article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Professional Sports Antitrust Clarification Act of 1996''. SEC. 2. ACTIONS AUTHORIZED. (a) In General.--Notwithstanding any provision of the antitrust laws, and subject to section 3 and subsection (b) of this section, a professional sports league or its member franchises may establish and enforce rules and procedures for the purpose of deciding whether a member franchise may change its home territory. (b) Construction.--Nothing in this section shall be construed to exempt from the antitrust laws any conduct which would be unlawful under any antitrust law if engaged in by a single entity. SEC. 3. REQUIREMENTS FOR ANTITRUST PROTECTION. (a) In General.--This Act applies to a professional sports league and its member franchises if such league-- (1) establishes applicable rules and procedures to govern whether a member franchise may change its home territory that are available upon request to any interested party; (2) affords due process, including 180 days notice and an opportunity to be heard, to interested parties prior to deciding whether a member franchise may change its home territory; and (3) promotes comparable economic opportunities by sharing revenue among member franchises to account for disparities in revenue received or costs saved due to direct or indirect public benefits and subsidies, including publicly financed facilities, rent abatement, special tax treatment, favorable arrangements for parking, concessions, and other amenities, and other public benefits not generally available to businesses as a whole within the jurisdiction. (b) Rules and Procedures.--Rules and procedures established under subsection (a)(1) shall require consideration of various factors to protect the public interest, including-- (1) the extent to which fan support for a member franchise has been demonstrated through attendance, ticket sales, and television ratings, during the period in which the member franchise played in its home territory; (2) the extent to which the member franchise has, directly or indirectly, received public financial support through publicly financed facilities, rent abatement, special tax treatment, favorable arrangements for parking, concessions, and other amenities, and any other public benefits not generally available to businesses as a whole within the jurisdiction, and the extent to which such support continues; (3) the effect that relocation would have on contracts, agreements, and understandings between the member franchise and public and private parties; (4) the extent of any net operating losses experienced by the member franchise in recent years and the extent to which the member franchise bears responsibility for such losses; and (5) any bona fide offer to purchase the member franchise at fair market value, if such offer includes the continued location of such member franchise in its home territory. SEC. 4. JUDICIAL REVIEW. (a) Standard of Review.--The standard of judicial review shall be de novo in any action challenging the establishment and enforcement of rules and procedures for deciding whether a member franchise may change its home territory, except that the reviewing court shall give deference to actions of the professional sports league regarding compliance with paragraphs (1) and (3) of section 3(a). (b) Declaratory Actions.--A professional sports league or any interested party may seek a declaratory judgment with respect to whether paragraphs (1) and (3) of section 3(a) are adequately satisfied by the professional sports league for this Act to apply. (c) Limitation on Monetary Damages.--A judicial finding that a professional sports league did not comply with any provision of section 3 shall result only in further proceedings by the professional sports league and shall not result in liability under the antitrust laws or monetary damages, if-- (1) the professional sports league implemented a revenue sharing plan in a good faith attempt to comply with section 3(a)(3) prior to the specific dispute in issue; or (2) a prior declaratory judgment held that the revenue sharing plan of the professional sports league complied with section 3(a)(3). (d) Venue.--In any action challenging the establishment and enforcement of rules and procedures to decide whether a member franchise may change its home territory, venue shall be proper only in the United States District Court for the District of Columbia, except that-- (1) venue shall be proper only in the United States District Court for the Southern District of New York if the existing or proposed home territory of a member franchise is located within 100 miles of the United States District Court for the District of Columbia; and (2) venue shall be proper only in the United States District Court for the Northern District of Illinois if-- (A) the existing home territory of a member franchise is located within 100 miles of the United States District Court for the District of Columbia or the Southern District of New York; and (B) the proposed home territory of the member franchise is located within 100 miles of the United States District Court for the District of Columbia or the Southern District of New York. SEC. 5. DEFINITIONS. For purposes of this Act-- (1) the term ``antitrust laws''-- (A) has the same meaning as 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 that such section relates to unfair methods of competition; and (B) includes any State law comparable to the laws referred to in subparagraph (A); (2) the terms ``professional sports team'', ``team'', ``member franchise'', and ``franchise'' mean any team of professional athletes that is a member of a professional sports league; (3) the terms ``professional sports league'' and ``league'' mean-- (A) an association of 2 or more professional sports teams that governs the conduct of its members and regulates the contests and exhibitions in which such teams regularly engage; (B) whose decisions relating to franchise relocation would otherwise be subject to the antitrust laws; and (C) that has combined franchise revenues of more than $10,000,000 per year; (4) the term ``interested party'' means the member franchise at issue, local and State government officials, owners and operators of playing facilities, concessionaires, and others whose business relations would be directly and significantly affected by the franchise relocation at issue, and representatives of organized civic and fan groups; and (5) the term ``playing facility'' means the stadium, arena, or other venue in which professional sports teams regularly conduct their contests and exhibitions. SEC. 6. EFFECTIVE DATE. This Act applies to any action occurring on or after the date of enactment of this Act.
summary: Professional Sports Antitrust Clarification Act of 1996 - Permits a professional sports league or its member franchises to establish and enforce rules and procedures for deciding whether a member franchise may change its home territory, notwithstanding the antitrust laws. Specifies requirements for antitrust protection, including that the league promote comparable economic opportunities by sharing revenue among member franchises to account for disparities in revenue or savings due to public benefits and subsidies. Requires such franchise relocation rules and procedures to provide for consideration of various factors to protect the public interest, including: (1) fan support; (2) the extent of public financial support received; (3) the effect on existing contracts; (4) the extent of any net operating losses; and (5) any bona fide offer to purchase the franchise and keep it in its home territory. Provides for judicial review in actions challenging establishment or enforcement of such rules and procedures.