article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Stadium Financing and Franchise Relocation Act of 1999''. SEC. 2. EXPANSION, MODIFICATION, AND CLARIFICATION OF ANTITRUST EXEMPTIONS. (a) Definitions.--Section 5 of Public Law 87-331, commonly known as the ``Sports Broadcasting Act'' (15 U.S.C. 1295) is amended to read as follows: ``SEC. 5. DEFINITIONS. ``In this Act: ``(1) Antitrust laws.--The term `antitrust laws'-- ``(A) means antitrust laws, as that term is defined in section 1 of the Clayton Act (15 U.S.C. 12); and ``(B) includes antitrust Acts, as that term is defined in section 4 of the Federal Trade Commission Act (15 U.S.C. 44). ``(2) Construction.--With respect to a playing facility, the term `construction' means the construction of a playing facility that is not in existence at the commencement of the construction. ``(3) Local governmental entity.--The term `local governmental entity' means-- ``(A) a State; or ``(B) a county, city or other unit of local government. ``(4) Person.--The term `person' means any individual, partnership, corporation, or unincorporated association, or any combination or association thereof. ``(5) Playing facility.--The term `playing facility' means a stadium or ballpark designed to seat a minimum of 35,000 spectators. ``(6) Renovation.--With respect to a playing facility, the term `renovation' means the renovation of an existing playing facility. ``(7) Sponsored telecasting.--The term `sponsored telecasting'-- ``(A) except as provided in subparagraph (B), includes all over-the-air, cable and satellite transmissions; and ``(B) does not include pay-per-view broadcasts.''. (b) Expansion, Modification, and Clarification of Exemptions.--The first section of Public Law 87-331, commonly known as the ``Sports Broadcasting Act'' (15 U.S.C. 1291) is amended to read as follows: ``SECTION 1. EXEMPTIONS FROM ANTITRUST LAWS OF AGREEMENTS COVERING THE TELECASTING OF SPORTS CONTESTS, THE COMBINING OF PROFESSIONAL FOOTBALL LEAGUES AND THE RELOCATION OF SPORTS FRANCHISES. ``(a) Exemptions.-- ``(1) In general.--Subject to subsection (b), the antitrust laws shall not apply to any joint agreement described in paragraph (2). ``(2) Joint agreements described.--A joint agreement described in this paragraph is a joint agreement-- ``(A) by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey, by which any league of clubs participating in that professional sport sells or otherwise transfers all or any part of the rights of the member clubs of that league in the sponsored telecasting of the games of that professional sport that are engaged in or conducted by those member clubs; ``(B) by which the member clubs of 2 or more professional football leagues described in section 501(c)(6) of the Internal Revenue Code of 1986 and that are exempt from taxation under section 501(a) of the Internal Revenue Code of 1986 combine their operations in an expanded single league that is exempt from income tax by reason of such section 501(a), if that agreement-- ``(i) increases the number of professional football clubs operating; and ``(ii) contains provisions that are directly relevant to the combination of operations for such an expanded single league; or ``(C) by which any league of clubs participating in a professional sport referred to in subparagraph (A) denies a member club the right to transfer the location of the franchise of that member club. ``(b) Conditions on Exemptions.-- ``(1) In general.--The exemption under subsection (a) for a joint agreement described in subsection (a)(2)(A) shall apply, with respect to a football league or major league baseball league only if the league of football or major league baseball clubs involved-- ``(A) agrees-- ``(i) to meet the requirement under paragraph (2); ``(ii) not later than 90 days after the date of enactment of the Stadium Financing and Franchise Relocation Act of 1999, to establish a special trust fund into which the league will deposit an amount equal to 10 percent of the amounts received under that joint agreement for the sale or transfer of the rights in sponsored telecasting of the games of the professional sport of that league in the United States, on the condition that any funds in the trust fund that are not obligated during the 10-year period beginning on the date on which those funds are deposited in that trust fund shall be withdrawn from that trust fund and treated as gross revenues of the league; ``(iii) to use the amounts in the trust fund established under clause (ii) only for financing, in accordance with this section, the construction or renovation of playing facilities from which games of the teams of that league will be televised; and ``(iv) to make available to a local governmental entity, upon request of that entity, from the amounts in the trust fund established under clause (ii), assistance for the cost of the construction or renovation of playing facilities to be used by a member club in that league (if that construction or renovation was not completed prior to the date of introduction of the Stadium Financing and Franchise Relocation Act of 1999), up to a maximum of one-half of that cost, if-- ``(I) the local governmental entity makes a commitment, under a lease or other written agreement entered into between the member club involved and the local governmental entity, to provide funds in an amount equal to at least one-half of the amount of funds to be provided for that purpose by the league; and ``(II) the amounts requested by the local governmental entity are available or become available for obligation from the trust fund established under clause (ii); and ``(B) not later than the date specified in subparagraph (A)(ii), notifies the Attorney General that the league will establish a trust fund in accordance with subparagraph (A). ``(2) Additional requirement.--If a league establishes a trust fund under paragraph (1)(A), as a condition to receiving an exemption under subsection (a)(2)(A), the league shall exclude the amounts deposited in the trust fund from designation as defined gross revenues of the league, or as any other similar designation that describes revenues that are to be shared by the member clubs or the players of the league. ``(3) Major league baseball.-- ``(A) In general.--The requirements of paragraphs (1) and (2) shall apply to a league of major league baseball clubs in the same manner as they apply to a league of professional football clubs. ``(B) Other exemptions.--Nothing in this subsection is intended to affect any exemption from the antitrust laws that may apply to major league baseball with respect to activities that are not covered under this Act.''. (c) Technical and Conforming Amendments.-- (1) Area telecasting restriction limitation.--Section 2 of Public Law 87-331, commonly known as the ``Sports Broadcasting Act'' (15 U.S.C. 1292) is amended-- (A) by striking ``Sec. 2. Section'' and inserting the following: ``SEC. 2. AREA TELECASTING RESTRICTION LIMITATION. ``Section''; and (B) by striking ``described in the first sentence of such section'' and inserting ``described in subsection (a)(2) of that section''. (2) Intercollegiate and interscholastic football consent limitations.--Section 3 of Public Law 87-331, commonly known as the ``Sports Broadcasting Act'' (15 U.S.C. 1293) is amended by striking ``Sec. 3. The first sentence of section 1 of this Act'' and inserting the following: ``SEC. 3. INTERCOLLEGIATE AND INTERSCHOLASTIC FOOTBALL CONSENT LIMITATIONS. ``The exemption under section 1(a)''. (3) Statutory construction.--Section 4 of Public Law 87- 331, commonly known as the ``Sports Broadcasting Act'' (15 U.S.C. 1293) is amended by striking ``Sec. 4. Nothing'' and inserting the following: ``SEC. 4. STATUTORY CONSTRUCTION. ``Nothing''.
summary: Stadium Financing and Franchise Relocation Act of 1999 - Rewrites the Sports Broadcasting Act to exempt from the antitrust laws any joint agreement: (1) by or among persons engaging in or conducting the organized professional team sports of football, baseball, basketball, or hockey by which any league of clubs participating in that professional sport sells or otherwise transfers all or part of the rights of that league's member clubs in the sponsored telecasting of games; (2) by which the member clubs of two or more professional football leagues that are exempt from taxation combine their operations in an expanded single league that is exempt from income tax, if that agreement increases the number of professional football clubs operating and contains provisions that are directly relevant to the combination of operations for such league; or (3) by which any league of clubs participating in such a professional sport denies a member club the right to transfer the location of the franchise of that member club. Conditions the exemption, with respect to a football league or major league baseball league, on the football league or major league baseball clubs involved agreeing to meet specified requirements, including the establishment of a special trust fund into which the league will deposit ten percent of the amounts received under the joint agreement for the sale or transfer of the rights in sponsored telecasting of games to finance the construction or renovation of playing facilities, upon request of a local governmental entity.