Document: 348 U.S. 236 75 S.Ct. 259 99 L.Ed. 290 UNITED STATES of America, Appellant,v.INTERNATIONAL BOXING CLUB OF NEW YORK, Inc., et al. No. 53. Argued Nov. 10, 1954. Decided Jan. 31, 1955. Mr.Philip Elman, Washington, D.C., for appellant. Messrs. Whitney North Seymour, Charles H. Watson, New York City, appellees. Mr. Manuel Lee Robbins, State Athletic Commn. amicus curiae. Chief Justice WARREN delivered the opinion Court. 1 This is a civil antitrust action brought by Government in United States District Court Southern York. The defendants—three corporations and two individuals—are engaged business promoting professional championship boxing contests.1 Government's complaint charges that defendants, course this business, have violated §§ 2 Sherman Act.2 After Court's decision Toolson v. Yankees, 346 356, 78, 98 64, defendants moved to dismiss complaint. granted motion reliance upon Federal Baseball Club Baltimore National League Professional Clubs, 200, 42 465, 66 898.3 case, together with Shubert, 277, here on direct appeal under Expediting Act, 15 U.S.C. § 29, U.S.C.A. 29. alleges promoters contests 3 'make substantial utilization channels interstate trade commerce to: 4 '(a) negotiate contracts boxers, advertising agencies, seconds, referees, judges, announcers, other personnel living states than those which reside; 5 '(b) arrange maintain training quarters '(c) lease suitable arenas, details contests, particularly when are held 6 '(d) sell tickets across state lines; 7 '(e) sale rights make distribute pictures 18,000 theatres States; 8 '(f) broadcast telecast homes through more 3,000 radio stations 100 television 9 '(g) some 200 picture various display large-screen television.' 10 promoter's receipts from television, radio, matches, according complaint, represent average over 25% total revenue instances exceed derived admission tickets.4 restrained monopolized commerce—'the promotion, exhibition, broadcasting, telecasting, production distribution States'—through conspiracy exclude competition their line business. conspiracy, it claimed, began 1949 an agreement among Joe Louis, then heavyweight champion world, Louis would resign his title, he procure exclusive services four leading title contenders series elimination result recognition new champion, also obtain broadcast, televise, film these assign all such defendants. allegedly sought effectuate following means: eliminating 'leading competing promoter' matches; acquiring right promote 'principal arenas' where matches can be successfully presented; requiring each contender agree, as condition fighting championship, if wins would, period three (and sometimes five) years, take part only promoted As consequence acts, alleges, promoted, or participated promotion of, but 21 between June filing March 1952. 11 These allegations must taken true at stage proceeding. And do not deny cause subject Act. question thus presented whether defendants' described complaint—the multistate basis, coupled transmission—constitutes 'trade several States' within meaning 12 perhaps novel one has never before considered status Yet, were Toolson, we think too clear dispute bring scope A match—like showing picture, Crescent Amusement Co., 323 173, 183, 65 254, 259, 89 160, performance vaudeville act, Hart B. F. Keith Vaudeville Exchange, 262 271, 43 540, 67 977, legitimate attraction, 222, 'is local affair.' But fact alone does bar application Act based itself imposes illegal restraints commerce. Apart sufficient, believe, rest allegation operations rights.5 Compare Yellow Cab 332 218, 225—226, 1560, 1564, 91 2010; Times-Picayune Publishing Co. States, 345 594, 602, note 11, 73 872, 877, 97 1277; Mandeville Island Farms American Crystal Sugar 334 219, 227—235, 68 996, 1001—1006, 92 1328; Frankfort Distilleries, 324 293, 297—298, 661, 663—664, 951; Women's Sports-wear Mfrs. Ass'n, 336 460, 464, 69 714, 716, 93 805; Employing Plasterers 347 186, 189, 74 452, 454, 618; cases collected Shubert opinion. See Currin Wallace, 306 1, 59 379, 384, 83 441; Wickard Filburn, 317 111, 127—128, 63 82, 90—91, 87 122. 13 Notwithstanding decisions, contend they exempt rule stare decisis. They, like base contention Toolson. content restrictive interpretation case. argue baseball immunized businesses built around live presentation exhibitions. instant case involve exhibitions athletic nature. We cannot accept either argument. 14 For reasons stated restated neither overruled nor necessarily reaffirmed was said Baseball. Instead, '(w)ithout re-examination underlying issues,' adhered 'so far determines Congress had no intention including federal anti-trust laws.' (346 357, 79) today authority exempting merely because circumstance That ruling fully applicable here. Moreover, none factors present At time filed, court ever laws.6 Indeed, less year after decision, clearly established could relied basis exemption segments entertainment otherwise. Surely there nothing Holmes suggest, even remotely, drawing nonathletic entertainment. Nor see relevance distinction purpose determining what constitutes States.' controlling consideration was, instead, very practical one—the degree activity involved particular review. It follows decisis help here; for, contrary argument, did hold sports outside laws. issue confronting us is, therefore, previously should continue, first instance. resolve, South-Eastern Underwriters 322 533, 561, 64 1162, 1178, 88 1440. 16 fact, recently. In 1951, identical bills introduced Congress—three House Senate—forbidding laws 'to organized enterprises acts conduct enterprises.'7 Extensive hearings conducted Subcommittee Study Monopoly Power Committee Judiciary; Senate bill.8 conclusion its hearings, unanimously declared opposition bills. Its report states:9 17 'The requested extend enterprises. law longer require any facet sport enterprise. Thus rights, management stadia, purchase advertising, concession industry, many activities, well aspects solely related playing field, immune untouchable. Such broad without substantially repealing (Italics added.) 18 With respect baseball, recommended postponement legislation until clarified courts.10 No further bills; left intact then-existing coverage Yet now asking precisely same enactment afforded. Their remedy, entitled one, lies resort Congress, already stated. agree 'Such 19 concerned sufficiency opportunity prove allegations. judgment below reversed. 20 Reversed. BURTON, retaining views expressed dissent 79, joins REED concurrence. APPENDIX TO OPINION THE COURT. 22 describes 'Nature Trade Commerce Involved' follows: 23 10. Boxers usually compete amateur tournaments preliminary becoming professionals. amateurs receive pay box sponsorship independent clubs, associations organizations. When become professionals, contract opponent per bout fee. If skill boxers results increasing willingness public view demand higher fees greater percentage rights. increases, engage bouts throughout eventually participate major bouts. fee sum guaranteed promoter predetermined net 24 11. most lucrative asset boxer designation commissions others 'world champion' division competes. divisions are: 25 flyweight.......................... 112 lbs. 26 bantamweight....................... 118 " 27 featherweight...................... 126 28 lightweight........................ 135 29 welterweight....................... 147 30 middleweight....................... 160 31 light heavyweight.................. 175 32 heavyweight........................ All above 33 gains defeating existing contenders, remains world turn, defeated resigns title. affords holder financial returns personal appearances endorsements contests. 34 12. Of championships,' important promoters, greatest benefits. flyweight bantamweight importance few weights. contest been since 1935; 1947. 35 13. winners achieve titles, includes negotiating executing main bouts, arranging maintaining quarters, leasing stadia ball parks numbers may seated contest, employment matchmakers, press agents, announcers personnel; organizing, assembling, necessary exhibition contests; selling them foreign countries; transmit countries. 36 14. Promoters 37 (a) 38 (b) 39 (c) 40 (d) 41 (e) (f) (g) television. 44 15. Motion films distributed exhibited Similarly, broadcasts transmitted 45 16. produced gross income admissions approximately $4,500,000.00. during period, $15,000,000.00. 46 16(a). fight derives sources: telecast, produce fight. fights, account proportion revenue. Since represented, average, exceeded, instances, received admission. progressive continuing expansion facilities, pictures, ascending curve, relation Marciano-Walcott May 15, 1953, Chicago, Illinois, IBC (N.Y.), (Ill.), James D. Norris Arthur M. Wirtz, promoters' were, taxes, $253,462.37, while $300,000. 47 FRANKFURTER, whom MINTON joins, dissenting. 48 baffle subtlest ingenuity find single differentiating factor sporting exhibitions, football tennis, insofar relevant criteria considerations Law becomes commerce.' Stat. 209, 1. extent exploitation mass media extensive boxing.* intrinsic applicability issue, attempt made differentiate sports. 49 1922, found commercialized Law. 898. Last Term refused re-examine 'the issues' adjudication it. 64. What 'underlying issues'? They constituents By adhering depart constituent elements. To my understanding, meant '(w) ithout issues.' decided doctrine not, sure, imprisonment reason. whimsy. hardly gave preferred position great sport. I suppose treat national anthem differently songs nature song became adjudication. aspect law, disregard identic situations mere caprice. 50 hand, yield sentiment capricious, due process. matter explicit led congressional refusal upset decision. commendable candor recognizes, asked avert threat litigation against providing specific provisions sponsors relief ask immunity such. 'legislation' reference consisted 'organized (and) enterprises.' (H.R. 4229, 4230, 4231, S. 1526, 82d Cong., 1st Sess.) Since, circumstances, undisturbed myself construe ws accorded narrower passed covered translate narrowest conception into equivalent writing exclusion every different legal jot tittle 51 Between them, illustrate nice rational distinctions inevitable reason constrains me caes. Within Court, again writer, bill show so frivolous call dismissal. 977. decisions stood law. plainly falls Hart. process reasoning, Baseball, revitalized despite relied. 52 Whatever unsavory elements quite beside mark. distasteful possessed honorable effective remedy self-help. need sanction pugilistic conditions safeguard notions welfare. 53 MINTON, 54 things essential: (1) commerce; (2) States. 55 898, said, 'personal effort, production, commerce', game wholly intrastate, 466. 56 traveling play arrangements incident exhibition. overrule decision; holding 57 travel State, carrying shorts fancy dressing robes ditty bag order bout, fine example tail wagging dog conjured up. 58 dealing appellees industries. separate consideration. allowed spectacle thereafter using exhibit package deal. transmission sound pictures. Because incidents directly involved, effort companies says: chamption, defendants.' course, Louis. He monopoly that, got competition, get go back ring walloped knockout surrender championship. arranged fellows out else doing same, difficult how conspiracy. wanted start free so. Whether acceptance depended something athlete efforts, production,' which, commerce? about control Suppose appellee did, states, parties called twenty-one restrained? 60 it, There restraint nonexistent trade. speculate. am saying attempted corporate International Boxing York, Club, Madison Square Garden Corporation. individual Wirtz. Corporation, own 80% stock Club. appendix 2, 2. sections provide: * Every contract, combination form trust otherwise, nations, *. person who shall 1—7 deemed guilty misdemeanor monopolize, combine conspire persons, monopolize *.' Section 4, confers jurisdiction district courts prevent restrain violations title' equity proceedings instituted direction Attorney General. oral transcribed. however, dismissal 'With curve. *' concededly E.g., Radio Comm. Nelson Bros. Bond & Mortgage 289 266, 279, 627, 633, 77 1166 (radio); Allen Dumont Laboratories, Carroll, Cir., 184 F.2d 153, 154, certiorari denied, 340 929, 71 490, 95 670 (television); Paramount Pictures, 131, 915, 1260 (motion pictures). Shall Henry, 211 226, subsequent below. So Peller unreported, Civil C 813, April 23, 1954 (D.C.N.D.Ill.). unreported (D.C.N.D.Ill.) Henry affirmed prior H.R. Sess. 'by friends feared continued existence America's pastime danger impending litigation.' H.R.Rep. 2002, 2d Sess., p. problem exempted operation Hearings 'Organized Baseball' Judiciary, 2002 (entitled Baseball'), 230. report, reconstituted Antitrust Subcommittee. submitted full pursuant H.Res. 95, Id., 134—136, 231—232. such, beyond infra.

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