II

104TH CONGRESS

2D SESSION S. 1625

To provide for the fair consideration of professional sports franchise

relocations, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 19, 1996

Mr. SPECTER introduced the following bill; which was read twice and referred

to the Committee on the Judiciary

A BILL

To provide for the fair consideration of professional sports

franchise relocations, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Professional Sports

5 Franchise Relocation Act of 1996’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) professional sports teams foster a strong

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

2 of civic pride for their supporters;

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

5 entertainment for the cities and regions in which

6 they are located;

7 (3) in many communities, there are significant

8 public investments associated with professional

9 sports facilities;

10 (4) it is in the public interest to encourage pro11 fessional sports leagues to operate under policies

12 that promote stability among their member teams

13 and to promote the equitable resolution of disputes

14 arising from the proposed relocation of professional

15 sports teams; and

16 (5) professional sports teams travel in inter17 state commerce to compete, and utilize materials

18 shipped in interstate commerce, and professional

19 sports games are broadcast nationally.

20 SEC. 3. DEFINITIONS.

21 As used in this Act—

22 (1) the term ‘‘antitrust laws’’ shall have the

23 meaning given to such term in the first section of

24 the Clayton Act (15 U.S.C. 12) and in the Federal

25 Trade Commission Act (15 U.S.C. 41 et seq.);
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1 (2) the term ‘‘home territory’’ means the geo2 graphic area within which a member team operates

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

4 in the governing agreement or agreements of the rel5 evant league on July 1, 1995, or upon the com6 mencement of operations of any league after such

7 date;

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

9 (A) any local government that has provided

10 financial assistance, including tax abatement, to

11 the facilities in which the team plays;

12 (B) a representative of the local govern13 ment for the locality in which a member team’s

14 stadium or arena is located;

15 (C) a member team;

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

17 arena of a member team; and

18 (E) any other affected party, as designated

19 by the relevant league;

20 (4) the term ‘‘local government’’ means a city,

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

22 general governmental unit established under State

23 law;

24 (5) the terms ‘‘member team’’ and ‘‘team’’

25 mean any team of professional athletes—
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1 (A) organized to play major league foot2 ball, basketball, or hockey; and

3 (B) that is a member of a professional

4 sports league;

5 (6) the term ‘‘person’’ means any individual,

6 partnership, corporation, or unincorporated associa7 tion, any combination or association thereof, or any

8 political subdivision;

9 (7) the terms ‘‘professional sports league’’ and

10 ‘‘league’’ mean an association that—

11 (A) is composed of 2 or more member

12 teams;

13 (B) regulates the contests and exhibitions

14 of its member teams; and

15 (C) has been engaged in competition in a

16 particular sport for more than 7 years; and

17 (8) the terms ‘‘stadium’’ and ‘‘arena’’ mean the

18 principal facility within which a member team plays

19 the majority of its home games.

20 SEC. 4. ACTIONS AUTHORIZED.

21 The antitrust laws shall not apply to a professional

22 sports league’s enforcement or application of a rule au23 thorizing the membership of the league to decide whether

24 or not a member team of such league may be relocated.
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1 SEC. 5. PROCEDURAL REQUIREMENTS.

2 (a) NOTICE.—

3 (1) IN GENERAL.—Any person seeking to

4 change the home territory of a member team shall

5 furnish notice of such proposed change not later

6 than 210 days before the commencement of the sea7 son in which the member team is to play in such

8 other location.

9 (2) REQUIREMENTS.—The notice shall—

10 (A) be in writing and delivered in person

11 or by certified mail to all interested parties;

12 (B) be made available to the news media;

13 (C) be published in one or more news14 papers of general circulation within the member

15 team’s home territory; and

16 (D) contain—

17 (i) an identification of the proposed

18 new location of such member team;

19 (ii) a summary of the reasons for the

20 change in home territory based on the cri21 teria listed in subsection (b)(2); and

22 (iii) the date on which the proposed

23 change would become effective.

24 (b) PROCEDURES.—

25 (1) ESTABLISHMENT.—Prior to making a deci26 sion to approve or disapprove the relocation of a
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1 member team, a professional sports league shall es2 tablish applicable rules and procedures, including

3 criteria and factors to be considered by the league

4 in making decisions, which shall be available upon

5 request to any interested party.

6 (2) CRITERIA TO BE CONSIDERED.—The cri7 teria and factors to be considered shall include—

8 (A) the extent to which fan loyalty to and

9 support for the team has been demonstrated

10 during the team’s tenure in the community;

11 (B) the degree to which the team has en12 gaged in good faith negotiations with appro13 priate persons concerning terms and conditions

14 under which the team would continue to play its

15 games in the community or elsewhere within its

16 home territory;

17 (C) the degree to which the ownership or

18 management of the team has contributed to any

19 circumstance that might demonstrate the need

20 for the relocation;

21 (D) the extent to which the team, directly

22 or indirectly, received public financial support

23 by means of any publicly financed playing facil24 ity, special tax treatment, or any other form of

25 public financial support;
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1 (E) the adequacy of the stadium or arena

2 in which the team played its home games in the

3 previous season, and the willingness of the sta4 dium, arena authority, or local government to

5 remedy any deficiencies in the facility;

6 (F) whether the team has incurred net op7 erating losses, exclusive of depreciation or am8 ortization, sufficient to threaten the continued

9 financial viability of the team;

10 (G) whether any other team in the league

11 is located in the community in which the team

12 is located;

13 (H) whether the team proposes to relocate

14 to a community in which no other team in the

15 league is located;

16 (I) whether the stadium authority, if pub17 lic, is opposed to the relocation; and

18 (J) any other criteria considered appro19 priate by the professional sports league.

20 (c) HEARINGS.—In making a determination with re21 spect to the location of such member team’s home terri22 tory, the professional sports league shall conduct a hearing

23 at which interested parties shall be afforded an oppor24 tunity to submit written testimony and exhibits. The

25 league shall keep a record of all such proceedings.
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1 SEC. 6. JUDICIAL REVIEW.

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

3 sports league to approve or disapprove the relocation of

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

5 by an interested party subject to the limitations set forth

6 in this section.

7 (b) VENUE.—

8 (1) IN GENERAL.—Subject to paragraph (2), an

9 action under this section may be brought only in the

10 United States District Court for the District of Co11 lumbia.

12 (2) EXCEPTION.—If the home territory of the

13 member club or the proposed new home territory of

14 the member club is within 50 miles of the District

15 of Columbia, an action under this section may be

16 brought only in the United States District Court for

17 the Southern District of New York.

18 (c) TIME.—An action under this section shall be

19 brought not later than 14 days after the formal vote of

20 the league approving or disapproving the proposed reloca21 tion.

22 (d) STANDARD OF REVIEW.—Judicial review of a de23 cision by a professional sports league to permit or not to

24 permit the relocation of a member team shall be conducted

25 on an expedited basis, and shall be limited to—
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1 (1) determining whether the league complied

2 with the procedural requirements of section 5; and

3 (2) determining whether, in light of the criteria

4 and factors to be considered, the league’s decision

5 was arbitrary or capricious.

6 (e) REMAND.—If the reviewing court determines that

7 the league failed to comply with the procedural require8 ments of section 5 or reached an arbitrary and capricious

9 decision, it shall remand the matter for further consider10 ation by the league. The reviewing court may grant no

11 relief other than enjoining or approving enforcement of the

12 league decision.

13 SEC. 7. MISCELLANEOUS.

14 (a) PAYMENT OF DEBTS.—

15 (1) IN GENERAL.—Any team permitted by a

16 professional sports league to relocate its franchise to

17 a different home territory from a publicly owned fa18 cility that remains subject to debt for construction

19 or improvements shall pay to the facility owner, on

20 a current basis until the retirement of that debt, its

21 proportionate share, based upon dates of facility

22 usage during the 12 months prior to the notice of

23 the team’s intent to relocate, of the existing debt

24 service on such obligations.
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1 (2) EFFECT ON EXISTING RIGHTS.—This sub2 section shall not affect a stadium authority’s rights,

3 if any, to seek specific enforcement of its lease or a

4 club’s rights, if any, to seek a judicial determination

5 that its lease has been breached.

6 (b) COMPETITION.—Any community from which a

7 professional sports league franchise relocates under this

8 Act shall receive 180 days’ prior notice of any league deci9 sion to expand and an opportunity to compete for such

10 an expansion franchise on grounds no less favorable than

11 those afforded to other communities.

12 SEC. 8. EFFECTIVE DATE.

13 This Act shall apply to any league action addressing

14 relocation of the home territory of a member team that

15 occurs on or after June 1, 1995, and to any lawsuit ad16 dressing such league action filed after June 1, 1995.

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