Document: 358 U.S. 242 79 S.Ct. 245 3 L.Ed.2d 270 INTERNATIONAL BOXING CLUB OF NEW YORK, Inc., a Corporation of New York; International Boxing Club, Illinois, et al., Appellants,v.UNITED STATES America. No. 18. Argued Nov. 13, 1958. Decided Jan. 12, 1959. [Syllabus from pages 242-243 intentionally omitted] Mr. Kenneth C. Royall, York City, for appellants. Philip Elman, Washington, D.C., appellee. Justice CLARK delivered the opinion Court. 1 This civil Sherman Act1 case was here four years ago on direct appeal dismissal by District Court, which had held that Act did not apply to business professional boxing. We reversed, finding 'the complaint states cause action (under Act) and Government is entitled an opportunity prove its allegations,' remanded trial merits. United States v. 1955, 348 236, 75 259, 263, 99 L.Ed. 290. The charged appellants with combination conspiracy in unreasonable restraint trade commerce among promotion, broadcasting, televising world championship boxing contests, as well monopolize monopolization same. After trial, incorporating detailed findings fact conclusions law based principles laid down our earlier opinion, found allegations been sustained. 150 F.Supp. 397. further hearings nature extent relief necessary protect public interest, court entered final judgment dissolving two corporate appellants, directing divestiture certain stock owned individual granting injunctive designed open up market promoting matches. 171 841. 2 while attacking any specific clearly erroneous, claim proof show they violated Section or Act. In this regard level their strongest blows at Court's definition relevant market. Out entire field boxing, Court carved contests alone, holding it be aimed. alternative, insist granted 'unnecessarily punitive, even if liability assumed. On we noted probable jurisdiction, 1958, 356 910, 78 668, 584. have concluded are erroneous view former sufficiency merits properly entered. As find exceed limits allowable discretion framing decree 'that will, so far practicable, cure ill effects illegal conduct, assure freedom continuance.' Gypsum Co., 1950, 340 76, 88, 71 160, 169, 95 89. Our previous decision herein having decided promotion interstate basis constituted States, within meaning Act, there no contest either point. Since discussed some detail complaint, has now amply proven evidence, shall only summarize here. 4 Findings. 5 began January 1949, when Norris Wirtz, who controlled Chicago Stadium, Detroit Olympia Arena St. Louis Arena, made agreement Joe Louis, then heavyweight champion world. Wishing retire, agreed give his title after obtaining each leading contenders2 exclusive rights including radio, television movie revenues. Upon securing these contracts assigned them appellant Internation organized Wirtz purpose Illinois. They paid $150,000 cash plus employment contract 20% interest I.B.C., 6 March 1949 approached Madison Square Garden, many 50,000 shares stock. It 'foremost sports arena City best known kind world.'3 However, facilities were tied lease Mike Jacobs' interests—the promoter time. proposed should all 'work together keep events buildings create competitive situation would harmful all.' order effectuate program, Garden bought out including, addition leases Yankee Stadium Nicholas welterweight Sugar Ray Robinson. These York, York. 7 Once interests acquired, remained one substantial competitor That Tournament Champions, part Columbia Broadcasting System. Polo Grounds covering next fights middleweight May Champions cost $100,000 25% net profits assets thus acquired likewise By simultaneous separate agreement, System five-year period invest promote matches return first refusal right broadcasting staged like Garden. 8 series agreements, concummated months' time, gave control three divisions, i.e., heavyweight, middleweight, welterweight. Not satisfied temporary control, however, perpetuated hold bouts requiring contender grant fights, film five years. Over staging exercised owning managing 'key' arenas stadia Nation.4 9 Tightening ropes around ring built, increased stockholdings where able 'dictate policies activities.' continued over wholly Garden.5 sole stockholders turn stockholder Their empire revealed president top corporations, Corporation, He directors four, Illinois contenders, joint board directors. 10 effect obvious. Using into aspirants, handling agreements event became champion. amassing empire, obtained champions divisions. choice given thereafter clear, sign fight. With key country through others, could successfully areas, most fruitful Nation, without consent. exercise power brought immediate results. From June fight, until 15, 1953, date amended 36 44 battles country, giving approximately 81% field. classifications, combine contests. exclude competitors graphically shown 25 27 total 93%, during two-and-a-half-year ending filing complaint. extended sale rights—most valuable adjuncts successful business. 11 Appellants launch vigorous attack contrast events. rely primarily E. I. Du pont De Nemours & 1956, 351 377, 76 994, 100 1264. case, involving alleged monopoly cellophane, cellophane alone but flexible packaging materials. testing cases, said: 12 '* * more definite rule can declared than commodities reasonably interchangeable consumers same purposes make 'part commerce,' may illegal.' pont, supra, page 395, 1007. 13 argue 'physical identity products seem necessarily put market.' say contest, whether not, always includes ring, boxers referee, fighting under rules before greater lesser number spectators present ringside television, moving pictures. 14 do feel conclusion follows. also said Dupont, 404, 1012: 15 'The 'market' will vary consideration. tests constant. composed reasonable interchangeability produced—price, use qualities considered.' 16 mind, lower instant exists 'separate, identifiable market' general supported average revenue sources appellants' $154,000, compared $40,000 nonchampionship programs; fight $100,000, $45,000 nontitle seven months later between fighters; 'Nielsen' ratings6 two-and-one-half-year 74.9% 57.7% programs (reflecting difference several million viewers types fights); although revenues six totaled $600,000, full-length motion picture sold contest; pay 'substantially more' tickets fights. addition, numerous representatives advertising industries testified 'particular special demand radio telecasting (and picture) companies broadcast telecast distribute films of) contradistinction similar non-championship contests.'7 17 findings, cannot 'clearly erroneous' concluding 'reasonably purpose' A determination commerce' encompassed involves distinctions degree kind. One prime example application localized geographical area. See, e.g., Schine Chain Theatres 1948, 334 110, 68 947, 92 1245; Griffith Amusement 100, 941, 1236; cf. Times-Picayune Pub. Co. 345 594, 73 872, 97 1277; Steel 495, 1107, 1533. squarely governs Paramount Pictures, 131, 915, 1260. There, charge involved, inter alia, extensive theatre holdings. refused such holdings grounds 'national monopoly' intended obtained. felt dispositive issue, saying: 18 'First, presence absence majors (defendants) first-run largest cities localities. Yet field, constitutes cream exhibition business, core cases. outlaws restraints irrespective amount involved (United Socony-Vacuum Oil 310 150, 224, 225, n. 59, 60 811, 844—846, 84 1129), § condemns 'any part' commerce.' Paramount, 172—173, 936. (Emphasis original.) 19 Similarly, 'cream' and, above, sufficiently constitute purposes.8 20 examined remainder characteristically lengthy record. When previously deny stated against them, provided activity came action. proven. posture, almost insurmountable burden. must least basic ones, erroneous.' Rule 52(a), Rules Civil Procedure, 28 U.S.C.A. do. follows adjudging both §§ affirmed. Relief. 21 approaching question remember function sit court. Besser Mfg. 1952, 343 444, 449—450, 72 838, 841—842, 96 1063; National Lead 1947, 332 319, 67 1634, 91 2077; Crescent 1944, 323 173, 185, 65 254, 260, 89 160. Salt 392, 400—401, 17, 20: 22 (antitrust) decrees take place rather Appellate Courts. invested large model judgments fit exigencies particular case.' 23 yardstick cases 128—129, 957, 1245. (1) 'an end itself violation'; (2) deprive antitrust defendants benefits conspiracy'; (3) 'break render impotent violates Act.' 24 appeal, by-passing usual appellate review, careful scrutiny Though records usually voluminous review exceedingly burdensome, painstakingly undertaken justice done. supra; supra. done finally beyond Bounds Relief Ordered. At time elapsed; exclusive-contract practice temporarily abandoned; new champion, Floyd Patterson. Nevertheless, additional evidence taken showed still possessed restraint. agree. strangle industry long period. evident that, statistically, dominated completely filming those gained leadership elimination purchase major field; contending agreements; ownership arenas. odorous background feared tools, used previously, continue control. stadium Chicago, lucrative communities boxing; there; commanded business—wherever staged; though surface directly I.B.C. subsidiary corporations manage. 26 setting ordered divest themselves, give-year period, 'directly indirectly' Clubs, dissolved. enjoined annually. All events, nonchampionship, banned. premises available 'fair reasonable' rental duly qualified applying writing therefor. Failure agree terms require submission courts determination. Like requirement imposed Norris-and-Wirtz continued. Judge include provisions combination, benefit break power. hearing he observed prior Norris-Wirtz group enterprise 'two entities,' mid-West other 'in destroy nearly possible economic conditions existed 1949' further, 'I see way proper formulated unless curtailed. get control.' Order Divestiture. 29 contend since pursuant conspiracy, fruit lever persuaded join punishment corrective remedy. sale, manner outlined decree,9 result great loss Wirtz. arbitrary permit option, 30 conspiracy; lawfully utilized ends. See 152, 926. Moreover, inception 219,000 shares. voting dictated election officers unquestioned management activities. Although reluctant stock, judge ultimately convinced sine qua non relief. During 31 evil I caused created joining another, entity interest. sprung comcerted efforts broken up.' supplied.) 32 What perhaps equally significant elected York—a Corporation. bridge effective. secured. effective very hearing, 24, 1957, following statement date: 33 unlawful possesses exercises monopolistic appears 1953 37 excluding bantamweight contest. admit promotional per cent market, financial strangers Chicago. Because licensed state authorities persons actually designated originated Friday nights televised IBC's-New night series. 34 'We find, too, save outdoor defendants' Wednesday series, inured defendants.' 35 half 31, exercising knew coverage denial Government's assume subsequent conduct obedience important free system. Still activity. appearances continuing day. Such interlocking decree, fully justified 'dissolution accomplished complete severance (T)here established Corporation.' means hand competition might restored. parties near status quo existing conspiracy. For reasons, why incumbent upon options requested decree. mention two. retaining Stadium. But conducive re-establishment interests, considered necessity. Nor eliminate 'great evil' Norris-Wirtz-Garden combination. Another option permitted retain latter eliminated world's principal center premier world,' characterized it—from short, effort won battle lost war proffered alternatives. 189—190, 262, 38 'Common instruments bringing about unity making If affiliation continues, tempting act *. procivity past warrants assurance future.' 39 Dissolution Two Clubs. 40 Admittedly formed 41 'These arms defendants, conceived enable restrain nominal value except goodwill attaching names virtue conspiracy.' 42 confirm need dissolution. Both share reaped included promoted others own whom contracts. Through directorates I.B.C.'s effectively together. policy dissolution 'where creation violation.' 189, cited. situations process affords too little late. 43 punitive; parent companies, left organize handle respective promotions hence useless act. felt, agree, operation old charters lead nominis umbra practices. formed, start off clean slates written oral understandings existent throughout industry. Hence salutary clearing horizons attempting world, especially effected conjunction provision. inconvenience expense if, contend, 'as practical matter (form corporations) think poor excuse eliminating, dissolution, trappings Compulsory Leasing Provisions. 45 effectuating stadia, compulsory leasing provision Corporation.10 46 main concern submitted fear undesirable impractical suggested alternative relieve Obviously, disputes settled. Until experience enforcement proves reference burdensome reason disturb it. unworkable parties, appropriate Lorain Journal 1951, 342 143, 156—157, 181, 187—188, 162; 401, 17. 47 Exclusive Contracts Contestants. 48 object prohibition enlarging base human being what sound surely affect arrive title. arrangements experienced advantage independent promoter. dissipated. fault bout. 49 recognized restrictions went 'relevant determining violations, '(t)he broader because remedied broader.' sometimes 'relief, effective, go narrow 90, 170; Timken Roller Bearing 341 593, 600, 971, 975, 1199. sort granted, course wary lest overstep correspondingly narrower discretion, but, reasons set misuse court's 50 objections unsubstantial presently posed. severe modification amendment, paragraph ordered. 51 Judgment 52 STEWART took consideration case. 53 FRANKFURTER, dissenting part. 54 While heretofore expressed views favor controlling deference formulation remedy adjudicated violations laws, prevailed, opinions 1260, modify particularly single unconventional drastic issue dealt HARLAN'S dissent, one, is, my view, important. decreed district judge, mandatory disposition delayed years, placed trusteeship. controls imposed, supervision prevent operations sterilized. forecast postpone trusteeship, profitable sterilized compelling compel. unanimous affirmance below violation Law, scrupulously obey subtlest indirection seek avoid decision. Therefore needless determine hence, wait 55 Accordingly, opinion. 56 HARLAN, FRANKFURTER WHITTAKER join, 57 am unable subscribe approval parts aspects results reached. 58 59 starting point accept restored Garden's activities pre-eminence site fulcrum adjudged. justifies influence prerequisite restoring competition. follows, divesting method accomplishing objective circumstances Unless pronouncements cautioning indiscriminate 1199, less seriously theyshould be, seems me lightly measure 61 First. clear just early stages strongly divestiture, reached necessary. Indeed record read indicating belief trusteeship alleviate hardships forced remove affairs therefore conditions, correlative carried period.1 supports reading. despite realization aimed opening geared thought insulation managerial policy-making restore competition, justification relapse noncompetitive elapsed, something quite premise continuance necessary, concomitant activities, adequate serve end. 62 Second. mistaken divining thinking consider prematurely. Determination required postponed expiration necessity judged light effectiveness sanctions recognize various contingencies conjured support holds solid promise assuring preservation Nevertheless rejection should, peculiar speculative apprehension. 63 Three factors toward course. place, reprehensible immoral willful lawbreaking.2 handed 290, become subject federal laws. decisions baseball Federal Baseball Club Baltimore League, 259 200, 465, 66 898, Toolson Yankees, 346 356, 74 78, 98 412, well-informed lawyers believed baseball, stricture. every believe actions innocent taken. Putting somewhat differently, slow lending never demonstrate willingness comply once learned applies thrust factor blunted arguing, does, voluntarily unscramble relationships elapsed original entry squeeze play expected already lawsuit. 64 Further, bear investment much began, balance announcement 'unlawful fruits' doctrine accordingly offers divestiture. recognizing true, nonetheless violations. another saying element relief; Lastly, reaches permanently removes 90% whose entirely unrelated Third. course, dissipate recurrence adjudged token asked stamp unambiguous expression reasoning choosing Especially where, here, reviewing authority consequence intermediate issues Appeals. leaves desired regard. it, taking favorably Government, reserving expired. Certainly out. becomes unnecessary discuss 'options' rejected Dissolution. My difficulty aspect record, permissible carrying exactly name organizations. offered clubs instrumentalities expedient insuring oral, canceled suggestion sweeping loopholes organizations improperly, hardly convincing. disslution punitive futile, promotive enforcement. 69 remand instructions striking proceedings eliminating U.S.C. seq., seq. Ezzard Charles, Walcott, Lee Savold, Gus Lesnevich. importance context immediately preceding 45% 75% bouts, exception, Grounds, Arena. Between 1937( 50% 80% spit evenly other. thereafter, ceased split apparently showing separateness nevertheless shared combined I.B.C.'s. According 'Nielsen Average Audience rating percentage purports residential sets tuned program sets, turned on, areas telecast.' (150 407) Approximately produced covered derived rights. analogy, bears 'peculiar characteristics' automobile fabrics finishes bring Clayton Act's 'line Pont 353 586, 593 595, 77 877, 1057. sell listed Stock Exchange. trustees named seasonable request promoter, rent reasonable, applicant furnishes security, building neither specified day nor conflict well-established event' regularly conducted therein. security rental, party thereof. Apart provisions, imposes wide-ranging pervasive exhibition. renders void boxers. prohibits contracts, exception bouts. proscribed. So, broadcasters. restrained, annually, two, cumulatively, also, effect. Finally, enjoins positions future. way: don't (Norris Wirtz) malicious intentional moral wrongdoing, proceed formulate basis. guilty, anything, moral, prohibitive wrong, doubt acts done, serious doubt, people not.'

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