Union Calendar No. 259

106TH CONGRESS

1ST SESSION H. R. 1832

[Report No. 106–449, Part I]

A BILL

To reform unfair and anticompetitive practices in

the professional boxing industry.

NOVEMBER 4, 1999

Reported from the Committee on Commerce with an

amendment

NOVEMBER 4, 1999

Referred to the Committee on Education and the Workforce extended for a period ending not later than November 4, 1999

NOVEMBER 4, 1999

The Committee on Education and the Workforce discharged; referred to the Committee of the Whole

House on the State of the Union and ordered to beprinted
IB

Union Calendar No. 259

106TH CONGRESS

1ST SESSION H. R. 1832

[Report No. 106–449, Part I]

To reform unfair and anticompetitive practices in the professional boxing

industry.

IN THE HOUSE OF REPRESENTATIVES

MAY 17, 1999

Mr. OXLEY (for himself, Mr. ENGEL, Mr. MEEKS of New York, and Mr.

KING) introduced the following bill; which was referred to the Committee

on Commerce, and in addition to the Committee on Education and the

Workforce, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

NOVEMBER 4, 1999

Additional sponsors: Mr. MORAN of Virginia, Mr. SANDLIN, Ms. MCKINNEY,

Mr. MARTINEZ, Mr. HALL of Texas, Mr. SMITH of New Jersey, Mr.

TRAFICANT, Mrs. CLAYTON, Mr. PALLONE, Mr. GILLMOR, Mr. STEARNS,

Mr. UPTON, and Mr. ABERCROMBIE

Deleted sponsor: Mr. MEEK of New York (added May 17, 1999; deleted

November 3, 1999)

NOVEMBER 4, 1999

Reported from the Committee on Commerce with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

NOVEMBER 4, 1999

Referral to the Committee on Education and the Workforce extended for a

period ending not later than November 4, 1999

NOVEMBER 4, 1999

The Committee on Education and the Workforce discharged; referred to the

Committee of the Whole House on the State of the Union and ordered

to be printed
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[For text of introduced bill, see copy of bill as introduced on May 17, 1999]

A BILL

To reform unfair and anticompetitive practices in the

professional boxing industry.

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 ‘‘Muhammad Ali Boxing

5 Reform Act’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) Professional boxing differs from other major,

9 interstate professional sports industries in the United

10 States in that it operates without any private sector

11 association, league, or centralized industry organiza12 tion to establish uniform and appropriate business

13 practices and ethical standards. This has led to re14 peated occurrences of disreputable and coercive busi15 ness practices in the boxing industry, to the detriment

16 of professional boxers nationwide.

17 (2) State officials are the proper regulators of

18 professional boxing events, and must protect the wel19 fare of professional boxers and serve the public inter20 est by closely supervising boxing activity in their ju-
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1 risdiction. State boxing commissions do not currently

2 receive adequate information to determine whether

3 boxers competing in their jurisdiction are being sub4 jected to contract terms and business practices which

5 may violate State regulations, or are onerous and

6 confiscatory.

7 (3) Promoters who engage in illegal, coercive, or

8 unethical business practices can take advantage of the

9 lack of equitable business standards in the sport by

10 holding boxing events in States with weaker regu11 latory oversight.

12 (4) The sanctioning organizations which have

13 proliferated in the boxing industry have not estab14 lished credible and objective criteria to rate profes15 sional boxers, and operate with virtually no industry

16 or public oversight. Their ratings are susceptible to

17 manipulation, have deprived boxers of fair opportuni18 ties for advancement, and have undermined public

19 confidence in the integrity of the sport.

20 (5) Open competition in the professional boxing

21 industry has been significantly interfered with by re22 strictive and anticompetitive business practices of cer23 tain promoters and sanctioning bodies, to the det24 riment of the athletes and the ticket-buying public.

25 Common practices of promoters and sanctioning orga-
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1 nizations represent restraints of interstate trade in

2 the United States.

3 (6) It is necessary and appropriate to establish

4 national contracting reforms to protect professional

5 boxers and prevent exploitive business practices, and

6 to require enhanced financial disclosures to State ath7 letic commissions to improve the public oversight of

8 the sport.

9 SEC. 3. PURPOSES.

10 The purposes of this Act are—

11 (1) to protect the rights and welfare of profes12 sional boxers on an interstate basis by preventing cer13 tain exploitive, oppressive, and unethical business

14 practices;

15 (2) to assist State boxing commissions in their

16 efforts to provide more effective public oversight of the

17 sport; and

18 (3) to promote honorable competition in profes19 sional boxing and enhance the overall integrity of the

20 industry.

21 SEC. 4. PROTECTING BOXERS FROM EXPLOITATION.

22 The Professional Boxing Safety Act of 1996 (15 U.S.C.

23 6301 et seq.) is amended—

24 (1) by redesignating sections 9 through 15 as sec25 tions 17 through 23, respectively; and
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1 (2) by inserting after section 8 the following new

2 sections:

3 ‘‘SEC. 9. CONTRACT REQUIREMENTS.

4 ‘‘Within 2 years after the date of the enactment of the

5 Muhammad Ali Boxing Reform Act, the Association of Box6 ing Commissions shall develop and shall approve by a vote

7 of no less than a majority of its member State boxing com8 missioners, guidelines for minimum contractual provisions

9 that should be included in bout agreements and boxing con10 tracts. It is the sense of Congress that State boxing commis11 sions should follow these ABC guidelines.

12 ‘‘SEC. 10. PROTECTION FROM COERCIVE CONTRACTS.

13 ‘‘(a) GENERAL RULE.—

14 ‘‘(1)(A) A contract provision shall be considered

15 to be in restraint of trade, contrary to public policy,

16 and unenforceable against any boxer to the extent

17 that it—

18 ‘‘(i) is a coercive provision described in sub19 paragraph (B) and is for a period greater than

20 12 months; or

21 ‘‘(ii) is a coercive provision described in

22 subparagraph (B) and the other boxer under con23 tract to the promoter came under that contract

24 pursuant to a coercive provision described in

25 subparagraph (B).
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1 ‘‘(B) A coercive provision described in this sub2 paragraph is a contract provision that grants any

3 rights between a boxer and a promoter, or between

4 promoters with respect to a boxer, if the boxer is re5 quired to grant such rights, or a boxer’s promoter is

6 required to grant such rights with respect to a boxer

7 to another promoter, as a condition precedent to the

8 boxer’s participation in a professional boxing match

9 against another boxer who is under contract to the

10 promoter.

11 ‘‘(2) This subsection shall only apply to con12 tracts entered into after the date of the enactment of

13 the Muhammad Ali Boxing Reform Act.

14 ‘‘(3) No subsequent contract provision extending

15 any rights or compensation covered in paragraph (1)

16 shall be enforceable against a boxer if the effective

17 date of the contract containing such provision is ear18 lier than 3 months before the expiration of the rel19 evant time period set forth in paragraph (1).

20 ‘‘(b) PROMOTIONAL RIGHTS UNDER MANDATORY

21 BOUT CONTRACTS.—No boxing service provider may re22 quire a boxer to grant any future promotional rights as

23 a requirement of competing in a professional boxing match

24 that is a mandatory bout under the rules of a sanctioning

25 organization.
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1 ‘‘SEC. 11. SANCTIONING ORGANIZATIONS.

2 ‘‘(a) OBJECTIVE CRITERIA.—Within 2 years after the

3 date of the enactment of the Muhammad Ali Boxing Reform

4 Act, the Association of Boxing Commissions shall develop

5 and shall approve by a vote of no less than a majority of

6 its member State boxing commissioners, guidelines for ob7 jective and consistent written criteria for the ratings of pro8 fessional boxers. It is the sense of Congress that sanctioning

9 bodies and State boxing commissions should follow these

10 ABC guidelines.

11 ‘‘(b) APPEALS PROCESS.—A sanctioning organization

12 shall not be entitled to receive any compensation, directly

13 or indirectly, in connection with a boxing match, until it

14 provides the boxers with notice that the sanctioning organi15 zation shall, within 7 days after receiving a request from

16 a boxer questioning that organization’s rating of the

17 boxer—

18 ‘‘(1) provide to the boxer a written explanation

19 of the organization’s criteria, its rating of the boxer,

20 and the rationale or basis for its rating (including a

21 response to any specific questions submitted by the

22 boxer); and

23 ‘‘(2) submit a copy of its explanation to the As24 sociation of Boxing Commissions.

25 ‘‘(c) NOTIFICATION OF CHANGE IN RATING.—A sanc26 tioning organization shall not be entitled to receive any
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1 compensation, directly or indirectly, in connection with a

2 boxing match, until, with respect to a change in the rating

3 of a boxer previously rated by such organization in the top

4 10 boxers, the organization—

5 ‘‘(1) posts a copy, within 14 days of such change,

6 on its Internet website or home page, if any, includ7 ing an explanation of such change, for a period of not

8 less than 30 days; and

9 ‘‘(2) provides a copy of the rating change and

10 explanation to an association to which at least a ma11 jority of the State boxing commissions belong.

12 ‘‘(d) PUBLIC DISCLOSURE.—

13 ‘‘(1) FTC FILING.—A sanctioning organization

14 shall not be entitled to receive any compensation di15 rectly or indirectly in connection with a boxing

16 match unless, not later than January 31 of each year,

17 it submits to the Federal Trade Commission and to

18 the ABC—

19 ‘‘(A) a complete description of the organiza20 tion’s ratings criteria, policies, and general sanc21 tioning fee schedule;

22 ‘‘(B) the bylaws of the organization;

23 ‘‘(C) the appeals procedure of the organiza24 tion for a boxer’s rating; and
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1 ‘‘(D) a list and business address of the orga2 nization’s officials who vote on the ratings of

3 boxers.

4 ‘‘(2) FORMAT; UPDATES.—A sanctioning organi5 zation shall—

6 ‘‘(A) provide the information required

7 under paragraph (1) in writing, and, for any

8 document greater than 2 pages in length, also in

9 electronic form; and

10 ‘‘(B) promptly notify the Federal Trade

11 Commission of any material change in the infor12 mation submitted.

13 ‘‘(3) FTC TO MAKE INFORMATION AVAILABLE TO

14 PUBLIC.—The Federal Trade Commission shall make

15 information received under this subsection available

16 to the public. The Commission may assess sanctioning

17 organizations a fee to offset the costs it incurs in

18 processing the information and making it available to

19 the public.

20 ‘‘(4) INTERNET ALTERNATIVE.—In lieu of sub21 mitting the information required by paragraph (1) to

22 the Federal Trade Commission, a sanctioning organi23 zation may provide the information to the public by

24 maintaining a website on the Internet that—
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1 ‘‘(A) is readily accessible by the general

2 public using generally available search engines

3 and does not require a password or payment of

4 a fee for full access to all the information;

5 ‘‘(B) contains all the information required

6 to be submitted to the Federal Trade Commission

7 by paragraph (1) in an easy to search and use

8 format; and

9 ‘‘(C) is updated whenever there is a mate10 rial change in the information.

11 ‘‘SEC. 12. REQUIRED DISCLOSURES TO STATE BOXING COM12 MISSIONS BY SANCTIONING ORGANIZATIONS.

13 ‘‘A sanctioning organization shall not be entitled to

14 receive any compensation directly or indirectly in connec15 tion with a boxing match until it provides to the boxing

16 commission responsible for regulating the match in a State

17 a statement of—

18 ‘‘(1) all charges, fees, and costs the organization

19 will assess any boxer participating in that match;

20 ‘‘(2) all payments, benefits, complimentary bene21 fits, and fees the organization will receive for its af22 filiation with the event, from the promoter, host of the

23 event, and all other sources; and

24 ‘‘(3) such additional information as the commis25 sion may require.
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1 ‘‘SEC. 13. REQUIRED DISCLOSURES FOR PROMOTERS.

2 ‘‘(a) DISCLOSURES TO THE BOXING COMMISSIONS.—

3 A promoter shall not be entitled to receive any compensa4 tion directly or indirectly in connection with a boxing

5 match until it provides to the boxing commission respon6 sible for regulating the match in a State a statement of—

7 ‘‘(1) a copy of any agreement in writing to

8 which the promoter is a party with any boxer partici9 pating in the match;

10 ‘‘(2) a statement made under penalty of perjury

11 that there are no other agreements, written or oral,

12 between the promoter and the boxer with respect to

13 that match; and

14 ‘‘(3)(A) all fees, charges, and expenses that will

15 be assessed by or through the promoter on the boxer

16 pertaining to the event, including any portion of the

17 boxer’s purse that the promoter will receive, and

18 training expenses;

19 ‘‘(B) all payments, gifts, or benefits the promoter

20 is providing to any sanctioning organization affili21 ated with the event; and

22 ‘‘(C) any reduction in a boxer’s purse contrary

23 to a previous agreement between the promoter and the

24 boxer or a purse bid held for the event.

25 ‘‘(b) DISCLOSURES TO THE BOXER.—A promoter shall

26 not be entitled to receive any compensation directly or indi-
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1 rectly in connection with a boxing match until it provides

2 to the boxer it promotes—

3 ‘‘(1) the amounts of any compensation or consid4 eration that a promoter has contracted to receive from

5 such match;

6 ‘‘(2) all fees, charges, and expenses that will be

7 assessed by or through the promoter on the boxer per8 taining to the event, including any portion of the box9 er’s purse that the promoter will receive, and training

10 expenses; and

11 ‘‘(3) any reduction in a boxer’s purse contrary

12 to a previous agreement between the promoter and the

13 boxer or a purse bid held for the event.

14 ‘‘(c) INFORMATION TO BE AVAILABLE TO STATE AT15 TORNEY GENERAL.—A promoter shall make information re16 quired to be disclosed under this section available to the

17 chief law enforcement officer of the State in which the match

18 is to be held upon request of such officer.

19 ‘‘SEC. 14. REQUIRED DISCLOSURES FOR JUDGES AND REF20 EREES.

21 ‘‘A judge or referee shall not be entitled to receive any

22 compensation, directly or indirectly, in connection with a

23 boxing match until it provides to the boxing commission

24 responsible for regulating the match in a State a statement

25 of all consideration, including reimbursement for expenses,
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1 that will be received from any source for participation in

2 the match.

3 ‘‘SEC. 15. CONFIDENTIALITY.

4 ‘‘(a) IN GENERAL.—Neither a boxing commission nor

5 an Attorney General may disclose to the public any matter

6 furnished by a promoter under section 13 except to the ex7 tent required in a legal, administrative, or judicial pro8 ceeding.

9 ‘‘(b) EFFECT OF CONTRARY STATE LAW.—If a State

10 law governing a boxing commission requires that informa11 tion that would be furnished by a promoter under section

12 13 shall be made public, then a promoter is—

13 ‘‘(1) not required to file such information with

14 such State; and

15 ‘‘(2) required to file such information with the

16 ABC.

17 ‘‘SEC. 16. JUDGES AND REFEREES.

18 ‘‘No person may arrange, promote, organize, produce,

19 or fight in a professional boxing match unless all referees

20 and judges participating in the match have been certified

21 and approved by the boxing commission responsible for reg22 ulating the match in the State where the match is held.’’.
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1 SEC. 5. CONFLICT OF INTEREST.

2 Section 17 of the Professional Boxing Safety Act of

3 1996 (15 U.S.C. 6308) (as redesignated by section 4 of this

4 Act) is amended—

5 (1) in the first sentence by striking ‘‘No member’’

6 and inserting ‘‘(a) REGULATORY PERSONNEL.—No

7 member’’; and

8 (2) by adding at the end the following:

9 ‘‘(b) FIREWALL BETWEEN PROMOTERS AND MAN10 AGERS.—

11 ‘‘(1) IN GENERAL.—It is unlawful for—

12 ‘‘(A) a promoter to have a direct or indirect

13 financial interest in the management of a boxer;

14 or

15 ‘‘(B) a manager—

16 ‘‘(i) to have a direct or indirect finan17 cial interest in the promotion of a boxer; or

18 ‘‘(ii) to be employed by or receive com19 pensation or other benefits from a promoter,

20 except for amounts received as consideration

21 under the manager’s contract with the

22 boxer.

23 ‘‘(2) EXCEPTIONS.—Paragraph (1)—

24 ‘‘(A) does not prohibit a boxer from acting

25 as his own promoter or manager; and
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1 ‘‘(B) only applies to boxers participating in

2 a boxing match of 10 rounds or more.

3 ‘‘(c) SANCTIONING ORGANIZATIONS.—

4 ‘‘(1) PROHIBITION ON RECEIPTS.—Except as

5 provided in paragraph (2), no officer or employee of

6 a sanctioning organization may receive any com7 pensation, gift, or benefit, directly or indirectly, from

8 a promoter, boxer, or manager.

9 ‘‘(2) EXCEPTIONS.—Paragraph (1) does not

10 apply to—

11 ‘‘(A) the receipt of payment by a promoter,

12 boxer, or manager of a sanctioning organiza13 tion’s published fee for sanctioning a professional

14 boxing match or reasonable expenses in connec15 tion therewith if the payment is reported to the

16 responsible boxing commission; or

17 ‘‘(B) the receipt of a gift or benefit of de

18 minimis value.’’.

19 SEC. 6. ENFORCEMENT.

20 Subsection (b) of section 18 of the Professional Boxing

21 Safety Act of 1996 (15 U.S.C. 6309) (as redesignated by

22 section 4 of this Act) is amended—

23 (1) in paragraph (1) by inserting a comma and

24 ‘‘other than section 9(b), 10, 11, 12, 13, 14, or 16,’’

25 after ‘‘this Act’’;
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1 (2) by redesignating paragraphs (2) and (3) as

2 paragraphs (3) and (4), respectively;

3 (3) by inserting after paragraph (1) the fol4 lowing:

5 ‘‘(2) VIOLATION OF ANTIEXPLOITATION, SANC6 TIONING ORGANIZATION, OR DISCLOSURE PROVI7 SIONS.—Any person who knowingly violates any pro8 vision of section 9(b), 10, 11, 12, 13, 14, or 16 of this

9 Act shall, upon conviction, be imprisoned for not

10 more than 1 year or fined not more than—

11 ‘‘(A) $100,000; and

12 ‘‘(B) if a violation occurs in connection

13 with a professional boxing match the gross reve14 nues for which exceed $2,000,000, an additional

15 amount which bears the same ratio to $100,000

16 as the amount of such revenues compared to

17 $2,000,000, or both.’’; and

18 (4) in paragraph (3) (as redesignated by para19 graph 2 of this subsection) by striking ‘‘section 9’’

20 and inserting ‘‘section 17(a)’’; and

21 (5) by adding at the end the following:

22 ‘‘(c) ACTIONS BY STATES.—Whenever the chief law en23 forcement officer of any State has reason to believe that a

24 person or organization is engaging in practices which vio25 late any requirement of this Act, the State, as parens
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1 patriae, may bring a civil action on behalf of its residents

2 in an appropriate district court of the United States—

3 ‘‘(1) to enjoin the holding of any professional

4 boxing match which the practice involves;

5 ‘‘(2) to enforce compliance with this Act;

6 ‘‘(3) to obtain the fines provided under sub7 section (b) or appropriate restitution; or

8 ‘‘(4) to obtain such other relief as the court may

9 deem appropriate.

10 ‘‘(d) PRIVATE RIGHT OF ACTION.—Any boxer who suf11 fers economic injury as a result of a violation of any provi12 sion of this Act may bring an action in the appropriate

13 Federal or State court and recover the damages suffered,

14 court costs, and reasonable attorneys fees and expenses.

15 ‘‘(e) ENFORCEMENT AGAINST FEDERAL TRADE COM16 MISSION, STATE ATTORNEYS GENERAL, ETC.—Nothing in

17 this Act authorizes the enforcement of—

18 ‘‘(1) any provision of this Act against the Fed19 eral Trade Commission, the United States Attorney

20 General, or the chief legal officer of any State for act21 ing or failing to act in an official capacity;

22 ‘‘(2) subsection (d) of this section against a State

23 or political subdivision of a State, or any agency or

24 instrumentality thereof; or
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1 ‘‘(3) section 10 against a boxer acting in his ca2 pacity as a boxer.’’.

3 SEC. 7. ADDITIONAL AMENDMENTS.

4 (a) DEFINITIONS.—Section 2(a) of the Professional

5 Boxing Safety Act of 1996 (15 U.S.C. 6301(a)) is

6 amended—

7 (1) in paragraph (10) by striking the period at

8 the end and inserting ‘‘, including the Virgin Is9 lands.’’; and

10 (2) by adding at the end the following:

11 ‘‘(11) EFFECTIVE DATE OF THE CONTRACT.—The

12 term ‘effective date of the contract’ means the day

13 upon which a boxer becomes legally bound by the con14 tract.

15 ‘‘(12) BOXING SERVICE PROVIDER.—The term

16 ‘boxing service provider’ means a promoter, manager,

17 sanctioning body, licensee, or matchmaker.

18 ‘‘(13) CONTRACT PROVISION.—The term ‘contract

19 provision’ means any legal obligation between a boxer

20 and a boxing service provider.

21 ‘‘(14) SANCTIONING ORGANIZATION.—The term

22 ‘sanctioning organization’ means an organization

23 that sanctions professional boxing matches in the

24 United States—
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1 ‘‘(A) between boxers who are residents of

2 different States; or

3 ‘‘(B) that are advertised, otherwise pro4 moted, or broadcast (including closed circuit tele5 vision) in interstate commerce.

6 ‘‘(15) SUSPENSION.—The term ‘suspension’ in7 cludes within its meaning the revocation of a boxing

8 license.’’.

9 (b) STATE BOXING COMMISSION PROCEDURES.—Sec10 tion 7(a)(2) of the Professional Boxing Safety Act of 1996

11 (15 U.S.C. 6306(a)(2)) is amended—

12 (1) in subparagraph (C) by striking ‘‘or’’;

13 (2) in subparagraph (D) by striking ‘‘docu14 ments.’’ at the end and inserting ‘‘documents; or’’;

15 and

16 (3) by adding at the end the following:

17 ‘‘(E) unsportsmanlike conduct or other in18 appropriate behavior inconsistent with generally

19 accepted methods of competition in a profes20 sional boxing match.’’.

21 (c) RENEWAL PERIOD FOR IDENTIFICATION CARDS.—

22 Section 6(b)(2) of the Professional Boxing Safety Act of

23 1996 (15 U.S.C. 6305(b)(2)) is amended by striking ‘‘2

24 years.’’ and inserting ‘‘4 years.’’.
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1 (d) REVIEW OF SUSPENSIONS.—Section 7(a)(3) of the

2 Professional Boxing Safety Act of 1996 (15 U.S.C.

3 6306(a)(3)) is amended by striking ‘‘boxer’’ and inserting

4 ‘‘boxer, licensee, manager, matchmaker, promoter, or other

5 boxing service provider’’.

6 (e) ALTERNATIVE SUPERVISION.—Section 4 of the Pro7 fessional Boxing Safety Act of 1996 (15 U.S.C. 6303) is

8 amended—

9 (1) by striking ‘‘No person’’ and inserting ‘‘(a)

10 No person’’; and

11 (2) by inserting at the end thereof the following:

12 ‘‘(b) For the purpose of this Act, if no State commis13 sion is available to supervise a boxing match according to

14 subsection (a), then—

15 ‘‘(1) the match may not be held unless it is su16 pervised by an association of boxing commissions to

17 which at least a majority of the States belong; and

18 ‘‘(2) any reporting or other requirement relating

19 to a supervising commission allowed under this sec20 tion shall be deemed to refer to the entity described

21 in paragraph (1).’’.

22 (f) HEALTH AND SAFETY DISCLOSURES.—Section 6 of

23 the Professional Boxing Safety Act of 1996 (15 U.S.C.

24 6305) is amended by adding at the end the following new

25 subsection:
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1 ‘‘(c) HEALTH AND SAFETY DISCLOSURES.—It is the

2 sense of Congress that a boxing commission should, upon

3 issuing an identification card to a boxer under subsection

4 (b)(1), make a health and safety disclosure to that boxer

5 as that commission considers appropriate. The health and

6 safety disclosure should include the health and safety risks

7 associated with boxing, and, in particular, the risk and fre8 quency of brain injury and the advisability that a boxer

9 periodically undergo medical procedures designed to detect

10 brain injury.’’.