

Neither the San Francisco 49'ers nor the Oakland Raiders, respectively, may

change its team colors nor the official name of its team without the consent of

the other.

Neither the San Francisco 49'ers nor the Oakland Raiders will schedule preseason games at home with the same opponent on successive week-ends without

the consent of the other.

Following unification of the league schedule after 1969, whenever either the

New York Giants team or the New York Jets team is playing at home on a day

when the other team is not playing at home, the home team may, where such practice is otherwise authorized, utilize pay television or closed circuit television

in the blacked out area only without any requirement of consent by the other.

At all other times, including specifically days when both teams are playing at

home, the use of pay television or closed circuit television by either will require

the consent of the other.

After 1969, and within the restrictions of their stadium contracts, the New

York Giants team and the New York Jets team, respectively, will have equal

rights to play in Yankee Stadium and Shea Stadium, respectively, on the same

terms and conditions.
84 PROFESSIONAL FOOTBALL LEAGUE MERGER

COVINGTON & BURLING,

Washington, D.C., October 4, 1966.

ROBERT K. JOHNSON, Esq.,

Evaluation Section, Antitrust Division,

Department of Justice,

Washington, D.C.

DEAR MR. JOHNSON: I have reviewed with Commissioner Rozelle the question

of additional understandings between the two leagues or member clubs of the

two leagues which are elements of the current program for a single expanded

league or which have developed since the original agreement.

In addition to those already furnished to you, he refers to the following:

(1) There is a not entirely developed understanding as to preference rights

in the next draft to be accorded the New York Giants. The Giants will have

certain preferences with respect to quarterbacks in the first round of the draft,

the exact conditions of which have not yet been agreed upon.

(2) In implementation of the provision of the basic agreement with respect

to sharing of the costs of matters developing from the agreement of June 8,

1966, there is a general understanding as to league responsibility for certain

portions of the cost of signing John Brodie to a 1966-1967 contract. The 49'ers

will be responsible for the salary terms of his contract for the next four years

( $75,000 per year for 1966, 1967 and 1968 and $90,000 for 1969—the contract offer

from the 49'ers which the player had earlier rejected) but the member club of

the combined league will jointly contribute to the payment of his attorneys' fees

and the $512,000 additional payments to Mr. Brodie during the ten years following his retirement from football.

(3) There are also enclosed minutes of the meetings of the Joint Committee

of the two present leagues and minutes of the NFL league meeting which took

place following the announcement of the agreement. The deleted portions refer

to comments by either Mr. Gesell or myself on the legal and political aspects of

the situation.

Commissioner Rozelle will promptly communicate with me should any further

understandings still to be formulated occur to him.

Very truly yours,

HAMILTON CAROTHERS.

JOINT COMMITTEE AGENDA, JULY 20-21, 1966

1. Review announced NFL-AFL plan.

2. Common Constitution and By-Laws and playing rules.

3. Expansion.

4. Washington legislation.

5. Championship Playoff.

6. Draft.

7. Miscellaneous.

8. Reports: Covington & Burling (Hamilton Carothers and John Jones).

JOINT COMMII ihk. MEETING, THE PLAZA HOTEL, NEW YORK CITY, JULY 20, 1966

Commissioner Rozelle called the meeting to order at 10:00 A.M. The following persons were in attendance: Lamar Hunt, Daniel Reeves, Carroll Rosenbloom,

Texas E. Schramm, William H. Sullivan, Jr., Ralph C. Wilson, Jr., Robert

Shulman, Hamilton Carothers, and John Jones.

The meeting opened with a report on the status of Washington legislative

matters by Mr. Carothers of Covington and Burling.

Mr. Carothers reported * * *.

[Material excised.]

At 2:30 P.M., Mr. J. S.. Seidman joined the group for a discussion of those

points dealing with tax problems.

In discussion of Paragraph 5 it was agreed that Mr. Jones and Mr. Shulman

would discuss the problem of imputed income and report back to the Joint

Committee.

In discussion of the designated level of interest payment, it was agreed to

discuss the matter further with the New York Giants and the San Francisco

49'ers and discuss again at the next joint committee meeting.

The document "Special Terms Relating to San Francisco 49'erS Franchise and

Oakland Raiders Franchise" was then discussed.
PROFESSIONAL FOOTBALL LEAGUE MERGER 85

Paragraph 4 was to be held for further review.

It was pointed out that Paragraph 7 was in conflict with Paragraph 9.

Paragraph 8 was changed to include the Oakland Raiders.

Commissioner Rozelle was to check with Mr. Spadia of the San Francisco 49'ers

regarding the TV cable priority (Paragraph 9).

The document "Special Terms Agreed to by San Francisco 49'ers Franchise

and Oakland Raiders Franchise" was then reviewed.

Mr. Hunt was to check the matter of CATV with Mr. Valley of the Oakland

Raiders. The phrase "in blacked out area only" was to be added at the end of

line 5 of Paragraph (1) following "pay television or closed circuit television * *

The document "Special Terms Relating to New York Giants Franchise and New

York Jets Franchise" was then reviewed.

Commissioner Rozelle next discussed the mechanics of holding the annual

league meetings. He recommended separate meetings for each league, followed

by a joint Executive Session with one representative from each club attending.

It was agreed that the Commissioner was to preside over both league meetings and at the joint executive session.

It was further agreed that the Executive Session would be held in late March

or early April.

It was agreed that the National Football League would pay all joint costs

in connection with the expansion plan announcement, such as Washington counsel, public relations, lobbying, et cetera, and would then bill the American Football League for its proportionate share.

Following general discussion of the 2-point rule, coordinating the game officials staffs of both leagues, and establishing a joint security program as soon

as possible, the meeting adjourned at 7 :00 p.m. to reconvene again on Thursday,

July 21st, at 9:00 a.m.

JOINT COMMITTEE MEETING, THE PLAZA HOTEL, NEW YORK CITY, JULY 21, 1966

Commissioner Rozelle called the meeting to order at 9:20 A.M. with the following persons present: Lamar Hunt, Daniel Reeves, Carroll Rosenbloom, Texas

E. Schramm, William H. Sullivan, Jr., Ralph C. Wilson, Jr.

Meeting opened with a discussion of the championship game.

Mr. Wilson pointed out that carrying the game only on closed circuit television

could mean 25-30 million dollars in revenue.

An informal poll indicated that four of the members present were, in favor of

the Rose Bowl as a site for the game; one preferred Miami and one was open on

the matter.

Mr. Sullivan suggested that the formula used for the Army-Navy game which

made tickets available to Congressional people could be considered for this

game.

Commissioner Rozelle suggested that it might be possible to try closed circuit

television on an experimental basis in Los Angeles if the game were held in the

Rose Bowl.

He also pointed out that the blackout policy would create pressure from the

Los Angeles press. It was agreed to sound out newspapers ther'e in advance for

reaction to the Rose Bowl as a site for the game.

Commissioner Rozelle agreed to check with the Rose Bowl people on its availability and report back to the committee. He recommended doing nothing regarding television arrangements at this time.

Following a general discussion on division of this game's receipts, the matter

was tabled for further discussion at the next meeting.

Procedures for the common draft were then discussed.

It was agreed that consideration should be given to eliminating a "redshirt"

draft if concessions could be obtained from colleges:

1. Pro scout access to practice sessions.

2. Permit college assistant coaches to do scouting work for pro teams.

3. Set up through league office a procedure for securing accurate information on players.

In addition to the possible elimination of the redshirt draft, the committee also

recommended that the draft be limited to fifteen (15) rounds.

A draft sub-committee composed of Mr. Hunt, Mr. Reeves and Mr. Schramm

was appointed to report back to the committee on further reommendations for

draft procedure.
86 PROFESSIONAL FOOTBALL LEAGUE MERGER

The memorandum regarding playing rules was distributed and discussed.

It was agreed that the Supervisor of Officials of each league would .check the foobtalls used by the other league to determine which ball should be used.

The electronic device being investigated and tested by the National Football

League for game timing was to be reported on in detail at the next committee

meeting.

It was agreed that Mr. Duncan and Mr. Hein should confer on the shift rule, offensive pass interference and the fair catch rules.

Commissioner Rozelle was to send out statistics on the 2-point rule. The American Football League is in favor of having it remain.

It was recommended that rules be agreed upon in time for use during the reg- ular season games.

Messrs. Duncan and Hein were to confer also on the matter of the offset goal

posts which were adopted by the National Football League this year.

It was agreed that the American Football League teams would continue to

wear jerseys with the player names on the back.

The matter of expansion was then discussed.

It was agreed that a committee composed of American Football League and National Football League representatives would visit each of those cities being

considered for a football franchise.

At 2 :25 p.m. comparison began on the Constitution and By-Laws of the two

leagues. Please see attached report for details on this comparison.

Meeting adjourned at 5:20 p.m. to reconvene again at a time and place to be designated by Commissioner Rozelle.

COMPARISON OF NFL—AFL CONSTITUTIONS AND BY-LAWS

NFL AFL

MEMBERSHIP

Number of members may be changed Number may be changed by /34th vote.

by 13 affirmative votes.

Disposition: Hold

Application must be accompanied by Application accompanied by $25,000 fee $25,000 check. If approved, an ad- or such amount as voted unanimousditional $25,000 is due. ly by Executive Committee.

Disposition: Agreed to adopt NFL provision

Commissioner investigates application Executive Committee makes recomand submits to members with recom- mendation, % vote for approval.

mendation ; 13 affirmative votes required.

Disposition: Agreed to adopt NFL procedure; hold on voting requirement

Each home club pays league 2% of gross Each club pays $1,000 annual fee plus

receipts of each league game. Ad- 3% gross receipts of each league

ditional assessments when funds need- game or minimum of $2,000. Addied. tional assessments when funds needed.

Disposition: Use NFL provision; consider dropping gate assessment. Check,

legal counsel for tax aspects of so doing.

Requests for franchise transfer go to %th vote of Executive Committee reCommissioner, who makes recom- quired ;

mendation ; 13 votes.

Disposition,: Hold for vote

MEMBERSHIP

Specifies primary purpose of club ownership is operation of pro football

teams.

Disposition: Hold
PROFESSIONAL FOOTBALL LEAGUE MERGER 87

NFL AFL

TERRITORIAL RIGHTS

75 miles from corporate limits, except 100 miles from limits except half dishalf distance where cities are with- tance where cities are within 200

in 100 miles. miles.

Disposition: AFL to adopt 75 miles

MEETINGS

Annual Meeting second Monday in Feb- Annual meeting in January, 20 days

ruary, notice 30 days in advance (7 notice (10 days special, all notificadays for special meeting, all notifica- tion waived by unanimous consent).

tion waived by unanimous consent).

Disposition: Refer to counsel for proper language

Quorum 10. Quorum 5.

Disposition: Hold

EXECUTIVE COMMITTEE

13 votes to remove officer. %th vote.

Disposition: Hold

No limit on amount of fine. $2,000 to $25,000 on %th vote.

Disposition: Agreed to adopt NFL provision

EXECUTIVE COMMITTEE

Membership 1 each club. Same.

OFFICERS

Commissioner, Secretary, Treasurer. Commissioner, President, Secretary,

Treasurer.

Disposition: "Commissioner" to be changed to "President". Add new section re

succession of Commissioner: to be league presidents on alternating annual

basis.

10 votes to elect. /34th vote to elect.

Disposition: Hold.

Treasurer posts $250,000 bond. Treasurer posts $500,000 bond.

Disposition: Adopt NFL bond figure

Treasurer succeeds Commissioner in Treasurer succeeds Commissioner in

emergency. emergency, may conduct meeting in

Commissioner's absence by written

consent of majority of Executive

Committee.

Disposition: Refer to counsel for proper language.

PLAYING RULES

13 votes to amend or change on 30 %th vote to amend or change on 10 days

days notice prior to Rules Meeting notice. (unanimous otherwise).

( otherwise unanimous necessary).

Disposition: Hold

SELECTION MEETING

Commissioner names date and site. Executive Committee names date and

site.

Disposition: Agreed to adopt NFL provision

Draft in reverse order of standings. Draft in reverse order of standings except that if draft is after title game,

champion picks last regardless of

percentage.

Disposition: Agreed to draft in reverse order; champion picks last regardless of

won-lost record and runner-up next to last
88 PROFESSIONAL FOOTBALL LEAGUE MERGER

NFL

20 rounds, including redshirts.

AFL

20 rounds, plus separate redshirt draft

for minimum of seven rounds.

Disposition: Referred to draft committee

Ties in standing determined by lot. Same.

10 votes to elect.

SCHEDULE

Disposition: Same in both leagues

COMMISSIONER

3/4th vote to elect.

Disposition: Hold

Commissioner selects office location. Executive Committee selects office location by simple majority.

Disposition: Agreed to NFL provision

COMMISSIONER

Exclusive authority to arrange for and Sole power to contract for televising

sell all broadcast and television league games.

rights to championship game.

Disposition: Agreed to NFL provision

Authority to suspend or fine up to $5,-

000. May recommend more drastic

punishment or discipline to Executive

Committee, 13 votes.

Executive Committee ratifies by 3/4ths

vote action involving cancellation of

franchise, assignment of players and

leases on stadia, and working agreements negotiated with other leagues.

Commissioner has authority to suspend or fine up to $2,000.

Disposition: Agreed to $5,000 fine limit. Check NFL language on this point.

Hold voting portion

GAMBLING

Commissioner has full authority to act Any person connected with league or

in case of gambling or attempt to team in any capacity will be expelled

control outcome of league game. and his contract cancelled by the Commissioner if he bets money or other

valuable thing on outcome ox score

of any league game.

Disposition: Refer to league attorneys for language suggestions

BROACASTING AND TELEVISING

Disposition: All broadcasting and television provisions to be reviewed by league

attorneys and new language to be drawn up by them

PROHIBITIONS

Permits active member of Armed Forces

to play or practice if club continues

to carry such member on active list

and if Commanding Officer approves.

Servicemen may participate in AllStar Game and pre-season games, and

in all games if he is on terminal leave

or has conditional release from Service.

Permits active Armed Forces member

to play in league, playoff or championship game with permission from C.O.

(no active list proviso) . . . Wording

page 18 Section 3 might suggest that

player is not permitted to play in

pre-season game or while on terminal

leave or conditional release.

Disposition: Agreed to adopt NFL provision
PROFESSIONAL FOOTBALL LEAGUE MERGER 89

NFL AFL

Prohibits comments on officiating by

coaches or other personnel while narrating game films.

Disposition: Agreed to adopt NFL provision

Prohibits champagne or other alcoholic.

beverages in dressing rooms or in or

around field of play.

Disposition: Agreed to adopt AFL provision. Phrase "champagne or other" to

be eliminated

Players not required to report more Players not required to report more

than nine weeks in advance of open- than eight weeks in advance of opening league game. ing league game.

Disposition: AFL agreed to the nine-week provision

PLAYER CONTRACTS

Commissioner has 10 days from receipt No time limit specified.

to disapprove.

Disposition: Agreed to NFL provision; to be referred to counsel and contracts to

be checked

PLAYER CONTRACTS

Minimum salary of $5,000. Non specified.

Disposition: Suggested minimum of $10,000 to be discussed with all member

clubs (for drafted players only)

Training camp allowance specified. None specified.

Disposition: Training camp allowance to be standardized for both leagues for

1967 season

ROSTER LIMITS

Maximum 60 players under contract. Maximum 65 players under contract.

Disposition: Attempt to eliminate this point

40 player active limit. 34 player active limit (since raised to

40)

Disposition: Active Player limit now the same in both leagues

TRADES AND SALES

No sale or trade after fifth week of sea- No sale or trade after Sunday midnight

son without waivers, of sixth week without waivers.

Disposition: NFL agreed to adopt the sixth week provision

No "if" deals after start of season. No "if" deals after start of season.

Disposition: Same in both leagues

WAIVERS

4 :00 p.m. proviso Time of receipt.

Disposition: Agreed to adopt NFL provision
90 PROFESSIONAL FOOTBALL LEAGUE MERGER

NFL AFL

WAIVERS

If injured player so designated clears on Each club may place two players on inwaivers, he remains under contract to jured deferred list without waivers.

club and may be restored after 4 If he is deferred, he may not parweeks. ticipate with the club until 16 days

has elapsed.

If player is waived out during preseason or regular season, he may play

again for the waiving club after four

weeks if he has not signed in the interim with another club.

Disposition: AFL no longer has an injured deferred list; Mr. Rozelle and Mr.

Woodard to confer on waiver procedures and policy

In multiple claim, position in race after Same on multiple claim except tie in

third regular season game determines standings treated same way as if

disposition. If three games have not three games had not been played, i.e.,

been played, goes to club with lowest reverts to previous season.

percentage previous season. If teams

tied, decision is by lot.

Disposition: NFL agreed to adopt AFL procedure; check on language

If Club wants to release player or sell

him outside of league, it must give

written notice to Commissioner, who

in turn notifies each club and reveals

player's salary.

Disposition: AFL now does this as policy; not in book

CONDUCT OF GAMES

Home club has choice of uniform. Visitor wears white.

Disposition: Each league to follow its present policy on this

Name of players on back of uniforms.

Disposition: AFL to continue this policy

Visiting roster, names and number, to Roster, names and numbers, plus photos

home club six days in advance, of players and coaches to home club

two weeks in advance.

Disposition: AFL to adopt six-day provision

2% to league treasury 3% or minimum of $2,000 to league

Disposition: The $2,000 minimum to be eliminated. Consideration to be given

to the elimination of gate percentage to league office

CONFERENCE/DIVISION PLAYOFFS

Travel expenses for 55. Travel expenses for 40.

Disposition: Both leagues to adopt provision for 60. Alt other points in this

category were the same in both leagues

PRE-SEASON GAMES

Requires each team to schedule four No requirement specified.

non-conference games with four different teams from opposite conference. No team may schedule a fifth

game with a team in its own conference until both have four games

scheduled in opposite conference.

Disposition: Similar language to be worked out for both leagues
PROFESSIONAL FOOTBALL LEAGUE MERGER 91

NFL AFL

PEE-SEASON GAMES

2% to league office. 3% to league office, either from sponsor

or participating teams.

Disposition: AFL to adopt 2% provision. To be considered: Eliminating gate

percentage to league office—divided for inter-league games

Participating clubs share equally in net

receipts.

Disposition: To he eliminated

No game except those sponsored by a

league member may be played for less

than a $10,000 minimum guarantee

for each team.

Disposition: To be eliminated

Home club pays officials' travel expenses

plus $100 each.

Disposition: Both leagues to adopt provision requiring that sponsors be billed

game officials salaries and expenses

TITLE GAME

Officials selected by Commissioner, who Officials selected by Commissioner from entertains no club recommendations. list of 12 submitted by each of competing teams.

Disposition: Agreed to adopt NFL provision

TITLE GAME

Players eligible for last two regular Players eligible for last three regular

season games may participate. season games may participate ( two

others may be added from reserve

list).

Disposition: Agreed to adopt NFL provision

Travel expenses for 55. Travel expenses for visiting player

roster plus seven.

Disposition: Both leagues agreed to travel expenses for 60 persons. Counsel for both leagues to confer on drawing up language on commitment of receipts for players, benefit plan, et cetera

AMENDING CONSTITUTION

Requires affirmative vote of 13 mem- Requires % vote on minimum of 20 bers provided in writing to league 30 days notice.

days prior to annual meeting by a

member club or 20 days prior by Commissioner.

Disposition: Agreed to adopt NFL provision

SPECIAL

AFL shall have perpetual existence

Member club attempting to transfer

franchise to another pro football

league shall indemnify AFL $1,400,-

000 as liquidated damages.

Disposition: Eliminated
92 PROFESSIONAL FOOTBALL LEAGUE MERGER

THE NATIONAL FOOTBALL LEAGUE

MINUTES OF THE ANNUAL MEETING (RECESSED SESSION) , THE PLAZA HOTEL, NEW

YORK, N.Y. (THE BAROQUE FOYER)

Thursday morning, June 30, 1966

Commissioner Rozelle called the meeting to order at 10:00 a.m. The roll was

called and the following persons were shown to be present:

Atlanta Falcons: Rankin Smith.

Baltimore Colts: Donald Kellett.

Chicago Bears: George S. Halas, Sr., George S. Halas, Jr.

Cleveland Browns: Arthur B. Modell.

Dallas Cowboys: Clint Murchison, Jr., Texas E. Schramm.

Detroit Lions: William Clay Ford, Edwin J. Anderson.

Green Bay Packers: Fred Trowbridge, Sr., Vincent Lombardi.

Los Angeles Rams: Daniel F. Reeves, William Bullis.

Minnesota Vikings: Max Winter, James Finks.

New York Giants: Wellington Mara, Timothy Mara.

Philadelphia Eagles: Jerry Wolman, Edward Snider.

Pittsburgh Steelers : Art Rooney, Sr., Daniel F. Rooney.

St. Louis Cardinals: Charles W. Bidwill, Jr., William V. Bidwill.

San Francisco 49'ers : Louis G. Spadia.

Washington Redskins: Milton King, Edward Bennett Williams.

The following persons were also present:

Commissioner Pete Rozelle.

Mr. Joseph Donoghue.

Mr. Marshall Leahy.

James L. Kensil.

Austin Gunsel.

Gerhard Gesell.

Hamilton Carothers.

Commissioner Rozelle reviewed with the member clubs the recapitulation of the

terms of the NFL-AFL plan.

Following this review Mr. Gerhard Gesell discussed * * *.

[Material excised.]

Mr. Rozelle stated that he has also discussed the plan with Charles Bradshaw,

the president of the Players Association.

Meeting recessed at 12 :55 p.m. to reconvene again at 2:15 p.m.

Thursday Afternoon, June SO, 1966

Meeting called to order at 2:15 p.m. Roll call indicated the same persons

present as at the morning session.

Detailed discussion continued on the various points contained in the recapitulation of terms. Also reviewed were the special terms relating to the Giants

and the Jets franchises and also the San Francisco and the Oakland franchises.

Consideration was then given to setting up a joint committee: the number,

naming the members, and outlining the authority involved.

First point discussed was the authority to be granted to this committee. It

was agreed that the basis of the committee's actions would be that of exploring

and reporting back, with final authority granted to them in certain areas, after

the initial meeting, following which the committee would be better able to recommend those areas in which they should have authority to act. It was agreed that

the committee should consist of three persons. Nominations for the committee

would be made and voted on in the Friday morning session.

Discussion followed on the championship play-off game. No date or site has

been set.

Discussion of the 1967 pre-season games then followed. Commissioner Rozelle

advised against making any final commitments until the pre-season schedule has

been reviewed.

Commissioner Rozelle then discussed the proposed sixteenth franchise. Recommended that a committee be appointed to visit these cities.

Next Commissioner Rozelle discussed the need for some ground rules on the

problem of ownership in more than one sports enterprise. He pointed out

multiple ownership often meant not enough time for all activities; that issues

could arise on which owner would vote with his other interests in mind; tele-
PROFESSIONAL FOOTBALL LEAGUE MERGER 93

vision and pay television could be a problem, as could the Sports Bill. He stated

that established policy should be adhered to—the policy of minority ownership

only in other sports interests.

Next discussed was the matter of CATV ownership. Mr. Carothers reviewed

CATV activities to date. He stated that the copyright approach is being tried;

that the Committee is interested in protecting football interests and the question

is still under consideration at a Commission hearing.

Commissioner Rozelle then reported that he had had several meetings with

CBS since the plan for an expanded league was announced. He stated that

they would like the NFL-AFL playoff game on a negotiated basis; they feel

that after 1966 they should have an option rather than a firm agreement for

1967, with options also for 1968 and 1969; that the rights fees should fluctuate

based on the previous year's gross revenue from the games themselves. They

feel that the championship game should be reduced in rights fees. Want first

refusal Tights for television rights for 1970 also. Commissioner Rozelle stated

that it would be necessary to determine a general course of action and then meet

to decide how the matter is to be be handled with CBS.

Commissioner Rozelle recommended that a small committee meet with CBS

and Edward Bennett Williams, Arthur Modell and George Halas, Jr. were

selected as members of this committee.

Meeting recessed at 6:20 P.M. to reconvene again Friday morning at 10:00

a.m.

Friday morning, July 1, 1966

Commissioner Rozelle called the meeting to order in the State Suite of the Plaza

Hotel at 10:00 A.M. Roll was called and the following persons were shown to be

present:

Atlanta Falcons: Rankin Smith.

Baltimore Colts: Donald S. Kellett.

Chicago Bears: George S. Halas, Sr., George S. Halas, Jr.

Cleveland Browns: Arthur B. Modell.

Dallas Cowboys: Texas E. Schramm.

Detroit Lions: Edwin J. Anderson.

Green Bay Packers: Fred Trowbridge, Sr., Vincent Lombardi.

Los Angeles Rams: Daniel F. Reeves, William Bullis.

Minnesota Vikings: Max Winter, James Finks.

New York Giants: Wellington Mara, Timothy Mara.

Philadelphia Eagles: Jerry Wolman, Edward Snider.

Pittsburgh Steelers : Art Rooney, Sr., Daniel Rooney.-

St. Louis Cardinals: Charles W. Bidwill, Jr., William V. Bidwill.

San Francisco 49'ers : Louis G. Spadia.

Washington Redskins: Milton King; Edward Bennett Williams.

'The following persons were also present:

Commissioner Pete Rozelle.

Mr. Joseph Donoghue.

Mr. Marshall Leahy.

Mr. James L. Kensil.

Mr. Austin Gunsel.

Commissioner Rozelle announced that the Giants and the 49'ers had agreed

to waive television indemnification, a point in the recapitulation of terms discussed in yesterday's meeting.

Mr. Leahy discussed the division of regular season television income (Point

3(c) of terms) explaining that this meant that everyone would be committing

to a single network with equal division of income; that everyone would be committing to an arrangement whereby any club organizing its own network would

pool and divide its income; this excludes pay and closed circuit television—

every club would be free to arrange pay television on its own, subject to whatever

rules are adopted by the league on this matter.

Mr. Modell suggested and it was agreed that this should include network

pre-season game income also. Mr. Modell also suggested that pay and closed

circuit television income be pooled also.

Following discussion it was agreed that this point does not include pay

television. Mr. Schramm stated that this was the understanding by all parties

concerned.

70-605-66 7
94 PROFESSIONAL FOOTBALL LEAGUE MERGER

Following further discussion, it was agreed that 3(c) would be construed to

mean the inclusion of all regular season free television income from any source.

either local or package network; it was to mean the inclusion of any pre-season

income from regional television networks but excludes any pre-season games carried into the home city; that it also excludes pay theatre and closed circuit television income.

An informal poll regarding the pooling of pay television income showed that

thirteen clubs were in favor of this and two passed on the matter at this time.

Commissioner Rozelle recommended that the Joint Committee check this with

the AFL Joint Committee.

Following discussion, the following resolution by Mr. Donald Kellett, seconded

by George Halas, Sr., was unanimously approved: That a TWX draft be conducted for the 32 "redshirt" players drafted by the AFL which were not also

drafted by the NFL in last season's draft.

Meeting then recessed at 11 :20 a.m. to reconvene again at 12:15. Purpose

of recess was to permit the television committee appointed at yesterday's session

to meet with CBS personnel at their headquarters offices.

Meeting reconvened again at 12:20 with the same persons present at the

opening of the meeting with the exception of the Detroit Lions. Mr. Model!

was asked to report on the committee's meeting with CBS.

Mr. Modell reported that the following points would have to be resolved: (1)

the championship game; (2) reduction on basic package rights; (3) television

of pre-season intra-league games; (4) would like a formula for rights fees based

on revenue or ability to sell. Mr. Modell stated that it was important that some

method be devised for the championship game to be presented on that network.

Commissioner Rozelle stated that it was necessary to decide on what the next

step should be: (1) either continue to negotiate with CBS (without authority)

and then clear with each of the member clubs; (2) or if accord is reached, give

authority to the television committee to try to effect an understanding with

NBC on the championship game and make the best possible settlement with

CBS.

On a motion by Mr. Donald Kellett, seconded by Mr. Rankin Smith, the following resolution was adopted unanimously by voice vote (Note: The Detroit Lions

were not present at this time) :

"That the Commissioner with the assistance of counsel and the television committee, consisting of Mr. Arthur Modell, Mr. Edward Bennett Williams and

George Halas, Jr., be authorized to resolve any television problems that might

exist."

Mr. George Halas, Sr., presented the matter of coaching contracts for discussion. He stated that any legally signed contract should be upheld in the National Football League.

Commissioner Rozelle pointed out that the use of clauses in contracts regarding injunctive relief was contrary to the provisions of the Constitution and ByLaws of the National Football League.

Mr. Lombardi recommended a cut-off date be established for contacting assistant coachings of other clubs.

Following discussion, all members were in accord with the following:

"That all coaches must first obtain the consent of the club to which he is undercontract and such consent must be received in writing, with a copy to the Commissioner's office before he may discuss employment with another club; otherwise such actions will be construed as tampering. Any discussions may not be

held after March 1st of each year."

Commissioner Rozelle stated that no public announcement was to be made on

the plans that have been made for the February meeting.

Following discussion on membership of the Joint Committee, it was agreed'

that Mr. Tex Schramm would be one member, and all clubs submitted by written

ballot two other names for membership on this committee.

Commissioner Rozelle then took up the matter of early retirement of Mr. Austin Gunsel, as treasurer of the league. The matter of a pension for him was discussed, and upon motion of George Halas, Sr., seconded by Mr. Edward Bennett

Williams, the following resolution was adopted: (see attached.)

Commissioner Rozelle reported on the progress being made by Mr. Jim Hamilton, director of security for the National Football League. He announced his

intention of hiring someone to work actively on the league security program while

Mr. Hamilton is recuperating from his illness, and making a differment financial arrangement later this summer during the time Mr. Hamilton is not workingactively.
PROFESSIONAL FOOTBALL LEAGUE MERGER 95

On motion by Mr. Arthur Modell, seconded by Mr. Lombardi, the following

resolution was adopted unanimously: (Detroit absent.)

"RESOLVED, that the Finance Committee be empowered to counsel with Commissioner Rozelle, negotiate a new contract with him, and report back to the

membership."

At 2 :00 p.m. it was necessary for the Chicago Bears to leave the meeting.

Commissioner Rozelle stated that some formula should be set up for establishing a successor to the Commissioner.

Mr. Williams suggested that a treasurer be elected for an interim period.

On motion by Mr. Modell, seconded by Charles Bidwill, Mr. Marshall Leahy

was elected to serve as Treasurer of the National Football League until the

February 1967 annual meeting. Motion unanimously adopted (Detroit and

Chicago absent).

Discussion on the problem of pay television was then resumed. No specific

recommendations were made at this time.

Mr. Leahy then discussed a modification being considered for the agreement

between the National Football League and the Atlanta Falcons Football Club

to include the following two points:

(1) (2) (see attached)

On motion by Mr. Edward Bennett Williams, seconded by Mr. Trowbridge,

these changes in the agreement were adopted unanimously (Chicago and Detroit absent).

On motion by Mr. Rankin Smith, seconded by Mr. Williams, and approved

unanimously, the adjourned session of the 1966 annual meeting of the National

Football League was declared finally adjourned at 2:20 p.m. on Friday, 1 July

1966.

On motion of George Halas, Sr., seconded by Ed Williams, the following resolution was adopted:

Whereas, Austin H. Gunsel, Treasurer of the National Football League, has

rendered long and valued service to the League, and

Whereas, circumstances have arisen which both Gunsel and the League believe

suggest an early retirement by Gunsel from active service to the League, and

Whereas, the League wishes to make suitable provision for such retirement

by Gunsel: Be it

Resolved as follows: Effective immediately, Austin H. Gunsel's employment

as Treasurer of the League is terminated upon the following understanding:

(a) The League obligates itself to pay Gunsel the sum of $12,000 a year for a

period of five years or until his death, whichever event occurs first; said payments shall commence August 1, 1966 and shall thereafter be paid in equal

monthly installments; one-half of said sum, to-wit, the sum of $6,000 a year shall

be allocated as consideration for the agreement by Gunsel to perform services for

the League pursuant to the terms of sub-paragraph (d) of this resolution.

( b) After the foregoing period of five years shall have elapsed and so long as

said Gunsel is living, the League shall pay Gunsel the sum of $10,000 per year,

payable in equal monthly installments until his death.

(c) The League does not obligate itself to pay Gunsel any money hereunder

after Gunsel's death, except sums that shall have accrued and are unpaid at

or prior to his death.

(d) Gunsel must agree to make himself available to the League at all reasonable times for consultation and advice as demanded from time to time by the

League; such obligation of Gunsel shall continue for a period of five years:

commencing August 1, 1966, and for a period of five years thereafter, Gunsel

shall not accept employment with any club, team or league, engaged in professional football except for the services to be rendered to the National Football

League pursuant to this resolution; the sole right to the services of Gunsel in

the field of professional football belongs exclusively to the National Football

League during the five year period above referred to.

(e) Gunsel is presently a beneficiary undex the NFL Office Pension Plan. To

the extent that any monies are available for payment to Gunsel by reason of

his retirement prior to the normal retirement date under the NFL Office Pension

Plan, then the obligations of the League to Gunsel under this resolution shall

be reduced by any payments received by Gunsel by reason of benefit units

accumulated and paid to him for his benefit under said Plan. The obligations

hereunder shall be integrated with the provisions of the aforementioned Office

Plan so that the amount Gunsel shall receive under this resolution, together
96 PROFESSIONAL FOOTBALL LEAGUE MERGER

with any amounts he shall receive under said Plan, shall not exceed the sum

of $1,000 per month for the fixst five years commencing August 1, 1966 and $10,000

per year thereafter for life in equal monthly installments as aforesaid.

(f) Gunsel must further agree that while the League is making any payments

hereunder, he shall not engage in any activity, or be guilty of any conduct

detrimental to the best interests of professional football or to the National

Football League, or any of its member clubs; neither shall Gunsel, without

the prior consent of the Commissioner of this League, publish any newspaper

or magazine article, book or publication, nor submit to any newspaper, radio

or television or other interview or program which discusses, involves or refers

to the affairs or activities of the National Football League, its officers or

employees, or to any of the member clubs thereof, or their owners, officers,

employees or others holding any interest therein.

(g) The member clubs of the League reserve the right to terminate this

arrangement at any time if, in their sole and exclusive discretion, Gunsel either

neglects, fails or refuses to perform hereunder, or violates any of the provisions

of subparagraph (f) above.

Adopted July 1, 1966 by the member clubs of the National Football League

at the final session of the Annual Meeting thereof at the Plaza Hotel, New

York, New York.

MEMORANDUM

To: Member Clubs of the National Football League.

From: M. E. Leahy, General Counsel.

Re: NFL-Atlanta Transaction.

Date: August 12, 1966.

A modification of the Agreement between Pete Rozelle as Commissioner of the

League on behalf of the member clubs, and The Five Smiths, Inc. is necessary in

order to accomplish two points:

(1) The inclusion of an interest factor of 4% in the price paid by Atlanta to

avoid the imputation of an interest factor by the Federal Government of 5%.

Atlanta has agreed to accept a 4% interest factor and the note has been revised

to reflect it. 4% is the minimum that is acceptable to the Government in a

transaction of this kind. In the absence of this modification the Government

would impute a 5% interest factor which would result in a greater amount of

the payments to each club being considered ordinary income.

(2) Provisions have been made in the note from Atlanta to the League to

provide for a deferment of any future payment by Atlanta other than the payment due in September of 1966 whenever Atlanta is prohibited from playing

football by reason of Federal statutes or Governmental orders, et cetera.

Both of these points should require no further explanation since they have

been the subject of discussion at League meetings.

AMERICAN FOOTBALL LEAGUE,

New York, N.Y., August 19, 1966.

Mr. PETE ROZELLE,

Commissioner, National Football League,

1 Rockefeller Plaza,

New York, N.Y.

DEAR PETE: Enclosed please find a copy of a memo prepared for our attorney,

Daniel L. Martin, to be used in discussing the amalgamation of our by-laws

when he meets with your counsel next week. On the more important items, you

will note I have made some recommendations which I feel would be mutually

beneficial to both leagues now and to the expanded league later.

You will recall, I am sure, my explanation at our luncheon meeting of the

procedure we will follow in having the clubs, rather than the league office, pay

those who participate in the final championship game's player pool and thus

escape payment of a second employer's FICA payment and enhance the nonprofit status of the league office. I have taken the privilege of outlining it more

fully on page five of the memo.

Mr. Martin will be available virtually all of next week to meet with Mr. Leahy

and anyone else involved.

Sincere regards,

MILT WOODARD,

President.
PROFESSIONAL FOOTBALL LEAGUE MERGER 97

AUGUST 19, 1966.

To: Daniel L. Martin.

From: Milt Woodard.

Re: Amendments of the AFL By-Laws Since the Last Printing in February, 1964.

Inasmuch as we will probably not issue a revised copy of our By-Laws because

of the wholesale revision expected in making them conform to the NFL Constitution and By-Laws, I will only record the more significant changes fully and will

merely note the minor ones which will not affect the combined By-Laws. I am

also taking the liberty of commenting on the advisability of encouraging the

NFL to consider any changes we have made.

Article VII, Section 8, (Page 14) : After "at such place" insert "and in such

manner". Comment: Not significant.

Article VIII, Section 6, (Page 18) : The player limit here has been increased

to 40 instead of the recorded 34. Comment: Same as NFL.

Article VIII, Section 9, (Page 19) : The following has been added: "Exception:

Rookies assigned to play in the Chicago Tribune All-Star Game are allowed to

report for training three weeks in advance of the recognized starting date."

Comment: Not too significant.

Article XI, Section 5, (Page 21) : Here the regulations agreed upon with the

NCAA in respects to signing players after post-season bowl games are inserted.

This is identical to the NFL's, so no problem.

Article XIII, Section 3, (Page 23) : In order to more fully clarify the reserve

list, we led off with the following and then picked up the rest of Section 3:

"During practice and the regular season the reserve list of a member club consists of all players under contract or option with such club, other than players

on the active or deferred lists of said club. Without limitation of the generality

of the foregoing, the reserve list of a member club shall include any player under

contract or option with such club who (1) fails or refuses to report promptly

as instructed for the club's training season or who voluntarily leaves the squad

or otherwise retires from professional football; (2) fails or refuses to so report

by reason of illness or injury of any kind or (3) fails to so report by reason of his

becoming a member of the Armed Forces of the United States or any other

country. Between the end of one football season and his reporting for the training season of the next football season, a player under contract or option with a

member club shall be deemed to be on the reserve list of such club."

In addition, in the first sentence of the old Section 3 which was picked up

we inserted after "preliminary or regular season" the following: "unless he returns to the squad and is officially activated prior to the first cut-down date,".

Comment: This seems very equitable and Mr. Rozelle, during one of our discussions, indicated it had merit.

Article XIV, Section 6, (Page 25) : In order to make the wording more clear,

we substituted the following: "Section 6. A club placing a player on waivers may

recall such a player only once per season and a subsequent placement of said

player on waivers shall be without right of recall."

Article XV, Section 1, (Page 27) : At the end of Section 1 we made a change

which revised the section as follows: "such guarantee to be mailed by the home

club on Tuesday prior to the game." Comment: Has worked for us and seems

like a good idea if NFL likes it.

Article XV, Section 1(b), (Page 27) : We raised the percentage to Seventeen

and One-Half Per Cent (17%%), because several of our clubs were paying this

percentage.

Article XV, Section 17, (Page 30) : The Miami club should be inserted, along

with its colors of aqua, orange and white.

Article XV, (Page 30) : At the end of this Article we added two more sections

as follows:

"Section 21. Each team must provide a tarpaulin to fully cover its football

field.

"Section 22. Teams playing in parks with baseball facilities should sod or

seed its infield after the baseball season."

Article XVI, Section 7, (Page 31) : At the end of this section the following

was added: "A percentage of the receipts from the televising of the final championship game shall be allocated to the Championship game pool exclusively at

the discretion of the Executive Committee, and the remaining percentage of

such television receipts shall be turned over to the Player Benefit Fund of the

American Football League." Comment: This conforms closely to what the NFL

does.
98 PROFESSIONAL FOOTBALL LEAGUE MERGER

Article XVI, Section 8, (Page 31) : In the listing of expenses in the second

paragraph of Section 8, we added as an expense the following: "including a flat

sum of Four Thousand Dollars ($4,000.00) to the host team for handling intangible office expenses,". Comment: We feel this is fair although the figure

might be revised.

Also in the second paragraph of Section 8, in the last sentence after "League"

on top of page 32, we added "for distribution equally to member clubs." Comment: This was done as a protection for the league office's tax exempt status.

Article XVI, Section 13, (Page 32) : The second sentence was revised as follows: "All players declared eligible to play in the final league championship

game who were with the team the entire season and all regular coaches and the

trainer shall receive equal shares and no less than a half (1/2) share may be voted

to players who have not been with the team the entire season but who are activated for the final championship game." Comment: The reason for this

change is that we previously revised our By-Laws to allow a player waived by

the contending team to be activated in case there were injuries in the last three

games of the season, and we felt that a player who did not contribute to the club

winning the championship should not receive a full share by just playing in the

final championship game.

In this connection, I have discussed with Commissioner Rozelle, Article XVI,

Section 11, and he seemed to feel that our arrangement had some merit over the

NFL's. As I understand the NFL arrangement, only the player eligible on the

third-to-last game of the season will be eligible to play in the championship game

and this might lead to real hardship if there are considerable injuries, because

there will be no relief. Our arrangement provides the relief of allowing two

players to be activated if they have been waived by the contending team, and

provides assurance that a team will be up to the player limit for the important

final championship game.

Article XXI, Section 1, (Page 38) is amended to allow an amendment to the

By-Laws at any Executive Committee or annual meeting by a three-quarters (%)

vote if amendment is submitted twenty (20) days prior to meeting.

Article XXII, Section 1, (Page 38) : We have altered the distribution arrangements as outlined in the second sentence to read as follows: "All income from

championship, pre-season, and other televised games, derived by the League and

any and all individual clubs, shall be paid directly to the American Football

League, as an agent, for distribution to all participating clubs equally or shall

be distributed directly to member clubs in accordance with instructions from the

Commissioner, but other television income from local highlight shows, pre- and

post-game shows, etc., shall accrue to and be paid directly to the local clubs.

Income paid directly to the American Football League, as an agent for the member clubs therein, shall be held on deposit by the League's treasurer and dis.

tributed at a time and in amounts designated by the Commission." Comment:

This was done again as a means to protect our tax exempt status.

In Article XXII, (Page 39) we added a Section 2 and made the previous Section 2 as Section 3. The new Section 2 follows: "Section 2. Net income from

theater and pay television shall be divided sixty per cent (60%) to the home

team and 40 per cent (40%) to the visiting team, after the three per cent (3%)

deduction allocated to the league office." Comment: This was added on the

premise that theater television and closed circuit television within the area controlled by the home club should be regarded as admission income.

In addition to the amendments outlined above, I feel there are several other

aspects of the two By-Laws which should be discussed which were not pointed

out in the NFL's summary of major points between the two Constitution and

By-Laws. They are:

Gambling.—I feel that each By-Laws should restrict and prohibit betting on

any game in professional football rather than just in the league itself. Our

By-Laws restrict it to the league and the NFL By-Laws also restrict it to its

league, except it does generalize on professional football games when it discusses

receiving an offer, etc.

Entering dressing room of game official.—The restriction, contained in both

By-Laws, of not allowing any employee of the league to enter the dressing room
PROFESSIONAL FOOTBALL LEAGUE MERGER 99

of a game official possibly should be clarified. This might be interpreted to

include the Supervisor of Officials and the Commissioner, which seems unduly

restrictive.

Regarding the paying of players for our final Championship game, we differ

from the NFL in that we have respective clubs pay the players while this is done

by the Commissioner's Office in the NFL. I have explained our reasoning to

Commissioner Rozelle—that we could save in excess of $25,000.00 by not duplicating the employer's social security payment which the club would pay in the

normal course of business; e.g., a secondary employer must pay $277.00 each for

those earning $6,600.00 or more. Assuming 100 shares are distributed between

the two teams, and also assuming that the loser's share is in the area of $6,600.00,

this would mean a savings in the neighborhood of $25,000.00, because either

previously or subsequently the club itself pays this amount as the primary employer. It would also be a savings on the employer's FICA charge if the clubs

distribute the second place money.

In addition, but I think very important, the handling of the salaries by the

clubs would enhance the league's status as a non-profit organization.

Conceivably we could have three separate entities pay the. players' salaries

direct (The NFL, the AFL offices for the respective final championship games

and the Commissioner's office for the inter-league game), and a savings in the

neighborhood of $75,000 could be realized by following our format, which could

also help substantiate the non-profit status of all three offices.

Although it doesn't involve the By-Laws, perhaps it would be feasible also to

discuss and reach a mutual agreement on the withholding of 25% of a player's

salary, as provided in both the NFL and AFL contracts. At our last meeting we

left it to the discretion of the individual clubs as to whether or not it would

withhold any part of said salary up to 25%.

AMERICAN FOOTBALL LEAGUE

Boston: William H. Sullivan, Jr.; Daniel Marr ; Forrester Clark; David H.

McConnell; Edward McMann ; Francis Sargent; Paul Sonnabend; Joseph E.

Sullivan; Philip Turner; Robert C. Wetenhall.

Buffalo: Motorcar Transport Co.

Denver: Gerald H. Phipps, Alan R. Phipps, major stockholders; 8 stockholders

with less than 2% interest each.

Houston: K. S. Adams, Jr.

Kansas City: Lamar Hunt.

Miami: Joseph Robbie; Danny Thomas Sports, Inc.; General Partners; Four

Limited Partners.

New York: David Werblin, Leon Hess, Philip Iselin, Townsend Martin, Donald

C. Lillis.

Oakland: Wayne Valley, Edward McGah, Al Davis, General Partners; 25 Limited

Partners.

San Diego: Eugene Klein, Samuel Schulman, General Partners; 20 Limited

Partners.

THE NATIONAL FOOTBALL LEAGUE,

July 8, 1966.

Memorandum to: Club Presidents and General Managers.

Subject: Appointment of Committee.

In accordance with discussion conducted at the recent New York meeting and

written suggestions offered by club presidents, this is to advise you of the appointment of the three-man committee to meet jointly with American Football

League representatives.

'The committee will include Daniel Reeves, Carroll Rosenbloom and Texas E.

Schramm.

PETE ROZELLE, Commissioner.
100 PROFESSIONAL FOOTBALL LEAGUE MERGER

THE FOOTBALL NEWS,

Detroit, Mich., October 4, 1966.

Hon. EMANUEL GELLER,

Congressman, New York,

House Office Building,

Washington, D.C.

DEAR CONGRESSMAN CELLER : In reply to your recent letter I am pleased to

submit the following statement for the record in connection with the Hearings

on S. 3817—Pro Football Anti-Trust Exemption.

"Pro football is America's number one spectator sport and it deserves special

consideration. The proposed merger between the National Football League and

the American Football League is vital to the sport and in the best interests of

the American people. Without the passage of the legislation necessary to make

pro football immune from anti-trust action, the merger and the entire sport would

be in jeopardy."

I am pleased to enclose a copy of this week's issue of the FOOTBALL NEWS

which features an open letter to you on page 2. I would like this to also be made

part of the record.

Sincerely,

ROGER STANTON, Publisher.
PROFESSIONAL FOOTBALL LEAGUE MERGER

THURSDAY, OCTOBER 13, 1966

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE No. 5 OF THE

COMMITTEE ON THE JUDICIARY,

TV ash,ing ton, D .0 .

The subcommittee met at 10 a.m. pursuant to recess, in room 2141,

Rayburn House Office Building, lion. Emanuel Celler (chairman of

the committee) presiding.

Present: Representatives Celler, Rodino, Rogers, Donohue, Kastenmeier, McCulloch, Cramer, Mathias, and MacGregor.

Also present: Representative Boggs.

Also present: Kenneth R. Harkins, chief counsel, Antitrust Subcommittee, and Martin Hoffmann associate counsel.

The CHAIRMAN. The committee will come to order.

We have with us our distinguished Member from Louisiana, and acting majority leader of the House. We like to roll out the carpet for

him first, because he is a very distinguished member, and second, a very,

very dear friend of mine.

Representative Boggs, we will be more than pleased to hear you.

STATEMENT OF HON. HALE BOGGS, A REPRESEN'T'ATIVE IN

CONGRESS FROM THE STATE OF LOUISIANA

Mr. BOGGS. Thank you very much, Mr. Chairman and members

of the committee.

I appreciate your letting me come ahead of these other distinguished

witnesses. As you know, we have a very busy program on the floor

and the House meets at 11 o'clock this morning, so time is, indeed, of

the essence.

I would say also, Mr. Chairman, that time is of the essence insofar

as this proposed legislation is concerned.

I am one of those who has introduced this bill, the number of my

particular bill is H.R. 17791, designed to authorize the merger of

the two professional football leagues and to impose certain restrictions

on telecasts by the leagues.

I am most anxious, Mr. Chairman, to see this bill reported favorably

by the committee, considered by the House, and passed by the House,

prior to the anticipated adjournment of Congress next week.

I say that for a variety of reasons.

This country of ours is growing at a tremendous rate: Professional

football has many aspects, some of which are very much associated

with the growth of our communities.

101
102 PROFESSIONAL FOOTBALL LEAGUE MERGER

Now, I represent a community that has no professional football.

We have tremendous interest, in it. We have a great many people that

would like to sponsor a franchise if one is granted. We have a growing

population; our business community, our people who are interested in 

sports all feel that in a sense this is a gross discrimination against

our community in not being able to have a franchise.

There may be some defects about the proposed bill, but, after all,

Congress is a continuing body. We will be back here in January, and

any difficulties that may be presented could be easily corrected. But,

if we relieve the leagues of the burden that they are now confronted

with, I think that they could go ahead and do the necessary planning

to expand professional football, which is something that all Americans are interested in today.

Now I have discussed with some of the members of this committee

some of the legal aspects of the proposal. I have had some very

competent attorneys who are friends of mine to prepare a memorandum with respect thereto, and, Mr. Chairman, if it meets with your

approval, I would like to make that a part of my statement and incorporate it in the record.

The CHAIRMAN. You have that privilege.

(Statement and memorandum follow:)

PREPARED STATEMENT BY REPRESENTATIVE HALE BOGGS

Mr. Chairman I come before the subcommittee today to plead a case that is

very dear to me. I have introduced a bill, H.R. 17791, that would authorize

the merger of the National and American Football Leagues and protect high

school and college games from pro telecasts.

Mr. Chairman, New Orleans is the prime candidate for a franchise in the

merger plans.

The New Orleans area is ready for a professional football team. It is what

New Orleans and Louisiana wants. It is what the South wants. We have a

growing industrial area, one of the fastest growing in the United States. We

are building from Houston to Atlanta one of the great industrial complexes of

this country. Professional sports are an integral part of growth patterns. We

have come of age and we deserve a team.

The residents of my great area have proven they will support a team. We

have success upon success in staging professional football pre-season games,

double headers in our great Sugar Bowl. We have the market for a team and

we want the football team to share in our prosperity.

We have the enthusiasm. We have the interest.

Now the legal minds of the professional teams believe it is necessary to have

an exemption from the anti-trust law to protect them. I believe they have a sound

legal basis for doing so. I have sought help from attorneys to substantiate

this contention. I am making it part of the record.

I believe we must also recognize the great mandate from the people who overwhelmingly approve of the merger and an rapid end to the war now going

on between the two football leagues.

We are seeking peace with this merger and I believe we should do all we can

to accommodate that peace.

We must also consider the other cities that will get teams in the expansion

plans. We must spread this game to as many of our citizens as we can.

The second part of my bill would prohibit telecasts of pro games in areas

where high schools and colleges are playing. We should do all in our power to

help our youngsters maintain the widespread support they now receive. There

is enough time in the weekend for all levels of the game and we should work

towards an orderly schedule that hurts none of the parties.

I urge you to report this bill favorably.
PROFESSIONAL FOOTBALL LEAGUE MERGER 103

MEMORANDUM

OCTOBER 6, 1966.

Some objection to the legislation now pending in Congress to exempt organized

professional football from the antitrust laws is based on the proposition that the

granting of such an exemption would lay the precedent for other industries to

seek similar exemptions. It is submitted that such a precedent has already been

laid.

In July of 1961, the Federal District Court for the Eastern District of Pennsylvania held that the negotiations jointly by the various teams in a professional

sports league for a television contract was an unlawful elimination of competition. In response, H.R. 9096 was introduced, passed and signed into law on

September 30, 1961 (Public Law 87-331) to provide that the antitrust laws shall

not apply to any such joint agreement by or among persons engaged in organized

professional team sports.

It is noted at 5 Toulmin's Antitrust Laws of the United States, § 8.12 (pocket

parts) (1966) 'that:

"The justification of this legislation by its sponsors was to permit joint negotiation of television contracts would serve to strengthen the weakest members of the

league."

It would appear that the same argument could be made in justification of the

proposed antitrust exemption legislation.

MEMORANDUM

OCTOBER 6, 1966.

We have been asked to give an opinion as to the advisability of a planned purchase by one of our clients of •an interest in a profesional football club franchise.

The purpose of this memorandum is to consider the applicability of the Federal

Antitrust Laws, to the proposed merger between the National and American

Football Leagues.

Applicable statutes

Section 1 of the Sherman Act declares:

"Every contract, combination in the form of trust or otherwise, or conspiracy,

in restraint of trade or commerce among the several States or with foreign nations, is declared to be illegal."

In equally broad language, Section 2 of the Sherman Act provides:

"Every person who shall monopolize, or attempt to monopolize, or combine or

conspire with any other person or persons, to monopolize any part of the trade or

commerce among the several states, or with foreign nations, shall be deemed

guilty of a misdemeanor * *

Because the Sherman Act is not considered violated unless actual and substantial adverse competitive effects result from a monopoly, Section 7 of the

Clayton Act was enacted to condemn these mergers whose probable effect is

either a substantial lessening of competition or a tendency to create a monopoly.

Under the Clayton Act, it is sufficient to show that a business combination may

produce future non-competitive effects.

Antitrust Litigation Involving Baseball

In 1922, the first serious attack on organized sports under the antitrust laws

was considered by the U.S. Supreme Court. In Federal Baseball Club v. National

League, 259 U.S. 200 (1922), the Court dismissed a treble damage suit in which

the plaintiff, the Baltimore Club of the fledgling Federal League, alleged that the

American and National Leagues had conspired to monopolize the baseball business in reaching a settlement agreement with the remaining clubs of the Federal

League. The settlement agreement terminated the efforts of the Federal League

to establish itself as a third major league. Speaking for the Court, Mr. Justice

Holmes held that baseball exhibitions were purely state affairs and did not

constitute trade or commerce within the meaning of the Sherman Act. In

holding that baseball was neither involved in nor affected interstate commerce,

Justice Holmes considered the interstate movement of players as being merely

incidental.
104 PROFESSIONAL FOOTBALL LEAGUE MERGER

The exemption from the Federal Antitrust Laws carved out by the Federal

Baseball Club continued without erosion until 1949 when the prestigious Second

Circuit decided Gardella v. Chandler, 172 F. 2d 402 (2nd Cir. 1949). Gardella,

a New York Giant baseball player, left the Giants to play in the Mexican League.

One season later he attempted to return to baseball with the Giants and with

various other clubs in the major and minor leagues but found that he had been

blacklisted. Gardella alleged damages under the antitrust laws to the extent of

$100,000.00 in a suit brought against the Commissioner of Baseball, the two

major leagues and the owner of the New York Giants. His principal attack was

on the "reserve clause" in player contracts which, he alleged, constituted a conspiracy by the defendants in restraint of trade. Reversing the lower court which

had dismissed the suit, the Second Circuit held, one judge dissenting, that organized baseball was not exempt from the Federal Antitrust Laws. Judge Frank

held that Gardella stated a cause of action and distinguished the Federal Baseball Club decision on the basis that predicate for that case, namely a narrow

view as to what constituted interstate commerce, had changed radically over the

two decades since it was rendered. In concurring that the case should be remanded for trial, Judge Leonard Hand thought that the increasing importance to

baseball of television and radio might, when combined with the other interstate

activities of the leagues, constitute interstate commerce.

The Gardella litigation did not reach the Supreme Court for its consideration.

Substantially the same contentions were presented to the court, however, some

four years later in Toolson v. New York Yankees, Inc., 346 U.S. 356 (1953). In

a short per curiam opinion the Court held that it felt constrained not to overrule

the Federal Baseball Club decision in view of the reliance for 30 years by organized baseball on that case as providing it with an exemption to the Federal

Antitrust laws. The Court said:

"In Federal Baseball Club of Baltimore v. National League of Professional

Baseball Clubs, Inc., 259 U.S. 200 (1922), this Court held that the business of

providing public baseball games for profit between clubs of professional baseball

players was not within the scope of the federal antitrust laws. Congress has

had the ruling under consideration but has not seen fit to bring such business

under these laws by legislation having prospective effect. The business has

thus been left for thirty years to develop, on the understanding that it was

not subject to existing antitrust legislation. The present cases ask us to

overrule the prior decision and, with retrospective effect, hold the legislation

applicable. We think that if there are evils in this field which now warrant

application to it of the antitrust laws it should be by legislation. Without reexamination of the underlying issues, the judgments below are affirmed on

the authority of Federal Baseball Club of Baltimore v. National League of Professional Baseball Clubs, supra, so far as that decision determines that Congress

had no intention of including the business of baseball within the scope of the

federal antitrust laws."

• It is thus clear that the Supreme Court will not apply the Federal Antitrust

laws to baseball until such time as Congress withdraws the exemption created

by the Federal Baseball Club decision.

Inapplicability of the baseball decisions to organized football

In United States V. Shubert, 348 U.S. 222 (1955), the Court held that the

Federal Antitrust Laws were applicable to the legitimate theater. In the

course of its opinion, the Court makes it perfectly clear that the antitrust law

exemption created in the Federal Club decision and followed in the Toolson

case pertains only to baseball. The Court said:

"In Toolson, where the issue was the same as in Federal Baseball, the Court

was confronted with a unique combination of circumstances. For over 30 years

there had stood a decision of this Court specifically fixing the status of the baseball business under the antitrust laws and more particularly the validity of the

so-called 'reserve clause.' During this period, in reliance on the Federal Baseball precedent, the baseball business had grown and developed. . . . And Congress, although it had actively considered the ruling, had not seen fit to reject

it by amendatory legislation. Against this background, the Court in Toolson

was asked to overrule Federal Baseball on the ground that it was out of step

with subsequent decisions reflecting present-day concepts of interstate commerce.

The Court, in view of the circumstances of the case, declined to do so. But

neither did the Court necessarily reaffirm all that was said in Federal Baseball.

Instead, 'Ivy] ithout reexamination of the underlying issues,' the Court adhered

to Federal Baseball 'so far as that decision determines that Congress had no
PROFESSIONAL FOOTBALL LEAGUE MERGER 105

intention of including the business of baseball within the scope of the federal

antitrust laws.' 356 U.S. at 357. In short, Toolson was a narrow application

of the rule of stare decisis." 1

In the recent litigation involving the removal of the Braves franchise from

Milwaukee to Atlanta, the Wisconsin Supreme Court held:

"Thus it appears that organized baseball enjoys, by reason of long continued

reliance on Federal Baseball and the policy reasoning of the supreme court that

any change should be brought about by legislation, with prospective effect only,

an exemption from the federal antitrust laws which no ever organized sport

enjoys even where the structure and operation of the organization may be similar." State of Wisconsin v. Milwaukee Braves, Inc. CCH Trade Regulation

Reporter 171,843 at p. 82.906 (Wis. S. Ct. 196(1).

The Wisconsin Supreme Court's statement is based largely on the specific

and unequivocal ruling of the United States Supreme Court in Radovich v.

National Football League, 350 U.S. 455 (1957) that the Toolson decision was

limited to baseball. Willian Radovich, formerly an all pro guard with the Detroit Lions, sought treble damages on the basis that the defendants conspired

to monopolize and control organized professional football in preventing Radovich, formerly a player in the All-American Conference, from participating as a

player-coach in the Pacific Coast League. The Supreme Court reversed the

holding of the Ninth Circuit Court of Appeals that the Federal Baseball Club

and Toolson decisions should be applied to all "team sports," including professional football. In holding that the volume of interstate business involved in

organized professional football places it within the provisions of the Sherman

Act, the Court concluded that the orderly way to eliminate error or discrimination in favor of baseball is by "legislation and not by court decision."

Conclusion

The Radovich, decision leaves no doubt that organized professional football is

subject to the Federal Antitrust Laws. Even if the United States Justice Department does not seek to enforce the civil and criminal liabilities under the

Acts, it is clear that no exemption defense will be available to professional football clubs in treble damage actions brought by players or others for damages

allegedly resulting from the proposed merger of the National Football League

and the American Football League. In fact, suit was recently filed in the Federal District Court for Northern Illinois (Chicago) asserting that the June 3rd

merger agreement between the leagues violates the restraint of trade and monopolization provisions of Sections 1 and 2 of the Sherman Act and further violates

the antimerger prohibition of Section 7 of the Clayton Act. Specifically attacked

by the complaint are those parts of the agreement which would provide for joint

negotiations of television contracts, a common player draft, restrictions against

"raiding" of other clubs, and provisions for exclusive territories.

It must be concluded, then, that any investment in a professional football

league franchise at this time will be seriously jeopardized by possible trebledamage losses in antitrust litigation stemming from the merger of the two

leagues. The legislation contemplated by the Radovich decision, at least to the

extent of the mergers, is now pending in the Congress. ( S. 3817, H.R. 17448, H.R.

17537). Until such time as this legislation becomes effective, the risks of liability

are great.

Mr. BOGGS. I can talk at great length, but this is basically what I

want to leave with the committee and I am hopeful, Mr. Chairman,

that you in your great wisdom will see the necessity for expeditious

action on this legislation.

Mr. ROGERS. Mr. Chairman, I assume from your statement that you

forsee no problem, if we get it reported from this committee, to get it

passed in the House?

Mr. BOGGS. Well, I never like to speak for the whole leadership, but

I think I could give that assurance.

Mr. ROGERS. You can get proper recognition for the chairman

or 

1 Also in 1956, the Supreme Court rejected contentions that the Federal Baseball Club

and Toolson decisions should be applied to the field of boxing. United States v. International Boxing Club of New York, Inc., 348 U.S. 236 (1935).
106 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. BOGGS. Yes, I think if this committee reported this bill, that it

could be scheduled.

Mr. ROGERS. Thank you.

Mr. BOGGS. You are quite welcome.

The CHAIRMAN. Thank you very much, Mr. Boggs.

Mr. Boos. Thank you very much, Mr. Chairman. I again urge the

most expeditious consideration.

The CHAIRMAN. I would like to place in the record statements from

our distinguished colleague from Michigan, Mr. John D. Dingell; our

distinguished colleague from Ohio, Mr. William E. Minshall, our distinguished colleague from New Mexico, Mr. Thomas G. Morris; our

distinguished colleague from California, Mr. Leggett; the honorable

Senator from Wyoming, Mr. McGee; and our distinguished colleague

from Kansas, Mr. Dole.

(The statements referred to follow:)

TESTIMONY OF HON. JOHN D. DINGELL

.Mr. Chairman and Members of the Subcommittee, I am delighted that you have

found it possible to give such speedy consideration to this legislation (S. 3817

and H.R. 18124) to authorize the merger of two or more professional football

leagues into a single combined league. As you know, the bill has the additional

purpose of protecting interscholastic football contests from the competition of

telecasts of professional football games at the time when these interscholastic

contests are usually played.

While I am generally opposed to the granting of exemptions from the antitrust laws, I find certain extenuating circumstances in the professional football

situation. I have been assured that if the American Football League and the

National Football League are allowed to merge into a single league, free of the

fear that the merger might violate the antitrust laws, much can be accomplished

for the sport.

I am told that the teams which are franchised at present will continue to play

in the same cities. I am told that additional teams will be taken into the new

league. I am told that there will be no adverse effect upon present professional

football players, but that future bonuses to newly-signed players will be reduced.

I am told that this savings will enable the professional football teams to raise

minimum salaries and adjust certain inequities which have been adversely affecting the morale of established professional football players.

TESTIMONY OF HON. WILLIAM E. MINSHALL

Mr. Chairman, distinguished members of the subcommittee, I am particularly

pleased to testify in behalf of this legislation because of the tremendous pride

we in Cleveland have in Art Modell and the Cleveland Browns.

Before the final gun goes off in the 89th Congress, I think it is appropriate that

we put professional football in a scoring position without fear of penalty by

passing this legislation.

The Senate already has given its stamp of approval to S. 3817, to authorize

the merger of two or more professional football leagues and to protect football

contests between secondary schools from professional football telecasts.

Congress in 1961 provided this last-mentioned protection to college football

games and, as a former non-professional player myself, I find it simple equity

to extend it to the Friday night games played by junior and senior high schools.

Initial aspects of the merger of the American and National Football Leagues

were to have taken place late this year and early next. But, as you know,

the National League strongly feels that such plans might have to be re-evaluated

if we do not grant the two leagues anti-trust exemptions.

Because I feel that the leagues should have assurance that neither the government nor the Congress will raise any challenge to the merger, I have introduced companion legislation to the Cramer bill. If, indeed, there is no intent

to disrupt. the merger plans, Congress can well afford to enact such a measure.
PROFESSIONAL FOOTBALL LEAGUE MERGER 107

The Senate approved S. 3817 on September 26 without debate and by a voice

vote. The Senate report which accompanied the bill clearly states the intent

of the bill as follows:

"The proposed bill would not extend to the combined league any greater antitrust immunity than that now existing for the existing professional football

leagues * * * The sole effect of this legislation is to permit the combination

of the two leagues to go forward without fear of antitrust challenge based upon

a joint agreement between the member clubs of two leagues to combine in a

single league and to conduct their affairs as members of a single league,"

I strongly urge swift committee action on the legislation so that it may receive

the final House action necessary to assure its enactment before this session

ends.

TESTIMONY OF HON. THOMAS G. MORRIS

Mr. Chairman, I appreciate this opportunity to submit a statement in behalf

of my bill, H.R. 18060, which is identical to the Senate Bill, S. 3817, you are

considering. I would urge this Committee to act promptly to make it possible

for the two great football leagues, the National (NFL) and the American (AFL),

to merge without the threat of possible antitrust legislation delaying this

action. Such a merger would greatly benefit the growing throng of football

enthusiasts, the football teams, and the players.

We can make sure this merger can take place by this very simple bill, which

passed the Senate without opposition on September 26, and which has bipartistan

support in this chamber.

More than a year ago the Senate, on August 31, 1965, passed the Professional

Sports Act of 1965, S. 950, which was designed to clarify the antitrust status of

professional team sports. This bill involved all organized professional team

sports and spelled out specific areas of exemption from the antitrust laws. It is a

good bill. But it is rather involved, and time does not permit the full hearings and

action that would properly be required for its passage this year. On the other

hand, this interim measure, applying only to professional football and the immediate proposed merger, can be acted on immediately without extended debate.

This bill, as you know, is necessary to permit the planned merger of the American

Football League and the National Football League into a single professional

football league, without fear that the antitrust laws would apply to that act.

This merger, as formulated, would increase rather than decrease the number of

professional football clubs playing in the United States. All 24 existing clubs

would retain their present franchises. No franchises would be transferred from

their present locations. Two new franchises would be added by 1968 and two more

as soon thereafter as practical. A would championship game in January 1967 is to

be played between the leaders of the two existing leagues.

The merger will improve the player strength and the financial resources of

weaker teams of both leagues. While bonuses to college players will be reduced—

this in itself helping the financially weaker teams—such action will permit relatively higher salaries for players generally, eliminate some of the inequities

which now exist, and substantially increase salary minimums.

I would stress that this bill would not extend to the newly combined league any

more antitrust immunity than now prevails for the existing pro football leagues.

It does not seek to resolve any of the other antitrust problems of professional

football or of any of the other professional team sports.

There is a second aspect to the bill which is also beneficial, and which likewise

should arouse no opposition. It would provide the same protection to high

schools which colleges have had since 1961, namely prohibiting the broadcasting

or telecasting of professional football games within 75 miles of the gamesite of

any inter-school football game on any Friday evening or Saturday. This protection proved beneficial to both the collegiate and professional game in preserving

the balance in public participation in these sports. It should prove equally beneficial to high schools and should provide encouragement for greater support of

bigh school athletic programs.

In short, this measure will benefit millions of football fans in every section of

the country; it will advance the sport of professional football; it will also encourage greater support to high school football. I therefore urge this Committee,

Mr. Chairman, to act promptly to assure passage of this bill before adjournment.
108 PROFESSIONAL FOOTBALL LEAGUE MERGER

TESTIMONY OF HON. ROBERT L. LEGGETT

Mr. Chairman, I am pleased to have co-authored 11.11. 17661 now under consideration, with respect to the merger of the Professional Football Athletic

Leagues. This legislation would have the effect of protecting Friday night High

School football games.

It is imperative that the High Schools of America be protected on Friday nights

against Professional Football. The television of Professional Football games on

these nights will have a severe, adverse effect on High School football games.

In order to meet the cost of having a creditable football and athletic program,

the high schools have traditionally held their games on Friday evenings. In

many of the smaller communities the Friday night football game is the unifying

social function of all the residents of the area.

If High School football had to compete against televised Professional Football

games, the gate receipts, upon which most schools rely for carrying on their

athletic programs would be seriously in danger. Such a practice would, I fear,

prove disastrous to High School football in this country.

I am pleased to have co-authored this legislation and sincerely ask the Committee's consideration.

U.S. SENATE,

COMMITTEE ON APPROPRIATIONS,

October 5, 1966.

Hon. EMANUEL CELLER,

Chairman, Judiciary Committee,

House of Representatives, Washington, D. C.

DEAR CHAIRMAN CELLER : It is my understanding that S. 3817, a bill which.

would authorize the merger of the two major professional football leagues, will

be considered by your Judiciary Committee this week.

As you know, this bill as approved by the Senate would protect high school

football to some degree at least during the period commencing on the second Friday in September and extending to the second Saturday in December. It has been

brought to my attention that this period does not adequately protect our high

school athletic activities in Wyoming and perhaps other states in which activities

are commenced earlier than the second Friday in September. For example, on

the evening of Friday, September 2 of this year, several football games were held

throughout the State of Wyoming. The attendance at these games was quite

noticeable and adversely affected by a professional football telecast which was

programmed at the same time.

It is quite apparent that if we are to adequately protect the interests of high

school athletics as was intended by Congress, it will be necessary that the restrictive period be extended. I would suggest that your committee amend the Senate.

approved legislation so as to commence the restrictive period on the last Friday

in August rather than the second Friday in September. I would most certainly

appreciate any consideration which could be given to such an amendment during

the course of your committee's consideration of this bill. I would also appreciate

it if this letter could be made a part of the committee hearings.

Sincerely,

GALE MCGEE, U.S. Senator.

TESTIMONY OF HON. BOB DOLE

Mr. Chairman and members of the Antitrust Subcommittee, I appreciate an

opportunity to present my views and to urge this Committee to act promptly

and favorably on my bill, H. R. 18145, or any similar proposal, which would

authorize a merger of two or more professional football leagues and which would

protect football contests between secondary schools from professional football telecasts. In my opinion, enactment of this legislation would make possible a plan

for major league professional football, which has the support of millions of sports
PROFESSIONAL FOOTBALL LEAGUE MERGER 109

fans. It would also be beneficial to the colleges and high schools as well. There

is strong interest in this legislation throughout Kansas. Pro football fans, particularly in Eastern Kansas, have a great interest in Lamar Hunt's Kansas City

Chiefs.

If legislation is not enacted, there will be great reluctance among the presidents of the twenty-four clubs comprising the National Football League and

American Football League to proceed with any plan to develop a single league.

There are many benefits this single-league plan will bring to the public, fans of

professional football clubs, the players and other interested parties.

The basic purpose of this legislation is to clarify the status under the anti-trust

laws of the announced plan to bring into existence a single, nationwide professional football league, consisting of all present clubs of both the National Football League and the American Football League. My bill, and other similar ones,

would accomplish this objective by declaring that the simple act of all clubs

involved in bringing their operations under a single league will not, in itself, be

subject to challenge under the anti-trust laws.

The report which accompanies the Senate-passed bill, S. 3817, indicates that

no anti-trust immunity would be extended to the proposed single league that

does not now apply to the existing professional football leagues. The only item

omitted from application of the anti-trust laws would be the agreement among

the member clubs of the two leagues to combine into a single league. All other

applications of the anti-trust laws to professional sports, which various versions

of the "Sports Bill" have attempted to clarify, would remain as they are. Others

who have testified are in agreement in this respect.

There is little question that Professional Football has widespread public

support. Pro football executives feel their plan meets the basic demands of

the fans and the objectives outlined by interested parties in both the American

and National Football Leagues. According to their testimony, professional

football operations will be preserved in the 23 cities and 25 stadiums where

such operations are presently being conducted. Without the plan, it is felt

franchise moves and/or franchise failures will occur as a matter of course

within the next few years, and a contraction rather than expansion would be

the ultimate result.

A significant provision of my bill, and one of particular interest to every

high school official, would extend to the high schools of America the same

protection against Friday night or Saturday telecasts of professional football

games as is presently given college football. The provision is as follows:

"Section 1 of this Act shall not apply to any joint agreement described in

section 1(a) of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock postmeridian

or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any year from any

telecasting station located within seventy-five miles of the game site of any

intercollegiate or interscholastic football contest scheduled to be played on such

date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum,

or the equivalent, or

"(3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a daily newspaper of

general circulation prior to March 1 of such year as being regularly scheduled

for such day and place."

In view of these and other obvious benefits to be derived, I strongly urge

the Committee to act favorably and immediately.

Thank you.

70-605-66-8
110 PROFESSIONAL FOOTBALL LEAGUE MERGER

SUPPLEMENTARY STATEMENT OF PETE ROZELLE, COMMISSIONER,

NATIONAL FOOTBALL LEAGUE; ACCOMPANIED BY LAMAR HUNT,

PRESIDENT, KANSAS CITY CHIEFS, AMERICAN FOOTBALL

LEAGUE; TEXAS SCHRAMM, PRESIDENT, DALLAS COWBOYS,

NATIONAL FOOTBALL LEAGUE; AND HAMILTON CAROTHERS,

COUNSEL

Mr. ROZELLE. Mr. Chairman, I would like to submit a very brief supplementary statement for the record, if I may.

The CHAIRMAN. Do you wish to place it in the record?

Mr. ROZELLE. I would like to read it at this time.

The CHAIRMAN. You have that privilege.

Mr. RozEhr.E. Thank you.

During the hearings on Tuesday, October 11, 1966, questions were

raised as to the nature of professional football's objectives in seeking

action by this committee.

The limited nature of the objectives sought by professional football was confirmed in a letter to Chairman Celler last August. I would

like to ask that this letter be made part of the record.

Our objective may be simply stated. We wish to secure legislation

which will permit the expanded league to begin operations as a combined league on the same antitrust footing as professional basketball

or hockey or any other single-league professional sport which is without basic antitrust immunity.

We specifically accept the proposition that the bill does not seek to

deal with any of the long-range antitrust problems problems which

professional football or any other professional sport may encounter

when operating as a single league. Such issues may be preserved for

further clarification in the courts or in future sessions of Congress.

We acknowledge that the expanded league's antitrust vulnerbility

is fully preserved to the extent, but only to the extent that any of its

practices, such as its player draft, its stadium lease arrangements, its

assignment of franchise territories or any other practice of professional football, may continue to be Challenged under the antitrust laws

as the practices of a single league. Thus we accept the proposition that

the exempting effect of the bill is limited to the actions of the two

leagues in combining their member clubs in a single league and in initiating their affairs as members of a single league.

We do not believe any change in the language of the Senate approved bill is necessary to restrict the bill to this limited objective. The

additional language added by the Senate Judiciary Committee was designed to accomplish this very result. The report of the Senate Judiciary Committee makes it clear that the scope of the bill is quite

limited.

The already established record before this committee confirms the

limited nature of the exemption and there is every opportunity for

this committee in its own report to restate these limitations in whatever fashion it thinks appropriate. We will fully cooperate in this

effort, should the committee so desire.
PROFESSIONAL FOOTBALL LEAGUE MERGER 111

Mr. HARKINS. Mr. Rozelle, you referred to an August 25, 1966, letter

in this statement you just read.

Mr. ROZELLE. Yes2 Mr. Harkins.

Mr. HARKINS. This is a letter to the chairman, that you requested be

placed in the record?

Mr. ROZELLE. Yes, sir.

Mr. HARKINS. Now, this letter was written in connection with an attempt to get action on S. 950, was it not?

Mr. CAROTHERS. I do not believe S. 950—no, sir.

Mr. HARKINS. What date was the bill, S. 3817, introduced in the

Senate?

Mr. CAROTHERS. S. 3817 was introduced after this date, but we had

already laid on your desk for approximately 2 months versions of this

limited bill that we hoped to have hearings on by this committee.

Mr. HARKINS. But they were all variations of the provisions in S.

950 as it applied to football, is that not right?

Mr. CAROTHERS. They were not, sir. They were specifically limited

to the specific proposal that we are seeking to have achieved today.

Mr. HARKINS. Mr. Chairman, I would offer for the record all the

proposals that the National Football League has submitted in this

matter.

The CHAIRMAN. It will be accepted.

(Documents follow:)

Hon. EMANUEL CELLEa,

Chairman, Committee on the Judiciary,

House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: The purpose of this letter is to provide you with certain

assurances relative to the political objectives of the 24 member clubs of the new

•expanded major professional football league.

As Commissioner of the new league, I am authorized to inform you that should

the Judiciary Committee of the House of Representatives hold hearings and report favorably a bill having the limited effect of permitting professional football

to go forward with the plan for bringing all of the member clubs of the National

Football League and of the American Football League into a single league, without fear of antitrust challenge by the Government or third parties based on the

agreement to form such a single league, no effort will be made by any franchise

owner or other representative of the league to in any way expand the scope of

such bill except with your specific approval as Committee Chairman. We will

also undertake actively to oppose any effort of this nature by any other interests.

The member clubs of the new league seek simply the privilege of beginning

joint operations as a single league in 1967 with a clean slate, i.e., to begin operations as a combined league on the same antitrust footing as professional basketball or hockey or any other professional sport without basic antitrust immunity.

It is specifically understood that such a bill will not seek to deal with any of the

long range antitrust problems of professional football or any other professional

.sport and that such issues may be reserved for future sessions of Congress. It is

further understood that the exempting effect of the- bill will be limited to the

action of the two leagues in combining their member clubs in a single league, provided, however, that the bill would immunize the new league from antitrust challenge based on the agreement of affiliation and that the expanded league's

antitrust vulnerability would be preserved only to the extent that its practices

may be challenged as the practices of a single league.

Respectfully,

PETE ROZELLE, Commissioner.

AUGUST 25, 1966.
112 PROFESSIONAL FOOTBALL LEAGUE MERGER

( Submitted July 18, 1966.)

[Amendments to S. 950]

AN ACT To make the antitrust laws and the Federal Trade Commission Act applicable to.

the organized professional team sports of baseball, football, basketball, and hockey and

to limit the applicability of such laws so as to exempt certain aspects of the organized

professional team sports of baseball, football, basketball, and hockey, and for other'

purposes

Be it enacted by the Senate and House of Representatives of the United States.

of America in Congress assembled, That the Act of July 2, 1890, as amended (26

Stat. 209) ; the Act of October 15, 1914, amended (38 Stat. 730) ; and the Federal

Trade Commission Act, as amended (38 Stat. 717), shall be applicable according

to their terms to the organized professional team sports of baseball, football,

basketball, and hockey, except that neither such Act shall apply to any contract,

agreement, rule, course of conduct, or other activity by, between or among persons.

conducting, engaging, or participating in any one of the organized professional

team sports of baseball, football, basketball, or hockey to the extent to which

such contract, agreement, rule, course of conduct, or activity relates to—

( 1 ) the equalization of competitive playing strengths;

(2) the employment, selection, or eligibility of players, or the reservation,

selection, or assignment of player contracts;

(3) the right to operate within specific geographic areas;

(4) the preservation of public confidence in the honesty in sports contests;

or

(5) the effectuation of the plan for an enlarged major professional football

league as announced by the National Football League and the American

Football League on June 8, 1966.

SEC. 2. Definition same as S. 950.

SEC. 3. Savings clause same as S. 950.

SEC. 4. Collective bargaining same as S. 950.

SEO. 5. Applicability of other antitrust laws same as S. 950.

SEO. 6. Friday night television same as S. 950.

AN ACT To make the antitrust laws and the Federal Trade Commission Act applicable to the organized professional team sports of baseball, football, basketball, and hockey and

to limit the applicability of such laws so as to exempt certain aspects of the organized professional team sports of baseball, football, basketball, and hockey, and for other

purposes

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the Act of July 2, 1890, as amended (26

Stat. 209 ) ; the Act of October 15, 1914, as amended (38 Stat. 730) ; and the

Federal Trade Commission Act, as amended (38 Stat. 717), shall be applicable

according to their terms to the organized professional team sports of baseball,

football, basketball, and hockey, except that neither such Act shall apply to

any contract, agreement, rule, course of conduct, or other activity by, between,

or among persons conducting, engaging, or participating in any one of the organized professional team sports of baseball, football, basketball, or hockey which

is reasonably necessary to—

(1) maintain and promote the quality of sports competition, including

practices relating to—

( a ) the equalization of competitive playing strengths;

(b) the employment, selection, or eligibility of players, or the reservation, selection, or assignment of player contracts;

(c) the right to operate within specific geographic areas;

(d) the preservation of public confidence in the honesty in sports

contests; or

(2) the effectuation of the plan for an enlarged major professional football league as announced by the National Football League and the American

Football League on June 8, 1966.

SEC. 2. As used in this Act, "persons" means any individual, partnership,

corporation, league, or unincorporated association or any combination or associa- tion thereof.

SEC. 3. Nothing in this Act shall affect any cause of action commenced prior

to the effective date hereof in respect to the organized professional team sports of baseball, football, basketball, or hockey.
PROFESSIONAL FOOTBALL LEAGUE MERGER 113

SEC. 4. Nothing in this Act shall be construed to deprive any players in the

,organized professional team sports of baseball, football, basketball, or hockey

of any right to bargain collectively, or to engage in other associated activities

for their mutual aid or protection.

SEC. 5. Except as provided in section 1 of this Act, nothing contained in this

Act shall be deemed to change, determine, or otherwise affect the applicability

or nonapplicability of the antitrust laws to the organized professional team

sports of baseball, football, basketball, or hockey.

SEC. 6. Section 3 of the Act of September 30, 1961 (75 Stat. 732), is amended

to read as follows:

"SEC. 3. Section 1 of this Act shall not apply to any joint agreement described

in section 1 of this Act which permits the telecasting of all or a substantial part

of any professional football game on any Friday after 6 o'clock post meridian

or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any year from any

telecasting station located within seventy-five miles of the game site of any intercollegiate or interscholastic football contest scheduled to be played on such a

.date if—

"(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

"(2) in the case of an interscholastic football contest, such contest is

between secondary schools, both of which are accredited or certified under

the laws of the State or States in which they are situated and offer courses

continuing through the twelfth grade of the standard school curriculum, or

the equivalent, and

"(3) such intercollegiate or interscholastic football contest and such

game site were announced through publication in a daily newspaper of

general circulation prior to March 1 of such year as being regularly scheduled for such day and place."

•JOINT RESOLUTION To clarify the application of Federal and State antitrust laws to

the plan for a single major professional football league as agreed upon by the National

Football League and the American Football League

Whereas the member clubs of the National Football League and of the American Football League have agreed on a plan for bringing all clubs of both leagues

within a single nationwide major professional football league; and

Whereas the plan as agreed upon continues in operation all present major

league professional football franchises, provides for the bringing of professional

football operations to additional American cities, contributes to the preservation of the integrity of college athletics and offers additional employment opportunities for professional athletes, places major league professional football

on the same footing as other major league professional sports in America, brings

order and stability to a form of entertainment in which there is widespread

public interest, and will make possible a determination of the true world

champion of professional football; and

Whereas it is the sense of Congress that there is a substantial national interest in assuring that the plan becomes effective: Therefore be it

Resolved by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section 1 of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended (38 Stat. 717), or any state law in para

materia, shall not apply to the agreement dated between

the clubs of the National Football League and the clubs of the American Football League providing for a single unified major professional football league,

or to any acts reasonably taken in implementation thereof.

( Submitted July 19, 1966.)

AN ACT

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled, That the antitrust laws, as defined

in section 1 of the Act of October 15, 1914, as amended (38 Stat. 730), or in the

Federal Trade Commission Act, as amended (38 Stat. 717), or any State lam

in para mat eria, shall not apply—
114 PROFESSIONAL FOOTBALL LEAGUE MERGER

(a) to any joint agreement by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in professional

football, baseball, basketball, or hockey contests sells or otherwise transfers

all or any part of the rights of such league's member clubs in the sponsored

telecasting of the games of football, baseball, basketball, or hockey, as the

case may be, engaged in or conducted by such clubs.

(b) to the plan for a unified major professional football league as

announced by th National Football League and the American Football

League on June 8, 1966, or to any acts reasonably taken in implementation

thereof.

SEC. 2. Section 1 of this Act shall not apply to any joint agreement described

in section 1 of this Act which prohibits any person to whom such rights are sold

or transferred from televising any games within any area, except within the

home territory of a member club of the league on a day when such club is playing a game at home.

SEC. 3. Section 1 of this Act shall not apply to any joint agreement described

in section 1 of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock postmeridian or on any Saturday during the period beginning on the second Friday in

September and ending on the second Saturday in December in any year from'

any telecasting station located within seventy-five miles of the game site of any'

intercollegiate or interscholastic football contest scheduled to be played on'

such a date if—

(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion.

of sufficient credit hours to equal a four-year course, or

(2) such interscholastic football contest is between secondary schools,

both of which are accredited or certified under the laws of the State or'

States in which they are situated and offer courses continuing through the.

twelfth grade of the standard school curriculum, or the equivalent,1 and

(3) such intercollegiate or interscholastic football contest and such gamesite were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place.

,SEC. 4. Nothing contained in this Act shall be deemed to change, determine,

or otherwise affect the applicability or nonapplicability of the antitrust laws

to any act, contract, agreement, rule, course of conduct, or other activity by,

between or among persons engaging in, conducting, or participating in the

organized professional team sports of football, baseball, basketball, or hockey,

except the agreements to which section 1 of this Act shall apply.

SEC. 5. As used in this Act "persons" means any individual, partnership,

corporation, or unincorporated association or any combination or association

thereof.

SEC. 6. Nothing in this Act shall affect any cause of action commenced prior

to the effective date hereof in respect to the organized professional tam, sports

of baseball, football, basketball or hockey.i

NOTE.—Italicized material not included in 1961 act.

MEMORANDUM

( Submitted July 19, 1966.)

The member clubs of the National Football League and the American Football

League have agreed on a plan for a single enlarged league. This memorandum

discusses the reasons for the plan and the reasons why antitrust action is neither

required nor indicated.

Professional sports are subject to very unusual economic factors. Few aspects

of their operation resemble ordinary business operations. Ownership interests,

community relationships, and the interests of consumers are all entirely different

from those found in ordinary business operations.

These circumstances, and their special application to professional football

operations, are discussed at some length below. Preliminary to their consideration, however, it is important to note what the proposed single league plan will

accomplish.

1 From S. 950 as passed by Senate.
PROFESSIONAL FOOTBALL LEAGUE MERGER 1115

THE PUBLIC INTEREST

The plan will be of significant national and public benefit in a number of

respects:

(1) The plan contemplates continued professional football operations in the 23

cities and 24 stadiums where such operations are presently being conducted.

This alone is a matter of considerable public interest—to local economies, stadium authorities, and consumers. Without the plan, franchise moves and/or

franchise failure will occur as a matter of course within the next few years.

(2) The plan will guarantee additional professional football franchises for a

number of new cities. Two new cities are being added this year, two more

will be added for operation in 1968, and two more are contemplated shortly

after full unification of the league is achieved in 1970. Professional football

will then be more nation-wide in scope than any other professional sport. Without the plan, contraction rather than expansion will be the ultimate consequence

of developing conditions, as the economic factors discussed later in this memorandum force abandonment of the weaker franchises. This is borne out by past

experience in football and other professional sports.

(3) By placing all existing major league professional football franchises under

one league structure, under a common set of rules, and on susbtantially the same

economic footing, there will be a return to the primary objective of professional

football—the offering of football competition at its best, with close contests

between well balanced and evenly matched teams. With all existing football

franchises operating under the same player squad limits, the same pension plan,

with equal access to player trades, with equal television income, participation in a

player draft, and equally attractive visiting teams, football competition rather

than ability to withstand losses can be the dominant element of the game.

Conditions can be created where all clubs, including those in less favorably situated cities, such as Denver or Pittsburgh, can have an equal run at the league

championship in competition with such cities as New York, Los Angeles and

Chicago.

(4) The plan calls for a substantial increase in the player salary minimum

now in effect in the NFL, the creation of a player salary minimum for AFL

players at the same level, and increased pension plan benefits to all present AFL

players. Moreover, the more equal economic opportunities for all existing franchises will give more balanced employment opportunities throughout the league

and enable each franchise to direct a greater proportion of its payroll to the

class of player who has earned it—the veteran player of proven merit. Expansion will, moreover, provide additional player and coaching jobs.

(5) The plan will give the consumer, in this case the football fan of America,

what he wants—balanced football competition, play between the clubs of the

two present leagues, and a world's championship game. There is no practicable

method for meeting these consumer interests short of full unification of the

league by a common league schedule, common league rules, and a common draft.

(6) If the plan is put into effect now, adjustments can be made in a manner

adhering to the broadest possible local and national interests. If it is not, the

ultimate pattern of professional football operations will be determined by fra.n--

chise failures and piecemeal adjustments which give little attention to these

interests—interests which should be paramount. There has already begun in

both leagues the pattern of deterioration which destroyed the old All America

Conference in football, the Federal Baseball League, and the Basketball Association of America.'

(7) The plan will put professional football on the same footing as all other

American professional sports. As a consequence, there will be less friction with

the colleges and less opportunity for interference with the integrity of college

athletics.

These benefits are of unquestioned local and national interest. They all spring

from certain peculiar economic factors operating in all professional sports but

which are particularly felt in professional football operations.

1 The mere announcement of the plan has already had a stabilizing effect on a number

of the weaker AFL clubs. Overall season ticket sales for the AFL are up since

the announcement.
116 PROFESSIONAL FOOTBALL LEAGUE MERGER

THE "NATURAL MONOPOLY" ASPECTS OF PROFESSIONAL FOOTBALL

The competitive conditions now developing in this sport will inevitably

result, within a few years, in either (a) the complete failure of one league, or

(b) the failure of the weaker franchises in both leagues and the consequent combination of the more successful franchises into a single league. This has proven

itself before in professional football and other professional sports and will

happen again.

Professional football operations are today not being conducted by either league

on any rational plane of competition. Pride, tax privileges, civic allegiances, and

the capacity to withstand losses are being substituted for business initiative,

enterprise, and ordinary business and profit motives. The market for professional football cannot be shared; it can only be won. It is inherently a "natural

monopoly" market—a market in which there is room for only one league seeking to operate at major league levels of competition. The circumstances which

produce this are peculiar to professional sports and to professional football in

particular.

In the first place, competition in professional sports is not naturally derived.

A sports league itself is an artificial conception kept alive by elaborate rules

designed to develop an economic potential and provide stable employment

opportunities. Without such rules, any professional sport would rapidly deteriorate into mere casual exhibitions of athletic prowess without an economic

base and without widespread employment potential.

In the second place, the relationship which exists between member clubs of a

single football league is wholly unique. If a league is to be successful, it must

take steps to insure substantial equalization of opportunity among all clubs of

its league. Failure to do so jeopardizes the league itself. This follows because

the economic relationship between member clubs of a league is like no other

relationship found on the American scene.

Every club plays one-half of its games on the road. Thus almost half of each

club's gate income is directly dependent on the successful operation of every

other franchise of the league. Because of the limited number of games possible

in professional football, near capacity crowds are important to all clubs. A

"sick" franchise is almost as much a problem for the other clubs of its league

as it is for the club itself. Indeed, it has on occasion been nucessary for the

remaining clubs of a league to contribute financially to one club simply to insure

the league's continued operation.

This partnership-joint venture aspect of a league's operations is recognized in

all professional sports operations. It is given primary play in professional football operations where game opportunities are necessarily limited in number,

economic success requires near capacity crowds, and inequalities in team play

and franchise strength have an immediate and pronounced effect on the gate

receipts of all clubs in the league. By its nature, football is a game of climax

where close contests and league balance are essential to the maintenance of fan

interest.

In the NFL, for example, the partnership or joint venture principles of club

operations is given the most thorough application in professional sports. All

clubs are required to operate with the same squad limitations, regardless of their

individual economic resources. All operate under the same player pension plan.

Television income is equally divided among all member clubs of the League,

regardless of the relative size of their individual television audiences. Game

receipts are divided 60%-40% to the home and visiting team, a more equal

division than any other professional sport. The player selection system is designed to give each club an equal opportunity to field a winning team and to

insure regular rotation of the League championship. Even the NFL ownership

policy is directed at preserving a balanced league—no corporate ownership, no

public ownership, and majority ownership by one individual who is not primarily

motivated by tax loss objectives.' All of these rules are directed at maintaining

fan interest and insuring the league's survival.

Both the courts and Congress have considered these rules for equalization on

various occasions. In 1953, for example, the NFL obtained court approval of its

program for restricting outside television conflicts with home game attendance as

2The AFL, for the same reasons, has in effect nearly identical rules for franchise equalization, essentially differing only in its somewhat more relaxed ownership policy.
PROFESSIONAL FOOTBALL LEAGUE MERGER 117

a device for protecting its weaker franchises. In approving this practice, the

Court, United States v. National Football League, 116 F. Supp. 319 (E.D. Pa.

1953), said:

"Professional football is a unique type of business. Like other professional

sports which are organized on a league basis it has problems which no other business has. The ordinary business makes every effort to sell as much of its product

or services as it can. In the course of doing this it may and often does put many

of its competitors out of business.

"Professional teams in a league, however, must not compete too well with each

other in a business way. On the playing field, of course, they must compete as

hard as they can all the time. But it is not necessary and indeed it is unwise for

all the teams to compete as hard as they can against each other in a business way.

If all the teams should compete as hard as they can in a business way, the

stronger teams would be likely to drive the weaker ones into financial failure. If

this should happen not only would the weaker teams fail, but eventually the

whole league, both the weaker and the stronger teams, would fail, because without a league no team can operate profitably.

"The winning teams usually are the wealthier ones and unless restricted by

artificial rules the rich get richer and the poor get poorer (as Commissioner Bell

put it). Winning teams draw larger numbers of spectators to their games than

do losing teams and from the larger gate receipts they make greater profits than

do losing teams. With this greater wealth they can spend more money to obtain

new players, they can pay higher salaries, and they can have better spirit among

their players than can the weaker teams. With these better and happier players

they will continue to win most of their games while the weaker teams will continue to lose most of their games. The weaker teams share in the prosperity of

the stronger teams to a certain extent, since as visiting teams they share in the

gate receipts of the stronger teams. But in time even the most enthusiastic fans

of strong home teams will cease to be attracted to home games with increasingly

weaker visiting teams. Thus, the net effects of allowing unrestricted business

competition among the clubs are likely to be, first, the creation of greater and

greater inequalities in the strength of the teams; second, the weaker teams being

driven out of business; and, third, the destruction of the entire League." 116 F.

Supp. at 323-24.

Similarly, in 1961, Congress endorsed the NFL's use of a league-wide program for insuring equal television income to all clubs. Public Law 87-331, 75

Stat. 732. On various occasions, both Houses of Congress have, through approval

of the Sports Bill, broadly endorsed current professional football practices with

respect to player drafts and player contracts.3

These rules for equalization, however, become wholly ineffective when two

competing leagues attempt to operate at the same level in the same professional

sport. The internal rules of each league become largely meaningless. The

wealthier and more successful franchises in one league dominate the less successful franchises in the other. As they rise in strength, they acquire additional

competitive advantages in the bidding for players. The margin between the least

successful and the most successful clubs in each league becomes progressively

wider. As this process continues, both leagues experience an accelerating deterioration in their own internal operations. The less successful franchises become

less successful on the playing field, which reduces fan interest, which further

reduces their income and ability to compete. Ultimately the survival of one

league or the other depends on its ability to carry its less successful franchises

and to withstand over-all deterioration of league play.

This process has already begun in professional football. In an ever increasing degree, the playing talent of both leagues is going to an ever decreasing

number of clubs with the wealth and willingness to continue to acquire players

8These bills, while phrased in terms of exemptions from the antitrust laws, are really

Congressional findings on what is necessary and essential in professional sports, i.e., a

statement of how the antitrust laws are to be applied to professional sports. See, e.g.,

Senate Report No. 402, 89th Cong., 1st Session:

"An insistence that professional team sports meet the same competitive standards aa

other business would, in fact, mean the end of professional team sports as they are known

today."

Indeed, those professional sports which have operated with less attention to these rules

of equalization have frequently been subjected to criticism by both members of Congress

and the general public.
118 PROFESSIONAL FOOTBALL LEAGUE MERGER

at prices which bear little relation to individual clubs or over-all league operations. Some clubs are beginning a downward spiral of playing field ability. A

number have for all practical purposes withdrawn from the player market. Both

leagues will shortly encounter the problem of franchises which have to be supported by the league if they are to continue in their present locations or continue at all. The history of the post-war years is beginning to repeat itself.'

The National Football League is undoubtedly better equipped for this war

than the AFL. But competition is not presently being conducted on any rational

plane and there are a number of owners in the AFL with considerable personal

resources who are determined that their franchises will be included among those

which survive. Through this process, both leagues will suffer increasing deterioration, increasing playing field imbalance, and the prospect of failing franchises.'

The conditions under which professional football is currently operating are

thus quite similar to the conditions which prevail in a "single newspaper" town

where competition for survival is the only form of competition possible. As the

Court stated in one of these cases (where "there was the severest competition

between these two papers for a term of years") :

"There must be space and room and subject matter involved to afford a competition such as the law requires and where these things do not exist then discontinuance of competition it has been held is not a violation of the antitrust

laws." United States v. Harte-Hanks Newspapers, Inc., 170 F. Supp. 227 (N.D.

Tex. 1959) at 229.

Similarly, in Union Leader Corp. v. Newspapers of New England, Inc., 180 F.

Supp. 125 (D. Mass. 1960), modified on other grounds, 284 F. 2d 582 (1st Cir.

1960), cert. denied, 365 U.S. 833 (1961), where the court had before it "a situation where one of the only two competing newspapers in a city offers to buy out

the stock of the other", Judge Wyzanski said:

"If this were a city in which at least two newspapers could economically survive, the offer to purchase would be an attempt to monopolize. Of United States

T. Aluminum Corp. of America. It would not be a victory won by skill, foresight, and industry But the situation is different where a city can accommodate only one successful newspaper, and two roughly equally able companies are

competing for the single prize that is available. Skill, foresight, and industry

by themselves will not give either company the victory. In addition what is

required is the capacity to withstand losses. There is nothing more noble, nor

more reflective of superior ability, in winning the victory by paying a large price

in installments of monthly losses than by paying a large price in one lump sum

payment to take over the competitor. Under the very extraordinary circumstances of this case it would have been permissible for [one newspaper] * * *

to pay a reasonable price for the stock of [the other paper] * * * because though

It would have appeared to lessen competition it would not have done so substantially; it merely would have somewhat shortened the time within which competition could continue." 180 F. Supp. at 142.

4 In 1946, the All America Football Conference undertook competition with the already

established National Football League. The AAC began with franchises in Brooklyn, Buffalo, Chicago, Cleveland, Los Angeles, Miami, New York, and San Francisco. It survived

for four years. during which there was suicidal competition for players and coaches with the NFL. This competition produced numerous changes of franchise ownership in both

leagues, the financial collapse of a number of franchises, and ultimately a reduction of the

number of operating franchises from the 17t operating in 1948 to the 12 operating in 1952.

Both leagues lost fan support because of the growing inequality of team play within each

league. The Cleveland Browns dominated one league. One NFL franchise had to be taken

over and operated by the League. The war for survival ended in 1950 when the AAC disbanded and three of its franchises joined a reduced NFL.

Similar results have been produced when competing leagues have been attempted in

basketball and baseball. Either one league collapses or the surviving franchises of both

leagues join in a single league.

5 The economics of professional football are widely misunderstood. This is largely attributable to the fact that both leagues and the clubs of both leagues have, for obvious

reasons publicly enlarged on the success of their own operations—gate attendance, tele- vision contracts, financial capabilities, etc. The realities are quite distinct. In no year, have more than American Football League franchises shown an operating profit.

Two AFL franchises have already been transferred, two others have required refinancing,

.and at least one is imminently confronted with either collapse or transfer to another city. A number are Subchapter S corporations controlled by owners in the maximum

personal tax brackets, making the Federal Government the principal sponsor of their losses.

A number of NFL clubs also are presently marginal and others are dependent more on depreciation tax effects made possible by recent franchise purchases than on operating -earnings.

A reasonable estimate of 19)64 aggregate income as reported to IRS by all 24 presently operating football franchises (with losses and gains offset) is about . This

,combined profit total is less than that of 
PROFESSIONAL FOOTBALL LEAGUE MERGER 119

The recently announced plan for a single league is not a merger or stock

acquisition in any traditional business sense. But the plan for bringing all the

present AFL clubs within an expanded league more nearly preserves football

competition, in the sense that consumers and local interests desire it, than impedes it. The plan has merely "shortened the time within which competition

could continue" between the two present leagues, Union Leader, supra. The

essential issue is whether the plan is to be made effective now, when continued

football operations by 24 franchises in 23 separate cities is possible and plans can

be made for additional football franchises, or postponed for a date not far removed when little attention will be paid to the very considerable local and national interest in preserving these franchises and making professional football

truly nationwide in scope.

Apart from these considerations, the plan as proposed entails only limited restraints reasonably ancillary to desirable objectives. Side effects of the plan

are limited in importance and economic impact.

There is no realistic television competition between the two leagues. Each

of the three networks is tied to a specific television contract with one of the

three football organizations; the colleges have a contract with ABC, the AFL

has a contract with NBC, and the NFL has a contract with CBS. These contracts have no organized pattern of termination dates and rarely afford the

opportunity for competition in rights placement. Indeed, the NFL has recently

been required to undertake a program for a self-created network simply to reestablish competition in the market for its rights. To be sure, professional football games as presently televised by the two networks are competitive with one

another as well as with other forms of television entertainment. But this will

continue to be the case. Because a single network cannot practicably establish

as many as twenty-eight regional networks and because the expanded league

desires to maintain its present level of club television income, the plan contemplates the continued use of two networks by the expanded league, e.g., on a

conference or other divisional basis. Thus, both during the period prior to the

expiration of the existing television contracts and afterwards, it is contemplated that there will be continued home viewer access to duplicate broadcasts,

Including telecasts of other league games into home cities on days when the

home team is playing at home.

Competition for players will continue, but on a plane having a more realistic

relation to club earning abilities. At present, a limited number of graduating

collegians without professional football experience have been in a position to

bargain for extraordinary bonuses and special concessions. This will no longer

be possible. But graduating collegians can continue to bargain for their employment terms and seek bonuses based on contracts extending beyond the standard two-year period; veterans will have the continued privilege of playing out

their options and negotiating as free agents for their services with other clubs;

and established players will continue, as in baseball and basketball (which operate with lifetime reserve clauses covering the players' services) to bargain for

and receive top salaries.'

Similarly, the proposed plan will have no material effect on competition for

franchise cities. Sports page items to the effect that one league or the other is

presently intending to invade the franchise cities of the other is little more than

a war of nerves, the testing for fan allegiance, and the public relations hoopla

which helps to give football its color. The fact is, however, as a Federal court

has noted, that American cities, with the exception of New York and possibly one

or two others, are natural monopoly markets for professional football purposes.

American Football League v. National Football League, 323 F.2d 124, 131 (4th

Cir. 1963). There is no economic gain from wasteful competition of this character and neither league has had any realistic interest in accentuating the already

suicidal levels of present competition.

To repeat, the essential issue is whether competition is to be re-established in

professional football on a plane which can accommodate broad local and national interests or whether professional football is once again to be required to

destroy itself in the interests of a form of competition which can have only one

result and which can contribute nothing to the interests of the fans, stadium

authorities, franchise cities, and ultimately the players.

6 What is often forgotten is that a football club has a very considerable investment in

a present or potential player—in the club's application of a draft choice, development and

training expenses, in the player's ability to contribute on the playing field, and in the

trading opportunity which a contract offers. These and other elements of the situation

give a professional football player, like all professional athletes, very considerable leverage in negotiating contract renewals—a leverage which in professional sports generally

has produced a growing body of professional athletes with salaries in the six-figure bracket.
120 PROFESSIONAL FOOTBALL LEAGUE MERGER

( Submitted September 6, 1966.)

[Telegram]

NEW YORK, N.Y.

PAUL PORTER,

Arnold cf Porter,

Washington, D.C.:

This will acknowledge your letter of August 26 with respect to football's proposal for legislative relief concerning their consolidation plans. Certainly we

desire to take a constructive attitude with respect to the problems of our friends

in professional football. I therefore authorize you to represent to Chairman

Celler and his colleagues that organized baseball will make no attempt to alter

or modify any legislative proposal which is strictly limited to congressional sanction for football's consolidation plans. However, it must be made clear that the

legislation or any related hearings, reports, and statements on the floor

by its proponents, Chairman Celler, or his colleagues should not alter, affect, or

seek to alter or affect baseball's existing legal status under judicial decisions. I

should point out that I have not seen or approved any definitive legislative proposal and must reserve a right to withdraw from this understanding should a

proposal be presented which in my judgment may adversely affect baseball.

Sincerely,

W. D. ECKE'RT,

Commissioner of Baseball.

(Submitted September 6, 1966.)

AN ACT

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the antitrust laws, as defined in section 1

of the Act of October 15, 1914, as amended (38 Stat. 730), or in the Federal

Trade Commission Act, as amended (38 Stat. 717), shall not apply—

(a) to any joint agreement by or among persons engaging in or conducting

the organized professional team sports of football, baseball, basketball, or

hockey, by which any league of clubs participating in professional football,

baseball, basketball, or hockey contests sells or otherwise transfers all or

any part of the rights of such league's member clubs in the sponsored telecasting of the games of football, baseball, basketball, or hockey, as the case

may be, engaged in or conducted by such clubs.

(b) to any joint agreement by which the member clubs of two or more

professional football leagues combine their operations in an empanded single

league, where such agreement increases rather than decreases the number of

professional football alas so operating.

SEC. 2. Section 1 of this Act shall not apply to any joint agreement described

in section 1(a) of this Act which prohibits any person to whom such rights are

sold or transferred from televising any games within any area, except within the

home territory of a member club of the league on a day when such club is playing.

a game at home.

SEC. 3. Section 1 of this Act shall not apply to any joint agreement described

In section 1(a) of this Act which permits the telecasting of all or a substantial

part of any professional football game on any Friday after 6 o'clock postmeridian

or on any Saturday during the period beginning on the second Friday in September and ending on the second Saturday in December in any year from any telecasting station located within seventy-five miles of the game site of any intercollegiate or interscholastic football contest scheduled to be played on such a

date if—

(1) such intercollegiate football contest is between institutions of higher

learning, both of which confer degrees upon students following completion

of sufficient credit hours to equal a four-year course, or

(2) such interscholastic football contest is between secondary schools,

both. of which are accredited or certified under the laws of the State or

States in which they are situated and offer courses continuing through the

twelfth grade of the standard school curriculum, or the equivalent, and

(8) such intercollegiate or interscholastic football contest and such game

site were announced through publication in a daily newspaper of general

circulation prior to March 1 of such year as being regularly scheduled for

such day and place.
PROFESSIONAL FOOTBALL LEAGUE MERGER 121

ALTERNATIVE

SEPTEMBER 6, 1966.

The antitrust laws shall not apply to—

"* * * the joining of the member clubs of the National Football League and

.of the American Football League in a single professional football league, and to

acts reasonably incident thereto."

Mr. ROGERS. Mr. Chairman, as I understand, since our hearing here

on Tuesday there has been an attempt to see if counsel and the representatives of the leagues can get together on the language that would

accomplish the purpose that the gentleman has just testified on. So

far no agreement has been reached in connection therewith, and I am

wondering how it is that we as lawyers cannot arrive at some conclusion of what the language may mean in proposed legislation, and I

want to direct a question either at Mr. Rozelle or his attorney.

Again, you are only wanting the two leagues to act as a single league.

Is there any language that is acceptable to you that would accomplish

that purpose?

Mr. ROZELLE. We would accept any language that would accomplish that purpose.

The CHAIRMAN. May I ask, will the gentleman yield?

Mr. ROGERS. Yes.

The CHAIRMAN. Mr. Rozelle authored certain language, and Mr.

Harkins has countered with different language, and they are at that

point.

Mr. ROGERS. That is why I am bringing up the question to see how

far apart they are.

Mr. CAROTHERS. May I speak to that, sir?

Mr. ROGERS. Yes.

Mr. CAROTHERS. I would like, if I may, to refer closely to my notes,

'because I want to make sure that my own impressions of the disagreements between us and counsel are correctly stated.

Based on our conversations with counsel, I believe we had three

basic areas of disagreement.

The first is that committee counsel would limit the antitrust exemption to an exemption from section 7 of the Clayton Act.

Now, it seems to us clear if there is an antitrust problem in connection with this plan, it is considerably broader than section 7 of the

Clayton Act alone. It would require equally an exemption from sections 1 and 2 of the Sherman Act and possibly the Federal Trade

Commission Act. Indeed, I think because of the unusual character of

this transaction, there is a very considerable question whether section

7 has any application in any event.

Our second area of disagreement results from the committee counsel's desire to provide a limited itemization of the exempted actions

in the statute itself and to limit the exemption provided to those

enumerated acts.

Now, the difficulty here is in trying to enumerate in the statute the

precise acts which are exempted. The league is not seeking exemptions solely for the act of consolidating the two leagues, whatever that

term means. We are not seeking solely an exemption for the putting

on the backs of every AFL player an NFL jersey. We must have an

exemption for all the actions required by all 24 member clubs of both
122 PROFESSIONAL FOOTBALL LEAGUE MERGER

leagues to put this league on a single-league basis and launch its operations as a single league.

Now, for example, we do not seek to immunize our player draft

from antitrust challenge; we will accept the burden of having to defend that as a justifiable practice under the rule of reason as the practice of a single league. But we do not wish to assume the burden of

having to justify that draft, not only as a practice of a single league,

but also as resulting from an agreement to put the two leagues together.

In other words, the necessary step in creating a single league is to

reduce the number of drafts currently being held from two to one. We

wish only to insulate the steps necessary to put into effect a draft which

formerly was two drafts and now has become one.

The same problem arises in terms of innumerable other actions by

the member clubs of the two leagues. We have to give Mr. Rozelle

the authority as commissioner and all 24 clubs must agree that he

will be the joint commissioner. We must have a common set of constitution and bylaws, and we will accept the burden of defending that

set of constitution and bylaws under the antitrust laws. We do not

intend to accept the burden of defending the agreement between the

24 clubs to establish that single constitution and bylaws.

Our third area of disagreement is found in the desire by committee

counsel to include in the bill a savings clause preserving any clause

of action in existence on or before the effective date of this bill.

I think you will find the reasons for our objections to that language

in whatever answers you as committee members choose to give to the

following questions:

If this committee believes that it is in the public interest to permit

this plan to go forward and wishes to give us the statutory protections

to enable us to do so, what is the purpose of preserving antitrust challenges in the future?

For example, the antitrust complaint already on file seeks to enjoin

this merger.

The CHAIRMAN. Mr. Carothers, pardon the interruption, but we

never wipe out causes of action in existence at the time of the passage

of the act.

For instance, I have before me the Television Act that was passed in

1961 and section 6 provides as follows:

Nothing in this Act shall affect any cause of action existing on the effective

date hereof in respect to the organized professional team sports of baseball,

football, basketball or hockey.

Mr. CAROTHERS. I have two points on that, Mr. Chairman, and I

.want these very clearly understood.

At the very least, the savings clause should be expressed as it is in

the sports bill, that is, S. 950 as it came over to the House in terms of

causes of action commenced.

This agreement was reached on June 8; it is now 4 months. If

you preserve every cause of action which may have vested as distinct

from having been filed during this lengthy 4-month period, you

preserve the very hunting license that we are seeking to avoid.

You would be leaving wide open the question of what causes of action become vested by reason of the agreement itself.
PROFESSIONAL FOOTBALL LEAGUE MERGER 123

The CHAIRMAN. Regardless of the merits or demerits, I am simply

pointing out that we usually preserve causes of action. We usuallydon't interfere with causes of action that exist at the time of the passage of the act.

Mr. CAROTHERS. Then that savings clause should be expressed in

terms of causes of action commenced.

(The proposed amendments of counsel referred to are as follows

OCTOBER 12, 1966.

CAROTHERS AMENDMENT

P. 2, line 19, change the period to a comma and add the following:

"Provided, however, That any practices of the expanded league will continue

to remain subject to the antitrust laws, and available defenses thereto, as the practices of a single league."

OCTOBER 12, 1966.

AMENDMENTS TO S. 3817

SUBCOMMITTEE COUNSEL

1. P. 2, line 12, change the period to a comma and add the word "and".

2. P. 2, lines 13-17, delete subsection (b) and insert in lieu thereof:

"(b) Consolidation of the member professional football clubs of the American Football League and the National Football League into a single league of pro- fessional football clubs, the inclusion of professional football clubs additional

to the member clubs of said leagues on June 8, 1966, and the division of said consolidated and additional clubs into two or more divisions, shall not in and of itself constitute an independent violation of Section 7 of the Clayton Act,

as amended by the Celler-Kefauver Act, provided, however, no immunity from

any of the antitrust laws is granted herein to the provisions of the Constitution and By-laws of the expanded league, including but not limited to the player selection system, the reserve clause, territories, franchises and waiver rules,

powers of the commissioner, or acts pursuant thereto."

3. P. 3, add the following new section:

"Section 4. Nothing in this Act shall affect any cause of action in existence

on or before the effective date hereof."

Mr. CRAMER. Mr. Chairman?

The CHAIRMAN. Mr. Cramer.

Mr. CRAMER. As a member of the committee, I am at a loss to be able to follow the discussion without having available, first, the language submitted by the league and, secondly, the counterproposal submitted by counsel. I don't know how we can be expected to be operating in the dark. I have not seen the language of either one, and therefore cannot in any way judge the differences between the two.

Do you have that language made available?

The CHAIRMAN. The whole thing is in the embryo stage; they are trying to work something out, if possible.

Mr. CRAMER. Well, that is what the testimony is about. I don't know how we can participate in or understand the testimony unless

we have the two respective proposals before us.

The CHAIRMAN. Everything requires study, you just can't 

Mr. CRAMER. I would like to be a party to join in the study. I don't know how we can follow the testimony without knowing what the re- spective proposals are.

I have before me the language of one that is designated as the Harkins amendment.
124 PROFESSIONAL FOOTBALL LEAGUE MERGER

The CHAIRMAN. That is Mr. Harkins' proposal and suggestion.

This is to see whether we can work something out, and the idea was

to have Mr. Carothers and Mr. Harkins got together and discuss this

matter before the committee considered it.

Mr. Rozelle has spoken of it and sort of jumped the gun on us, so

to speak.

Mr. CRAMER. I join with the gentleman from Colorado. I read in

the paper that these negotiations are going on and there is a possibility

of a settlement. And if there is a possibility of a settlement, I would

like to know what is being considered and the only way I can follow it

is the amendment.

I understand the Harkins amendment is the one that is being considered as a proposal by the committee to the league?

The CHAIRMAN. It is not. I have not seen this myself. I only got

this this morning.

Mr. CRAMER. That is the only one.

The CHAIRMAN. I have not seen either amendment; nobody has

seen them. We have not studied it. I don't know what the import

is. I have not even read it yet, so I am in the same position as the

gentleman from Florida.

Mr. RODINO. Mr. Chairman, may I inquire, since Mr. Carothers

states that there are certain areas of disagreement, whether there are

any areas of agreement? Whether we have any basic premise here

that perhaps we ought to start at this beginning point that this limited

approval should be given for this so-called merger that merely seeks

to bring together, as I understand it, the two leagues into one single

league without immunizing them from any antitrust aspects that they

might be responsible for now.

Now, I don't know. I see it again as in the simple manner and

again I say that I hope I do not seem foolish when I say that I look

at things probably a little simplistically, but if that is the understanding, then I don't know why there should be this big divergence here.

And if there is an area of agreement, well, then, I think we ought to

begin there, and I am asking is there an area of agreement?

The CHAIRMAN. That is what we are trying to find out, and let

counsel try to work something out and come up to us with it. It would

be very helpful.

Mr. ROGERS. Mr. Chairman, I do not want to belabor the problem

that I presented, but it is very apparent that the witness, Mr. Rozelle,

and his attorney have said that they only have one objective—that is to

say, that you could consider the AFL and the NFL as one league, and

if they were considered as such and bring it about as one league, then

the fact that they brought it about as a single league, we should grant

to them immunity from antitrust violation.

To me it is that simple.

The CHAIRMAN. I don't think it is quite that simple, Mr. Rogers.

There are a lot of intricacies and nuances, and I want to plumb the

depth of them. I want to be sure I know what this all means. I don't

at this stage.

Mr. CRAMER. Would the gentleman from Colorado yield?

Mr. ROGERS. Yes.

Mr. CRAMER. As I understand it, when the meeting recessed at the

last hearing, the discussion was around the Senate bill, subsection
PROFESSIONAL FOOTBALL LEAGUE MERGER 125

(b) , which was changed from the bill introduced, changing on line 11,

page 2, the word "any" to "a." So, it would read "to a joint agreement," limiting it to this one agreement.

The second change made, trying to conform to what was requested

without having broader brush was adding the words on lines 15 and 16:

"and the provisions of which are directly relevant thereto," so that

the clause would read, the existing clause: "To a joint agreement by

which the member clubs of two or more professional football leagues

combine their operation in an expanded single league, if such agreement increases rather than decreases the number of professional football clubs so operated, and the provisions of which"—meaning the

combination agreement—"the provisions of which are directly relevant

thereto."

Now, could I ask counsel what his objection is to that language and

how he thinks it should be modified?

Mr. HARKINS. Are you asking that of me?

Mr. CRAMER. Yes.

The CHAIRMAN. We had unfolded some of the terms of this agreement, and they were rather startling.

Mr. ROGERS. I did not hear that, Mr. Chairman.

The CHAIRMAN. We had unfolded at the last meeting, due to the

questions directed to Mr. Rozelle, some of the terms of that agreement

and they were rather startling.

Mr. ROZELLE. Mr. Chairman, pardon me. Would you mind citing

for me the areas that were unfolded that you considered startling?

Mr. ROGERS. What is startling about the cause—

The CHAIRMAN. In other words, there are quite a number of phrases

in this so-called—I don't know what you call it—joint agreement.

You speak, for example, of a number of additional understandings in

this very agreement.

Now, I don't know what those additional understandings are, for

example, and then reference is made to it and we would be approving

that which we know nothing of. That is what concerns me considerably. That is only one of the difficulties presented here.

Mr. CAROTHERS. Mr. Chairman, but any additional understandings—

The CHAIRMAN. Let us go on with the examination of Mr. Rozelle as

we intended.

Mr. Harkins?

Mr. CRAMER. Well, Mr. Chairman, before 

The CHAIRMAN. Let us go on with the examination. We will never

make any progress this way.

Mr. CRAMER. Mr. Chairman 

The CHAIRMAN. Let's go on with the examination of Mr. Rozelle.

Mr. HARKINS. Mr. Rozelle, before we departed into the scope of the

antitrust exemptions which were granted in S. 3817, you were talking

about the provisions of the "Basic Terms" document that you submitted and the provisions of the Special Terms document that you

submitted as they related to television and we had ascertained at that

time that as far as pay TV is concerned, the member clubs had reserved

the right to use pay TV for their own games and not part of the league

negotiations.

70-605 0-616. 9
126 PROFESSIONAL FOOTBALL LEAGUE MERGER

Do you wish to go over that testimony, or is that a fair statement of

the testimony so far?

Mr. ROTH-11-.7X. They reserved such rights in the area of pay TV as

they have had reserved in the past, Mr. Harkins. In other words,

there was no change in that. It would take an agreement of the teams

to have pay television of the type I mentioned to you—in the home area

when the home team was playing there and no local live telecast was

being carried because the area was blacked out to protect the game.

Mr. HARKINS. In the special additional understanding between

particular member clubs which was part of the special terms that you

submitted in your "Recapitulation of Terms," is it not true that both

New York City and San Francisco/Oakland areas have special arrangements for pay television for their games after 1969?

Mr. ROZELLE. They state that when either team in New York or

either team in the San Francisco/Oakland Bay area is playing at

home, that contingent upon approval of other clubs in the league upon

such a program, would have the right to contract for local pay television of its home game in the home area alone.

Mr. HARKINS. In order that the record may be clear as to this provision, I will read it:

Following unification of the league schedule after 1969, whenever either the

San Francisco 49'ers team or the Oakland Raiders team is playing at home on

a day when the other team is not playing at home, the home team may, where

such practice is otherwise authorized, utilize pay television or closed circuit

television in the blacked out area only without requirement of consent by the

other. At all other times, including specifically days when both teams are playing at home, the use of pay television or closed circuit television by either will

require the consent of the other.

This is what has been agreed upon?

Mr. ROZELLE. Yes.

The CHAIRMAN. How is that affected by your pledge the last time

you were here that you would see to it that there would be no pay

television?

Mr. ROZELLE. I don't believe I said that specifically, Mr. Chairman. I said this: "We were discussing the championship game." I

said that I had the right to make television arrangements for the

championship game and that I had no interest in having pay television for the championship game. I felt it had to be on network television for the public.

I said the only thing that I had considered in the past, and we have

done in the past on one occasion in the city of Chicago, is to expand

the stadium in the home area where the championship game is played

by having theater or local pay television where the telecast is blacked

out.

I believe that was our discussion.

Mr. HARKINS. In other words, is it not a fact that the professional

football business, the National Football League, is taking positive

steps to assure that the member clubs can go into pay television or

closed-circuit television for professional games? Is that not the import of this provision I just read?

Mr. ROZELLE. I feel that it was an understanding that the clubs

wanted to reach before we went into this. It merely makes it permissive, subject as you will note in the language to practices approved by

the league. This was an agreement hopefully that will hold into per-
PROFESSIONAL FOOTBALL LEAGUE MERGER 127

petuity when we become a single league, and this was simply to spell

out the conditions between the two teams in those two specific markets,

New York City and San Francisco/Oakland.

Again, I would like to stress, however, that any pay television would

have to be approved by others in the league rather than just those two.

The CHAIRMAN. From what you have said and what has been read,

we now get to a point that I think we can conclude that if we approve

the merger in the form that you indicate, and we therefore put the

approval on the contents of this so-called joint agreement2 we could be

saying that an agreement among the clubs for pay television would be

exempt from antitrust laws.

Mr. ROZELLE. No, Mr. Chairman, we specifically exclude that in our

request for this legislation. Any practice of a single league as we have

stressed, including pay television, could be challenged if this legislation were passed.

We do not seek immunity for the right to have pay television.

Mr. HARKINS. S. 3817, though, gives an exemption to a joint agreement, and the other agreements where provisions are directly relevant

thereto. The provisions I just read are part of the basic terms of the

agreement.

Mr. MACGREGOR. Mr. Chairman, the language is a joint agreement

by which the member clubs of two or more professional leagues combine into a single expanded league. It does not refer—the language of

the bill does not refer to any understanding that may be reached by the

San Francisco team and the Oakland team.

Mr. HARKINS. Are not the basic terms and the special terms that you

submitted the joint agreement that is referred to on page 2, line 14, of

S. 3817?

Mr. ROZELLE. Mr. Harkins, I think it is a matter of wording. We

would accept any change, again, that would accomplish the sole objective we have been discussing for some months.

We are not seeking immunity from our practices as a single league,

including pay television. We are not seeking that. If you interpret

the Senate bill as giving that to us, we would be very happy to discuss

language that would clarify it.

We feel that any practice, including pay television, could be challenged; we are not seeking immunity for our league practices. We are

merely seeking immunity from the act of forming a single league and

legal challenges that might be directed at us on that basis.

Mr. HARKINS. Is this agreement provision of which I just read for

the San Francisco/Oakland part of the agreement, a putting together

of the clubs into a single league?

Mr. ROZELLE. Yes, it is part of the agreement, Mr. Harkins, and we

state that any practice of that agreement as part of a single league

can be challenged—as a single league.

Mr. CRAMER. Mr. Chairman, I think we are getting at the nub of

what the misunderstanding is and I don't see any purpose to be served

by going through every phase of the agreement that is not directly related to solely establishing one league.

Now, as I understand it, you are not asking for exemptions on all

items flowing from the agreement that are not related solely to making

one league out of two, and any single act between the clubs in the
128 PROFESSIONAL FOOTBALL LEAGUE MERGER

league or between the league and other parties would be subject to

challenge, but the only issue that would not be raised by such a challenge would be the combination of the two leagues into one.

Is that not basically what you are saying, so anything that has

been read here, including pay television in particular, would be subject to challenge as an act of a single league?

Mr. ROZELLE. That very clearly defines our position.

Mr. CRAMER. I don't see what all the misunderstanding and argument is about.

The CHAIRMAN. I am afraid I must emphatically disagree with

what the gentleman says. It is a bit of obfuscation and just muddies

the water

Mr.CRAMER. I suggest reading the agreement is what muddies the

water.

The CHAIRMAN. The agreement read from, by Mr. Harkins, is referred to in the very bill, S. 3817, and we practically had the admission

from Mr. Rozelle on that score.

Go ahead, Mr. Harkins.

Mr. HARKINS. I will now refer to the contracts between the networks and the league.

CBS has a contract. for the National Football League's television

broadcasts?

Mr. ROZELLE. The agreement was reached, the formal contract has

not yet been signed, although it is operative this season • yes, sir.

Mr. HARKINS. You supplied to the committee at the committee's

request the contract between the National Football League and CBS

covering the years 1964 and 19652 which is an executed document. You

have also supplied to the committee at its request the contract which

is not executed yet for the years 1966 through 1968.

In the executed document CBS has agreed to pay $14.1 million per

year to the National Football League, is that not right?

Mr. ROZELLE. Yes.

Mr. HARKINS. And the contract, the paragraphs I want you to look

at as part of this hearing, on pages 4 and 5, reserved rights for special

games on Friday and Saturday.

I will read the provision to refresh your memory about it.

The League shall have the right, notwithstanding anything to the contrary

contained in subparagraph (c) * * * and without any reduction in the Annual

Fee, to schedule (in addition to December Games—

And I will skip something here—

not more than five (5) regular season games in each Contract Year to be played

on either Friday or Saturday (such games being herein called "Special Games")

during each Contract Year. The broadcasting rights to each such Special Game

shall not be included in the rights granted to CBS hereunder, unless such game is

scheduled to be played prior to the second Friday in September * * *

Therefore, you reserved the right through 1964 and 1965 to play

games on either Friday and Saturday?

Mr. ROZELLE. Yes, this is necessary during the early part of the

football season when the football teams in those cases are sharing stadiums with baseball teams, and it is occasionally necessary to schedule

a game on a date other than Sunday, because of the baseball priority,

as an example, in a given stadium.
PROFESSIONAL FOOTBALL LEAGUE MERGER 129

We have played, as an example, in the National Football League five

Friday night games in the last 11 years.

Mr. HARKINS. I didn't get your answer.

Mr. ROZELLE. Five Friday night games in the last 11 years, and as

I say, ordinarily these would be scheduled because of the problem

which baseball presents of not being able to get into the park on

Sunday.

Mr. HARiaNs. The new contract also reserves the rights for special

games?

Mr. ROZELLE. Yes.

Mr. HARKINS. After the leagues are combined, do you anticipate

that there will be a greater number of Friday night and Saturday

afternoon special games for that professional league?

Mr. ROZELLE. I would not think there would be any more than are

now being carried in the two leagues. I would see no reason for it

because the clubs themselves prefer Sunday and their fans do.

Mr. HARKINS. But the National Football League has had five games

in 11 years.

Mr. ROZELLE. On Friday night.

Mr. HARKINS. How many has the American Football League had?

Mr. ROZELLE. I would not be aware of that. Perhaps Mr. Hunt

would.

Mr. HUNT. I cannot tell you the exact figure. It is quite a few more

in the early years of the American Football League, 1960, 1961, and

1962 particularly. Our teams played a number of Friday and Saturday night games in order to not have to fight television competition

of a live game on Sunday, and in the last few years this number has

been considerably reduced and I think it is something on the order this

year of maybe two Friday nights and five Saturdays. I am not sure 

of the exact number, but that is approximately right for the season.

Mr. HARKINS. To turn to another provision of the executed CBS

contract, the contract specifically provides, does it not, that CBS will

not obtain any rights for pay TV broadcast?

Mr. ROZELLE. Such rights are excluded from the agreements, is

that it?

Mr. HARKINS. Yes.

Mr. ROZELLE. Yes.

Mr. HARKINS. The agreement is not to authorize any broadcast of

games by subscription or pay TV. These rights were all reserved

by the clubs, is that right?

Mr. ROZELLE. Television of that form is specifically excluded

through the 1961 statute, in any event, Mr. Harkins.

Mr. HARKINS. The statute does not give an exemption for pay

TV.

Mr. ROZELLE. That is correct.

Mr. HARKINS. But it is only excluded from the exemption?

Mr. ROZELLE. Yes.

Mr. HARKINS. On page 34 you have what is called a "home pay

broadcast." Will you describe a home pay broadcast?

Mr. ROZELLE. I believe that that clause refers to the clubs' right,

which they do not now have under the new contract with CBS, to

go into theater television of their home games in the home area,

gain an extension of the stadium.
130 PROFESSIONAL FOOTBALL LEAGTJE MERGER

Clubs experimented with this 2 years ago and it was not successful, but they did reserve that right in the CBS contract. They do hot have that right in the new contract.

Mr. HARKINS. The provision in the executed contract is that as used here in the term "home pay broadcast" means a broadcast made

by any means or manner of pay, subscription or theater television

which is and can be received only within the home territory of any

team. All rights with respect to the home pay broadcast of any

game are specifically reserved to the teams, but no such broadcasts

shall be made or authorized to be made within the home territory of

any team other than on a day when such team is playing a home game.

Under this language, would the home team be allowed to transport

outside the territory a pay TV broadcast?

Mr. ROZELLE. No, they would not, nor, as I indicated to you, would

they be able to have any form of home pay TV under the new CBS

contract under which we are operating this season.

Mr. HARKINS. Mr. Chairman, I offer for the record the CBS and

NBC contracts.

The CHAIRMAN. They are accepted.

(The contracts referred to are as follows:)
PROFESSIONAL FOOTBALL LEAGUE MERGER 131

CBS TELEVISION NETWORK

A division of Columbia Broadcasting System, Inc.

AGREEMENT

AGREEMENT made as of the 24th day of January, 1964, by and

between CBS TELEVISION NETWORK, a division of Columbia Broadcasting

System, Inc. 485 Madison Avenue, New York 22, New York (herein

called "CBS") and the NATIONAL FOOTBALL LEAGUE, 1 Rockefeller

Plaza, New York 20, New York (herein called the "League").

In consideration of the mutual covenants herein contained,

the parties hereto have agreed and do agree as follows:

1. (a) The League hereby grants to CBS the sole and exclusive television broadcasting rights in and to each and every

professional football "Game" (as hereinafter defined) played by all

of the member clubs (herein collectively called the "Teams" and

individually called a "Team") of the League during the years 1964

and l9§54each said year being herein called a "Contract Year")

throughout the United States, its territories and possessions,

Canada, Mexico and Bermuda (herein called the "Broadcast Area").

(b) The rights granted to CBS herein include the right

to broadcast, describe and summarize each "Game" and all of the

events and activities occurring at the stadium in which each

"Game" is played during the period commencing fifteen (15) minutes prior to the scheduled starting time and ending. fifteen (15)

minutes -after the conclusion of each "Game", or on the hour or
132 PROFESSIONAL FOOTBALL LEAGUE MERGER

half-hour following the conclusion of each "Game", whichever is

later. There shall be no broadcasts from the dressing room of any

Team without the consent of such Team in each instance.

(c) As of the date of this Agreement, the following

Teams constitute the membership of

Eastern Conference 

New York Football Giants, Inc.

Philadelphia Eagles, Inc.

Pittsburgh Steelers, Inc.

Cleveland Browns, Inc.

Chicago Cardinals Football Club,

Inc. (St. Louis Cardinals)

Pro Football, Inc. (Washington

Redskins)

Dallas Cowboys

the League:

Western Conference 

Chicago Bears Football Club, Inc.

Baltimore Football, Inc.

Detroit Football Company

Green Bay Packers

The San Francisco Forty-Niners

Los Angeles Rams Football Club

Minnesota Vikings

2. (a) The "Games" shall consist of the following:

) all regular season championship

games played by each Team during each ContiMet Year

A. on Sundays; and

B. . on any Thanksgiving Day;

(ii) the "December Games" (as hereinafter defined);

(iii) all pre-season games played by

each of the Teams during each Contract Year

with respect to which CBS exercises its option

set forth in subparagraph (b) of paragraph 3

hereof, said games being herein specifically

called "Pre-Season Games". The League warrants

and represents that at least one (1) Pre-Season
PROFESSIONAL FOOTBALL LEAGUE MERGER 133

Game shall be seleluled to pl3yed daring each

of the five (5) weeks immediately preceding the,

commencement of the regular season schedule for

each Contract Year hereunder;

(iv) all conference playoff games played

by the Teams during each Contract Year, said

Canes being herein called "Conference Playoff

Games".

All of the games referred to in subdivisions (i) and (ii) of this

subparagraph (a) are herein sometimes called "Regular Season

Games."

(b) The "Final Regular Season Schedule" (as hereinafter

defined) submitted to CBS by the League in each Contract Year

shall provide for the following:

(1) one (1) Thanksgiving Day Game (such

Games to be selected by the League); and

(ii) two (2) Saturday afternoon Games in

December (herein sometimes separately referred to

as the "December Games") such Games to be selected

by the League. The broadcasting rights granted to

CBS with respect to the December Games shall be

subject to the provisions of subparagraph (e) of

this paragraph 2.

(c) Except as otherwise provided in subparagraphs (b)

and (d) of this paragraph 2, all Regular Season Games played

by each Team shall be Played on Sunday afternoon, it being

understood that
134 PROFESSIONAL FOOTBALL LEAGUE MERGER

(i) one half of each Teaw's Games shall

be Regular Season Home Games (as hereinafter

defined) and one half of each Team's Games shall

be Regular Season Away Games (as hereinafter

defined); and

(ii) each Team shall play not less

than fourteen (14) Regular Season Games .

during each Contract Year of this Agreement

and during each Contract Year hereunder there

shall be at least one (1) Regular Season Game

on each of fourteen (14) Sunday afternoons.

(d) The League shall have the right, notwithstanding

anything to the contrary contained in subparagraph (c) of this

paragraph 2 and without any reduction in the Annual Fee, to

schedule (in addition to the December Games referred to in subparagraph (ii) of subparagraph (b) of this paragraph 2) not more than

five (5) regular season games in each Contract Year to be played

on either Friday or Saturday (such games being herein called

"Special Games") during each Contract Year. The broadcasting

rights to each such Special Game shall not be included in the

rights granted to CBS hereunder, unless such game is scheduled to

be played prior to the second Friday in September or subsequent

to the second Saturday in December in which case such game shall

be a "Game" hereunder if CBS elects to broadcast such game by

giving notice to the League to such effect prior to the April 1

of the applicable Contract Year or within 30 days after receipt

of the "Final Regular Season Schedule" whichever is later. The
PROFESSIONAL FOOTBALL LEAGUE MERGER 135

League will not schedule any Special Games in excess of five (5).

without CBS's prior written consent in each instance, which consent CBS may withhold for a'rly reason.

(e) It is understood that the broadcasting rights

granted CBS hereunder with respect to the two (2) December Games

shall be subject to all of the applicable provisions of Public

Law 87-331, 87th Congress, 75 Stat. 732.

(0 The broadcasting rights to each Special Game with

respect to which CBS does not exercise its option as set forth in

subparagraph (d) of this paragraph 2 or with respect to which CBS

has no rights hereunder, shall be retained by the respective participating Teams (subject to the provisions of Article X of the

League Constitution and By-Laws as adopted for 1964andI965; provided

however, that. no such Special. Game shall be broadcast or authorized to be broadcast on behalf of any product or service

(i) competitive to any product or

service of any national sgQnsOr of the Regular

Season Games; or

(ii) competitive to any product or

service of any regional sponsor of the Regular

Season Games in any television market in which

such Games are sponsored by any such regional

sponsor.

(g) The starting times for the Sunday afternoon Games

for ea6h Team shall be substantially the same as that in 19.63

unless a different time shall be mutually agreed upon between CBS

and any Team. The starting times of the Thanksgiving Day and
136 PROFESSIONAL FOOTBALL LEAGUE MERGER

. s

December Games shall be fixed by mutual agreement between the League

and CBS; provided, however, that the League shall give due consideration to CBS's other commitments and to any scheduling problems

of CBS.

(h) As used in this Agreement a "Regular Season Home Game"

is a Game played by a Team in a stadium located in its home territory and a "Regular Season Away Game" is a Game played by a Team

in a stadium located in the home territory of any other Team.

3. (a) On or before the April 1st of each Contract Year hereunder, the League will deliver to CBS the final schedule (herein

called the "Final Pre-Season Schedule") of the pre-season games to

be played in such Contract Year. If such Schedule is not received

by such date then the date in subparagraph (b) shall be advanced by

one day for each day after April 1 that such Schedule is received.

Such Schedule shall indicate the date, time (local time) and place

where each such game shall be played and shall designate the Teams

which shall participate in each such game. The Final Pre-Season

Schedule may not be changed by the League or by any Team at any time

without CBS's prior written consent. Any schedule furnished CBS

pursuant hereto shall be a Final Schedule unless the same is clearly

designated a "preliminary schedule."

(b) On or before the June 1st of each Contract Year or

if the Final Pre-Season Schedule is received on or before April 1,

within forty-five (45) days from the receipt of the Final Pre-Season

Schedule, CBS will notify the League of those pre-season games which

CBS elects to broadcast, and each such game shall become a "Game"

hereunder. Such notice shall state whether each such pre-season

game shall be broadcast on a "network' basis" (i.e., simultaneously
PROFESSIONAL FOOTBALL LEAGUE MERGER 137

over the facilities of two (2) or more stations interconnected

at the time of such broadcast) or on a "local basis" (over the

facilities of any CBS owned station on a ron-interconnected basis)

and whether such Game shall be broadcast live or by means of

recording.
138 PROFESSIONAL FOOTBALL LEAGUE MERGER

(c) with respect to each Pre-Season Game which pursuant

to the provisions of subparagraph (b) of this paragraph 3, CBS has

elected to broadcast on a "local basis," the CBS owned and operated

station broadcasting such Pre-Season Game shall cause to be broadcast on behalf of the National Football League Team whose franchise

is located in the same city as such station a number of, or a dollar

value of (at such station's applicable rate card price) promotional

announcements proportionally equivalent to the total number of, or

dollar value of, as the case may be, the promotional announcements

broadcast on behalf of such Team for the total number of pre-season

games broadcast by such station on a local basis during the 1960

National Football League season. If no such arrangement existed

between any particular Team and the CBS owned and operated station

located in the city of such Team's franchise (i.e., its home city)

with respect to the 1960 season, then during the thirty (30) day

period commencing June 1st (or on such later date as CBS1- ay have

the right by which to exercise the rights set forth in subparagraph

(a) of this paragraph 3) of the Contract Year hereunder in which

such station elects to enter into such an arrangement, CBS and any

such Team will negotiate to determine the basis for the broadcasting

of promotional announcements on behalf of such Team. If CBS and

such Team are unable to reach agreement during such thirty (30) day

period, the dollar value of promotional announcements to be broadcast

on behalf of such Team pursuant to this subparagraph (c) shall be

proportionally equivalent to the dollar value of promotional

announcements broadcast on behalf of the Los Angeles Team with

respect to its 1960 pre-season games.

(d) Each Team participating in any pre-season game which

CBS has not elected to broadcast shall have the right (subject

to any applicable provisions of the League constitution and
PROFESSIONAL FOOTBALL LEAGUE MERGER 139

applicable provisions of the League Constitution and By-Laws) to

authorize the broadcast of, each such game throughout the Broadcast

Area. Each Team participating in any pre-season game which CBS

has elected to broadcast on a local basis shall have the right

(subject to any applicable provisions of the League Constitution

and By-Laws) to authorize the broadcast of such game in any community in the Broadcast Area in which such game is not broadcast

by CBS. No broadcast of any pre-season game authorized by any

Team shall be made on behalf of any product or service (i) competitive to any product or service of any national sponsor of the

Regular Season Games, or (ii) competitive to any product or service

of any regional sponsor of the Regular Season Games in any community

in which such Games are sponsored by any such regional sponsor.

(e) Notwithstanding anything to the contrary contained

herein, CBS's rights with respect to pre-season games shall not

include any rights

(i) with respect to the annual Chicago

Tribune College All-Star game, the Los Angeles
140 PROFESSIONAL FOOTBALL LEAGUE MERGER

Times game, the Chicagc Bears Armed Forces game

and the Canton Hall of Fame game or any preseason game which 'is primarily promoted by any

newspaper or charitable organization and the

television rights t which are owned by such

newspaper or organization. During the term

of this Agreement the number of pre-season

games in any Contract Year controlled by such

third parties shall not exceed the number of

such games during the 1963 National Football

League season;

(ii) with respect to any pre-season game

played on any Friday after 6:00 PM (local time)

or on any Saturday on or after the second Friday

in September in any Contract Year, unless CBS

elects to broadcast any such game in accordance

with the provisions of subdivision (iv) of

paragraph 5 hereof on a recorded basis other

than on A. a Friday night after 6:00 PM (local

time) or B. a Saturday.

(7) On or before the April 1st of each Contract Year,

the League will deliver to CBS in writing the final schedule

(herein called the "Final Regular Season Schedule") of all Regular

Season Games (including any Special Games) to be played in such

year. Such Schedule shall be subject to all of the provisions of

paragraph 2 hereof and shall indicate the date and time (local

time) and place where each such Regular Season Game is to be
PROFESSIONAL FOOTBALL LEAGUE MERGER 141

played and shall designate the Teams which shall participate in

each such Regular Season Game. The Final Regular Season Schedule

may not be changed by the League or by any Team without CBS's

prior written consent. Any schedule submitted by the League pursuant hereto shall be deemed to be a final Schedule unless

designated a "preliminary schedule". 

70-605 0 - 66 - 10
142 PROFESSIONAL FOOTBALL LEAGUE MERGER

4. CBS shall furnish the League as soon as possible with a

list setting forth the national sponsors of the Games and the communities in which each regional sponsor sponsors the Games.

5. Each Game (subject to the other provisions hereof) shall

be broadcast by CBS live in black and white and/or in color. As

used herein the term "broadcast" means broadcast, exhibition, and

transmission by means of television and television devices,

methods and improvements now or hereafter developed. The Games

may be broadcast throughout the Broadcast Area over such television

facilities as CBS may at any time select or authorize. As used

herein the words "recording" and "recordings" shall mean and

include any recording or recordings made or authorized to be made

by CBS (whether before, during or after a broadcast transmission)

by tape, wire, film, disk or any other similar or dissimilar

method of recording aural and/or visual portions of television

programs, whether now known or hereafter developed, including the

photography or such programs on film in a manner similar to that

used in the production of motion pictures. All recordings made

or authorized to be made by CBS and all rights therein shall be

the sole and exclusive property of CBS, and CBS shall have the

right to use any recordings pursuant to this Agreement as follows:

(i) to broadcast and authorize the

broadcast of recordings of each Game for

delayed broadcast purposes within 14 days

after the original broadcast thereof once in

any community in the United States (excluding

Alaska and Hawaii), a station in which
PROFESSIONAL FOOTBALL LEAGUE MERGER 143

community did not carry such original broadcast and to broadcast and authorize the

broadcast of each Game for delayed broadcast

purposes within 60 days after the original

broadcast thereof once in any community in

Canada, Mexico, Bermuda, Alaska, and Hawaii,

a station in which community did not carry

such original broadcast; provided, however,

that no recording shall be deemed to have

been broadcast in any community unless broadcast over a station whose transmitter or

principal studio is located therein;

(ii) to use such recordings for file

and reference purposes in perpetuity and for

promotional purposes during the term ef this

contract;

(iii) to use such recordings for broadcast by and to the Armed Forces of the United

States, wherever situated, in perpetuity;

(iv) to use such recordings for original

broadcast pursuant hereto with respect to such

pre-season games as shall become Games hereunder and which are played other than on

Sunday afternoon; provided, however, that such

broadcasts shall be concluded not later than

10:00 PM (local time) on the Sunday following
144 PROFESSIONAL FOOTBALL LEAGUE MERGER

the day on which any such Game is played,

subject to the provisions of subparagraph

(d) of paragraph . 3 hereof. CBS may, if it so

elects, edit or authorize the editing of such

recordings prior to broadcast so as to make

the same suitable for a program of from

one (1) to two (2) hours in length;

(v) to broadcast and authorize the

broadcast of such recordings for "news purposes". Broadcasts for "news purposes" are

broadcasts on news, newsreel, news review,

sports review (including pre-game, half-time,

and post-game sports) programs. Each broadcast for a news purpose shall he subject to

the following limitations:

A. no program in which such

recordings are broadcast shall include a recording of more than two

(2) National Football League Games;

and:

B. no such broadcast shall

include a recording of any Game

which is more than two (2) minutes

in length;

(vi) to broadcast portions of the

first half of any Game during the half-time

intermission of any game, or following the
PROFESSIONAL FOOTBALL LEAGUE MERGER 145

conclusion of any Game to broadcast recordings

of any other Game -during the 'ID,eriod-referred to in

subparagraph (b) of paragraph 1 hereof;

(vii) to broadcast important plays or

portions thereof at CBS's discretion during the

broadcast of any Game; or

(viii) as provided in subparagraph (b) of

paragraph 15 hereof.

CBS's rights to use recordings as permitted in subdivisions (i),

(iii) and (iv) of this paragraph 5 shall be subject to all of the

applicable provisions of Public Law 87-331, 87th Congress, 75

Stat. 732.

6. In the event any Team arranges for the broadcast of any

Quarterback Club program, such as those broadcast in previous years,

such Team shall offer to each of the advertisers regularly sponsoring

its Regular Season Games the opportunity on reasonable terms and

conditions to sponsor such Quarterback Club program. Each Team

may arrange for a local Quarterback Club program, whether or not it

has had such a program in the past.

7. (a) The Games may be broadcast or authorized to be broadcast by CBS on a sustaining basis and/or in whole or in part on a

commercially sponsored basis by any method or combination of methods

of commercial sponsorship now known or hereafter developed without

limitation. _plponsor shall be subject to the approval of the

Commissioner of the League (herein called "Commissioner"). Such

. ..

approval may be exercif:ed only with respect to any sponsor, which,

in the opinion of the Commissioner, is not or-a quaTtty or type

suitable for the Games, and such approval may not be unreasonably

withheld. The Commissioner hereby approves for the term of this

Agreement each sponsor and each product or service of any sponsor
146 PROFESSIONAL FOOTBALL LEAGUE MERGER

who sponsored the broadcast of any National Football League Games

during the 1963 season. CBS will notify the Commissioner of

each proposed sponsor (other than sponsors approved herein).

If within seventy-two (72) hours after the receipt of such notice

the Commissioner has not notified CBS that such sponsor is

disapproved, - such sponsor shall be deemed to have the written

approval of the Commissioner.. Anything contained herein to the

contrary notwithstanding, each sponsor of the Games on a "cooperative sponsorship basis" (as herein defined) shall be automatically

deemed to have the written approval of the Commissioner; provided, however, that the foregoing provisions of this sentence

shall not apply to such sponsorship on behalf of any such sponsor

for the purpose of advertising products in the following categories: alcoholic beverages (other than beer or ale), depilatories, laxatives, feminine hygienic products, women's wearing

apparel, fortune telling, fireworks, lotteries, gambling, horse

or dog racing, firearms, restoratives, speculative stock selling,

pool halls, mortuaries, funeral, parlors, night clubs, professional

advertising, such as doctors, dentists and lawyers, harmful

drugs and hygienic products of the intimate type. As used

herein "cooperative sponsorship basis" means sponsorship of

the Games pursuant to agreement between the sponsor and any

station(s) broadcasting the Games.

(b) Attached hereto as Exhibit B are the provisions of

paragraph 7(h) of the "bidding instructions" dated December 31,

1963 furnished CBS by Commissioner, and the said provisions are

hereby made a part of this Agreement, it being understood, however,

that nothing in the said provisions shall be deemed to affect the

nature or extent of approval granted or to be granted by the

Commissioner pursuant to subparagraph (a) of this paragraph 7.
PROFESSIONAL FOOTBALL LEAGUE MERGER 147

8. (a) The League warrants and represents

) that the League is authorized to

enter into and fully perform this Agreement

on behalf of each of the Teams, and that

the League has all of the rights
14S PROFESSIONAL FOOTBALL LEAGUE MERGER

necessary to enable the League to perform all of its Obligations hereunder;

(ii) that the League and each of

its members have not granted or attempted

to grant and shall not grant or attempt to

grant to any person, firm or corporation

rights of any kind (including, without

being limited to, any rights to make broadcasts of any Games by any means or method

of pay or subscription television except

as otherwise specifically provided in

paragraph 24 hereof) which would or might

derogate or compete with the rights granted

to or to be granted to CBS hereunder;

(iii) for itself and on behalf of each

of the Teams, that during the term of this

Agreement there will not be authorized,

adopted or promulgated any new or amended

By-Law or any modification or amendment to

1

the League Constitution in any way affecting

this Agreement or the rights granted CBS

I hereunder; provided, however, that the

: League may move the location of the franchise of any Team or may expand the League

to include additional teams (but all of CBS's

rights with respect to the present Teams shall
PROFESSIONAL FOOTBALL LEAGUE MERGER 149

apply to any moved or additional teams

without any additional payment to the

League) or may remove any Team from the

League (but the League shall at all times

consist of at least twelve (12) Teams) pursuant to the provisions of the Constitution

and the By-Laws but the League and all of

the remaining Teams shall remain jointly and

severally liable to CBS for any monies then

owoa by any such am to CBS; and provided,

further, that in the excercise of sound

business judgement, the League may elect to

amend the League's Constitution and By-Laws

in crder to comply with any court order,

• judgement or decree or any statute hereafter

• enacted, and the League shall give CBS

prompt notice of any such amendment.

(b) CBS will not pursuant to any rights granted it

hereunder authorize any broadcast of the Games by any means or

_—

method of pay or subscription television, it being understood

that for the purposes of this subparagraph (b), pay or subscription television does not include community antenna systems.

Nothing herein contained shall prevent or preclude the League

or any Team from instituting any legal action or proceeding

against any person owning or operating a community .antenna

system whenever a television signal with the assistance or use

of such a system invades the Home Territory of any Team on a
150 PROFESSIONAL FOOTBALL LEAGUE MERGER

day when such Team is playing a Home Game; it is strictly

understood that neither the League nor any Team so affected

shall be considered as having transferred to CBS any rights

inconsistent with this' paragraph.

9. (a) The broadcasting of each Game hereunder shall

be subject to the following:

(i) no Game shall be broadcast into

the Home Territory (i.e. into the area within

seventy-five (75) miles from the league city)

represented by any Team on any day upon which

such Team is playing a Game in its home stadium

without the written consent of such Team;

(ii) no home Game of any Team shall

be broadcast on the day of such Game into

the area included within a seventy-five (75)

mile radius of the city in which such Game

is played without the prior consent of the

home Team and the visiting Team.

Notwithstanding anything to the contrary contained in subdivisions

(i) and (ii) of this subparagraph (a), CBS shall have the right

to broadcast each of the Games over any television stations

located in every community in which CBS broadcast National

Football League Games during 196 (except as otherwise provided

in subparagraph (b) of this paragraph 9) including, but not

limited to, stations

A. located in New York

City when the Philadelphia 2bam is at

home;
PROFESSIONAL FOOTBALL LEAGUE MERGER 151

B. located in Philadelphia

when the New York Team is home;

C. located in Washington, D.C.

when the Baltimore Team is at home, but

only a Washington Game;

D. located in Baltimore when the

Washington Team is at home, but only a

Baltimore Game;

E. located in Madison, Green Bay

Wausau and Chicago when the Green Bay Team

plays at Milwaukee;

F. located in VOlwaukee, Green

Bay and South Bend, Indiana, when the

Chicago Team is at home;

G. located in Chicago, Milwaukee,

and Madison when the Green Bay Team plays

at Green Bay.

For the purposes of this subdivision (ii) the cities of Sacramento

and Salinas, California shall be deemed to be within the Home

Territory of the San Francisco Team, the city of San Diego,

California, shall be deemed to be within the Home Territory

of the Los Angeles Team and the cities of Cape Girardeau and

Jefferson City, Missouri shall be deemed to be within the Home

Territory of the St. Louis Team. In the event that any Game

is played in other than the home Team's normal home city, for

the purpose of any such Game only, the area within 75 miles

of the city in which such Game is played shall comprise the
152 PROFESSIONAL FOOTBALL LEAGUE MERGER

Home Territory, and there siall be no restriction on the broadcast of such Game into the normal Home Territory.

(b) Notwithstanding anything to the contrary set

forth in subparagraph (a) of this paragraph 9, (i) the League

reserves the right on behalf of the Chicago Team during the

second Contract Year hereof and upon notice to CBS given on or

before April I, 1965 to require CBS not to broadcast any

Chicago Home Game over a station located in Milwaukee, Wisconsin,

and (ii) no broadcasts hereunder shall be made over any television station located in Lansing, Michigan on a day when the

Detroit Team is playing a Home Game without the prior written

permission of the Detroit Team.

10. The League warrants and represents that during the first

and third quarters of each Game and at the two (2) minute warning
PROFESSIONAL FOOTBALL LEAGUE MERGER 153

in each half, the home Team will, at CBS's request (made by CBS's

remote producer), cause the appropriate Game official to call a

sixty-second time out.

11. For the performance of all the League's obligations hereunder and for all rights herein granted CBS by the League, the

League on behalf of the Teams hereby directs CBS to pay to the

Teams during each Contract Year hereunder on behalf of the League

the aggregate sum of $14,100,000 (said amount being herein called

the "Annual Fee"). The Annual Fee shall be payable as follows:

(i) the sum of $40,000 shall be

- payable to the home Team participating in

any December Game (such amount being herein

sometimes called the "December Game Fee");

and

(ii) the sum of $1,001,428.57 shall

be payable to each Team.

Payments hereunder will be made pursuant to the schedule of pay)

ments set forth in paragraph I of Exhibit A attached hereto and

hereby made a part hereof.
154 PROFESSIONAL FOOTBALL LEAGUE MERGER

12. (a) The League and each of the Teams will cooperate

with CBS in all phases of the preparation, production and broadcast of each Game and the activities attendant thereto. The

League on behalf of the Teams represents that the Teams will make

available for CBS's use without charge at the various stadia where

the Games are played parking space for CBS's mobile units, adequate

space for the placement of cameras, booths and other facilities

for CBS's personnel, space and provision for all equipment necessary for each broadcast and such electrical power and facilities

as may be necessary for each broadcast. The League on behalf of

the Teams represents that the Teams will permit the installation

of cables, power lines and other equipment. CBS may install and

use at each stadium in which a Game is played such wires, cables,

cameras, lighting facilities and other apparatus as may be necessary, appropriate or convenient to enable CBS to make the broadcasts hereunder. If in the opinion of the television director

assigned to any Game, field lights are necessary for technically

suitable broadcasting, the home Team shall, at the request of CBS,

immediately notify the referee, and the referee will cause the

field lights, if any, to be turned on as soon thereafter as the

referee deems fair to both Teams; but the League shall not be

liable if the referee fails or refuses to cause said field lights

to be turned on. The League shall also deliver to CBS working

passes (in such number as CBS shall reason4bly reqUiro) to the..

stadium in which each Game is played to e Used by personnel of CBS,
PROFESSIONAL FOOTBALL LEAGUE MERGER 155

including cameraocrews and others personnel necessary for

preparation for each broadcast, the broadcast itself and removal

of equipment after each broadcast.

(b) Each home Team shall reserve such number of tickets,

not to exceed 10, for each of its home Games, at box office prices,

as CBS may require on notice given to the Team not later than

thirty (30) days prior to each Game.

(c) The League will on or before August 1, 1964, furnish CBS with a list of the stadia in which CBS shall have the

right to use a field television camera. The only stadia which

may be excluded from such list are those with respect to which the

League or the lessee Team does not have such right or in which the

use of such a camera would unreasonably interfere with the spectators, view of the Game.

(d) With respect to Games played in Wrigley Field,

Chicago, CBS agrees to maintain a policy of insurance providing

public liability insurance in amounts of not less than $100,000

to any single person and in the aggregate of not less than $300,000

for any single accident against any and all risks and liability for

death or injury to persons and in the amount of $10,000 for property damage resulting from the use or misuse of any materials

furnished by CBS in connection with any broadcast hereunder emanating from Wrigley Field, Chicago. CBS will provide the League with

a certificate of insurance showing compliance with the foregoing.

Notwithstanding anything contained in this subparagraph (d) to the.

contrary, CBS may include the forogoing insurance coverage in any
156 PROFESSIONAL FOOTBALL LEAGUE MERGER

blanket policy of public liability insurance maintained by CBS.

13. CBS shall have the right and may grant to others the

right to disseminate, reprOduce, print and publish the name of the

League and t,,f each of the Teams and the name, likeness, voice and

biographical material concerning each of the players, coaches and

trainers of each Lam and of all persons connected with the activities attendant to the Games as news or information, for purposes

of trade,and for advertising purposes including, but not limited

to, "institutional advertising" (i.e., advertising designed to

create good will and prestige and not for the purpose of selling

any specific product or service) and/or to advertise and promote

the broadcasts of the Games and in connection therewith, the products and services of the sponsors, if any; provided, however, that

CBS shall not authorize any direct endorsement of any product or

service by the League, the Teams or any subh person without the

written consent of the League or the Teams or such person, as the

case may be. The rights granted pursuant to this paragraph 13

shall continue for so long as CBS has the right to broadcast the

Games.

14. (a) If the playing or broadcast of any one or more

Games is'prevented or omitted because of: act of God; inevitable

accident; fire; lockout, strike or other labor dispute; riot or

civil commotion, failure of technical facilities; act of public

enemy; enactment, rule, order or act of government or governmental

instrumentality (whether federal, state or local); the failure of

such electric power and facilities as are required to be furnished

pursuant to paragraph 12 hereof or the recapture of the broadcast
PROFESSIONAL FOOTBALL LEAGUE MERGER 157

time period of any Game for the purpose of broadcasting an event

of public importance or other cause of a similar or different

nature beyond CBS's control, such prevention 07 omission shall not

be a breach of this Agreement by CBS, and the Annual Fee shall be

reduced by an amount obtained by multiplying the sum of $14,020,000

by a fraction having a numerator of one (1) and a denominator equal

to the total number of Regular Season Games hereunder, for each

such Regular Season Game so prevented or omitted, and the total

amount payable to each Team hereunder (excluding amounts in respect

to any December Games) shall be reduced by 1/14th of the reduction

in the Annual Fee, such amounts to be deducted from the next installment(s) of the Annual Fee due each Team. If such prevention

or omission occurs with respect to any Saturday Game, then the

Annual Fee shall be reduced by multiplying $14,060,000 by the same

fraction, plus the amount of the December Game Fee, and CBS may

deduct the total amount from the next installment(s) of the Annual

Fee payable to the Teams participating in such December Game. If

the broadcast of any portion of any Regular Season Game is prevented

or omitted for any reasons specified in this subparagraph (a), the

Annual Fee shall be reduced by an amount obtained by multiplying

the sum of $14,020,000 by the fraction referred to above and then

multiplying such product by a fraction, the numerator of which is

equal to the number of minutes of broadcasting so prevented or

omitted, and the denominator of which is 150, and the total amount

payable to each Team shall be reduced in the same manner as hereinabove provided. If such partial prevention or omission occurs'

with respect to any December Game, then' the Annual Fee shall be

70-605 0 - 66 - 11
158 PROFESSIONAL FOOTBALL LEAGUE MERGER

reduced by multiplying '44,060,000 as above, and in addition, the

December Game Fee shall be reduced by the second fraction referred

to in the immediately preceding sentence.

(b) If the broadcast of any one or more Regular Season

Games or any portion thereof is prevented because of a strike or

other labor dispute solely involving persons furnished by CBS in

connection with such broadcast or the failure of CBS's broadcasting

facilities, AT&T cable facilities or if the broadcast of any such

Regular Season Game (or any portion thereof) is omitted because of

CBS's voluntary pre-emption of the broadcast thereof for the purpose of broadcasting an event of public importance (it being understood that CBS will not pre-empt the broadcast of any Regular Season

Game for the purpose of broadcasting another sports event or an

event of public importance, the primary purpose of which is entertainment (though such event may contain substantial entertainment

portions)), such prevention or omission shall not constitute a

breach of this Agreement by CBS, but in such event there shall be

no reduction of the Annual Fee. If any Game, the playing of which

is prevented for any reason set forth herein, is played at a later

date or time, CBS shall have the right to broadcast such Game at

such date or time, but not on any Friday or Saturday between the

second Friday in September and the second Saturday in December, and

if CBS does so broadcast any sueh Game, there shall be no reduction

in the Annual Fee pursuant hereto, but the provisions of subparagraphs (b) and (c) of paragraph 15 hereof shall in such event be.

inapplicable.
PROFESSIONAL FOOTBALL LEAGUE MERGER 159

(c) If the effect of any amendment of the League Constitution or By-Laws adopted in the exercise of the League's sound

business judgment as permitted in subdivision (iii) of paragraph

8 hereof is to substantially diminish the pecuniary value of the

rights herein granted CBS, CBS shall have the right at its election

to terminate this Agreement effective on such date as CBS may elect

by notice to the League at any time within thirty (30) days after

the receipt of notice from the League of each such amendment;

provided, however, that if any such termination becomes effective

on a date subsequent to the commencement of the 1964 National

Football League regular season schedule (and prior tr, the conclusion thereof), then the Annual Fee shall become 1/98th of $14,060,000

multiplied by the number of regular season games played prior to

the effective date of such termination, and CBS shall pay each

Team an amount equal to 1/14th of such reduced Annual Fee, plus to

each Team entitled thereto, the Saturday Game Fee for each Saturday

Afternoon Game which has then been played. The aforesaid reductions in the Annual Fee are subject to such other reductions as

might otherwise be applicable hereunder. Any amounts then owing

to the Teams by CBS shall be paid within thirty (30) days after

the effective date of such termination. The League shall on

behalf of the Teams promptly refund to CBS any amount in excess of

the revised Annual Fee previously paid by CBS to any Team for such

Contract Year. Notwithstanding anything to the contrary' contained

in this subparagraph (c), the League shall have no right or authority to amend its By-Laws and Constitution so as to nullify the

rights granted CBS hereunder, except that if Public Law 87-331,
160 PROFESSIONAL FOOTBALL LEAGUE MERGER

87th Cong., 75 Stat. 732 (herein called the "Bill") is repealed,

the League and CBS shall each have the right to terminate this

Agreement upon notice to the other within thirty (30) days thereafter, such termination to be effective as of the effective date

of the statute repealing the Bill, in which event all of the provisions of this subparagraph (c) with respect to the reduction of

the Annual Fee because of the termination of this Agreement by CBS

shall be applicable to such termination. The Annual Fee shall

likewise be adjusted with respect to the second Contract Year hereunder if this Agreement is so terminated during the course of the

1965 National Football League regular season schedule.

(d) With respect to any amounts (including any sums

with respect to any December Game Fee) which CBS is relieved of its

obligation to pay any Team pursuant to the provisions of subparagraphs (a) and (c) of this paragraph 14, it is understood that if

CBS has previously paid to any Team its full portion of the Annual

Fee for such Contract Year or if the amount of such reductions exceed the balance of the Annual Fee otherwise still due any such

Team, the League will on behalf of such Team and each of the other

Teams promptly refund to CBS the amount of such reduction or the

difference between the amount of such reduction and the balance of

its portion of the Annual Fee otherwise due any such Team.

15. (a) CBS shall not be obligated to broadcast in whole or

in part any Home Game of any Team or, subject to subparagraph (b)

of paragraph 15 hereof, any other Games, and the failure of CBS to

do so shall not be a breach of this Agreement. However, the voluntary election of CBS not to broadcast any Game shall not affect

CBS's obligations with respect to the Annual Fee.
PROFESSIONAL FOOTBALL LEAGUE MERGER 161

(b) CBS shall make available for broadcast each Regular

Season Game played on Sunday afternoon to the CBS affiliate located

in the home city of the away Team, subject, of course, to acceptance by such station(s), and unless the unavailability of AT&T

cable relay facilities or any other cause of the nature referred to

in subparagraph (a) of paragraph 14 hereof conflicts, interferes

with or prevents the broadcast over any such station. In the event

any such CBS affiliate (including any CBS owned and operated station) does not accept any such Game for broadcast on a live basis,

GIBS shall 
162 PROFESSIONAL FOOTBALL LEAGUE MERGER

make such Game available for

broadcast on a live basis in turn to each

other television station located in such

city on terms and conditions similar to those •

which the CBS station was offered, subject

to acceptance by such other station. If

CBS is unsuccessful in arranging for the

broadcast of any Game pursuant to this

subdivision (i), then

(ii) CBS shall make such Game available to the CBS affiliate for broadcast on

a recorded basis at any time prior to 8:00 AM

(local time) the following day.

In addition, with respect to any Regular Season Game(s) played on

the same day as any World Series baseball game, CBS may, if it

secures the prior consent of the away Team, broadcast such Game in

the home city of such away Team on a recorded basis at any time

prior to 8:00 AM (local time) the following day. If CBS does not

secure such consent, then the preceding provisions of this subparagraph (b) shall apply.

(c) Notwithstanding anything to the contrary contained

in subparagraph ( 1) of this paragraph 15, the broadcast of away

Games of the San Francisco and - Los Angeles Teams in the home city

of each shall, in addition, be subject to the following

(i) if in any Contract Year AT&T

notifies CBS seven (7) or more days prior
PROFESSIONAL FOOTBALL LEAGUE MERGER 163

to any away Regular Season Game of either

of such Teams that facilities will not be

available to permit the broadcast on the

Pacific Coast of both a Los Angeles and a

San Francisco away Game played on the same

day because of the unavailability of dual

feeds to the Pacific Coast, CBS shall, subject to the provisions of subdivision (ii)

of this subparagraph (c), if it is technically possible to do so, make the Los

Angeles Game available for broadcast pursuant to the provisions of subparagraph (b)

of this paragraph 15;

(ii) if the situation referred to in

subdivision (i) of this subparagraph (c)

arises more than once during the term of

this Agreement, CBS shall adjust its broadcasting schedule as between the Los Angeles

and San Francisco Teams so that the Game which

is made available for broadcast pursuant to

subparagraph (b) of this paragraph 15 in

each instance of the occurrence of such

situation shall be that of the Team whose

away Regular Season Game was not made available for broadcast on the immediately preceding

occurrence of such situation;

(iii) if AT&T gives CBS less than

seven (7)days, prior notice of the unavailability of dual feeds to the Pacific Coast,
164 PROFESSIONAL FOOTBALL LEAGUE MERGER

then it shall be deemed technically impossible for CBS to change its broadcasting

schedule with respect to the Pacific Coast

on the day in question, and in such event

CBS will make available for broadcast on

such date pursuant to subparagraph (b) of

this paragraph 15 such Game as CBS in its

sole discretion elects.

(d) Except as otherwise specifically provided in subparagraphs (b) and (c) of this paragraph 15, CBS may make each

Game available for broadcast over such stations as CBS in its sole

discretion may elect.

16. During the broadcast of each Game, CBS shall make one (1)

promotional announcement on behalf of the League and one (1) on

behalf of one of the participating Teams. As least ten (10) days

prior to the date of broadcast of each announcement hereunder, the

League and each Team on whose behalf an announcement will be made

shall supply to CBS's Program Practices Department the copy for

each such announcement which shall be subject to CBS's approval in

each instance. If the League or any Team fails to furnish any

such copy, or fails to revise the same so as to meet CBS's require—

ments, CBS shall not be required to broadcast any such promotional

announcement.

17. (a) The League will at all times indemnify and hold

harmless CBS, the sponsors, if any, their advertising agencies,

if any, and.any stations over which the Games and the attendant

activities are broadcast from and against any and all claims,
PROFESSIONAL FOOTBALL LEAGUE MERGER 165

damages, liabilities, costs and expenses, including reasonable

counsel fees, arising out of -

(1) the exercise by CBS of any of

the rights granted CBS hereunder or the use

of any materials or services furnished CBS

pursuant hereto; and

(ii) any breach by the League of any

warranty or agreement made by the League

herein;

provided, however, that with respect to claims and actions against

CBS, the foregoing indemnity shall apply only with respect to

those claims and actions ac to which CBS gives the League notice

stating that such indemnity so applies.

(b) CBS will at all times indemnify and hold harmless

the League from and against any and all claims, damages, liabilities, costs and expenses, including reasonable counsel fees,

arising out of the use of any materials or services furnished by

CBS in connection with the broadcast of the Games and attendant

activities; provided, however, that the League will promptly

notify CBS of any such claim or action; and. provided, further,

that CBS may at its option assume the defense of any claim or

litigation to which its indemnity applies.

18. If because of any enactment, rule, order, or act of

government or governmental instrumentality (whether federal,

state, or local) the area in or into which Games hereunder shall

not be broadcast on a live basis (as set forth in paragraph 9

hereof, and in addition, with respect to December Games only, as
166 PROFESSIONAL FOOTBALL LEAGUE MERGER

prescribed in the statute referred to in subparagraph (e) of paragraph 2 hereof) is in any way expanded or increased, the aggregate

Annual Fee (including the December Game Fee) shall be reduced by "v.

that fraction having a numerator equal to the aggregate of the

class A one-hour time charges (pursuant to the then current CBS

Rate Card) of the CBS affiliates (including any CBS owned and

operated stations) which are thereby being precluded or prohibited

from carrying the original broadcast of any such Games, and a

denominator equal to the aggregate of such Class A one-hour time

charges for all CBS affiliated stations in the United States, and

the amount payable to each Team (inclusive of any December Game

Fee) hereunder shall be reduced by 1/14th of such reduction in

the Annual Fee. If such expanded or increased restrictions are

applicable for only a portion of any Contract Year, then the fraction obtained in accordance with the foregoing procedure shall be

reduced by a fraction having a numerator equal to the number of

Games for which the enactment rule, order or act is not applicable,

and a denominator equal to the number of Regular Season Games

hereunder during such Contract Year. If any such restriction

affects any December Game the applicable reduction in the Annual

Fee computed in the manner set forth above shall be computed

separately with respect thereto. The amount of any applicable

reduction in the Annual Fee pursuant to the provisions of this

paragraph 18 shall be deducted by CBS from the next installment

due each Team hereunder. If CBS has previously paid to any Team

its full portion of the Annual Fee for each Contract Year or•the

amount of any such reduction is in excess of the amount then due

to any Team by CBS, the League will on behalf of such Team and

each of the other Teams promptly refund to CBS the amount of such

reduction or the amount of such excess.
PROFESSIONAL FOOTBALL LEAGUE MERGER 167

19. CBS shall have the right to display CBS's name and

Ipradema.rk on any broadcasting booth or platform but not the name

or trademark of any sponsor. In addition CBS shall have the

right to fly a "CBS flag" at each stadium in which a Game is

being played. The foregoing rights are subject to the approval

of each stadium owner, which approval the League shall make

every reasonable effort to obtain.

20. The selection of the sportscasters and color men broadcasting the Games and the announcers or hosts of any pre-Game or

post-Game program, originating from the stadia where the Games

are played, shall be subject to the approval of the Commissioner

in accordance with the provisions of subsections (a) and (b) of

section 1 of Article X of the National Football League By-Laws

as said sections were adopted for 1963; provided, however, that

any persons whose names are

submitted by CBS for such approval shall

have had experience in broadcasting football or as football players or coaches;

(ii) if the list referred to in

said provisions of Article X is submitted

to the Commissioner ten (10) or more days

prior to the first Game upon which any such

person is to perform services, the Commissioner shall have a period of seven (7)

days after the receipt of such list in

which to notify CBS of his selections, and if

the Commissioner fails to so notify CBS

within said seven (7) day period, CBS may

select such persons as it may elect to
168 PROFESSIONAL FOOTBALL LEAGUE MERGER

perform such services, and each such

person so selected by CBS shall be deemed

to have the written approval of the Commissioner; and

(iii) if the said list is submitted

less than ten (10) days prior to the first

Game upon which any such person is to

perform services, then the Commissioner

shall have a period of seventy-two (72)

hours (or such time as may be reasonable

under the circumstances) after the receipt

thereof in which to notify CBS of his

selections, and if the Commissioner fails

to so notify CBS within such period, CBS

may select such persons as it may elect

for the performance of such services, and

each such person so selected by CBS shall

be deemed to have the written approval of

the Commissioner. All notices pursuant to

this subdivision (iii) shall be sent by

telegram.

21. (a) All Conference Playoff Games shall be scheduled to

be played on Sunday afternoon, and the League will consult with

CBS prior to determining the starting time of any such Games;

provided, however, that if more than one (1) such Game is required

in any Contract Year, the League will use its best efforts to
PROFESSIONAL FOOTBALL LEAGUE MERGER 169

schedule one (1) such Game on Saturday and one (1) on Sunday or if

this is not possible or if any ,such Saturday Conference Playoff

Game would be scheduled for the first or second Saturday in December then the League will use its best efforts to schedule such

Games on Sunday so that the starting time (CNYT) of the second

such Game will commence fifteen (15) minutes after the approximate

anticipated completion of the first such Game, etc. It is understood that if any Conference Playoff Game is to be played after

the expiration of the Contract Year in which the tie creating the

requirement for such Game occurred, such Game shall nevertheless

be deemed to have been played in the Contract Year in which the

tie occurred.

(b) In addition to the Annual Fee, the League on behalf

of the Teams directs CBS to pay each Team participating in any

Conference Playoff Game the sum of $100,000 (herein called the

"Conference Game Fee"); provided, however, that if there are two

or more Conference Playoff Games in any Contract Year then to the

extent the League is unable in accordance with subparagraph (a) of

this paragraph 21 to schedule such Games either on different days

or so that each will commence upon the conclusion of another, then

the Conference Game Fee shall be reduced to an amount equal to

$100,000 divided by the number of such Conference Playoff Games.

Payment of the applicable Conference Game Fee shall be made within

ten (10) days following the broadcast of the Game to which such

payment applies.

(c) If the playing or broadcast of any Conference

Playoff Game is prevented or omitted for any reason of the nature
170 PROFESSIONAL FOOTBALL LEAGUE MERGER

set forth in subparagraph (a) of paragraph 14 hereof, such prevention or omission shall not be a breach of this Agreement by

CBS and no Conference Game Fee shall be payable with respect to

any such Conference Playoff Game. If the broadcast of any portion of any Conference Playoff Game.is prevented or omitted for

any reason of the nature specified in the said subparagraph (a),

the -----
PROFESSIONAL FOOTBALL LEAGUE MERGER 171

applicable Conference Playoff Fee shall be reduced by an amount

obtained by multiplying such Fee by a fraction having a numerator

equal to the number of minutes of broadcasting so prevented or

omitted and the denominator of 150. It is understood that the

provisions of subparagraph (b) of paragraph 14 hereof, subparagraph (b) of paragraph 15 hereof and paragraph 18 hereof

shall be applicable with respect to Conference Playoff Games.

22. At least fifteen (15) days prior to the date each

Game is scheduled to be played the League shall deliver (or

shall cause the home Team to deliver) to CBS accurate music cue

sheets setting forth the titles, names of composers, publishers,

copyright owners and owners of the television performing rights

of all musical compositions which shall be played in the stadia

during such time as CBS may be broadcasting the Games and attendant activities pursuant hereto. Each such composition and no

other composition may be performed during such time as CBS may

be "on-the-air" from the point of origin of such Game unless

CBS shall have notified the League and/or the home Team to the

contrary on or before the expiration of the fifth (5th) day,

excluding Saturdays, Sundays and holidays, following the date of

receipt by CBS of such cue sheets. If CBS has requested the

deletion of any composition from the list of those to be performed, the League shall cause such request to be complied with.

23. In the event of the breach of any material provision of

this Agreement, CBS shall have the right, in additim to CBS's

other rights hereunder or at law or in equity, to terminate this

Agreement, and the Annual Fee shall be reduced in the manner set
172 PROFESSIONAL FOOTBALL LEAGUE MERGER

forth in subparagraph (a) of paragraph 14; provided, however, that

CBS shall give the League notice of such breach, and if such breach

can be cured, the League shall have such period as may be

necessary to cure or cause to be cured such breach, but not to

exceed, however, five (5) days.

24. (a) As used herein the term "Home Pay broadcast" means

a broadcast made by any means or manner of pay, subscriiatsion, or

theater television which is and can be received only within the

Home Territory of any Team. All rights with respect to the Home

Pay broadcast of any Game are specifically reserved to the Teams

but no such broadcast shall be made or authorized to be made

within the Home Territory of any Team other than on a day when

-

such Team is playing a home Game.

(b) CBS will co-operate with any Team which has licensed

Home Pay broadcast rights to any Game to any third party by

providing such third party clean (i.e. without commercials or

network identification), uninterrupted video feeds of the CBS

broadcast (if any) of such Game(s). Such feeds shall be furnished

to such third party at a cost of $2,000 per Game to be paid to

CBS in advance; provided, however, that if CBS can demonstrate that such $2,000 charge is less than CBS's actual out-ofpocket direct cost for the furnishing of such feed, then such charge

shall be increased by the amount necessary to make the charge equal

to such out-of-pocket costs. CBS's failure to provide a clean feed

hereunder through human or mechanical failure or for any reason

of the nature set forth in paragraph 14(a) hereof shall not constitute a breach of this Agreement. If CBS's normally assigned

facilities and services for the broadcast of any Game are not

adequate to provide such clean, uninterrupted video feed,
PROFESSIONAL FOOTBALL LEAGUE MERGER 173

CBS without charge ,will permit the connection of its facilitied

to facilities provided by any such third party in an effort to

provide a satisfactory video feed for such Home Pay broadcast.

(c) CBS's obligations pursuant to subparagraph (b) of

this paragraph 24 are subject to CBS's ability to obtain all union

clearances that may be necessary to permit CBS to perform hereunder without additional payment to any persun and to the provisions of any applicable collective bargaining agreement which may

preclude the performance of such obligations.

25. The League hereby grants CBS the exclusive, irrevocable

option to broadcast the annual National Football League Playoff

Bowl Game to be played at the Orange Bowl in Miami, Florida, in

January, 1965 (herein called the "1965 Bowl Game) by giving the

League notice to such effect on or before April 15, 1964. If CBS

exercises the said option, CBS and the League shall enter into an

agreement substantially similar to the agreement between CBS and

the League dated January 6, 1962 as amended by letter agreement

dated November 8, 1962 as such agreement applied to the 1964

Playoff Bowl Game except that the compensation set forth in such

new agreement shall be $200,000 (herein called the "Playoff Price").

If CBS does not exercise the said option, the League shall be free

to enter into an agreement with any third party with respect to

the br,Iadcast of the 1965 Bowl Game; provided, however, that the

League will not in any instance enter into any agreement with any

third party for the broadcast of the 1965 Bowl Game, which agreement provides for a Playoff Price which is less than $200,000,

unless the League first notifies CBS of such lower price. Each

70-605 0 - 66 - 12
174 PROFESSIONAL l'OOTBALL LEAGUE MERGER

such notice shall contain an offer (herein called the "Offer") to

contract with CBS on the same basis as set forth above except for

such lower price. CBS may 'accept each such Offer within seven (7)

days after the receipt thereof. If CBS and the League enter into

an agreement with respect to the 1965 Bowl Game, CBS shall have

.similar exclusive option and first refusal rights with respect to

the Playoff Bowl Game to be held in January 1966.

26. The League will cause the home Team at each Game to

supply all policing of the home stadium, field and broadcasting

areas in order to maintain order and to protect CBS in the enjoyment of its broadcasting rights hereunder.

27. Except as otherwise herein provided, all notices required

to be given hereunder shall be given in writing either by personal

delivery, by mail or by telegraph at the respective addresses of

the parties hereto hereinabove set forth or such other addresses

as may be designated in writing by either party. Notice given by

mail or by telegraph shall be deemed given on the date of mailing

thereof or of delivery of such telegram to a telegraph office,

charges prepaid or to be billed.

28. A waiver by either party of any of the terms and conditions of this Agreement in any instance shall not be deemed or

construed to be a waiver of such term or condition for the future,

or of any subsequent breach thereof. All remedies, rights, undertakings, obligations and agreements contained in this Agreement

shall be cumulative, and none of them shall be in limitation of

any other remedy, right, undertaking, obligation or agreement of

either party.
PROFESSION :0 FOOTBALL LEAGUE MERGER 175

29. This Agreement and all matters or issues collateral

thereto shall be governed by the laws of the State of New York

applicable to contracts performed entirely therein.

30. CBS may assign its rights hereunder in full or in part

to any subsidiary, affiliated or controlling corporation or to

any person, firm or corporation which acquires a substantial portion of the assets of the Columbia Broadcasting System, Inc., and/or

CBS Television Network, and this Agreement may be assigned by

any assignee thereof; provided, however, that no such assignment

shall relieve CBS of any of its obligations hereunder.

31. This Agreement contains the entire understanding of the

parties hereto relating to the subject matter herein contained,

and this Agreement cannot be changed or terminated orally.

32. The League will conform to the requirements of Section

508 of the Federal Communications Act concerning broadcast matter

and disclosures required thereunder and will cause the Teams to

so conform. The League shall submit to CBS in writing such reports

as CBS may reasonably request from time to time upon forms provided

by CBS. League warrants and represents on behalf of itself and

the Teams that no Game or attendant activities includes or will

include any matter for which any money, service or other valuable

consideration is directly or indirectly paid, or promised to, or

charged or accepted by the League or any Team. The League shall

inform the Teams and the League and the Teams shall exercise

reasonable diligence ,to inform their respective employees, and other

persons with whom the League and the Teams deal directly in
176 PROFESSIONAL FOOTBALL LEAGUE MERGER

connection with the Games and attendant activities, of the requirements of the said Section 508; provided, however, that no act

of any employee of the League or any Team or of any independent

contractor connected with any of the Games and attendant activities

shall constitute a breach of the provisions of this paragraph

unless League or such Team has actual notice thereof. As used in

this paragraph, the term "service or other valuable consideration"

shall not include any service or property furnished without charge

or at a nominal charge for use in, or in connection with, any of

the Games and attendant activities "unless it is so furnished in

consideration for an identification in a broadcast of any person,

product, service, trademark or brand name beyond an identification

which is reasonably related to the use of such service or property

on the broadcast", as such terms are used in the said Section 506.

No inadvertent failure by the League or any Team to comply with

this paragraph 32 shall be deemed a breach of this Agreement.

IN WITNESS WHEREOF, the.parties hereto have executed this

Agreement as of the day and year first above written.

NATIONAL FOOTBALL LEAGUE

By

CBS TELEVISION NETWORK

A division of Columbia

Broadcasting System, Inc.
PROFESSIONAL FOOTBALL LEAGUE MERGER 177

EXHIBIT A 

(Attached to and forming a part of the

Agreement between CBS TELEVISION NETWORK

and THE NATIONAL FOOTBALL LEAGUE, dated

January ,24, 1964). 

I. The schedule of payments referred to in paragraph 11

hereof shall be as follows:

(i) With respect to the Baltimore,

Chicago, Cleveland, Detroit, Green Bay,

Minnesota, New York, Philadelphia, Pittsburgh, St. Louis, San Francisco and

Washington Teams, payment shall be made in

four (4) equal installments on the 20th day

of April, July, October and December of each

Contract Year.

(ii) With respect to the Dallas and

Los Angeles Teams, fifty per cent (50%)

shall be payable on or before the March 1st

of each Contract Year and twenty-five per

cent (25%) on July 20th and December 20th

respectively.

Payment of the December Game Fee shall be included in the final

installment of such Teams as are entitled to receive the same..
178 PROFESSIONAL FOOTBALL LEAGUE MERGER

EXHIBIT B 

(Attached 'to and forming a part of the

Agreement between CBS TELEVISION NETWORK

and THE NATIONAL FOOTBALL LEAGUE, dated

January 24, 1964). 

I. The Commissioner shall have the right of prior

approval of all sponsors participating in the telecast of any

game of each club during the term hereof; the successful bidder

will be required to offer to each sponsor presently owning all or

any part of the television rights of any member club in the League,

the right to sponsor the television of the games of the applicable

member club during the term of this Agreement at the same charge

for such rights as the successful bidder normally would charge

any other sponsor; the successful bidder shall evidence its offer

by written notice to each of such sponsors possessing such rights,

giving the terms and cost thereof. Each of such sponsors shall

be obligated to exercise its right of first refusal within the

period allowed to it under its present agreement with the applicable

member club. If any of such sponsors fails to exercise its option

to televise the games of the member club, the successful bidder

shall have the right to sell such sponsorship to any other

sponsors subject to prior approval by the Commissioner.

In respect to national sponsors of regular season games of

the clubs in 1963, namely Ford Motor Company and Phillip Morris,

such national sponsors shall have the right to no less than one

quarter pach of each game to be televised hereunder and shall

receive product protection in respect to the balance of the sponsorship o'any games for all products or services regularly advertised

by such national sponsor in 1963 in connection with its sponsorship

of the telecast of such game. The successful bidder will be

required to offer to each national sponsor no less than one

quarter of the television of the games during the term of this

Agreement, at the same charge for such right as the successful

bidder normally would charge any other national sponsor; such

successful bidder shall evidence its offer by written notice to

each national sponsor giving the terms and cost thereof. Such

national sponsor must exercise its right of first refusal within

seven (7) days after receipt of notice. If such national sponsor

fails to exercise its right of first refusal, the successful bidder

shall be free to sell such sponsorship to any other sponsors

approved by the Commissioner.

The Commissioner reserves the sole and exclusive right in

his sole discretion to determine and approve any and all other

sponsors of games to be televised during the term hereof. The

Commissioner intends, wherever possible, to give preference to

some or all of the sponsors of the telecast of games in the League
PROFESSIONAL FOOTBALL LEAGUE MERGER 179

in 1963, but despite such intention, the Commissioner is not

obligated to permit any sponsor to sponsor any games nor to

have any first refusal or preference in respect to the sponsorship thereof whenever the granting of any such sponsorship would,

in the opinion of the Commissioner, not be in the best interest

of the National Football League.
180 PROFESSIONAL FOOTBALL LEAGUE MERGER

CBS TELEVISION NETWORK

A DiPia. Cehinthies Breadcactcng Systems, Inc.

485 MAO SON AVENUE, NEW YORK 22, NEW YORK • PLAZA 1.2345

As of May 22, 1964

National Football League

One Rockefeller Plaza

New York, New York

Gentlemen:

We refer to the Agreement between you and us dated as of —

January 24, 1964, pursuant to which you granted us certain broadcasting rights in and to National Football League professional

football games played during the 1964 and 1965 seasons.

You and we have agreed and hereby do agree that the said Agreement shall be amended as follows:

1. The following new subparagraph (i) is hereby added to and

made a part of paragraph 2 of the said Agreement:

"2. (i) In addition to the League's rights

pursuant to subparagraph (d) of this paragraph 2, the

League, for the 1964 season only, shall have the right

to schedule up to two (2) regular season games to be

played on Monday night and each such game shall be a

"Game" hereunder. If the League is unable, because

of the unavailability of suitable stadia, to devise a

schedule of regular season games for the 1965 NFL

season without scheduling games to be played on Monday

night, CBS will permit the scheduling of up to two (2)

games on Monday night during the 1965 NFL season and

each such game shall be a "Game" hereunder. The provisions of subparagraph (b) of paragraph 15 hereof shall

be applicable to all Monday night "Games"."

2. Subdivision (iv) of paragraph 5 of the said Agreement

is hereby amended so as to permit CBS to broadcast, in Philadelphia

only, on September 6, 1964, a half-hour edited version of the

Minnesota vs. Philadelphia pre-season Game.

3. Notwithstanding anything to the contrary contained in

subparagraphs (a) and (b) of paragraph 9 of the said Agreement,

the League acknowledges that CBS may broadcast any Games in
PROFESSIONAL FOOTBALL LEAGUE MERGER 181

National Football League As of May 22, 1964

-2 -

Lansing, Michigan and Cape Girardeau, Missouri on days when the

Detroit Lions and the St. Louis Cardinals respectively are playing

at home. In accordance with the permission currently granted CBS

in connection with the foregoing, such rights are for the 1964

season only.

4. The following new subparagraph (c) is hereby added to

and made a part of paragraph 9 of the said Agreement:

"(c) The restrictions set forth in clauses C. and D.

of subparagraph (a) of this paragraph 9, limiting respectively

CBSI right to broadcast Games in Washington, D.C. and Baltimore,

Maryland other than Games of the Washington and Baltimore Teams

(when the other of such Teams is at home), shall be inapplicable

on September 27, October 11, November 15, November 22 and

November 29, 1964 and on a number of dates in 1965 not exceeding

seven c7) in order to enable CBS to broadcast so-called "doubleheader' Games in such cities or to enable CBS to broadcast a

Game in such cities when the Team located therein is not scheduled to play on that date. The provisions of the foregoing

sentence shall not affect CBS' obligations pursuant to paragraph 15(b) hereof."

Except as specifically modified and amended herein, all of

the terms and conditions of the said Agreement are hereby ratified

and confirmed.

Kindly sign below to indicate your acceptance hereof.

Very truly yours,

CBS TELEVISION NETWORK

A division of Columbia

Broadcasting System, Inc. .

ACCEPTED AND AGREED:

NATIONAL FOOTBALL LEAGUE

Commi :Loner
182 PROFESSIONAL FOOTBALL LEAGUE MERGER

October 10, 1966

As I told you, the CBS contract terms are

still under negotiation and no final contract has

been executed.

Hamilton Carothers
PROFESSIONAL FOOTBALL LEAGUE MERGER 183

CBS TELEVISION NETWORK

A Dsion of Columbia Broadcasting System,

ABS MADISON AVENUE, NEW YORK 22, NEW YORK • PLAZA 1•2345

.11,11AMD M. LAPICHMEA

Director of

Contracts, Sports

M.a.re,.11 Leahy, Esq.

Russ Building

Suite 1258

San Francisco, California

January 28, 1966

Re: N"2.1 UFL CONMACB 

Dear Marshall:

I an encloaing herewith two original copies of the revised NFL-Contract

covering the years 1966, 1967 =1 1963.

I believe you will find everything substantially in order, however, I

believe there may be a few minor changes you will want after read:.ng it.

I would be willing, because it would be fairer to the NFL, to eliminate

the latter part of subparagraph 14c on. page 33 so that the fraction would

be one over 105 rather than eight over 105 for rebate on a regular season

regional game.

Because I want to get this contract out to you today, I an not holding

it up to rake the two following changes which would be made in the contract

prior to execution:

1. On pages 7, 8 and. 29, we will designate that the first

Thanksgiving Day game will start substantially the same tine

that it started in 1965 and that the second ga::e will commence

on or about and not after 6:00 p.m. (=a).

2. On page 47, we will state that even though there may be only

15 teams in 1967 and/or in 1968, the NFL will gl:zraatee that

there will be two Divisicnal Play-Off Games or the eqpivalent

thereof.

Since I will be out of the office until nanday, February 14, I would

appreciate your calling Ran Kaiser to discuss say chances ana, I will

be in touch with Ron during my absence.

Sincerely yours,

cc: 2.ssrs. Pete Roselle

Ron Kaiser%
184 PROFESSIONAL FOOTBALL LEAGUE MERGER

CBS TELEVISION NETWORK

A division of Columbia Broadcasting System, Inc.

AGREEMENT

AGREEMENT made as of the 29th day of December, 1965 by and

between CBS TELEVISION NETWORK, a division of Columbia Broadcasting

System, Inc., 51 West 52 Street, New York, New York 10019 (herein

called "CBS") and the NATIONAL FOOTBALL LEAGUE, 1 Rockefeller

Plaza, New York, New York 10020 (herein called the "League").

In consideration of the mutual covenants herein contained,

the parties hereto have agreed and do agree as follows:

1. (a) The League hereby grants to CBS the sole and exclusive television broadcasting rights in and to each and every

professional football "Game" (as hereinafter defined) played by

all of the member clubs (herein collectively called the "Teams"

and individually called a "Team') of the League during the

1966,1967 and 1968 National Football League seasons throughout

the United States, its territories and possessions, Canada,

Mexico, Bermuda and Antigua (herein called the "Broadcast Area").

The term of this Agreement shall commence on February 1, 1966

and shall continue unless sooner terminated for three (3) consecutive years (herein called "Contract Years") provided that

the first Contract Year shall include the period between the date

first above written and February 14 1966. The rights granted

CBS herein include radio broadcasting rights in and to the "Championship Game", the "Playoff Bowl Game" and the "Pro-Bowl Game" (all

as hereinafter defined). #
PROFESSIONAL FOOTBALL LEAGUE MERGER 185

(b) The rights granted to CBS herein include the right

to broadcast, describe and summarize each "Game" and all of the

events and activities occurring at the stadium in which each

"Game" is played during the period commencing fifteen (15)

minutes prior to the scheduled starting time and ending fifteen

(15) minutes after the conclusion of each "Game", or on the hour

or half-hour following the conclusion of each "Game", whichever

is later. There shall be no broadcasts from the dressing room

of any Team without the consent of such Team in each

(c) As of the date of this Agreement, the

Teams constitute the membership of

Eastern Conference 

New York Football Giants, Inc.

Philadelphia Eagles, Inc.

Pittsburgh Steelers, Inc.

Cleveland Browns, Inc.

Chicago Cardinals Football Club,

Inc. (St. Louis Cardinals)

Pro Football, Inc. (Washington

Redskins)

Dallas Cowboys

Atlanta Falcons (Atlanta may

be assigned to the Western

Conference after 1966)

the League:

instance,

following

Western Conference

Chicago Bears Football Club, Inc.

Baltimore Football, Inc.

Detroit Football Company

Green Bay Packers

The San Francisco Forty-Niners

Los Angeles Rams Football Club

Minnesota Vikings

The League currently contemplates adding an additional Team

commencing with the 1967 season. The League shall immediately

notify CBS when any new Team is admitted to the League and shall

simultaneously notify CBS of the new Conference and/or Divisional

alignment of the League. The League presently intends that at

such time as there are sixteen (16) Teams the two (2) Conferences

shall each be divided into two (2) Divisions of four <4) Teams

each (however, the League may do this while there are only fifteen

(15) Teams) and that winners of each division will play to determine
186 PROFESSIONAL FOOTBALL LEAGUE MERGER

the Conference champions. Such games are hereinafter called

"Divisional Playoff Games". The foregoing Conference and Divisional alignment shall not necessarily be followed by the League;

provided that regardless of the precise alignment nothing shall be

done which shall eliminate the Divisional Playoff Games. The

Conference Champions will then meet in the "Championship Game".

It is not now intended that there be Divisional playoffs in the

event of a divisional tie, but that in such event divisional winners will be selected in the same manner that Conference runnersup are now selected in the event of a tie. The League shall not

be bound to adopt such manner of breaking a divisional tie, it being

understood that if there are Divisional playoffs the broadcasting

rights thereto shall be automatically included herein.

(d) The League shall notify CBS promptly upon the

admission of a seventeenth (17th) Team. Such notice shall state

the year in which such seventeenth Team shall be a playing member

of the League. If such seventeenth Team shall be a playing member

of the League in the same calendar year in which such notice is

given CBS shall have a period of thirty (30) days in which, by

notice to the League, to terminate this Agreement forthwith. If

such Team shall not become a playing member until some succeeding

calendar year CBS shall have a period of thirty (30) days in which

to give such notice of termination but such termination shall

not become effective until the end of the last Contract Year prior

to such Team's becoming a playing member of the League.

2. (a) The "Games" for each Contract Year shall consist

of the following:
PROFESSIONAL FOOTBALL LEAGUE MERGER 187

(i) all regular season championship

games played by each Team

A. nn Sundays; and

B. on any Thanksgiving Day;

(ii) the "December Games" (as hereinafter defined);

(iii) the "Regular Season Special Games"

(as hereinafter defined);

(iv) the "Pre-Season Special Games" (as

hereinafter defined);

(v) all pre-season games (excluding

"Pre-Season Special Games") played by each of

the Teams with respect to which CBS exercises

its option set forth in subparagraph (b) of

paragraph 3 hereof, such games being herein

specifically called "Pre-Season Games";

(vi) all conference playoff games

played by the Teams, such games being herein

called "Conference Playoff Games";

(vii) all Divisional Playoff Games;

(viii) the Championship Game;

(ix) all Intra Divisional Playoff

Games, if any;

(x) the Playoff Bowl Game: (commencing

in such year as the League operates with sixteen

(16) Teams the Playoff Bowl Game shall be played

between the losers in the Divisional Playoff Games);
188 PROFESSIONAL FOOTBALL LEAGUE MERGER

(xi) the Pro-Bowl Game.

All of the games referred to in subdivisions (i), (ii) and (iii)

of this subparagraph (a) are herein sometimes called "Regular

Season Games."

(b) The "Final Regular Season Schedule" (as hereinafter

defined) submitted to CBS by the League in each Contract Year

shall provide for the following:

(i) two (2) Thanksgiving Day Games (such

Games to be selected by the League); and

(ii) two (2) Saturday afternoon Games

(one (1) Game on each on two (2) different

dates) in December (herein sometimes separately

referred to as the "December Games"), such Games

to be selected by the League;

(iii) two (2) Games on different dates

during September or October (herein called

'Regular Season Special Games") both Games to *

be played on Saturday, or one on Saturday and

one on Monday or both on Monday as CBS shall

designate on or before February 1 Of each

Contract Year, it being understood that for

1966 there shall be one (1) Regular Season

Special Game on Saturday, September 10 and

one (1) Regular Season Special Game on Monday,

October 31.

(c) Except as otherwise provided in subparagraphs(b)

and (i) of this paragraph 2, all Regular Season Games played by
PROFESSIONAL FOOTBALL LEAGUE MERGER 189

each Team shall be played on Sunday afternoon, it being understood

that

(i) one half of each Team's Regular Season

Games shall be "Regular Season Home Games" (as

hereinafter defined) and one half of each Team's

Regular Season Games ahll be "Regular Season Away

Games" (as hereinafter defined); and

(ii) each Team shall play not less than

fourteen (14) Regular Season Games during each

Contract Year of this Agreement and during each

Contract Year hereunder there shall be at least

one (1) Regular Season Game, on each of fourteen

(14) Sunday afternoons; provided, however,

that during any Contract Year hereunder in which

the League is composed of fifteen (15) Teams there

shall be at least one (1) Regular Season Game

on each of fifteen (15) Sunday afternoons;

(d) the "Final Pre-Season Schedule" (as hereinafter

defined) submitted to CBS by the League in each Contract Year

shall provide for the following:

(1) in 1966 one (1) Game on each of

four (4) consecutive Friday nights commencing on

August 12, 1966; -

(ii) in 1967 and 1968 one (1) Game on

each of five (5) consecutive Friday nights during

the five (5) weeks immediately preceding the

commencement of the regular season schedule, unless

70-605 0 - 66 - 13
190 PROFESSIONAL FOOTBALL LEAGUE MERGER

in any such year the scheduling of the ChicagoTribune College All-Star Game would preclude there

being five (5) such Games in which event there shall

be one (1) sUcil Game on each of four (4) consecutive

Friday nights.

The Games referred to in subdivisions (i) and (ii) of this

subparagraph (d) are herein sometimes called the "Pre-Season

Special Games". The League shall use its best efforts not to

schedule any other pre-season games on Friday night.

(e) It is understood that all of the broadcasting rights

granted CBS hereunder shall be subject to all of the applicable

provisions of Public Law 87-331, 87th Congress, 75 Stat. 732.

(f) The starting times for the Sunday afternoon Games

for each Team shall be approximately the same as in 1965 (except

that the starting time of Games played in Baltimore shall be one

half-hour earlier if local statute or ordinance so permits) unless

a different time shall be mutually agreed upon between CBS and any

Team. The League shall cooperate with CBS to the fullest extent

possible in order to arrive at starting times which meet CBS's

scheduling needs. The starting times of the December Games shall

be fixed by mutual agreement between the League and CBS; provided,

however, that the League shall give due consideration to CBS's

other commitments and to any scheduling problems of CBS. The

starting time of the Thanksgiving Day Games in each Contract Year

shall be as designated by CBS on notice to the League on or before

August 1 of each Contract Year. The starting time of at least

one (1) Thanksgiving Day Game shall be between 12 Noon and 3:00 P.M.
PROFESSIONAL FOOTBALL LEAGUE MERGER 191

and the starting time of the other Thanksgiving Day Game shall be

on or after 6:00 P.M. (CNYT). The starting time of each Regular

Season Special Game and Pre-Season Special Game in each Contract

Year shall be as designated by CBS on notice to the League on or

before the August 1 of each Contract Year but the starting time

of such Games shall not be prior to 6:00 P.M. (CNYT).

(g) If at the end of the first Contract Year either

party hereto believes that the scheduling of Regular Season

Special Games and the ThaNcsgiving Day evening Game, as provided

in paragraph 2(b)(iii) and 2(f) hereof has created an undue hardship on it, such party may at any time within thirty (30) days

thereafter require the other to discuss with such aggrieved party

changes in the days on which or the times at which such Games shall

be played. It is understood, however, that there shall continue

to be three (3) Regular Season Games hereunder the starting time

of which shall be 6:00 P.M. or after.

(h) As used in this Agreement a "Home Game" means a

Game played by a Team in a stadium located in its home territory

and an "Away Game" means a Game played by a Team in a stadium

located in the home territory of any other Team.

(i) During any Contract Year hereunder in which the

League is unable, because of the unavailability of suitable stadia,

to devise a schedule of regular season games for such Contract Year

without providing for additional games to be played on days other

than Sunday, the League shall have the right, notwithstanding anything to the contrary contained in subparagraph (c) of this
192 PROFESSIONAL FOOTBALL LEAGUE MERGER

paragraph 2 and without any reduction in the Annual Fee, to

schedule (in addition to the December Games referred to in paragraph 2(b)(ii) and Regular Season Special Games referred to in

paragraph 2(b)(iii)) up to four (4) regular season games to be

played on either Friday or Saturday (such Games being herein called

"Odd Games"). The broadcasting rights to each Odd Game

shall not be included in the rights granted CBS hereunder unless

CBS elects to broadcast such Odd Game by notice to the League

to such effect given prior to the April I pi' . the applicable Contract

Year or within thirty (30) days after receipt cf the Final Regular

Season Schedule, whichever is later. The broadcasting rights to

any Odd Game which CBS .does not elect to broadcast in accordance with the immediately preceding sentence shall be vested in

the League, which may authorize the broadcast thereof in the home

city of the visiting Team. The League shall offer to the regular

sponsors of CBS's broadcasts of any such visiting Teams Regular

Season Games the opportunity, on reasonable terms and conditions,

to sponsor the broadcast of any such Odd Game. No Odd Game shall

be scheduled to be played cm the same day as any December Game

or any Regular Season Special Game.

3. (a) On or before the April 1st of each Contract Year

hereunder, the League will deliver to CBS the final schedule

(herein called the "Final Pre-Season Schedule") of the pre-season

games to be played in such Contract Year and such schedule shall

comply with the requirements of subparagraph (d) of paragraph 2

hereof. If such Final Pre-Season Schedule is not received by

such date then the date on line 1 of subparagraph (b) of this
PROFESSIONAL FOOTBALL LEAGUE MERGER 193

paragraph 3 shall be advanced by one (1) day for each day after

April 1 that such Schedule is received. Such Schedule shall be

subject to all of the provisions of paragraph 2 hereof and shall

indicate the date, time (local time) and place where each such

game shall be played and shall designate the Teams which shall

participate in each such game. The Final Pre-Season Schedule may

not be changed by the League or by any Team at any time without

CBS's prior written consent. Any schedule furnished CBS pursuant

hereto shall be a Final Schedule unless the same is clearly

designated a "preliminary schedule".

(b) On or before the June 1st of each Contract Year

or, if the Final Pre-Season Schedule is received on or before

April 1, within forty-five (45) days from the receipt of the Final

Pre-Season Schedule but not earlier than April 1, CBS will notify

the League of those pre-season games which CBS elects to broadcast

on a "local basis" (over the facilities of any CBS owned station

on a non-interconnected basis) and each such game shall become a

"Game" hereunder. CBS's notice with respect to each such Game

shall state whether such Game shall be broadcast live or by means

of recording.

(c) With respect to each Pre-Season Game which, pursuant

to the provisions of subparagraph (b) of this paragraph 3, CBS

has elected to broadcast on a "local basis", the CBS owned and

operated station broadcasting such Pre-Season Game shall cause to

be broadcast on behalf of the National Football League Team whose

franchise is located in the same city as such station a number of,

or a dollar value of (at such station's applicable rate card price)
194 PROFESSIONAL FOOTBALL LEAGUE MERGER

promotional announcements proportionally equivalent to the total

number of, or dollar value of, as the case may be, the promotional

announcements broadcast on behalf of such Team for the total number

of pre-season games broadcast by such station on a local basis

during the 1965 National Football League season. If no such

arrangement existed between any particular Team and the CBS owned

and operated station located in the city of such Team's franchise

(i.e., its home city) with respect to the 1965 season, then during

the thirty (30) day period commencing June 1st (or commencing on

the latest date on which CBS may have the right to exercise the

rights set forth in subparagraph (b) of this paragraph 3) of the

Contract Year in which such station elects to enter into such an

arrangement, CBS and any such Team will negotiate to determine

the basis for the broadcasting of promotional announcements on behalf of such Team. If CBS and such Team are unable to reach

agreement during such thirty (30) day period, the dollar value of

promotional announcements to be broadcast on behalf of such Team

pursuant to this subparagraph (c) shall be proportionally equivalent to the dollar value of promotional announcements broadcast

on behalf of the New York Team with respect to its 1965 pre-season

games.

(d) Each Team participating in any pre-season game which

CBS is not .broadcasting as a Pre-Season Special Game or which CBS

has not elected to broadcast shall have the right (subject to

any applicable provisions of the League Constitution and By-Laws)

to authorize the broadcast of each such pre-season game throughout

the Broadcast Area. Each Team participating in any pre-season
PROFESSIONAL FOOTBALL LEAGUE MERGER 195

game which CBS has elected to broadcast on a local basis shall

have the right (subject to any applicable provisions of the League

Constitution and By-Laws) to authorize the broadcast of such preseason game in any community in the Broadcast Area in which such

game is not broadcast by CBS. The regular sponsors of CBS's broadcasts of any such Team's Regular Season Games shall be given the

opportunity to sponsor the broadcast If any such games on reasonable

terms and conditions. Notwithstanding anything to the contrary

contained herein, if any pre-season game to which any Team has

broadcasting rights is to be played on a Friday night when CBS is

broadcasting a Pre-Season Special Game such pre-season game may be

broadcast only in the home cities of the participating teams.

(e) Notwithstanding anything to the contrary contained

herein, CBS's rights with respect to pre-season games shall not

include any rights

(i) with respect to the Los Angeles

Times game, or the Chicago Bears Armed Forces

game;

(ii) to broadcast on a "local basis" any

pre-season game played on any Saturday on or after

the second Friday in September in any Contract Year,

unless CBS elects to broadcast any such game in

accordance with the provisions of subdivision (ii)

of paragraph 5 hereof on a recorded basis other

than on

A. a Friday night after 6:00 P.M.

(local time) or

B. a Saturday

or unless no college football game which meets

the conditions set forth in Public Law 87-331
196 PROFESSIONAL FOOTBALL LEAGUE MERGER

is scheduled to be played on the same day within

seventy-five (75) miles from the station on which

CBS desires to broadcast such game.

(0 On or before the April 1st of each Contract Year,

the League will deliver to CBS in writing the final schedule

(herein called the "Final Regular Season Schedule") of all Regular

Season Games to be played in such year. Such Schedule shall be

subject to all of the provisions of paragraph 2 hereof and shall

indicate the date and time (then scheduled local time) and place

where each such Regular Season Game is to be played and shall

designate the Teams which shall participate in each such Regular

Season Game. The Final Regular Season Schedule may not be changed

by the League or by any Team without CBS's prior written consent.

Any schedule submitted by the League pursuant hereto shall be

deemed to be a Final Schedule unless 'designated a "preliminary

schedule".

(g) On or before March 1 of each Contract Year the

League shall notify CBS of the date, time and place of the playing

of the Playoff Bowl Game and the Pro-Bowl Game. The League shall

notify CBS of the date, time and place of the playing of the

Championship Game promptly after the same has been determined.

The foregoing Games shall be played on succeeding Sunday afternoons

in the order played in the 1965 National Football League season.

The playing site of the Championship Game shall be rotated between

the cities of the winner of the Eastern and Western Conferences, 1966

being an Eastern Conference year. The Playoff Bowl Game shall be

played in Miami, Florida and the Pro-Bowl Game shall be played in
PROFESSIONAL FOOTBALL LEAGUE MERGER 197

Los Angeles, California. The starting time of the Championship

Game shall be between the hours of 1:00 P.M. (12 Noon with respect

to Games in Philadelphia, Chicago and Pittsburgh unless stadia

in these cities install satisfactory lights) and 3:00 P.M. (CNYT)

as the League elects. The starting time of the Playoff Bowl

Game shall be between the hours of 1:00 P.M. and 3:00 P.M. (CNYT)

as CBS may elect and the starting time of the Pro-Bowl Game shall

be approximately 4:00 P.M. (CNYT).

4. CBS shall furnish the League as soon as possible with a

list setting forth the national sponsors of the Games and the

communities in which each regional sponsor sponsors the Games.

5. (a) Each Game (subject to the other provisions hereof)

shall be broadcast by CBS live in black and white and/Or in color.

Subject to causes of the nature set forth in subparagraph (a) of

paragraph 14 hereof, availability of A.T. & T. cable and subject

to the availability of all necessary color equipment, including

cameras on a reasonable basis CBS will originate as a minimum

the following Games in color in each Contract Year:

(i) all Regular Season Games broadcast

nationally including the Thanksgiving Day Game

and the Regular Season Special Games;

(ii) all Conference Playoff Games and

Divisional Playoff Games;

(iii) in 1966 one (1) Regular Season

Game each week broadcast regionally, it being

understood that CBS will endeavor, subject

further to being able to obtain necessary color

equipment on a reasonable basis and subject further
198 PROFESSIONAL FOOTBALL LEAGUE MERGER

to CBS's ability to transport color equipment

which may have been utilized for other color

programming to the selected Game site in time

for broadcast, to broadcast two (2) regional

Regular Season Games in color each week;

(iv) in 1967 two (2) Regular Season

Games each week broadcast regionally, it

being understood that CBS will endeavor,

subject further to being able to obtain

necessary color equipment on a reasonable

basis and subject further 
PROFESSIONAL FOOTBALL LEAGUE MERGER 199

to CBS's ability to transport color equipment

which may have been utilized for other color

programming to the selected Game site in time

for broadcast, to broadcast three (3) regional

Regular Season Games in color each week;

(v), in 1968 three (3) Regular Season

Games each week broadcast regionally;

(vi) the Pre-Season Special Games.

(b) As used herein the term "broadcast" means broadcast,

exhibition and transmission by means of television and television

devices, methods and improvements now or hereafter developed.

With respect only to the Championship Game, the Playoff Bowl

Game and the Pro-Bowl Game the word "broadcast" shall mean broadcast, exhibition and transmission by means of television and

radio and television and radio devices, methods and improvements

now or hereafter developed. The television devices, methods and

improvements referred to in the preceding sentences include but

are not limited to so-called booster and translator stations and

relay systems as well as antenna systems which receive and transmit

(with or without amplification) television programs by wire or

cable connection to television receivers. The Games may be broadcast throughout the Broadcast Area over such television facilities

as CBS may at any time select or authorize. As used herein the

words "recording" and "recordings" shall mean and include any

recording or recordings made or authorized to be made by CBS

(whether before, during or after a broadcast transmission) by tape,

wire, film, disk or any other similar or dissimilar method of
200 PROFESSIONAL FOOTBALL LEAGUE MERGER

recording aural and/or visual portions of television prIgrams,

whether now known or hereafter developed, including the photography

of such programs on film in a manner similar to that used in the

production of motion pictures. All recordings made or authorized

to be made by CBS and all rights therein shall be the sole and

exclusive property of CBS and CBS shall have the right to use

any recordings pursuant to this Agreement as follows:

(1) to broadcast and authorize the

broadcast of recordings of each Game for

delayed or supplemental broadcast purposes within

fourteen (14) days after the original broadcast

thereof once in any community in the United

States (excluding Alaska and Hawaii), a station

in which community did not carry such original

broadcast and to broadcast and authorize the

broadcast of each Game for delayed broadcast

purposes within sixty (60) days after the original

broadcast thereof once in any community in Canada,

Mexico, Bermuda, Antigua, Alaska and Hawaii, a

station in which community did not carry such

original broadcast; provided, however, that no

recording shall be deemed to have been broadcast in

any community unless broadcast over a station

whose transmitter or principal studio is located

therein (delayed broadcasts of the Championship

Game may occur only on the day of such Game or

on the following day at a time to be determined

by CBS and the League);
PROFESSIONAL FOOTBALL LEAGUE MERGER 201

(ii) for file and reference purposes in

perpetuity and for promotional purposes during the

term of this contract;

(iii) for broadcast by and to the Armed

Forces of the United States, wherever situated,

in perpetuity; .

(iv) for original broadcast of any preseason games as shall become Games hereunder

(but not any Pre-Season Special Games) and which

are played other than on Sunday afternoon; provided, however, that such broadcasts shall be concluded not later than 10:00 P.M. (local time) on

the Sunday following the day on which any such Game

is played. If CBS so elects CBS may prior to

broadcast edit or authorize the editing of any

recordings of any Pre-Season Game scheduled to be

broadcast on a local basis so as to make the same

suitable for a program of from one (1) to two (2)

hours in length;

(v) to broadcast and authorize the broadcast of such recordings for "news purposes".

Broadcasts for "news purposes" are broadcasts on

news, newsreel, news review, sports review (including pre-game, half-time and post-game sports)

programs. Each broadcast for a news purpose

shall be subject to the following limitations:
202 PROFESSIONAL FOOTBALL LEAGUE MERGER

A. no program in which such

recordings are broadcast shall include a

recording of more than three (3) National

Football League Games; and

B. no such broadcast shall

include a recording of any Game which

is more than two (2) minutes in length;

(vi) to broadcast portions of the first

half of any Game during the half-time intermission

of any Game;

(vii) following the conclusion of any Game

to broadcast recordings of any other Game during

the period referred to in subparagraph (b) of

paragraph 1 hereof;

(viii) to broadcast important plays or

portions thereof at CBS's discretion during the

broadcast of any Game; or

(ix) as provided in subparagraph (b) of

paragraph 15 hereof.

CBS's rights to use recordings as permitted in subdivisions (I),

(iii) and (iv) of this paragraph 5 shall be subject to all of the

applicable provisions of Public Law 87-331, 87th Congress, 75

Stat. 732.

(e) CBS may by notice to the League on or before the

May 1 of any Contract Year advise the League that CBS elects not

to broadcast in such Contract Year on radio any or all of the Games

to which radio broadcasting rights have been granted. The League
PROFESSIONAL FOOTBALL LEAGUE MERGER 203

shall thereafter be free to grant to any third party, for such

Contract Year only, radio broadcasting rights to the Games to which

radio broadcasting rights have been relinquished; provided, however, that the League shall not authorize or permit the broadcast

of any such Game on behalf of any product or service competitive

to any product or service authorized to be advertised on the television broadcast thereof. The relinquishment by CBS of the radio

broadcasting rights to any Game in any Contract Year shall in no

way affect CBS's radio broadcasting rights in such Game in any

subsequent Contract Year.

6. Each Team may arrange for the broadcast of Quarterback

Club programs (i.e., thirty (30) minute programs consisting of

highlights of the preceding week's game plus player and coach

interviews and discussions). The League may arrange for the broadcast of thirty (30) minute programs consisting entirely of filmed

highlights of prior games. The regular sponsors of CBS's broadcasts of Regular Season Games shall be given the opportunity on

reasonable terms and conditions to sponsor such Quarterback Club

programs and highlights Programs. The League represents that

there be not more than one (1) Quarterback Club program and

one (1) highlights program each week•in each city.

7. (a) The Games may be broadcast or authorized to be broadcast by CBS on a sustaining basis and/or in whole or in part on a
204 PROFESSIONAL FOOTBALL LEAGUE MERGER

commercially sponsored basis by any method or combination of

methods of commercial sponsorship now known or hereafter developed

without limitation. Each sponsor shall be subject to the approval

of the Commissioner of the League (herein called "Commissioner").

Such approval may be exercised only with respect to any sponsor

which, in the opinion of the Commissioner, is not of a quality

or type suitable for the Games, and such approval may not be

unreasonably withheld. The Commissioner hereby approves for the

term of this Agreement each sponsor and each product or service

of any sponsor who sponsored the broadcast of any National Football

League Games during the 1964 or 1965 seasons. CBS will notify the

Commissioner of each proposed sponsor (other than sponsors

approved herein). If within seventy-two (72) hours after the

receipt of such notice the Commissioner has not notified CBS that

such sponsor is disapproved, such sponsor shall be deemed to have

the written approval of the CoMmissioner. Anything contained

herein to the contrary notwithstanding, each sponsor of the Games

on a "cooperative sponsorship basis" (as herein defined) shall be

automatically deemed to have the written approval of the Commissioner; provided, however, that the foregoing provisions of

this sentence shall not apply to such sponsorship on behalf

of any such sponsor for the purpose of advertising products in

the following categories: alcoholic beverages (other than beer

or ale), depilatories, laxatives, feminine hygienic products,

women's wearing apparel, fortune telling, fireworks, lotteries,

gambling, horse or dog racing, firearms, restoratives, speculative

stock selling, pool halls, mortuaries, funeral parlors, night

clubs, professional advertising, such as doctors, dentists and
PROFESSIONAL FOOTBALL LEAGUE MERGER 205

lawyers, harmful drugs and hygienic products of the intimate type.

As used herein "cooperative sponsorship basis" means sponsorship

of the Games pursuant to agreement between the sponsor and any

station(s) broadcasting the Games.

(b) The provisions of Exhibit B attached hereto and

hereby made a part hereof set forth the League's and CBS's obligations to the American Oil Company (herein called "Amoco").

8. (a) The League warrants and represents

(i) that the League is authorized to

enter into and fully perform this Agreement

on behalf of each of the Teams, and that the

League has all of the rights necessary to

enable the League to perform all of its obligations

hereunder;

(ii) t1..2.1111g-LeagliA-AZia-gA.91 1 . 1 °.1."

members have not granted or attempted to grant

and shall not grant or attempt to grant to any

person, firm or corporation rights of any kind

(including, without being limited to, any rights

to make broadcasts of any Games by any means or

method of pay or subscription television except

as otherwise specifically provided in and subject

to paragraph 24 hereof) which would or might

derogate or compete with the rights granted to

or to be granted to CBS hereunder;

(iii) for itself and on behalf of each

of the Teams, that during the term of this

70-605 0 - 66 - 14
206 PROFESSIONAL FOOTBALL LEAGUE MERGER

Agreement there will not be authorized,

adopted or promulgated any new or amended

By-Law or any modification or amendment to

the League Constitution in any way affecting

this Agreement or the rights granted CBS

hereunder; provided, however, that the

League may

A. move the location of the

franchise of any Team;

B. expand the League to

include additional teams subject to

paragraph 1(d) hereof (but all of CBS's

rights with respect to the present Teams

shall apply to any moved or additional

teams without any additional payment to the

League); or

C. remove any Team from the

League (but the League shall at all times

consist of at least twelve (12) Teams)

pursuant to the provisions of the Constitution and the By-Laws in which event the

League and all of the remaining Teams shall

remain jointly and severally liable to CBS

for any monies then owed by any such Team

to CBS

and provided, further, that in the exercise of sound

business judgment, the League may elect to amend

the League's Constitution and By-Laws in order to
PROFESSIONAL FOOTBALL LEAGUE MERGER 207

comply with any court order, judgment or decree

or any statue hereafter enacted, in which event

the League shall give CBS prompt notice of any

such amendment.

(b) CBS will not, pursuant to any rights granted it

hereunder, authorize an broadcast of the Games by any means or

method of pay or subscription television, it being understood

t a pay or subscription television does not include community

ant-Enna systems. Nothing herein contained shall prevent or preclude the League or any Team from instituting any legal action or

proceeding against any person owning or operating a community

antenna system whenever such system makes the broadcast of a Home

Game available to any subscribers of such system who are located

in the "Home Territory" of the Team playing such Home Game. It

is specifically understood and agreed that neither the League

nor any Team affected shall be considered as having transferred

,ArNorw: A., a

to CBS any rights inconsistent with this subparagraph (b).

The broadcasting of each Game hereunder (other than

Pre-Season Special Games) shall be subject to the following:

(1) no Home Game shall be broadcast on the

day of such Home Game into the area (herein called

the "Home Territory") included within a seventy-five

(75) mile radius of the city in which such Home

Game is played without the prior consent of the

home Team and the visiting Team, but any other

Game or Games may be broadcast into such Home

Territory or by any station located in such Home

Territory at any time;
208 PROFESSIONAL FOOTBALL LEAGUE MERGER

(ii) notwithstanding anything to the

contrary contained in subdivision (i) of this

subparagraph (a), CBS shall have the right to

broadcast each of the Home Games of any Team

over any television station located in a

community in which CBS broadcast such Team's

home games during 1965, it being understood

that only stations in Atlanta, Georgia shall

be restricted from broadcasting Atlanta Falcons

Home Games and that only stations in the home city

of any Team admitted to the League during the term

hereof shall be restricted from broadcasting the

Home Games of any such Team.

For the purposes of subdivision (i) hereof the cities of Sacramento

and Salinas, California shall be deemed to be within the Home

Territory of the San Francisco Team, the city of San Diego,

California shall be deemed to be within the Home Territory of

the Los Angeles Team and the city of Lansing, Michigan shall be

deemed to be within the Home Territory of the Detroit Team, but

the League shall use its best efforts to obtain for CBS the

permission of the Detroit Team to the the broadcast of Detroit

Home Games in Lansing, Michigan. In the event that any Game is

played in other than the home Team's normal home city, for the

purpose of any such Game only,the area within seventy-five (75)

miles of the city in which such Game is played shall comprise

the Home Territory and there shall be no restriction on the broadcast of such Game into the normal Home Territory.
PROFESSIONAL FOOTBALL LEAGUE MERGER 209

(b) The League may, by giving CBS notice to such effect

on or before December 15, 1967, expand the restrictions concerning

the areas into which the Games may be broadcast effective with

the 1968 National Football League season. If the League so notifies

CBS then subparagraph (a) of this paragraph 9 shall be replaced

in its entirety by the provisions set forth in Exhibit C attached

hereto and hereby made a part hereof and subparagraph (d) of

this paragraph 9 shall be deleted in its entirety.

(c) Notwithstanding anything to the contrary in this

Agreement there shall be no restriction on the area in or into

which any radio broadcast of any Game may be made.

(d) Pre-Season Special Games shall during the entire

term hereof be subject to the provisions set forth in Exhibit C

hereof rather than the provisions of subparagraph (a) of this

paragraph 9.

10. The League warrants and represents that during the first

and third quarters of each Game and at the two (2) minutes warning

in each half, the home Team will, at CBS's request (made by

CBS's remote producer), Cause the appropriate Game official to

call a sixty-second time out.

11. (a) For the performance of all the League's obligations

hereunder and for all rights herein granted CBS by the League,

CBS shall pay the League and the Teams as herein directed by the

League in accordance with the following:

) for the first Contract Year the sum

of $22,000,000;

(ii) for the second Contract Year the

sum of $24,000,000;
210 PROFESSIONAL FOOTBALL LEAGUE MERGER

(iii) for the third Contract Year the

sum of $24,000,000.

Each of the above amounts is herein sometimes called a "Total

Annual Fee". The Total Annual Fee for the second and third

Contract Years shall be reduced by $2,000,000 for each such year

in which the League does not have sixteen (16) playing Teams and

in addition the applicable sum specified in subdivision (iv) of

subparagraph (b) of this paragraph 11 shall be reduced by $2,000,000.

(b) The Total Annual Fee in each Contract Year

shall be attributable to the Games as follows:

(i) the sum of $ shall be

payable to the home Team participating in

any December Game (such amount being herein

sometimes called the "December Game Fee");

(ii) the sum of $ shall be

payable to each Team Participating in any PreSeason Special Game (such amount being herein

sometimes called the "Pre-Season Special Game

Fee");

(iii) the sum of $ shall be payable

to each Team participating in any Regular Season

Special Game (such amount being herein sometimes

called the "Regular Season Special Game Fee");

(iv), the aggregate sum of $

for the first Contract Year and the aggregate sum of

for each of the second and third

Contract Years shall be payable to the Teams
PROFESSIONAL FOOTBALL LEAGUE MERGER 211

and shall be attributable to the Regular Season

Games referred to in paragraph 2(a)(i) hereof,

it being understood that each Team shall receive

a pro rata share of the applicable sum set forth;

(v) the sum of $2,000,000 shall be

payable to the League within ten (10) days

after the playing of each Championship Game,

shall be attributable thereto and is herein

called the "Championship Game Fee";

(vi) the sum of $800,000 shall be

payable to the League within ten (10) days

after the playing of each Pro-Bowl Game, shall

be attributable thereto and is herein called

the "Pro Game Fee";

(vii) the sum of $400,000 shall be

payable to the League within ten (10) days

after the playing of each Playoff Bowl Game,

shall be attributable thereto and is herein

called the "Bowl came Fee");

(viii) an amount equal to 1/15th or

1/16th (depending on whether fifteen (15)

or sixteen (16) Teams are playing in the

League) of $1,500,000 shall be payable to

each of the Teams, shall be attributable to

the right granted CBS in this Agreement to

broadcast Games in the Home Territory on a

day when a Home Game is being played and is
212 PROFESSIONAL FOOTBALL LEAGUE MERGER

herein called the "Blackout Fee". If the League

exercises the right granted by CBS to the League

in subparagraph (b) of paragraph 9 hereof the

Blackout Fee shall not be payable and the

applicable Total Annual Fee shall be reduced

accordingly;

(ix) the sum of $200,000 shall be payable

to each of the Teams participating in any

Divisional Playoff Game in 1967 and 1968 and

the aggregate sum payable with respect to any

such Game is herein called the "Divisional Fee".

Payment under subdivisions (i) through (iv) and subdivision (viii)

of this subparagraph (b) will be made pursuant to the schedule

of payments set forth in paragraph I of Exhibit A attached hereto

and hereby made a part hereof. The aggregate of all the moneys

payable in each Contract Year pursuant to subdivisions (iv) and

(viii) of this subparagraph (b) shall be known collectively as

the "Regular Fee".

12. (a) The League and each of the Teams will cooperate

with CBS in all phases of the preparation, production and broadcast of each Game and the activities attendant thereto. The

League on behalf of the Teams represents that the Teams will make

available for CBS's use without charge at the various stadia

where the Games are played parking space for CBS's mobile units,

adequate space for the placement of cameras, booths and other

facilities for CBS's personnel, space and provision for all equipment necessary for each broadcast and such electrical power and
PROFESSIONAL FOOTBALL LEAGUE MERGER 213

facilities as may be necessary for each broadcast. The League

on behalf of the Teams represents that the Teams will permit

without charge the installation of cables, power lines

equipment, such installation to be done in such manner

may elect. CBS may install and use at each stadium

Game is played such wires, cable, cameras, lighting

other apparatus as may be necessary, appropriate

enable CBS to make the broadcasts hereunder. If

of the television director assigned to an/ Game,

necessary for technically suitable broadcasting,

shall, at the request of CBS, immediately notify

the referee will cause the field lights, if any,

or

in

in

and other

as CBS

which a

facilities

convenient

the opinion

and

to

field lights are

the home Team

the referee, and

to be turned on

as soon thereafter as the referee deems fair to both Teams, but

the League shall not be liable if the referee fail3 or refuses to

cause said field lights to be turned on, but in

shall have no obligation to broadcast such Game

League shall also deliver to CBS working passes

CBS shall reasonably require) to the stadium in

such event CBS

in color. The

(in such number as

which each Game

is played to be used by personnel of CBS, including camera crews

and other personnel necessary for preparation for each broadcast,

the broadcast itself and removal of equipment after each broadcast.

(b) In accordance with paragraph 2(f) hereof the starting

time of one of the two Thanksgiving Day Games and all of the Special

Games in each Contract Year shall be such time on or after 6:00 P.M.

(CNYT) as CBS elects. CBS is obligated to originate the broadcast

of such Games in color. So that CBS may properly fulfill such

obligation the League will cause each of the stadia where any such
214 PROFESSIONAL FOOTBALL LEAGUE MERGER

Game is to be played to install without charge to CBS such additional floodlights and/or other lighting facilities and equipment

as CBS shall in its opinion deem necessary. If for any reason

the lights in any such stadium are insufficient to permit a suitable color broadcast CBS shall have no obligation to originate

the broadcast from such stadium in color and CBS may make such

announcement of the reason therefor as it may deem appropriate.

(c) Each home Team shall reserve such number of tickets,

not to exceed 25, for each of its home Games, at box office prices,

as CBS may require on notice given to the Team not later than
PROFESSIONAL FOOTBALL LEAGUE MERGER 215

thirty (30) days prior to each Game.

(d) With respect to Games played in Wrigley Field,

Chicago, CBS agrees to maintain a policy of insurance providing

public liability insurance in amounts of not less than $100,000

to any single person and in the aggregate of not less than $300,000

for any single accident against any and all risks and liability

for death or injury to persons and in the amount of $10,000 for

property damage resulting from the use or misuse of any materials

furnished by CBS in connection with any broadcast hereunder emanating from Wrigley Field, Chicago. CBS will provide the League with

a certificate of insurance showing compliance with the 'foregoing,

Notwithstanding anything contained in this subparagraph (d) to the

contrary, CBS may include the foregoing insurance coverage in any

blanket policy of public liability insurance maintained by CBS.

13. (a) CBS shall have the right and may grant to others

the right to disseminate, reproduce, print and publish the name of

the League and of each of the Teams and the name, likeness, voice

and biographical material concerning each of the players, coaches

and trainers of each Team and of all persons connected with the

activities attendant to the Games as news or information, for

purposes of trade, and for advertising purposes including, but not

limited to, "institutional advertising" (i.e., advertising designed

to create goodwill and prestige and not for the purpose of selling

any specific product or service) and/or to advertise and promote

the broadcasts of the Games and in connection therewith, the

products and services of the sponsors, if any; provided, however,

that CBS shall not authorize any direct endorsement of any product
216 PROFESSIONAL FOOTBALL LEAGUE MERGER

or service by the League, the Teams or any such person without the

written consent of the League or the Teams or such person, as

the case may be. The rights granted pursuant to this paragraph 13

shall continue for so long as CBS has the right to broadcast the

Games.

(b) The League shall make available to CBS without

charge such players, coaches, Game and Team officials as CBS may

from time to time request for pre-Game and post-Game interviews

and discussion and for half-time interviews and discussions. Any

interviews or discussions to be used in the half-time of any

Game in which the players, coaches or Game officials participating

in such Game shall take part shall be recorded prior to the start

of such Game.

14. (a) If the playing or broadcast of any one or more

Games is prevented or omitted because of: act of God; inevitable

accident; fire; lockout, strike or other labor dispute; riot or

civil commotion, failure of technical facilities; act of public

enemy; enactment, rule, order or act of government or governmental

instrumentality (whether federal, state or local); the failure

of such electric power and facilities as are required to be funished pursuant to paragraph 12 hereof; the recapture of the

broadcast time period of any Game for the purpose of broadcasting

an event of public importance; or other cause of a similar of

different nature beyond CBS's control, such prevention or omission

shall not be a breach of this Agreement by CBS and the applicable

Game Fee, if any, designated in paragraph 11 hereof shall not be

payable and the Total Annual Fee shall be reduced in an amount

equal thereto. In addition, if the Game, the broadcast of which
PROFESSIONAL FOOTBALL LEAGUE MERGER 217

is so prevented or omitted, is a Regular Season Game, then the

Regular Fee shall be reduced by an amount obtained by multiplying

the "Reduced Regular Fee" (i.e„ the Regular Fee less any reduction

therein, if any, because of the elimination of the Blackout Fee or

because of the League having less than sixteen (16) Teams) by a

fraction having a denominator equal to the total number of Regular

Season Games hereunder and a numerator of one (1) for Regular Season

Games scheduled to be broadcast on a regional basis and a numerator

of eight (8) for Regular Season Games scheduled to be broadcast

on a national basis for each such Aegular Season Game so prevented

or omitted, and the total amount payable to each Team hereunder

shall be reduced by an amount equal to 1/15th or 1/16th (depending

on the number of playing Teams in the League) of the amount by which

the Regular Fee is reduced.

(b) If the broadcast of any portion of any Game for

which there is a Game Fee designated in paragraph 11 is prevented

or omitted then the applicable Game Fee shall be reduced by an

amount obtained by multiplying such Fee by a fraction the numerator

of which is equal to the number of minutes of broadcasting so

prevented womitted and the denominator of which is 150. In

addition, if the Game the broadcast of which is in part so prevented

or omitted for a reason specified in subparagraph (a) of this paragraph 14 is a Regular Season Game, the Regular Fee shall be reduced

by an amount obtained by multiplying the Reduced Regular Fee by

the applicable fraction referred to in subparagraph (a) of this

paragraph 14 and then multiplying such product by a fraction, the

numerator of which is equal to the number of minutes of broadcasting
218 PROFESSIONAL FOOTBALL LEAGUE MERGER

so prevented or omitted, and the denominator of which is 150, and

the total amount payable to each Team shall be reduced in the same

manner as hereinabove provided.

(c) If the broadcast of any one or more Games or any

portion thereof is prevented because of a strike or other labor

dispute solely involving persons furnished by CBS in connection

with such broadcast, or the failure of CBS's broadcasting facilities

or AT & T cable facilities, or if the broadcast of any Game (or any

portion thereof) is omitted because of CBS's voluntary pre-emption

of the broadcast thereof for the purpose of broadcasting an event

of public importance (it being understood that CBS will not preempt the broadcast of any Regular Season Game for the purpose of

broadcasting another sports event or an event of public

importance, the primary purpose of which is entertainment (though

such event may contain substantial entertainment portions)), such

prevention or omission shall not constitute a breach of this

Agreement by CBS, but in such event there shall be no reduction

of the Total Annual Fee. CBS, prior to making any decision to

pre-empt the whole or any part of any Game hereunder (other than

a decision to pre-empt a Pre-Season Game broadcast on a local

basis) shall in reaching such a decision consider the great

prestige and popularity of National Football League Games as

opposed to the public interest and importance of the event for

which the Game is proposed to be pre-empted. The pre-emption in

whole or in part of the broadcast of any Game by CBS for the

purpose of coverage (on a sustaining basis) of

events of great national importance
PROFESSIONAL FOOTBALL LEAGUE MERGER 219

or historic moment or

(ii) events of national disaster affecting

the entire nation

shall not be considered as voluntary for the purposes of this

subparagraph (c).

(d) If any Game, the playing of which is prevented

for any reason set forth in subparagraph (a) of this paragraph 14,

is played at a later date or time, CBS shall have the right to

broadcast such Game at such date or time. If CBS does so broadcast any such Game, there shall be no reduction in the Total Annual

Fee pursuant hereto, but the provisions of subparagraphs (b) and

(c) of paragraph 15 hereof shall in such event be inapplicable.

(e) If the effect of any amendment of the League

Constitution or By-Laws adopted in the exercise of the League's

sound business judgment as permitted in subdivision (iii) of

subparagraph (a) of paragraph 8 hereof is substantially to diminish

the pecuniary value of the rights herein granted CBS, CBS shall

have the right at its election to terminate this Agreement effect ive on such date as CBS may elect by notice to the League at any

time within thirty (30) days after the receipt of notice from the

League of 
220 PROFESSIONAL FOOTBALL LEAGUE MERGER

each such amendment; provided, however, that if any such termination becomes effective on a date subsequent to the broadcast of

any Game hereunder, CBS's only obligation to the League he-eunder

shall be to pay the aggregate of the Game Fees for the Games

played prior to such date, plus, for each Regular Season Game

played for which a Game Fee is specified, an amount equal to

11105th or 1/98th of the Reduced Regular Fee, depending on the number of Regular Season Games scheduled in such season and each Team

shall be entitled to receive its pro rata share thereof. The

aforesaid reductions in the Reduced Regular Fee are subject to such

other reductions as might otherwise be applicable hereunder. Any

amounts then owing to the Teams by CBS shall be paid within thirty

(30) days after the effective date of such termination. Notwithstanding anything to the contrary contained in this subparagraph (d), the League shall have no right or authority to amend

its By-Laws and Constitution so as to nullify the rights granted

CBS hereunder, except that if Public Law 87-331, 87th Cong., 75

Stat. 732 (herein called the "Bill") is repealed, the League and

CBS shall each have the right to terminate this Agreement upon

notice to the other within thirty (30) days thereafter, such termination to be effective as of the effective date of the statute

repealing the Bill, in which event all of the provisions of this

subparagraph (d) with respect to the reduction of the Regular

Fee because of the termination of this Agreement by CBS shall be

applicable to such termination. The Regular Fee shall likewise

be adjusted with respect to the second and third Contract Years

hereunder if this Agreement is so terminated during the course of

the 1967 or 1968 National Football League regular season schedule.
PROFESSIONAL FOOTBALL LEAGUE MERGER 221

(f) With respect to any amounts which CBS is relieved

of its obligations to pay any Team or to the League pursuant to the

provisions of subparagraphs (a) and (e) of this paragraph 14, it

Is understood that if CBS has previously paid to any Team its

fliLl portion of the Regular Fee for such Contract Year or if the

amount of such reductions exceed the balance of the Regular Fee

otherwise still due any such Team, the League will on behalf of

such Team and each of the other Teams promptly refund to CBS the

amount of such reduction or the difference between the amount of

such reduction and the balance of its portion of the Regular Fee

otherwise due any such Team. Otherwise, the applicable amount of

any reduction may be deducted from the next installment(s) due

the Teams.

(g) If not otherwise stated herein it is understood that

the Total Annual Fee shall be reduced in an amount equal to the

aggregate reduction in any component thereof pursuant to this

paragraph 14 or any other paragraph hereof.

(h) If the radio broadcast of any Game to which radio

broadcasting rights are granted hereunder is prevented or omitted

for any cause of the nature set forth in subparagraph (a) of this

paragraph 14, the same shall not be a breach hereof but there

shall be no reduction in the Total Annual Fee or any applicable

Game Fee.

15. (a) CBS shall not be obligated to broadcast in whole or

in part any Home Game of any Team, or, subject to subparagraph (b)

of paragraph 15 hereof, any other Games,:.and the failure of CBS

to do so shall not be a breach of this Agreement. However, the

70-605 0 - 66 - 15
222 PROFESSIONAL FOOTBALL LEAGUE MERGER

voluntary election of CBS not to broadcast any Game shall not

affect CBS's obligations with respect to the Regular Fee.

(b) CBS shall make available for broadcast each Regular

Season Game played on Sunday afternoon to the CBS affiliate

located in the home city of the away Team, subject, of course, to

acceptance by such station(s) and unless the unavailability of

AT & T cable relay facilities or any other cause of the nature

referred to in subparagraph (a) of paragraph 14 hereof conflicts,

interferes with or prevents the broadcast over any such station.

In the event any such CBS affiliate (including any CBS owned

and operated station) does not accept any such Game for broadcast

on a live basis, CBS shall:
PROFESSIONAL FOOTBALL LEAGUE MERGER 223

(i) make such Game available for

broadcast on a live basis in turn to each

other television station located in such

city on terms and conditions similar to those

which the CBS station was offered, subject

to acceptance by such other station. If

CBS is unsuccessful in arranging for the

broadcast of any Game pursuant to this

subdivision (i), then

(ii) CBS shall make such Game available to the CBS affiliate for broadcast on

a recorded basis at any time prior to 8:00 AM

(local time) the following day.

In addition, with respect to any Regular Season Game(s) played on

the same day as any World Series baseball game, CBS may, if it

secures the prior consent of the away Team, broadcast such Game in

the home city of such away Team on a recorded basis at any time

prior to 8:00 AM (local time) the following day. If CBS does not

secure such consent, then the preceding provisions of this subparagraph (b) shall apply.

(c) Notwithstanding anything to the contrary contained

in subparagraph ( 1) of this paragraph 15, the broadcast of away

Games of the San Francisco and Los Angeles Teams in the home city

of each shall, in addition, be subject to the following

(i) if in any Contract Year AT&T

notifies CBS seven (7) or more days prior
224 PROFESSIONAL FOOTBALL LEAGUE MERGER

to any away Regular Season Game of either

of such Teams that facilities will not be

available to permit the broadcast on the

Pacific Coast of both a Los Angeles and a

San Francisco away Game played on the same

day because of the unavailability of dual

feeds to the Pacific Coast, CBS shall, subject to the provisions of subdivision (ii)

of this subparagraph (c), if it is technically possible to do so, make the Los

Angeles Game available for broadcast pursuant to the provisions of subparagraph (b)

of this paragraph 15;

(ii) if the situation referred to in

subdivision (i) of this subparagraph (c)

arises more than once during the term of

this Agreement, CBS shall adjust its broadcasting schedule as between the Los Angeles

and San Francisco Teams so that the Game which

is made available for broadcast pursuant to

subparagraph (b) of this paragraph 15 in

each instance of the occurrence of such

situation shall be that of the Team whose

away Regular Season Game was not made available for broadcast on the immediately preceding

occurrence of such situation;

(iii) if AT&T gives CBS less than

seven (7)days' prior notice of the unavailability of dual feeds to the Pacific Coast,
PROFESSIONAL FOOTBALL LEAGUE MERGER 225

then it shall be deemed technically impossible

for CBS to change its broadcasting schedule

with respect to the Pacific Coast on the day

in question, and in such event CBS will make

available for broadcast on such date pursuant

to subparagraph (b) of this paragraph 15 such

Game as CBS in its sole discretion elects.

(d) Except as otherwise specifically provided in subparagraphs (b) and (c) of this paragraph 15, CBS may make each

Game available for broadcast over such stations as CBS in its

sole discretion may elect.

16. (a) During the broadcast of each Game, CBS shall make

one (1) promotional announcement on behalf of the League and

one (1) on behalf of one of the participating Teams. At least

ten (10) days prior to the date of broadcast of each announcement

hereunder, the League and each Team on whose behalf an announcement

will be made shall supply to CBS's Program Practices Department

the copy for each such announcement which shall be subject to

CBS's approval in each instance. If the League or any Team fails

to furnish any such copy, or fails to revise the same so as to

meet CBS's requirements, CBS shall not be required to broadcast

any such promotional announcement..

(b) Half-time activities shall be within the control

of each Home Team and such activities shall not continue for more

than 15 minutes without CBS's prior consent. In addition on no

more than three (3) occasions in any Contract Year shall the
226 PROFESSIONAL FOOTBALL LEAGUE MERGER

half-time activities of any Regular Season Game consist in whole

or in part of the competition in the National Football League Punt,

Pass and Kick Contest and on such occasions the competition shall

be limited to regional or area finalists. During any half-time

activities consisting of such competition there shall be no mention or identification of any kind on the field (including but not

limited to identification on jerseys) of any sponsor of the Games

or of any promoter or sponsor of the Punt, Pass and Kick Contest.

In addition, the League shall use its best efforts to prohibit

the mention or identification over any stadium public address

system of any such sponsor or promoter.

17. (a) The League will at all times indemnify and hold

harmless CBS, the sponsors, if any, their advertising agencies,

if any, and any stations over which the Game and the attendant

activities are broadcast from and against any and all claims,

damages, liabilities, costs and expenses, including reasonable

counsel fees, arising out of

(i) the exercise by CBS of any of

the rights granted CBS hereunder or the use

of any materials or services furnished CBS

pursuant hereto; and

(ii) any breach by the League of any

warranty or agreement made by the League herein;

provided, however, that with respect to claims and actions against

CBS, the foreoing indemnity shall apply only with respect to

Uoa=claims and actions as to which CBS gives the League notice

stating that such indemnity so applies.
PROFESSIONAL FOOTBALL LEAGUE MERGER 227

(b) CBS will at all times indemnify and hold harmless

the League from and against any and all claims, damages', liabilities, costs and expenses, including reasonable counsel fees,

arising out of the use of any materials or services furnished by

CBS in connection with the broadcast of the Games and attendant

activities; provided, however, that the League will promptly

notify CBS of any such claim or action; and provided, further

that CBS may at its option assume the defense of any claim or

litigation to which its indemnity applies.

18. (a) If because of nu enactment, rule, order or act of

government or governmental instrumentality (whether federal,

state, or local) the area in or into which Games shall not be

broadcast on a live basis (as set forth in paragraph 9 hereof,

and in addition, with respect to December Games and the Pre-Season

and Regular Season Special Games only, as prescribed in the

statute referred to in subparagraph (e) of paragraph 2 hereof)

is in any way expanded or increased, the following shall apply:

(i) the aggregate Reduced Regular Fee shall

be reduced by that fraction having a. numerator

equal to the aggregate of the gross one-hour

time charges (pursuant to the then current CBS

Rate Card) of the CBS affiliates (including any

CBS owned and operated stations) which are thereby

being precluded or prohibited from carrying the

original broadcast of any Regular Season Games,

and a denominator equal to the aggregate of such

gross one-hour time charges for all CBS affiliated
228 PROFESSIONAL FOOTBALL LEAGUE MERGER

stations in the United States; and

(ii) the amount payable to each Team

(exclusive of any December Game Fee or any

Regular Season or Pre-Season Game Fee) hereunder

shall be reduced by an amount equal to 1/15th or

1/16th (depending on the number of playing

Teams in the League) of the amount by which the

Reduced Regular Fee is Reduced.

If such expanded or increased restrictions are applicable far

only a portion of any Contract Year, then the fraction obtained

in accordance with subdivision (i) above shall be reduced by a

fraction having a numerator equal to the number of Regular Season

Games for which the enactment, rule, order or act is not applicable,

and a denominator equal to the number of Regular Season Games

hereunder during such Contract Year. If any such restriction

affects any December Game or any Regular Season or Pre-Season

Special Game an additional reduction in the applicable Fee or

Fees computed in the manner set forth above shall be made separately

with respect thereto. If any such restriction affects the Championship Game, Playoff Game or Pro-Bowl Game reductions in the applicable Fee(s) shall be similarly computed.

(b) The amount of any applicable reductions in any

Fees pursuant to the 
PROFESSIONAL FOOTBALL LEAGUE MERGER 229

provisions of this paragraph 18 shall be deducted by CBS from the

next installment due each Team hereunder or from any payment due

the League. If CBS has previously paid to any Team its full portion

of the Regular Fee for such Contract Year or the amount of any such

reduction is in excess of the amount then due to any Team by

CBS, the League will on behalf of such Team and each of the other

Teams promptly refund to CBS the amount of such reduction or the

amount of such excess.

19. CBS shall have the right to display CBS's name and

trademark on any broadcasting booth or platform but not the name

or trademark of any sponsor. In addition CBS shall have the

right to fly a "CBS flag" at each stadium in which a Game is

being played. The foregoing rights are subject to the approval

of each stadium owner, which approval the League shall make every

reasonable effort to obtain.

20. The selection of the Apprtu.Wers and color men broadcasting the Games and the announcers or hosts of any pre-Game or

post-Game program, originating from the stadia where the Games

are played, shall be subject to t ea041 • , O.. .

in accordance with the provisions of subsections (a) and (b) of

section 1 of Article X of the National Football League By-Laws

as said sections were adopted for 1965; provided, however,

that

(i) any persons whose names are

submitted by CBS for such approval shall

have had experience in broadcasting
230 PROFESSIONAL FOOTBALL LEAGUE MERGER

or as football players or coaches;

(ii) If ;he list referred to in said

provisions of Article X is submitted to the

Commissioner ten (10) or more days prior to the

first Game upon which any such person is to

perform services, the Commissioner shall have

a period of seven (7) days after the receipt of

such list in which to notify CBS of his selections, and if the Commissioner fails to so notify

CBS within said seven (7) day period, CBS may

select such persons as it may elect to perform

such services, and each such person so selected

by CBS shall be deemed to have the written

approval of the Commissioner; and

(iii) if the said list is submitted

less than ten (10) days prior to the first

Game upon which any such person is to perform services, then the Commissioner shall

have a period of seventy-two (72) hours (or

such time as may be reasonable under the

circumstances) after the receipt thereof

in which to notify CBS of his selections, and

if the Commissioner fails to so notify CBS

within such period, CBS may select such persons

as it may elect for the performance of such

services, and each such person so selected by

by CBS shall be deemed to have the written
PROFESSIONAL FOOTBALL LEAGUE MERGER 231

approval of the Commissioner. All notices

pursuant to this subdivision (iii) shall be

sent by telegram.

21. (a) So long as there are fifteen (15) Teams in the

League, if there is any tie for first place in any Conference, at

the end of the season there shall be a Conference Playoff Game

to resolve such tie. So long as there are sixteen (16) Teams in

the League there shall be Divisional Playoff Games in each Conference to determine the Conference Champions. All Conference

Playoff Games shall be scheduled to be played on Sunday afternoon,

and the League will consult with CBS prior to determining the

starting time of any such Games; provided, however, that if more

than one (1) such Game is required in any Contract Year, the League

will use its best efforts to schedule one (1) such Game on Saturday

and one (1) on Sunday, or if this is not possible or if any such

Saturday Conference Playoff Game would be scheduled for the first

or second Saturday in December, then the League will use its best

efforts to schedule such Games on Sunday so that the starting

time (CNYT) of the second such Game will commence fifteen (15)

minutes after the approximate anticipated completion of the first

such Game, etc. The starting time of Divisional Playoff Games

shall be determined by the League in consultation with CBS, it

being understood that such Games shall be scheduled to be played

one on Saturday and one on Sunday or consecutively on Sunday as

CBS shall request on or before the April 15 of any Contract Year.
232 PROFESSIONAL FOOTBALL LEAGUE MERGER

(b) The League on behalf of the Teams directs CBS to

pay each Team participating in any Conference Playoff Game the

sum of $200,000 (herein called the "Conference Game Fee");

provided, however, that if there are two or more Conference Playoff

Games in any Contract Year then to the extent the League is unable

in accordance with subparagraph (a) of this paragraph 21 to

schedule such Games either on different days or so tnat each will

commence upon the conclusion of another, then the Conference Game

Fee shall be reduced to an amount equal to $200,000 divided by

the number of such Conference Playoff Games. Payment of the

applicable Conference Game Fee shall be made within ten (10) days

following the broadcast of the Game to which such payment applies.

(c) If the playing or broadcast of any Conference

Playoff Game is prevented or omitted for any reason of the nature

set forth in subparagraph (a) of paragraph 14 hereof, such

prevention or omission shall not be a breach of this Agreement

by CBS and no Conference Game Fee shall be payable with respect

to any such Conference Playoff Game. If the broadcast of any

portion of any Conference Playoff Game is prevented or omitted

for any reason of the nature specified in the said subparagraph (a),

the applicable Conference Playoff Fee shall be reduced by an

amount obtained by multiplying such Fee by a fraction having a

numerator equal to the number of minutes of broadcasting so

prevented or omitted and a denominator of 150. It is understood

that the provisions of subparagraph (b) of paragraph 14 hereof,

subparagraph (b) of paragraph 15 hereof and paragraph 18 hereof
PROFESSIONAL FOOTBALL LEAGUE MERGER 233

shall be applicable with respect to Conference Playoff Games.

22. At least fifteen (15) days prior to the date each

Game is scheduled to be played the League shall deliver (or shall

cause the home Team to deliver) to CBS accurate music cue sheets

setting forth the titles, names of composers, publishers, copyright owners and owners of the television performing rights of all

musical compositions which shall be played in the stadia during

such time as CBS may be broadcasting the Games and attendant

activities pursuant hereto. Each such composition (and no other

compositions) may be performed during such time as CBS may be "onthe-air" from the point of origin of such Game unless CBS shall

have notified the League and/Or the home Team to the contrary on

or before the expiration of the fifth day, excluding Saturdays,

Sundays and holidays, following the date of receipt by CBS of such

cue sheets. If CBS has requested the deletion of any composition

from the list of those to be performed, the League shall cause

such request to be complied with.

23. (a) In the event cf the breach of any material provision

of this Agreement, CBS shall have the right, in addition to CBS's

other rights hereunder or at law or in equity, to terminate this

Agreement, and the Total Annual Fee shall be reduced in the manner

set forth in subparagraph (a) of paragraph 14 hereof; provided,

however, that CBS shall give the League notice of such breach,

and if such breach can be cured, the League shall have such period

as may be necessary to cure or cause to be cured such breach, but

not to exceed, however, five (5) days.
234 PROFESSIONAL FOOTBALL LEAGUE MERGER

(b) CBS shall have the right to terminate this Agreement effective at the end of the second Contract Year on notice

given on or before February 1, 1968. If CBS exercises the aforesaid termination right the Annual Fee for each of the first two

Contract Years hereunder shall be increased by $500,000 and CBS

shall pay the League the sum of $1,000,000 on or before February 29,

1968.

24. (a) As used herein "pay TV rights" means the right to

broadcast the Games by closed circuit' theater television, wire,

subscription television or any other type of broadcast or transmission to or in any place for which a charge is made to view the \\\

Games or for which a charge is made for admittance to the place

where the Games are to be viewed. Neither the League nor the

Teams may exercise pay TV rights with respect to the Championship

Game, Pro-Bowl Game or the Playoff Bowl Game.

(b) The League shall have thp rtgU_IA,gAgX0,§g_gky_.

TV rights during the third Contract Ye,uLp9,4A *Ian

notify CBS (any such notice being herein called a "Pay TV Notice")

' - - • -

on or before December 1, 1967 (herein called the "Pay TV Notice

Date") if the League or any of the Teams have entered into any

agreement (herein individually ,called a "Pay TV Rights Agreement")

with respect to pay TV rights. (The Pay TV Notice Date with

respect to Pay TV Rights Agreements relating solely to closed

circuit theater television shall be December 15, 1967). Any

such notice shall set forth in reasonable detail all of the terms

and conditions (including but not limited to the area and games

covered and the fees to be charged) of each Pay TV Rights Agreement.
PROFESSIONAL FOOTBALL LEAGUE MERGER 235

The League and the Teams shall have the right to exercise pay TV

rights only to the extent set forth in appropriate Pay TV Notices.

After the applicable Pay TV Notice Date neither the League nor

any Team shall enter into any Pay TV Rights Agreement which shall

be effective during the third Contract Year or any portion thereof

and any such purported agreement shall be void and of no effect.

(c) CBS shall have a period of sixty (60) days from

the receipt of the last Pay TV Notice in which, by notice to the

League, to terminate this Agreement, such termination to be

effective on the date such notice is given; provided, however,

that if CBS so elects such termination shall not be effective witli

respect to the Championship Game, Playoff Bowl Game and Pro-Bowl

Game.

25. During the thirty (30) day period commencing January 1,

1969 CBS and the League shall negotiate in good faith with respect

to an extension of this Agreement for a period of at least one (1)

year. If no agreement is reached during such thirty (30) day

period, the League shall pay CBS the sum of $1,000,000 on or

before February 20, 1969. 
236 PROFESSIONAL FOOTBALL LEAGUE MERGER

26. The League will cause the home Team at each Game to

supply all policing of the home stadium, field and broadcasting

areas in order to maintain order and to protect CBS in the enjoyment of its broadcasting rights hereunder.

27. Except as otherwise herein provided, all notices required

to be given hereunder shall be given in writing either by personal

delivery, by mail or by telegraph at the respective addresses of

the parties hereto hereinabove set forth or such other addresses

as may be designated in writing by either party. Notice given by

mail or by telegraph shall be deemed given on the date of mailing

thereof or of delivery of such telegram to a telegraph office,

charges prepaid or to be billed.

28. A waiver by either party of any of the terms and conditions of this Agreement in any instance shall not be deemed or

construed to be a waiver of such term or condition for the future,

or of any subsequent breach thereof. All remedies, rights, undertakings, obligations and agreements contained in this Agreement

shall be cumulative and none of them shall be in limitation of

any other remedy, right, ,undertaking, obligation or agreement of

either party.

29. This Agreement and all matters or issues collateral

thereto shall be governed by the laws of the State of New York

applicable to contracts performed entirely therein.

30. CBS may assign its rights hereunder in full or in part

to any subsidiary, affiliated or controlling corporation or to

any person, firm or corporation which acquires a substantial

portion of the assets of the Columbia Broadcasting System, Inc.,
PROFESSIONAL FOOTBALL LEAGUE MERGER 237

and/or CBS Television Network, and this Agreement may be assigned

by any assignee thereof; provided, however, that no such assignment shall relieve CBS of any of its obligations hereunder.

31. This Agreement contains the entire understanding of

the parties hereto relating to the subject matter herein contained,

and this Agreement cannot be changed or terminated orally.

32. The League will conform to the requirements of Section

508 of the Federal Communications Act concerning broadcast matter

and disclosures required thereunder and will cause the Teams to

so conform. The League shall submit to CBS in writing such reports

as CBS may reasonably request from time to time upon forms provided by CBS. League warrants and represents on behalf of itself

and the Teams that no Game or attendant activities includes or

will include any matter for which any money, service or other

valuable consideration is directly or indirectly paid, or promised

to, or charged or accepted by the League or any Team. The League

shall inform the Teams and the League and the Teams shall exercise

reasonable diligence to inform their respective employees, and

other persons with whom the League and the Teams deal directly

in connection with the Games and attendant activities, of the

requirements of the said Section 508; provided, however, that

no act of any employee of the League or any Team or of any

independent contractor connected with any of the Games and attendant activities shall constitute a breach of the provisions of

this paragraph unless the League or such Team has actual notice

thereof. As used in this paragraph, the term "service or other

valuable consideration" shall not include any service or property

70-605 0 - 66 - 16
238 PROFESSIONAL FOOTBALL LEAGUE MERGER

furnished without charge or at a nominal charge for use in, or

in connection with, any of the Games and attendant activities

"unless it is so furnished in consideration for an identification

in a broadcast of any person, product, service, trademark or

brand name behond an identification which is reasonably related

to the use of such service or property on the broadcast", as

such terms are used in the said Section 508. No inadvertent

failure by the League or any Team to comply with this paragraph

32 shall be deemed a breach of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this

Agreement as of the day and year first above written.

CBS TELEVISION NETWORK

A division of Columbia

Broadcasting System, Inc.

By

NATIONAL FOOTBALL LEAGUE

By

Commissioner
PROFESSIONAL 1,OOTBALL LEAGUE MERGER 239

EXHIBIT A 

(Attached to and forming a part of the Agreement between

CBS TELEVISION NETWORK, a division of Columbia Broadcasting System, Inc. and the NATIONAL FOOTBALL LEAGUE,

dated as of the 29th day of December, 1965). 

I. (a) Payment of the sums referred to in subdivisions (iv)

(iv) and (viii) of subparagraph (b) of paragraph 11 hereof shall

be made in four (4) approximately equal installments on the

first day of September, October, November and December of

each Contract Year.

(b) Payment of the Game Fees referred to in subdivisions

(i), (ii) and (iii) of paragraph 11 hereof shall be added to the

next payment due hereunder to each Team. 
240 PROFESSIONAL FOOTBALL LEAGUE MERGER

EXHIBIT B 

(Attached to and forming a part of the Agreement

between CBS TELEVISION NETWORK, a division of

Columbia Broadcasting System, Inc. and the

NATIONAL FOOTBALL LEAGUE, dated as of the 29th

day of December, 1965). 

I. The League warrants and represents that Amoco presently

owns the television broadcasting rights to the Washington Redskins

Team (herein called the "Redskins") for the years 1966 and 1967

only, under agreements made between Amoco and Pro Football Inc.

Accordingly, CBS shall offer Amoco the opportunity for a period of

thirty (30) days to sponsor CBS' broadcasts of Washington Redskins

regular season football games as often and in substantially the

same areas in which CBS broadcast such games on behalf of Amoco

during the 1965 NFL season on its Washington/Baltimore network.

Such. offer shall be on substantially the same terms and conditions

as are offered to other sponsors of the Games, it being understood,

however, that Amoco shall be offered the opportunity to sponsor

three (3) minutes per game and that Amoco will be entitled to

receive billboard identification on a basis similar to that given

other advertisers sponsoring a like proportion of each Game. If

Amoco fails to accept CBS's offer pursuant to this paragraph I,

then the League warrants and represents that Amoco shall have no

further sponsorship rights during the term hereof. CBS shall have

no obligation to offer Amoco the opportunity to sponsor any postseason games or pre-season games. 
PROFESSIONAL FOOTBALL LEAGUE MERGER 241

EXHIBIT C 

(Attached to and forming a part of the Agreement

between CBS TELEVISION NETWORK, a division of Columbia

Broadcasting System, Inc. and the NATIONAL FOOTBALL

LEAGUE dated as of the 29th day of December, 1965) 

I. The broadcasting of each Game hereunder shall be subject

to the following:

(i) no Game shall be broadcast into the Home

Territory (i.e., into the area within seventy-five (75)

miles from the league city) represented by any Team

on any day upon which such Team is playing a Game

in its home stadium without the written consent

of such Team;

(ii) no home Game of any Team shall be

broadcast on the day of such Game into the area

included within a seventy-five (75) mile radius

of the city in which such Game is played without

the prior consent of the home Team and the visiting

Team.

Notwithstanding anything to the contrary contained in subdivisions

(i) and (ii) of this paragraph 9, CBS shall have the right to

broadcast each of the Games over any television stations located

in every community in which CBS broadcast National Football League

Games during 1965 including, but not limited to, stations

A. located in New York City

when the Philadelphia Team is at home;

B. located in Philadelphia

when the New York Team is at home;

C. located in Washington, D.C.

when the Baltimore Team is at home;

D. located in Baltimore when the

Washington Team is at home;

E. located in Madison, Green Bay,

Wausau and Chicago when the Green Bay Team

plays at Milwaukee;

F. located in Milwaukee, Green Bay

and South Bend, Indiana, when the Chicago

Team is at home;
242 PROFESSIONAL FOOTBALL LEAGUE MERGER

G. located in Chicago, Milwaukee

and Madison when the Green Bay Team plays

at Green Bay.

For the purposes of this subdivision (ii) the cities of Sacramento

and Salinas, California shall be deemed to be within the Home

Territory of the San Francisco Team and the city of San Diego,

California, shall be deemed to be within the Home Territory of

the Los Angeles Team. In the event that any Game is played

in other than the home Team's normal home city, for the purpose

of such Game only, the area within seventy-five (75) miles of

the city in which such Game is played shall comprise the Home

Territory, and there shall be no restriction on the broadcast

of such Game into the normal Home Territory. Notwithstanding

anything to the contrary contained in this paragraph no broadcasts hereunder shall be made in Lansing, Michigan, on a day

when the Detroit Team is playing a Home Game without the prior

written permission of the Detroit Team. 
PROFESSIONAL FOOTBALL LEAGUE MERGER 243

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N'ATIONAL BROADCASTING COMPANY, INC.

RCA Building, Radio City, New York. N.Y. 10020

7.1131.

EX.

November 20, 1964

American Football League

609 Fifth Avenue

New York, New York

Attention: Mr. Joe Foss, Commissioner

Gentlemen:

This will confirm our agreement with you as follows:

1. Grant. You hereby grant to us (NBC) the exclusive

worldwide television rights, on behalf of the franchises in

the American Football League (AFL), to all the AFL Football

Games for the 1965-1969 seasons inclusive on all the terms

and conditions hereinafter set forth.

2. Regular Season. Your regular season schedule

will consist of Sunday afternoon games each week during the

regular season of fifteen (15) weeks commencing with approximately the second weekend in September and concluding on

approximately the third Weekend in December, together with

two Saturdays in December and one game on Thanksgiving Day,

all at times reasonably acceptable to us for telecast. No

League game shall be scheduled on any day other than as specified in the previous sentence except with the written consent

of NBC in each instance.

3. Other Games.

a. Season. In addition to the regular season games

as above stated, our rights shall include regular season

games scheduled (subject to NBC's written consent as above
PROFESSIONAL FOOTBALL LEAGUE MERGER 245

provided) on dates other than on Sunday afternoons and the

specific non-Sunday dates referred to in paragraph 2.

b. Pre-Season. Our rights shall also include preseason exhibition games. However, NBC will notify the

Commissioner in writing 30 days after receipt of schedule

or by June 1, 1964 whichever is later, as to any scheduled

pre-season games which it does not desire to telecast, and

as to each such game the television rights may be sold by

you or the participating teams to others for network or

regional or local telecast provided its sponsorship is not•

competitive toor incompatible with the network sponsorships

of the regular season games in such season and provided that

the network or regional sponsors of the.regular season games

in such season are afforded a reasonable prior opportunity

to sponsor the same.

C. Post-Season. Our rights shall not include the

Championship Games or the All-Star Games or conference playoff games, except that: (i) You and we will enter into

negotiations in good faith for the television rights to the

next succeeding Championship Game and All-Star Game

(separately or together) promptly on request prior to

January 31 of 1965 and successive years thereafter, provided

that nothing herein shall be deemed to prevent you and us

from making arrangements at one time for a number of successive years; and (ii) we shall have an exclusive option

on the rights to telecast any conference play-off game during
246 PROFESSIONAL FOOTBALL LEAGUE MERGER

the term for a rights payment of $100,000. for each such game,

such option to be exercised by us by written notice to you

to that effect within forty-eight (48) hours (2 business

days) after receipt by the NBC Vice President, Sports, of

written advice from the Commissioner on or after December 1

of the scheduling of such game. The other terms and conditions applicable to any such play-off game as to which we

exercise our option shall be the same as those api)licable

with respect to other games telecast hereunder.

4. Feed-Rack. Subject to line and facilities

availabilities, all Sunday games will be returned live by

television to the home markets of the visiting clubs.

5. Payment. As full payment for the rights granted,

NBC will pay the following amounts for the respective seasons:

1965 16,000,000

1966 6,400,000

1967 6,800,000

1968 r.,.200,000

1969 $7,600,000

plus an additional $1,000,000 per season for 1968 and for

1969 if the American Football Teague has been expanded to

at least ten teams in those years. Such payment each season

will be divided equally among the teams of the League. For

1965, the payment will be made in accordance with the

schedule attached. For subsequent years the payment will

be made in accordance with a schedule to be mutually agreed

upon,recognizing on the one hand the then current financial

needs of the particular clubs and on the other a reasonable
PROFESSIONAL FOOTBALL LEAGUE MERGER 247

security to NBC with regard to any advances called for.

6. Right to T2.rminate. In the event that during the

term hereof the number of teams in your League should fall

below eight (8), or disreputable elements should become

significantly associated with the ownership or management

of any of your teams, or there should be a material breach

of any of your obligations under this agreement, then upon

the happening of such event NBC shall have the right to

terminate this agreement upon written notice to you to that

effect. In the event that NBC should fail to make any payments due hereunder at the time agreed upon or in the event

it should become unable to continue to furnish a substantially

national network service or there should be a material breach

of any of our obligations under this agreement, then upon the

happening of such event AFL shall have the right to terminate

this agreement upon written notice to us to that effect. The

notice of termination shall specify the event of default

giving rise to the exercise of the right and shall be

effective thirty (30) days after the delivery of such notice,

provided, however, that if the default is cured by the

effective termination date, then such notice of termination

shall be of no force and effect and this agreement shall

continue in full force and effect. In the event a termination hereunder becomes effective as above provided, then in

such case all our obligations to each other shall cease

except for payment by us for any games telecast prior to the
248 PROFESSIONAL FOOTBALL LEAGUE MERGER

effective termination date and for reimbursement to us of any

amounts paid in advance with regard to games occurring after

the effective termination date.

7. Blackouts. We agree that no game will be telecast

in the city of its origin nor in any city where a regular

League game is being played on the date of such telecast

unless permission is granted by the home club. For the

purposes of this paragraph a station will be deemed to be

telecasting in a city if its transmitter is located in such

city or within 75 miles of the stadium where the game is

being played, provided, however, that the foregoing blackout

shall at the team's behest also be required of a station

located outside such radius if it regularly delivers into the

population center of such city a city-grade signal as normally

referred to by television engineers, but shall at NBC's behest

not be required of a station located within such radius if it

does not regularly deliver into the population center of such

city such a city-grade signal. In the event of a disagreement

as to the fact on this point, determination shall be made by

a mutually acceptable independent television engineer at the

expense of the objecting party. Without regard to the

foregoing, it is agreed that, when San Diego is playing at

home, we may televise on our Los Angeles station any game

played in the League other than the San...Diego home game; but

if the San Diego home game is the only available game for

telecast on that day, then we may televise it on our

Los Angeles station.
PROFESSIONAL FOOTBALL LEAGUE MERGER 249

8. Tickets. We shall have the right to purchase

up to 150 tickets for each game from the respective clubs at

the established prices therefor for seats located between

the two 20-yard lines for our sponsors and ourselves by

application submitted not later than fifteen (15) days before

the game is to be played.

9. Personnel. NBC shall select and pay announcers

and commentators, subject to the approval of the Commissioner

which approval will not be unreasonably withheld, and camera

crews and other personnel used in connection with the televising of the games.

10. Access. You agree that there will be made

available to us and the sponsors of each game suitable space,

as specified to you at the time of our advance technical

survey of the site, for the installation and operation of the

necessary microphones, television cameras and related equipment.

You will furnish the necessary electric power to operate such

equipment at existing supply outlets. We shall have the

right to install, maintain in and remove from each stadium

and the surrounding premises such wires, cables, and apparatus as may be necessary for the telecast of the game;

provided, however, that such facilities shall not substantially interfere with the use of the field or with any of

the means of ingress or egress of the stadium. NBC shall

have the right to bring into each stadium not more than

four mobile units for the transportation of equipment and
250 PROFESSIONAL FOOTBALL LEAGUE MERGER

personnel. Employees 'and agents of NBC and of the sponsors

shall be admitted to each stadium free of charge to the

extent necessary to accomplish the pickup and telecast of

each game and of the commercial announcements, and you will

provide us gratis with the necessary working press tickets

or other type passes for such purpose. You agree that we

may originate pre-game and post-game telecasts, including

commercial announcements, from the installations to be used

for the telecast of the games themselves.

11. Uniforms. You will assure that the competing

teams wear contrasting uniforms so as to be readily distinguishable by the home viewer on black-and-white television as well as on color television.

12. Music. You will cause a list of all musical

compositions to be played before, during and after the game

and during the intermissions to be submitted to us for

clearance at least five (5) days prior to the date of each

game. If we are unable to clear any musical composition or

compositions for performance, we will so notify you, and

such compositions as cannot be cleared will not be played.

13. Other Advertising. You will assure that the

clubs and the stadia cooperate with us with regard to billboards and displays and the use of the public address system

at each stadium so that no billboards or displays will be

visible in the normal visual coverage of the game and related

events and that no commercial announcements or mentions for
PROFESSIONAL FOOTBALL LEAGUE MERGER 251

any advertisers or products or services will be made over

such system except at intervals and at times agreed on in

advance with us so as to enable us to accomplish a quality

pickup without loss of significant visual or aural information.

14. Sponsors. We shall have the right to telecast

the games on an unsponsored basis or on a sponsored (including

co-sponsored, shared, participating or cooperative) basis, or

any combination thereof, and to select the sponsors and to

make appropriate commercial announcements in connection with

the telecasts, provided that they do not infer recommendation

or endorsement of the advertised products by you or the clubs

or the stadium or your representatives or the participants

in or others connected with the games except as authorized

by separate agreement with the entity or individual involved.

NBC will not accept advertisers the identification with which

the AFL reasonably believes will be detrimental to professional

football or to the AFL as advised to NBC from time to time.

Recognizing that it is in the common interest of the AFL,

NBC and the sponsors to realize the most efficient promotion

of AFL football, NBC will require the sponsors in their

advertising on the telecasts to avoid utilization of football

players or football motifs which would be representative of

teams or players in professional football other than those

of the AFL, subject to accommodation if insistence upon such

a provision would jeopardize NBC's obtaining as a sponsor
252 PROFESSIONAL FOOTBALL LEAGUE MERGER

for the AFL games an advertiser which has a substantial

advertising commitment in such other area.

15. Name and Likeness. We, our sponsors, their

advertising representatives and the stations carrying the

telecasts of the games will have the right to make appropriate

reference (including without limitation Use of pictures) to

you, the clubs, the stadia, the games, and the participants

in and others identified with the games in promotional and

advertising material with respect to the games and the

telecasting thereof, provided likewise that the same does not

constitute endorsement of a commercial product and provided

that such references do not reflect unfavorably or have a

detrimental effect on the AFL or professional football.

16. Tape, etc. ,We shall have the right to make

television recordings (by kinescope, tape or any other

process) of our pickup of the games and to utilize the same

on a delayed basis within ninety (90) days after the live

telecast over stations in the United States and Canada, subject to the restrictions referred to in paragraph 7, which are

unable to carry the live telecasts and stations elsewhere in

the world and to utilize the same in whole or in part for

repeat or condensed or (together with material recorded or

filmed by us or furnished to us by you or your teams or

acquired by us from others) highlight programs within the

term of this agreement. Our rights to such recorded material

and to the television usage of the same shall be exclusive
PROFESSIONAL FOOTBALL LEAGUE MERGER 253

for the term hereof except as follows:

a. Newsreel. You may make available to others

the right to make newsreel films of the various

portions of the games and to utilize the same for

telecast following the conclusion of the games

on regular news and sporting news programs,

provided that such use is limited in each program

in the aggregate to not more than 15% of the

program or four and one-half (4-1/2) minutes,

whichever is less. You and the clubs will

endeavor to assure that no other direct or indirect television pickup of the game or any

part thereof does take place, except for such

newsreel coverage and except for purposes

authorized under the provisions of paragraph 18.

b. Highlights Program. If NBC elects not to

program a weekly highlights package of AFL

games for any season, we will so notify the

Commissioner in writing on or before May 1

preceding such season, specifying in such

notification the- network sponsorships we

have for the forthcoming seasonls games, and

in such event, you or your teams.if you so

elect will have the right to license the

telecasting of such a package provided that it

will not be telecast in conflict with any

football. telecasts on NBC and its sponsorship

will not be competitive to nor incompatible

with the network sponsorships of the regular

season games referred to in such notification.

In recognition of its rights hereunder, NBC shall

be entitled to 10% of the program package price

received (or the composite of the program package

prices if licensed regionally or locally or by

the respective teams) plus its normal charges

for materials and services supplied therefor

together with appropriate indemnification

against supplemental payments to talent and

against unauthorized uses.

You hereby grant to us, without additional fee, such newsreel rights and the right to use portions of our recordings

and films of the games on our regularly scheduled news and

sporting news programs and highlights programs (if carried

by us), in documentary programs featuring football and any

70-605 0 - 66 - 17
254 PROFESSIONAL FOOTBALL LEAGUE MERGER

promotional programs during the term of this agreement

or any renewal hereof. We will upon your request and at

your expense also furnish to you and/or the clubs of

your League, upon signature of NBCts standard loan receipt

form, copies of the tapes or recordings made by us of

any games on the condition that they shall be used by you

and the clubs only for reference, file, audition or promotional purposes without admission charge and not for

broadcast use.

17. Rights and Indemnity. You represent and

warrant that you have the right to enter into this agreement

in accordance with the constitution and by-laws of the

American Football League, and that our rights include the

right to telecast any events and stunts taking place in

the stadia before, during and after the games and during

the intermissions. You will at your own expense, defend

and hold harmless us, our sponsors and their advertising

agencies and their and our officers, directors, agents

and employees with regard to any litigation instituted

against us or any of them caused by or arising out of a

breach of the foregoing warranty or the telecast of any

part of the games or of such events and stunts. We will

at our expense defend and indemnify you, the respective

clubs and teams in your League and their officers,

directors, agents, and employees with regard to any

litigation instituted against you or. any of them caused
PROFESSIONAL FOOTBALL LEAGUE MERGER 255

by or arising out df any breach of this agreement by us

or the telecast of any matters other than the game or

such scheduled events or stunts.

18. Closed Circuit Television. Rights for pay,

subscription or toll television in the home or in the

theatre or other arena are not included hereunder, but the

parties agree that the granting of any thereof would be

in_derogatrion-of, rights granted hereunder.VUtwithstanding the foregoing, any club may arrange for theatre

te_levision„Dx_esentAtlorn_Ap_hANA. egpmunit.y. of (a) any

regular season game in which it participates played with

NBC's written consent as provided in paragraph 2 at a time

other than one of those specified in the first sentence

of paragraph 2, and (b) any exhibition game which NBC has

elected not to telecast as referred to in paragraph 3 b.

Furthermore, rights for theatre television presentation

in its home community may be granted by a club for any

game being telecast by NBC hereunder from its home stadium

provided that the club agrees to pay to NBC an amount

equal to 25% of the net proceeds to the club (or participating clubs) derived therefrom but not less than $2,000

for each such game; if for this purpose the club desires

our network video and/or audio feed of the game, we agree

to cooperate in making the same available on a reasonable

basis, but, if a separate pickup of either or both elements

is utilized, it shall not be allowed to interfere as to
256 PROFESSIONAL FOOTBALL LEAGUE MERGER

space, access, view or sound with our normal pick-up

space, installation and operation. The provisions of

this paragraph will be open for renegotiation in whole

or in part following the conclusion of the 1966 season

or of any subsequent season upon the written request of

either party delivered to the other within two weeks

following the playing of the Championship Game for that

season; upon the making and receipt of such request, you

and we will negotiate promptly and in good faith a

revision, to be effective prospectively, of such provisions

in the light of your and our respective reasonable desires

as of that time.

19. Impossibility. If the holding or televising

of any game is prevented or hindered in whole or in part

by a labor dispute, preemption for an event of outstanding

public importance, or any cause beyond the control of

either party, appropriate adjustment on a pro rata basis

will be made in the total payable by NBC hereunder for the

year involved and any excess payment will be refunded or

credited against the obligation for the same or ensuing

year. For the purpose of the foregoing sentence, an

event of outstanding public importance shall be one of

demonstrable national or international significarpe„ as

for example one which at least one of the two other

national networks deems of sufficient consequence to be

telecast on,a live basis during the scheduled broadcast
PROFESSIONAL FOOTBALL LEAGUE MERGER 257

time of a game hereunder in lieu of its regularly scheduled

programming. If a game, the holding or televising of which

is prevented as above provided, is rescheduled on a

Saturday or Sunday afternoon following the originally

scheduled conclusion of the AFL football season, NBC will

endeavor to telecast the same in lieu of the affected game;

if NBC is successful in doing so, the adjustment referred

to in the first sentence of this paragraph 19 will be

eliminated completely if such telecast is fully sponsored,

or if such telecast is not fully sponsored, will be abated

in proportion to the sponsorship that NBC obtains.

20. Equitable Relief. You agree that the rights

granted hereunder are unique and extraordinary and cannot

be replaced, and in addition to any other rights we may

have we shall be entitled to equitable relief against any

material breach by you or any of the clubs or teams in

your League of any of the terms and conditions hereof.

21. Pay or Play. Any provisions herein to the

contrary notwithstanding, we shall not be required to

telecast any of the games and may discharge all of our

obligations to you by paying the applicable amounts payable

to you hereunder. We shall notify you promptly of any

intention on our part to exercise this right, and any

omissions of substantially nationwide telecasting on

Sunday afternoons or specific non-Sunday dates referred to

in paragraph 2 for two or more weeks in a given season
258 PROFESSIONAL FOOTBALL LEAGUE MERGER

shall entitle you to contract for television exposure elsewhere for any or all such omissions.

22. Prior Negotiations. NBC shall have prior

negotiation rights for the American Football League Football

Games for the season or seasons immediately succeeding the

term of this agreement. Such rights shall mean that you

will negotiate initially solely with us therefor prior to

last regularly scheduled game of the 1969 season. If you and

we cannot agree, you shall be free to enter into arrangements

with others therefor on such terms and conditions as you may

elect, provided, however, that before you offer to others

(or accept from them) a price lower than your best offer to

us by one-half or more of the difference between your best

offer to us and our best offer to you, or other material

terms and conditions substantially less favorable to you,

than those which you offered to us, you will first offer

the same to us and we shall have seven (7) days in which

to accept or reject such offer.

23. General. All notices hereunder shall be by

certified or registered mail or by telegram or by personal

delivery and shall be addressed to the parties at their

addresses herein contained to the attention of the respective executive indicated by title. This agreement shall be

interpreted under the laws of the State of New York,

excluding all principles of referral to laws of other

jurisdictions which might otherwise be applicable under
PROFESSIONAL FOOTBALL LEAGUE MERGER 259

doctrines of conflicts of laws. Except as herein otherwise

specifically provided, this agreement constitutes the

entire agreement between the parties relating to the

subject-matter hereof and may not be changed, modified,

renewed, extended or discharged except by an agreement in

writing signed by the party against whom such change,

modification, renewal, extension or discharge is sought.

Please confinm your acceptance hereof by executing

the enclosed copy of this letter at the space provided

below.

Very truly yours,

NATIONAL BROADCASTING COMPANY, INC.

By /s/ Carl Lindemann, Jr.

Carl Lindemann, Jr.

Vice President, Sports

AGREED:

AMERICAN FOOTBALL LEAGUE

By /s/ Joe Foss

Joe Foss, Commissioner
260 PROFESSIONAL FOOTBALL LEAGUE MERGER

Mr. CRAMER. Mr. Chairman, may I ask the question, we got the

language proposed by the committee staff. Does the league have language it has proposed as alternative language to accomplish what they

think is the same objective?

Mr. RODINO. Will the gentleman yield?

Mr. CRAMER. Yes.

Mr. RODIN°. Mr. Chairman, might I direct a question to both the

attorney, Mr. Carothers, and our committee counsel?

I am wondering, in the hope of trying to get something which may

look like we are going in a direction where we might do something

effectively here, would language such as this provided, however, as a

new section, that any practices of the expanded league which are subject to antitrust laws will continue to remain subject to the antitrust

laws and available defenses thereto as the practices of a single league?,

Now, my opinion is this would not give them any more antitrust

immunity than they would have now under a single league.

(Mr. Rodino's amendment is as follows:)

OCTOBER 13, 1966.

RODIN° AMENDMENT

P. 2, line 19, change the period to a comma and add the following:

"Provided, however, That any practice or practices of the expanded league

resulting from any joint agreement and which are subject to the antitrust laws

will continue to remain subject to the antitrust laws, and available defenses

thereto, as the practice or practices of a single league."

Mr. CAROTHERS. That language has been included among the many

specific proposals we have made to the committee counsel.

Mr. RODIN°. How about committee counsel?

Mr. HARKINS. The reason this language is unacceptable to committee counsel is because the preceding part of the statute which it amends

is a blank check as far as the nature of the agreement that is being

given antitrust immunity.

Mr. RODINO. Wait a minute.

Mr. ROGERS. May I interrupt? At this point we—the agreement

itself—there is no immunity given to the agreement.

The CHAIRMAN. The agreement is referred to by reference and is

made part of this bill, S. 3817. The Senate bill provides that the antitrust laws shall not apply to an agreement. That is the difficulty. .

Mr. CRAMER. Would the gentleman yield?

The amended language of the Senate version is "to a joint agreement." That means the one before us, but only as the provisions are

directly relevant to making out of two leagues one league.

And then you have the further proviso, as suggested, that any practices of the expanded league will continue to remain subject to the antitrust laws and available to the defenses thereto as a practice of a single

league, which means, as I understand it, that any action taken other

than the actual combination of the two leagues still is subject to antitrust laws against that single league, even though it is contained in the

agreement, be it pay television or anythingglse.

Now, that is a point that I think has to be hammered home that the

counsel is muddying the water on. I am not muddying the water I

am trying to clear the water and reading all the clauses that would be

specifically under this proviso subject to the antitrust laws appears to

me to be muddying the water, because they are willing to say that any-
PROFESSIONAL FOOTBALL LEAGUE MERGER 261

thing that results from the agreement can be sued upon under the

antitrust laws against the league "as a single league."

Mr. HARKINS. Mr. Chairman, may counsel answer that?

The CHAIRMAN. Yes.

Mr, CRAMER. Counsel is writing the legislation.

Mr. HARKINS. Counsel's function here, as I understand it, is to

point out to the committee the extent of the antitrust immunity that is

proposed to be granted in the bill under consideration.

Mr. Carothers and I went through an exercise last session that I

would like to repeat for your benefit.

Mr. Carothers, are you familiar with S. 3817, do you have a copy

before you?

Mr. CAROTHERS. Yes.

Mr. HARKINS. Will you note on page 1, line 7, it says:

That the antitrust laws, as defined in section 1 of the Act of October 15, 1914,

as amended (38 Stat. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply—

Skipping to line 11 on page 2—

to a joint agreement by which the member clubs of two or more professional

football leagues combine their operations in an expanded single league, if such

agreement increases rather than decreases the number of professional football

clubs so operating, and the provisions of which are directly relevant thereto.

The question I asked: Is this document that you have submitted to

the committee entitled "Recapitulation of Basic Terms Agreed to by

the Member Clubs of the National Football League and the American

Football League," together with the special terms that are also attached to that document, is that the joint agreement referred to in the

bill?

Mr. CAROTHERS. Yes, it is.

Mr. HARKINS. We will now go to one of the provisions in the

agreement.

Mr. CAROTHERS. May I make one comment? In the first place, I

don't think any of the provisions of that agreement have any antitrust

significance except as phases of the combination of the two leagues.

In the second place, if any of those provisions of the agreement are

in any way vulnerable under the antitrust laws, they are so solely because they produce conduct by the single league, and we are preserving

all rights of action against any practice of the single league.

Mr. ROGERS. And are willing to have it placed in this legislation if

there is any question about it?

The CHAIRMAN. Isn't this agreement the agreement referred to in

the bill passed by the Senate, S. 3817 ? This agreement which you

call a joint agreement, or a joint understanding?

Mr. CAROTHERS. Yes, Mr. Chairman.

The CHAIRMAN. You referred to this and it covers something like

20 pages of all sorts of provisions with which most of the members of

this committee are not yet familiar, and I am not completely familiar

with either, or with the imports of many of the provisions, so that in

a certain sense we are buying a pig in a poke.

In addition thereto you say, or Mr. Rozelle says, that this is not a

final agreement. This document is only tentative, that you may want

to finalize this because it was agreed that this was not binding. The
262 PROFESSIONAL FOOTBALL LEAGUE MERGER

testimony at the last occasion when Mr. Rozelle appeared was that it

was not even binding on the members. So there will be another

agreement following this agreement which is referred to in the language that Mr. Harkins just read.

How in the world can we intelligently legislate unless we know

exactly what this agreement contains and the import of all the phraseology of that agreement. That is what we are getting after this morning and trying to find out.

I don't want to appear hostile in this situation. I want to know the

facts before I act. I am not going to buy a package here without knowing what is in the package. I am going to unwrap the package and

see what is inside that package. That is the purpose of this inquiry

and there is a lot of opposition, apparently, to our doing this and I

don't see why there should be the opposition. It does not necessarily

mean that I am already opposing you; I am not opposing you, I want

to know whither I am going and whither the committee is going.

That is the gist of these hearings, to find out what we are supposed

to do when we pass this legislation. Unfortunately there were no hearings in the Senate. There was no debate in the Senate; we are utterly

in the dark. It is like a blind man looking for a black cat in a dark

room. That is what this is. I want to find out before I at least put

the imprimatur of approval on this matter.

Go ahead, Mr. Harkins.

Mr. ROGERS. Mr. Chairman, would counsel respond and tell whether

as to this joint agreement referred to on page 2, line 11, which the

chairman has referred to here, you interpret that if this bill was

approved, all the things that are now set forth in this agreement, plus

any other agreement that you may have in the future, would free you

from antitrust liability?

Mr. CAROTHERS. No, sir. If that agreement is objectionable in any

fashion, and I cannot see where it is, it would still be objectionable

solely because it would produce a practice by the single league and we

are preserving all cases of action in that respect.

Secondly, the exemption we are seeking is solely from the antitrust

laws. We are not seeking any statutory approval of every element of

league operations.

Pay TV is not an antitrust problem.

Mr. HARKINS. Conspiracy to restrain pay TV is an antitrust problem, and monopoly of pay TV is an antitrust problem, isn't it?

Mr. CAROTHERS. And as a practice of the single league, it would

remain entirely open to challenge.

Mr. HARKINS. And once you have a merger, would you not have a

monopoly of professional football?

The CHAIRMAN. Proceed, Mr. Harkins.

Mr. HARKINS. The Basic Terms Agreement, just to nail down that

this provision is open-ended, section 4(c), with regards to a joint committee provides:

A joint committee will be established and the members thereof will be appointed by each league with Commissioner Rozelle as Chairman. The purpose

of this committee will be:

(1) to develop the mechanics and establish the principles under which the

plan will be implemented;

This presumes further actions, does it not?
PROFESSIONAL FOOTBALL LEAGUE MERGER 263

Mr. ROZELLE. Mr. Harkins, this is a rather major step, bringing

together 26 or attempting to bring together 26 or perhaps 28 football

teams. As an example of one of the major steps that must be taken,

and I am sure this will not be completed until 1969, we must realine

the teams into conferences and divisions. This cannot be done now.

We are going to need the whole 3 years to determine the best way to

do this.

In other words, there are necessarily things that are left open. Now,

inasmuch as we do not have a signed agreement, as you indicated the

other day, perhaps you can say it is not binding. We feel it is binding.

We have given our words one to another.

Now if you wish to check the legality, it is not signed.

Mr. HARKINS. I am not worried about whether it is binding. I am

worried about whether we have an agreement. My point is, you don't

have an agreement because you have a number of things to do in the

future, including agreements to resolve inconsistencies between the

NFL and AFL constitutions and bylaws with the objective of achieving a common constitution and bylaws at the earliest possible date.

The bylaws of the National Football League covers waivers, it

covers player selection system, it covers TV, it covers many, many operations, including the function of the office of commissioner of football to determine conduct that is detrimental to football.

All of this is subject to further action; there is no agreement on

these at this time.

Mr. RODINO. Mr. Chairman, however, if that action that was contemplated would violate the antitrust laws, I do not believe that if we

granted them this exemption with a proviso such as we have indicated

that we would be granting them an exemption or any immunity from

that possible violation. I don't see what that problem 

The CHAIRMAN. I think we differ on that, Mr. Rodino. I think we

do and that is where the rub is.

RODINO. If there is going to be a violation, they are going to be

subject to it if it ensues as a result of the coming together of this

league, and this is the way the language should be written.

The CHAIRMAN. Because the bill exempts this agreement, and its

contents—

Mr. RODIN°. If we wrote a proviso to that effect, Mr. Chairman, that

any practices or actions ensuing from that particular joint agreement

would be subject or would remain subject to antitrust laws, I don't see

how they could run away from it.

The CHAIRMAN. Do you think they could draft something like that

in an open committee; that must be done by conference. That is what

we are trying to do.

Mr. ROGERS. Mr. Chairman

'

the joint agreement and what counsel

has been reading from, I think we should fundamentally agree that we

are not granting any exemption from antitrust laws to this agreement.

The only thing that we are—and you can read it on line 11, through a,

joint agreement by which the member clubs of two or more professional leagues combine their operations as a single, as an expanded

single league if it increases rather than decreases the number of

professional 

The CHAIRMAN. Unfortunately we have the Senate bill before us

which contains that language and it does exempt in my estimation the

provisions of this so-called joint agreement.
264 PROFESSIONAL FOOTBALL LEAGUE MERGER

Also, any agreement that may flow from it, because it speaks of other

agreements to be entered into. That is where the rub is. Let's find out

what this agreement is, and what its import is and that is what we are

trying to get at now.

Mr. ROZELLE. Mr. Chairman, if we concede

Mr. DONOHUE. Mr. Chairman?

The CHAIRMAN. Mr. Donohue.

Mr. DoNontrE. Would it not be enlightening to all the members of

the committee if counsel defined or told us the contents of section 1 of

the antitrust laws and also the Federal Trade Commission Act. What

are the provisions of both of those?

Mr. HARKINS. Section 1 of the Sherman Act prohibits contracts,

combinations and conspiracies in restraint of trade; and section 2 of

the Sherman Act prohibits the act of monopolizing or monopolization

of trade.

Section 3 applies the same restrictions to actions in the District of

Columbia.

Mr. DONOHUE. But it refers in the bill, S. 3817, just, to section 1.

Mr. HARKINS. The bill, S. 3817, refers to the television act that was

passed in the 87th Congress, Public Law 87-331. That was an act to

permit the blackout of territories of the member clubs of leagues that

made contracts with the television broadcasting chains, and section 1

of that act says:

That the antitrust laws, as defined in section 1 of the Act of October 15, 1914.

as amended (38 State. 730), or in the Federal Trade Commission Act, as amended

(38 Stat. 717), shall not apply to any joint agreement by or among persons

engaging in or conducting the organized professional team sports of football,

baseball, basketball, or hockey, by which any league of clubs participating in

professional football, baseball, basketball, or hockey contests sells or otherwise

transfers all or any part of the rights of such league's member clubs in the sponsored telecasting of the games of the football, baseball, basketball, or hockey, as

the case may be, engaged in or conducted by such clubs.

Section 2 provides that:

Section 1 of this Act shall not apply to any joint agreement described in section

1 of this Act which prohibits any person to whom such rights are sold or transferred from televising any games within- any area, except within the home

territory of a member club of the league on a day when such club is playing a

game at home.

Section 3 provides for the blackout of colleges. That is when college teams are playing on Saturday.

The section 1 referred to in the bill, S. 3817, would amend the Telecasting of Professional Sports Contests Act to grant an exemption

from the antitrust laws to what is set forth here in subsection (b) on

page 2 of S. 3817, and also amends section 3 as far as it applies to the

blackout provisions.

Mr. DONOHUE. What about the Federal Trade Commission Act?

Mr. HARKINS. The Federal Trade Commission Act is included in

the exemption. The antitrust prohibitions of the Federal Trade Commission Act are section 5, which prohibits unfair acts in commerce:

Unfair methods of competition in commerce, and unfair or deceptive acts or

practices in commerce, are hereby declared to be unlawful.

That is one of the operating sections in the Federal Trade Commission Act with the most direct import in this legislation.

Mr. DorroxtrE. Any unlawful acts?
PROFESSIONAL FOOTBALL LEAGUE MERGER 265

Mr. HARKINS. The FTC Act Section 5. says: "Unfair methods of

competition in commerce, and unfair or deceptive acts or practices in

commerce, are hereby declared unlawful."

So it is unfair acts of competition in commerce which are declared

unlawful in the Federal Trade Commission Act.

Mr. DONOHUE. Do I understand correctly that they are seeking to

be exempt from unlawful practices?

Mr. HARKINS. Yes, sir.

Mr. RODIN°. I am sorry, at that point might I ask that question: Is

that what you are seeking, to be exempt from unlawful practices?

Mr. DONOHUE. That is the way the bill reads.

Mr. CAROTHERS. We are seeking to have the acts of combining these

two leagues exempted from section 1, section 2, section 3, section 7, and

section 5 of the Federal Trade Commission Act.

That is the same pattern that was followed in the 1961 statute when

we had our joint television practice exempted from antitrust laws.

The CHAIRMAN. Proceed, Mr. Harkins.

Mr. KASTENMEIER. Mr. Chairman, the House is now in session.

This subcommittee does not have permission to sit. Accordingly, I

make the point of order against further proceedings.

The CHAIRMAN. The point of order is well taken. Could the gentleman withhold until we finish with Mr. Rozelle, if possible, within

the next few minutes?

Mr. ICASTENMEIER. Mr. Chairman, I had a number of questions of

Mr. Rozelle, as had also other members of the committee. I hoped to

hear our counsel develop fully a dialog with the witnesses, but there

has been constant interruptions by other members of the committee,

and apparently I am not going to reach my questions with Mr. Rozelle

and I persist in my point of order.

The CHAIRMAN. The Chair has nothing to do but to adjourn the

meeting.

I cannot set the particular date, but will you hold yourself in readiness Mr. Rozelle? We are trying to set the date as expeditiously as

possible. We are meeting Friday morning on another matter. I will

try to accommodate you as best I can, so will you hold yourself

available?

Mr. ROZELLE. I will be available, Mr. Chairman.

The CHAIRMAN. We will now adjourn.

(Whereupon, at 11:10 a.m., the subcommittee adjourned, to reconvene at the call of the Chair.)

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