I
105TH CONGRESS
2D SESSION
H. R. 3817
To exempt professional sports leagues from liability under the antitrust laws
for certain conduct relating to the relocation of their respective member
teams; to establish procedures and remedies applicable to such leagues
with respect to the relocation of such teams, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 7, 1998
Mr. MEEHAN (for himself and Mr. BRYANT) 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 deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To exempt professional sports leagues from liability under
the antitrust laws for certain conduct relating to the
relocation of their respective member teams; to establish
procedures and remedies applicable to such leagues with
respect to the relocation of such teams, and for other
purposes.
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 ‘‘Professional Sports
Franchise Relocation Act of 1998’’.
SEC. 2. DEFINITIONS.
For purposes of this section:
(1) ANTITRUST
LAWS.—The term ‘‘antitrust
laws’’—
(A) has the meaning given it in subsection
(a) of the first section of the Clayton Act (15
U.S.C. 12(a)), except that such term includes
section 5 of the Federal Trade Commission Act
(15 U.S.C. 45) to the extent such section 5 ap-
plies to unfair methods of competition; and
(B) includes any State law similar to the
laws referred to in subparagraph (A).
(2) HOME TERRITORY.—The term ‘‘home terri-
tory’’ means the geographic metropolitan area within
which a member team operates and plays the major-
ity of its home games.
(3) INTERESTED PARTY.—The term ‘‘interested
party’’ includes, with respect to a member team—
(A) any political subdivision of a State that
provides, or has provided, financial assistance,
including tax abatement, for facilities (including
a stadium or arena) in which the member team
plays;
(B) a representative of the political sub-
division with jurisdiction over the geographic
area in which the stadium or arena of the mem-
ber team is located;
(C) the member team;
(D) the owner or operator of a stadium or
arena of the member team; and
(E) any other person who is determined by
the sports league of the member team to be an
affected party.
(4) MEMBER TEAM.—The term ‘‘member team’’
means a team of professional athletes—
(A) organized to play professional football,
basketball, soccer, or hockey; and
(B) that is a member of a professional
sports league.
(5) PERSON.—The term ‘‘person’’ means any
individual, partnership, corporation, or unincor-
porated association, any combination or association
thereof, or any State or political subdivision of a
State.
(6) 
PROFESSIONAL
SPORTS
LEAGUE.—The
term ‘‘professional sports league’’ means an associa-
tion that—
(A) is composed of 2 or more member
teams;
(B) regulates the contests and exhibitions
of its member teams; and
(C) has been engaged in competition in a
particular sport for a period of more than 7
years.
(7) STADIUM; ARENA.—The terms ‘‘stadium’’
and ‘‘arena’’ mean the principal physical facility
within which a member team plays the majority of
its home games.
SEC. 3. INAPPLICABILITY OF THE ANTITRUST LAWS.
It shall not be unlawful under the antitrust laws for
a professional sports league (or a member team of such
league acting jointly with another member team of such
league, under the authority of such league) to issue or en-
force rules, or to enter into or carry out agreements, to
permit or to restrict the relocation of any such member
team.
SEC. 4. PROCEDURAL REQUIREMENTS.
(a) REQUEST FOR APPROVAL.—
(1) IN GENERAL.—Not later than 210 days be-
fore the commencement of the season in which a
member team proposes to play in a new location,
any person seeking to change the home territory of
the member team shall submit a request for ap-
proval of the proposed change to the appropriate
professional sports league.
(2) REQUIREMENTS.—Each request for ap-
proval submitted under paragraph (1) shall—
(A) be in writing;
(B) be delivered in person or by certified
mail to each interested party not later than 30
days after submission to the appropriate profes-
sional sports league under paragraph (1);
(C) be made available by the date specified
in subparagraph (B) to the news media;
(D) be published by the date specified in
subparagraph (B) in 1 or more newspapers of
general circulation in the home territory of the
member team; and
(E) contain—
(i) an identification of the proposed
location of the member team;
(ii) a summary of the reasons for the
change in home territory, taking into con-
sideration the criteria described in sub-
section (b)(2);
(iii) the date on which the proposed
change is intended to become effective; and
(iv) a detailed description of—
(I) the requirements specified in
this subsection applicable to the sub-
mission of such request;
(II) the procedures specified in
subsection (b) applicable to requests
submitted under this subsection;
(III) the requirements specified
in subsection (c) applicable to deci-
sions on such requests;
(IV) the requirements specified
in subsection (d) applicable to notice
of decisions on such requests; and
(V) the relief available under sec-
tion 5 to a prevailing interested party.
(b) PROCEDURES.—
(1) 
ESTABLISHMENT.—Each 
professional
sports league shall establish rules and procedures for
approving or disapproving requests submitted under
subsection (a), that shall—
(A) include criteria to be considered by the
professional sports league in approving or dis-
approving such requests; and
(B) be made available upon request to any
interested party.
(2) CRITERIA TO BE CONSIDERED.—The cri-
teria described in paragraph (1)(A) shall include—
(A) the extent to which fan loyalty to and
support for the member team has been dem-
onstrated, through attendance, ticket sales, and
television ratings, during the tenure of the
member team in the home territory;
(B) the degree to which the member team
has engaged in good faith negotiations with ap-
propriate persons concerning the terms and
conditions under which the member team might
continue to play its games in its current home
territory;
(C) the degree to which the ownership or
management of the member team has contrib-
uted to any circumstance that might dem-
onstrate the need for the relocation of the mem-
ber team;
(D) the extent to which the member team
has, directly or indirectly, received public finan-
cial support by means of any publicly financed
playing facility, rent abatement, special tax
treatment, any other form of public financial
support, any other public benefits not generally
available to businesses as a whole within the ju-
risdiction, and the extent to which such support
continues;
(E) the adequacy of the stadium or arena
of the member team, and the willingness of the
stadium or arena authority and the local gov-
ernment to remedy any deficiencies in the sta-
dium or arena;
(F) whether the member team has in-
curred net operating losses, exclusive of depre-
ciation or amortization, sufficient to threaten
the continued financial viability of the member
team;
(G) whether any other member team in the
professional sports league is located in the
home territory of the member team;
(H) whether the member team proposes to
relocate to a territory in which no other mem-
ber team in the professional sports league is lo-
cated;
(I) whether the stadium or arena author-
ity, if public, is opposed to the relocation;
(J) the effect that relocation will have on
contracts, agreements, or understandings be-
tween the member team and public and private
parties; and
(K) any other criteria considered to be ap-
propriate by the professional sports league.
(c) DECISION.—In determining whether to approve or
disapprove a proposed request submitted under subsection
(a), the professional sports league shall—
(1) ensure that the requirements of subsection
(a) have been satisfied;
(2) conduct a hearing at which interested par-
ties shall be afforded an opportunity to submit writ-
ten testimony and exhibits; and
(3) keep a written record of such hearing and
any testimony and exhibits submitted under para-
graph (2).
(d) NOTICE OF DECISION.—Not later than 5 days
after making a decision to approve or disapprove a request
submitted under subsection (a), the professional sports
league shall provide to each interested party, make avail-
able to the news media, and publish in a newspaper de-
scribed in subsection (a)(2)(D), a notice that includes—
(1) a statement of such decision; and
(2) a detailed description of—
(A) the requirements specified in sub-
section (a) applicable to the submission of such
request;