I
106TH CONGRESS
1ST SESSION
H. R. 1832
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 juris-
diction of the committee concerned
A BILL
To reform unfair and anticompetitive practices in the
professional boxing industry.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Muhammad Ali Boxing
Reform Act’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Professional boxing differs from other
major, interstate professional sports industries in
the United States in that it operates without any
private sector association, league, or centralized in-
dustry organization to establish uniform and appro-
priate business practices and ethical standards. This
has led to repeated occurrences of disreputable and
coercive business practices in the boxing industry, to
the detriment of professional boxers nationwide.
(2) Professional boxers are vulnerable to ex-
ploitative business practices engaged in by certain
promoters and sanctioning bodies which dominate
the sport. Boxers do not have an established rep-
resentative group to advocate for their interests and
rights in the industry.
(3) State officials are the proper regulators of
professional boxing events, and must protect the wel-
fare of professional boxers and serve the public in-
terest by closely supervising boxing activity in their
jurisdiction. State boxing commissions do not cur-
rently receive adequate information to determine
whether boxers competing in their jurisdiction are
being subjected to contract terms and business prac-
tices which may be violative of State regulations, or
are onerous and confiscatory.
(4) Promoters who engage in illegal, coercive,
or unethical business practices can take advantage
of the lack of equitable business standards in the
sport by holding boxing events in states with weaker
regulatory oversight.
(5) The sanctioning organizations which have
proliferated in the boxing industry have not estab-
lished credible and objective criteria to rate profes-
sional boxers, and operate with virtually no industry
or public oversight. Their ratings are susceptible to
manipulation, have deprived boxers of fair opportu-
nities for advancement, and have undermined public
confidence in the integrity of the sport.
(6) Open competition in the professional boxing
industry has been significantly interfered with by re-
strictive and anti-competitive business practices of
certain promoters and sanctioning bodies, to the det-
riment of the athletes and the ticket-buying public.
Common practices of promoters and sanctioning or-
ganizations represent restraints of interstate trade
in the United States.
(7) It is necessary and appropriate to establish
national contracting reforms to protect professional
boxers and prevent exploitative business practices,
and to require enhanced financial disclosures to
State athletic commissions to improve the public
oversight of the sport.
(8) Whereas the Congress seeks to improve the
integrity and ensure fair practices of the profes-
sional boxing industry on a nationwide basis, it
deems it appropriate to name this reform in honor
of Muhammad Ali, whose career achievements and
personal contributions to the sport, and positive im-
pact on our society, are unsurpassed in the history
of boxing.
SEC. 3. PURPOSES.
The purposes of this Act are—
(1) to protect the rights and welfare of profes-
sional boxers by preventing certain exploitative, op-
pressive, and unethical business practices they may
be subject to on an interstate basis;
(2) to assist State boxing commissions in their
efforts to provide more effective public oversight of
the sport; and
(3) to promote honorable competition in profes-
sional boxing and enhance the overall integrity of
the industry.
SEC. 4. PROTECTING BOXERS FROM EXPLOITATION.
The Professional Boxing Safety Act of 1996 (15
U.S.C. 6301 et seq.) is amended by—
(1) redesignating section 15 as 16; and
(2) inserting after section 14 the following:
‘‘SEC. 15. PROTECTION FROM EXPLOITATION.
‘‘(a) CONTRACT REQUIREMENTS.—
‘‘(1) IN
GENERAL.—Any contract between a
boxer and a promoter or manager shall—
‘‘(A) include mutual obligations between
the parties;
‘‘(B) specify a minimum number of profes-
sional boxing matches per year for the boxer;
and
‘‘(C) set forth a specific period of time
during which the contract will be in effect, in-
cluding any provision for extension of that pe-
riod due to the boxer’s temporary inability to
compete because of an injury or other cause.
‘‘(2) 1-YEAR LIMIT ON COERCIVE PROMOTIONAL
RIGHTS.—
‘‘(A) The period of time for which pro-
motional rights to promote a boxer may be
granted under a contract between the boxer and
a promoter, or between promoters with respect
to a boxer, may not be greater than 12 months
in length if the boxer is required to grant such
rights, or a boxer’s promoter is required to
grant such rights with respect to a boxer, as
a condition precedent to the boxer’s participa-
tion in a professional boxing match against an-
other boxer who is under contract to the pro-
moter.
‘‘(B) A promoter exercising promotional
rights with respect to such boxer during the 12-
month period beginning on the day after the
last day of the promotional right period de-
scribed in subparagraph (A) may not secure ex-
clusive promotional rights from the boxer’s op-
ponents as a condition of participating in a pro-
fessional boxing match against the boxer, and
any contract to the contrary—
‘‘(i) shall be considered to be in re-
straint of trade and contrary to public pol-
icy; and
‘‘(ii) unenforceable.
‘‘(C) Nothing in this paragraph shall be
construed as pre-empting any State law con-
cerning interference with contracts.
‘‘(3) PROMOTIONAL
RIGHTS
UNDER
MANDA-
TORY BOUT CONTRACTS.—Neither a promoter nor a
‘‘(ii) to be employed by or receive
compensation or other benefits from a pro-
moter,
except for amounts received as consideration
under the manager’s contract with the boxer.
‘‘(2) EXCEPTION
FOR
SELF-PROMOTION
AND
MANAGEMENT.—Paragraph (1) does not prohibit a
boxer from acting as his own promoter or man-
ager.’’.
SEC. 5. SANCTIONING ORGANIZATION INTEGRITY RE-
FORMS.
(a) IN GENERAL.—The Professional Boxing Safety
Act of 1996 (15 U.S.C. 6301 et seq.), as amended by sec-
tion 4 of this Act, is amended by—
(1) redesignating section 16, as redesignated by
section 4 of this Act, as section 17; and
(2) by inserting after section 15 the following:
‘‘SEC. 16. SANCTIONING ORGANIZATIONS.
‘‘(a) OBJECTIVE CRITERIA.—A sanctioning organiza-
tion that sanctions professional boxing matches on an
interstate basis shall establish objective and consistent
written criteria for the ratings of professional boxers.
‘‘(b) APPEALS PROCESS.—A sanctioning organization
shall establish and publish an appeals procedure that af-
fords a boxer rated by that organization a reasonable op-
portunity, without the payment of any fee, to submit infor-
mation to contest its rating of the boxer. Under the proce-
dure, the sanctioning organization shall, within 14 days
after receiving a request from a boxer questioning that
organization’s rating of the boxer—
‘‘(1) provide to the boxer a written explanation
of the organization’s criteria, its rating of the boxer,
and the rationale or basis for its rating (including
a response to any specific questions submitted by the
boxer); and
‘‘(2) submit a copy of its explanation to the
President of the Association of Boxing Commissions
of the United States and to the boxing commission
of the boxer’s domiciliary State.
‘‘(c) NOTIFICATION OF CHANGE IN RATING.—If a
sanctioning organization changes its rating of a boxer who
is included, before the change, in the top 10 boxers rated
by that organization, then, within 14 days after changing
the boxer’s rating, the organization shall—
‘‘(1) mail notice of the change and a written ex-
planation of the reasons for its change in that box-
er’s rating to the boxer at the boxer’s last known ad-
dress;
‘‘(2) post a copy, within the 14-day period, of
the notice and the explanation on its Internet
website or homepage, if any, for a period of not less
than 30 days; and
‘‘(3) mail a copy of the notice and the expla-
nation to the President of the Association of Boxing
Commissions.
‘‘(d) PUBLIC DISCLOSURE.—
‘‘(1) FTC FILING.—Not later than January
31st of each year, a sanctioning organization shall
submit to the Federal Trade Commission—
‘‘(A) a complete description of the organi-
zation’s ratings criteria, policies, and general
sanctioning fee schedule;
‘‘(B) the bylaws of the organization;
‘‘(C) the appeals procedure of the organi-
zation; and
‘‘(D) a list and business address of the or-
ganization’s officials who vote on the ratings of
boxers.
‘‘(2) FORMAT; UPDATES.—A sanctioning orga-
nization shall—
‘‘(A) provide the information required
under paragraph (1) in writing, and, for any
document greater than 2 pages in length, also
in electronic form; and
‘‘(B) promptly notify the Federal Trade
Commission of any material change in the in-
formation submitted.
‘‘(3) FTC TO MAKE INFORMATION AVAILABLE
TO PUBLIC.—The Federal Trade Commission shall
make information received under this subsection
available to the public. The Commission may assess
sanctioning organizations a fee to offset the costs it
incurs in processing the information and making it
available to the public.
‘‘(4) INTERNET ALTERNATIVE.—In lieu of sub-
mitting the information required by paragraph (1)
to the Federal Trade Commission, a sanctioning or-
ganization may provide the information to the public
by maintaining a website on the Internet that—
‘‘(A) is readily accessible by the general
public using generally available search engines
and does not require a password or payment of
a fee for full access to all the information;
‘‘(B) contains all the information required
to be submitted to the Federal Trade Commis-
sion by paragraph (1) in an easy to search and
use format; and
‘‘(C) is updated whenever there is a mate-
rial change in the information.’’.
(b) CONFLICT OF INTEREST.—Section 9 of such Act
(15 U.S.C. 6308), as amended by section 4 of this Act,
is amended by adding at the end thereof the following:
‘‘(c) SANCTIONING ORGANIZATIONS.—
‘‘(1) PROHIBITION
ON
RECEIPTS.—Except as
provided in paragraph (2), no officer or employee of
a sanctioning organization may receive any com-
pensation, gift, or benefit directly or indirectly from
a promoter, boxer, or manager.
‘‘(2) EXCEPTIONS.—Paragraph (1) does not
apply to—
‘‘(A) the receipt of payment by a promoter,
boxer, or manager of a sanctioning organiza-
tion’s published fee for sanctioning a profes-
sional boxing match or reasonable expenses in
connection therewith if the payment is reported
to the responsible boxing commission under sec-
tion 17; or
‘‘(B) the receipt of a gift or benefit of de
minimis value.’’.
(c) SANCTIONING ORGANIZATION DEFINED.—Sec-
tion 2 of the Professional Boxing Safety Act of 1996 (15
U.S.C. 6301) is amended by adding at the end thereof
the following:
‘‘(11) SANCTIONING ORGANIZATION.—The term
‘sanctioning organization’ means an organization
that sanctions professional boxing matches in the
United States—
‘‘(A) between boxers who are residents of
different States; or
‘‘(B) that are advertised, otherwise pro-
moted, or broadcast (including closed circuit
television) in interstate commerce.’’.
SEC. 6. PUBLIC INTEREST DISCLOSURES TO STATE BOXING
COMMISSIONS.
(a) IN GENERAL.—The Professional Boxing Safety
Act of 1996 (15 U.S.C. 6301 et seq.), as amended by sec-
tion 5 of this Act, is amended by—
(1) redesignating section 17 as redesignated by
section 5 of this Act, as section 18; and
(2) by inserting after section 16 the following:
‘‘SEC. 17. REQUIRED DISCLOSURES TO STATE BOXING COM-
MISSIONS.
‘‘(a) SANCTIONING ORGANIZATIONS.—Before sanc-
tioning a professional boxing match in a State, a sanc-
tioning organization shall provide to the boxing commis-
sion of, or responsible for sanctioning matches in, that
State a written statement of—
‘‘(1) all charges, fees, and costs the organiza-
tion will assess any boxer participating in that
match;
‘‘(2) all payments, benefits, complimentary ben-
efits, and fees the organization will receive for its
affiliation with the event, from the promoter, host
of the event, and all other sources; and
‘‘(3) such additional information as the commis-
sion may require.
‘‘(b) PROMOTERS.—Before a professional boxing
match organized, promoted, or produced by a promoter
is held in a State, the promoter shall provide a statement
in writing to the boxing commission of, or responsible for
sanctioning matches in, that State—
‘‘(1) a copy of any agreement in writing to
which the promoter is a party with any boxer par-
ticipating in the match;
‘‘(2) a statement made under penalty of perjury
that there are no other agreements, written or oral,
between the promoter and the boxer with respect to
that match; and
‘‘(3) a statement in writing of—
‘‘(A) all fees, charges, and expenses that
will be assessed by or through the promoter on
the boxer pertaining to the event, including any
portion of the boxer’s purse that the promoter
will receive, and training expenses; and
‘‘(B) all payments, gift, or benefits the
promoter is providing to any sanctioning orga-
nization affiliated with the event.
‘‘(c) INFORMATION TO BE AVAILABLE TO STATE AT-
TORNEY GENERAL.—A promoter shall make information
received under this section available to the chief law en-
forcement officer of the State in which the match is to
be held upon request.
‘‘(d) EXCEPTION.—The requirements of this section
do not apply in connection with a professional boxing
match scheduled to last less than 10 rounds.’’.
SEC. 7. ENFORCEMENT.
Section 10 of the Professional Boxing Safety Act of
1996 (15 U.S.C. 6309) is amended by—
(1) inserting a comma and ‘‘other than section
9(b), 15, 16, or 17,’’ after ‘‘this Act’’ in subsection
(b)(1);
(2) redesignating paragraphs (2) and (3) of
subsection (b) as paragraphs (3) and (4), respec-
tively, and inserting after paragraph (1) the fol-
lowing:
‘‘(2) VIOLATION OF ANTI-EXPLOITATION, SANC-
TIONING
ORGANIZATION, OR
DISCLOSURE
PROVI-
SIONS.—Any person who knowingly violates any pro-
vision of section 9(b), 15, 16, or 17 of this Act shall,
upon conviction, be imprisoned for not more than 1
year or fined not more than—
‘‘(A) $100,000; and
‘‘(B) if the violations occur in connection
with a professional boxing match the gross rev-
enues for which exceed $2,000,000, such addi-
tional amount as the court finds appropriate,
or both.’’; and
(3) adding at the end thereof the following:
‘‘(c) ACTIONS BY STATES.—Whenever the chief law
enforcement officer of any State has reason to believe that
a person or organization is engaging in practices which
violate any requirement of this Act, the State, as parens
patriae, may bring a civil action on behalf of its residents
in an appropriate district court of the United States—
‘‘(1) to enjoin the holding of any professional
boxing match which the practice involves;
‘‘(2) to enforce compliance with this Act;
‘‘(3) to obtain the fines provided under sub-
section (b) or appropriate restitution; or
‘‘(4) to obtain such other relief as the court
may deem appropriate.
‘‘(d) PRIVATE RIGHT OF ACTION.—Any boxer who
suffers economic injury as a result of a violation of any
provision of this Act may bring an action in the appro-
priate Federal or State court and recover the damages suf-
fered, court costs, and reasonable attorneys fees and ex-
penses.’’.
SEC. 8. PROFESSIONAL BOXING SAFETY ACT AMENDMENTS.
(a) DEFINITIONS.—Section 2 of the Professional
Boxing Safety Act of 1996 (15 U.S.C. 6301), as amended
by section 5(c) of this Act, is amended by adding at the
end thereof the following:
‘‘(12) SUSPENSION.—The term ‘suspension’ in-
cludes within its meaning the revocation of a boxing
license.’’.
(b) STATE BOXING COMMISSION PROCEDURES.—
Section 7(a)(2) of such Act (15 U.S.C. 6306(a)(2)) is
amended—
(1) by striking ‘‘or’’ in subparagraph (C);
(2) by striking ‘‘documents.’’ at the end of sub-
paragraph (D) and inserting ‘‘documents; or’’; and
(3) adding at the end thereof the following:
‘‘(E) unsportsmanlike conduct or other in-
appropriate behavior inconsistent with generally
accepted methods of competition in a profes-
sional boxing match.’’.
Æ