I

104TH CONGRESS

2D SESSION H. R. 3805

To establish procedures and remedies governing the relocation of certain

professional sports teams, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 12, 1996

Mr. BRYANT of Tennessee (for himself, Mr. CONYERS, Mr. WHITFIELD, Mr.

MANTON, and Mr. LARGENT) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Commerce, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To establish procedures and remedies governing the relocation of certain professional sports teams, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Sports Relocation Re5 form Act of 1996’’.

6 SEC. 2. RELOCATION OF CERTAIN TEAMS.

7 (a) DEFINITIONS.—For purposes of this section—
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1 (1) the term ‘home territory’ means the geo2 graphic metropolitan area within which a member

3 team operates and plays the majority of its home

4 games;

5 (2) the term ‘interested party’ includes, with re6 spect to a member team—

7 (A) any political subdivision of a State that

8 provides, or has provided, financial assistance,

9 including tax abatement, for facilities (including

10 a stadium or arena) in which the member team

11 plays;

12 (B) a representative of the political sub13 division with jurisdiction over the geographic

14 area in which the stadium or arena of the mem15 ber team is located;

16 (C) a member team;

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

18 arena of a member team; and

19 (E) any other person who is determined by

20 the sports league of the member team to be an

21 affected party;

22 (3) the term ‘member team’ means a team of

23 professional athletes—

24 (A) organized to play professional football,

25 basketball, or hockey; and
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1 (B) that is a member of a professional

2 sports league;

3 (4) the term ‘person’ means any individual,

4 partnership, corporation, or unincorporated associa5 tion, any combination or association thereof, or any

6 State or political subdivision of a State;

7 (5) the term ‘professional sports league’ means

8 an association that—

9 (A) is composed of 2 or more member

10 teams;

11 (B) regulates the contests and exhibitions

12 of its member teams; and

13 (C) has been engaged in competition in a

14 particular sport for a period of more than 7

15 years; and

16 (6) the terms ‘stadium’ and ‘arena’ mean the

17 principal physical facility within which a member

18 team has played the majority of its home games.

19 (b) ESTABLISHMENT OF RULE.—

20 (1) IN GENERAL.—Subject to the requirements

21 set forth in this section, any professional sports

22 league may establish a rule—

23 (A) authorizing the membership of that

24 league to decide whether or not a member team
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1 of that league may be relocated outside of the

2 home territory of that member team; and

3 (B) requiring that any person seeking to

4 change the home territory of that member team

5 obtain the approval of the appropriate profes6 sional sports league.

7 (2) INAPPLICABILITY OF ANTITRUST LAWS.—

8 Notwithstanding any other provision of law, the

9 antitrust laws shall not apply to the enforcement or

10 application by a professional sports league of any

11 rule established pursuant to paragraph (1).

12 (c) PROCEDURAL REQUIREMENTS.—

13 (1) REQUEST FOR APPROVAL.—

14 (A) IN GENERAL.—Not later than 210

15 days before the commencement of the season in

16 which a member team proposes to play in a new

17 location, any person seeking to change the

18 home territory of that member team shall sub19 mit a request for approval of the proposed

20 change to the appropriate professional sports

21 league.

22 (B) REQUIREMENTS.—Each request for

23 approval submitted under subparagraph (A)

24 shall—

25 (i) be in writing;
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1 (ii) be delivered in person or by cer2 tified mail to each interested party by not

3 later than 30 days after submission to the

4 appropriate professional sports league

5 under subparagraph (A);

6 (iii) be made available by the date

7 specified in clause (ii) to the news media;

8 (iv) be published by the date specified

9 in clause (iii) in 1 or more newspapers of

10 general circulation within the home terri11 tory of the member team; and

12 (v) contain—

13 (I) an identification of the pro14 posed location of the member team;

15 (II) a summary of the reasons

16 for the change in home territory based

17 on the criteria described in paragraph

18 (2)(B); and

19 (III) the date on which the pro20 posed change would become effective.

21 (2) PROCEDURES.—

22 (A) ESTABLISHMENT.—Each professional

23 sports league shall establish rules and proce24 dures for approving or disapproving requests

25 submitted under paragraph (1), that shall—
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1 (i) include criteria to be considered

2 and taken as a whole by the professional

3 sports league in approving or disapproving

4 such requests; and

5 (ii) be made available upon request to

6 any interested party.

7 (B) CRITERIA TO BE CONSIDERED.—The

8 criteria described in subparagraph (A)(i) shall

9 include—

10 (i) the extent to which fan loyalty to

11 and support for the member team has been

12 demonstrated, through attendance, ticket

13 sales, and television ratings, during the

14 tenure of the member team in the home

15 territory;

16 (ii) the degree to which the member

17 team has engaged in good faith negotia18 tions with appropriate persons concerning

19 the terms and conditions under which the

20 member team would continue to play its

21 games in the home territory of the member

22 team;

23 (iii) the degree to which the ownership

24 or management of the member team has

25 contributed to any circumstance that might
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1 demonstrate the need for the relocation of

2 the member team;

3 (iv) the extent to which the member

4 team has, directly or indirectly, received

5 public financial support by means of any

6 publicly financed playing facility, rent

7 abatement, special tax treatment, any

8 other form of public financial support, any

9 other public benefits not generally available

10 to businesses as a whole within the juris11 diction, and the extent to which such sup12 port continues;

13 (v) the adequacy of the stadium or

14 arena of the member team, and the willing15 ness of the stadium or arena authority and

16 the local government to remedy any defi17 ciencies in the stadium or arena;

18 (vi) whether the member team has in19 curred net operating losses, exclusive of de20 preciation or amortization, sufficient to

21 threaten the continued financial viability of

22 the member team;

23 (vii) whether any other member team

24 in the professional sports league is located

25 in the home territory of the member team;
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1 (viii) whether the member team pro2 poses to relocate to a territory in which no

3 other member team in the professional

4 sports league is located;

5 (ix) whether the stadium or arena au6 thority, if public, is opposed to the reloca7 tion;

8 (x) the effect that relocation would

9 have on contracts, agreements, or under10 standings between the member team and

11 public and private parties; and

12 (xi) any other criteria considered to be

13 appropriate by the professional sports

14 league.

15 (3) HEARINGS.—In determining whether to ap16 prove or disapprove a proposed request submitted

17 under paragraph (1), the professional sports league

18 shall—

19 (A) conduct a hearing at which interested

20 parties shall be afforded an opportunity to sub21 mit written testimony and exhibits; and

22 (B) keep a written record of that hearing

23 and any testimony and exhibits submitted

24 under subparagraph (A).

25 (d) JUDICIAL REVIEW.—
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1 (1) IN GENERAL.—A decision by a professional

2 sports league to approve or disapprove a request

3 submitted under paragraph (c)(1) may only be re4 viewed in a civil action filed by an interested party

5 in accordance with this subsection.

6 (2) VENUE.—

7 (A) IN GENERAL.—Except as provided in

8 subparagraph (B), an action under this sub9 section may be filed only in the United States

10 District Court for the District of Columbia.

11 (B) EXCEPTION.—If the home territory of

12 the member team or the proposed home terri13 tory of the member team is located within a 50-

14 mile radius of the District of Columbia, an

15 action under this subsection may be filed only

16 in the United States District Court for the

17 Southern District of New York.

18 (3) TIME.—

19 (A) FILING.—An action under this sub20 section shall be filed not later than 14 days

21 after the date of the formal vote of the profes22 sional sports league approving or disapproving

23 the proposed relocation.

24 (B) REVIEW.—Not later than 30 days

25 after the filing of the action in accordance with
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1 subparagraph (A), the district court shall issue

2 an order with respect to that action.

3 (4) STANDARD OF REVIEW.—The scope of judi4 cial review in any action under this subsection shall

5 be limited to a determination of whether—

6 (A) in deciding whether to approve or dis7 approve a proposed relocation, the professional

8 sports league failed to comply with this section;

9 and

10 (B) the decision of the professional sports

11 league to approve or disapprove a proposed re12 location was arbitrary or capricious.

13 (5) RELIEF GRANTED BY COURT.—

14 (A) IN GENERAL.—In any action under

15 this subsection, if the district court makes a de16 termination described in subparagraph (A) or

17 (B) of paragraph (4), the court shall—

18 (i) remand the matter for further con19 sideration by the professional sports

20 league; and

21 (ii) enjoin any relocation of the mem22 ber team at issue until the professional

23 sports league has reconsidered the matter

24 in accordance with the order of the court

25 under this paragraph.
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1 (B) LIMITATION OF COURT.—The court

2 may not grant any relief in any action under

3 this subsection other than enjoining or approv4 ing enforcement of the decision by the profes5 sional sports league to approve or disapprove a

6 request submitted under paragraph (c)(1).

7 (C) PROHIBITION OF MULTIPLE LAWSUITS

8 BY OTHER INTERESTED PARTIES.—An inter9 ested party shall have a right of intervention in

10 a civil action described in paragraph (1), but

11 may not file an additional civil action after the

12 initial civil action has been filed.

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