article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Fan Freedom and Community Protection Act of 1995''. SEC. 2. FINDINGS. Congress finds the following: (1) The name of a professional sports team is always linked to the name of the community in which it is located. (2) Communities, sports fans, and taxpayers make a substantial and valuable financial, psychological, and emotional investment in their teams and their teams' names. (3) Professional sports teams promote civic pride, and generate jobs, revenues, and other local economic development. (4) Professional sports teams remain in communities for generations and represent much more than a business. (5) Current law does not protect the rights of sports fans nor the interests of communities when a professional sports team decides to relocate. (6) Professional sports team owners are positioned to extract enormous benefits from communities, and they are taking advantage of these opportunities. (7) Professional sports teams and leagues have directly benefited from Federal legislation, including the following: (A) Public law 87-331 (15 U.S.C. 1291 et seq; commonly referred to as the Sports Antitrust Broadcast Act of 1961). (B) Public law 89-800 (80 Stat. 1508; commonly referred to as the Football Merger Act of 1966). (C) Public law 93-107 (87 Stat. 350; relating to a prohibition of local television blackouts of network games which were sold out 72 hours in advance). (D) Federal tax laws that allow depreciation of player contracts, capital gains, carryover losses, and the formation of Subchapter S corporations. (8) The Court of Appeals for the Ninth Circuit ruled in Los Angeles Memorial Coliseum Commission v. National Football League (726 F.2d 1381 (9th cir. 1984); commonly referred to as Raiders I), Los Angeles Memorial Coliseum Commission v. National Football League (791 F.2d. 1356 (9th cir. 1986); commonly referred to as Raiders II), and National Basketball Association v. SDC Basketball Club, Inc. (815 F.2d 562 (9th cir. 1987); commonly referred to as Clippers) that a league has the authority to prevent a professional sports team from relocating from one community to another community. SEC. 3. TEAM NAME. (a) Conditions on Approval of Relocation.--In a case in which a league approves the relocation of a professional sports team from a community described in subsection (b)-- (1) the registered mark that is used to identify the professional sports team becomes the property of the league; (2) the league shall reserve the registered mark and any portion of the registered mark for use only by the community from which the team is relocating until the earlier of-- (A) the expiration of the registered mark; or (B) the date on which the community informs the league that a professional sports team will not be using the registered mark; and (3) the registered mark or any portion of the registered mark may not be used by another professional sports team in the same league. (b) Communities Covered.--A community referred to in subsection (a) is a community in which a professional sports team has been located for a period of at least 10 years. SEC. 4. NOTICE OF PROPOSED RELOCATION OF A PROFESSIONAL SPORTS TEAM. (a) Requirement.--A professional sports team owner seeking to relocate the team from one community to another shall provide notice of the proposed relocation to the parties listed in subsection (b) not later than 180 days before the commencement of the season in which the professional sports team is to play in the new community. (b) Parties.--The notice required under subsection (a) shall be provided to-- (1) the local government for the community in which the professional sports team's stadium or arena is located; (2) the owner or operator of such stadium or arena; and (3) each professional sports team that is a member of the league for the professional sport concerned. (c) Additional Requirements.--The notice required under subsection (a) shall-- (1) be delivered in person or by certified mail; (2) be published in one or more newspapers of general circulation within the community in which the professional sports team is located; and (3) contain an identification of the proposed new location for the professional sports team, a summary of the reasons for moving the professional sports team based on the factors listed in section 7, and the date on which the proposed change is scheduled to become effective. SEC. 5. REQUIREMENT TO MAKE EXPANSION TEAMS AVAILABLE TO COMMUNITIES UPON THE FULFILLMENT OF CERTAIN CONDITIONS. (a) League Requirement to Grant Franchise.--Not later than 12 months after the submission of the name of an investor under subsection (b) to a league, the league shall grant to the investor a new expansion professional sports team franchise from the league at a fee in an amount no greater than an amount equal to 85 percent of the franchise fee charged by the league for the last expansion professional sports team franchise granted by the league. (b) Three-Year Opportunity for Investment.--The requirement of subsection (a) applies to a league in any case in which-- (1) the league approves, on or after January 1, 1993, the relocation of a professional sports team from one community to another; (2) not later than three years after such relocation, the community in which the team was previously located submits to the league the name of an investor to be granted a new professional sports team franchise in such community by the league; and (3) the investor demonstrates that he is financially able to purchase and support a team by placing the amount described under subsection (a), in addition to an amount equal to the sale price of the last professional sports team sale approved by the league, in an escrow account. (c) Ten-Year Relocation Prohibition.--In the case of a grant of a professional sports team franchise under subsection (a), the league may approve a resale of the team, but may not approve a relocation of the team during the ten-year period beginning on the date of the grant of the expansion professional sports team franchise. (d) Exception.--This section shall not apply in the case of a community with a professional sports team if the team relocates within 60 miles of the community. SEC. 6. LEAGUE RELOCATION AUTHORITY AND RELOCATION DETERMINATION CRITERIA. (a) League Authority.--It is not unlawful by reason of the antitrust laws for a professional sports league to enforce rules or agreements authorizing the membership of such league to decide whether a professional sports team that is a member of the league may relocate from one community to another. (b) Determination Criteria.--In determining whether to approve or disapprove the relocation of a professional sports team from one community to another, a league shall make specific findings regarding-- (1) the extent to which fan loyalty to and support for the team has been demonstrated during the team's tenure in the community; (2) the degree to which the team has engaged in good faith negotiations with appropriate persons concerning terms and conditions under which the team would continue to play its games in the community; (3) the degree to which the owners or managers of the team have contributed to any circumstances which might demonstrate the need for the relocation; (4) the extent to which the team, directly or indirectly, received public financial support by means of any publicly financed playing facility, special tax treatment, or any other form of public financial support; (5) the adequacy of the stadium in which the team played its home games in the previous season, and the willingness of the stadium, arena authority, or the local government to remedy any deficiencies in such facility; (6) whether the team has incurred net operating losses, exclusive of depreciation and amortization, sufficient to threaten the continued financial viability of the team; (7) whether any other team in the league is located in the community in which the team is currently located; (8) whether the team proposes to relocate to a community in which no other team in the league is located; (9) whether the stadium authority, if public, is not opposed to such relocation; and (10) whether there is a bona fide investor offering fair market value for the professional sports team and will retain the team in the current community. SEC. 7. ENFORCEMENT. (a) Penalties for Failure to Comply.--A league that violates the requirement of section 5(a) by failing to grant a new professional sports team franchise-- (1) is liable to the community in which the team was previously located for damages equal to three times the purchase price of the team; and (2) is subject to the suspension for one season of its antitrust exemption for pooling the broadcasting rights to games under Public Law 87-331 (15 U.S.C. 1291 et seq.). (b) Enforcement by the Federal Trade Commission.--The provisions of this Act shall be enforced by the Federal Trade Commission under the Federal Trade Commission Act (15 U.S.C. 41 et seq.). SEC. 8. INAPPLICABILITY TO CERTAIN MATTERS. Nothing in this Act shall-- (1) alter, determine, or otherwise affect the applicability or inapplicability of the antitrust laws, the labor laws, or any other provision of law to the wages, hours, or other terms and conditions of employment of players in any professional sports league, to any employment matter regarding players in any such league or to any collective bargaining rights and privilege of any player union in any such league; (2) alter or affect the applicability or inapplicability of the antitrust laws or any applicable Federal or State law regarding broadcasting or telecasting, including those contained under section 1291 of title 15, United States Code, to any agreement between any professional sports league or a professional sports team that is a member of the league and any person not affiliated with such a league for the broadcasting or telecasting of the games of such league or members of the league on any form of television; (3) affect any contract, or provision of a contract, relating to the use of a stadium or arena between a professional sports team and the owner or operator of any stadium or arena or any other person; (4) exempt from the antitrust laws any agreement to fix the prices of admission to sports contests; (5) exempt from the antitrust laws any predatory practice or other conduct with respect to competing sports leagues which would otherwise be unlawful under the antitrust laws; or (6) except as provided in this Act, alter, determine, or otherwise affect the applicability or inapplicability of the antitrust laws to any act, contract, agreement, rule, course of conduct, or other activity by, between, or among persons engaging in, conducting, or participating in professional football, basketball, hockey, or baseball. SEC. 9. DEFINITIONS. For purposes of this Act: (1) Antitrust laws.--The term ``antitrust laws''-- (A) has the meaning giving 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 applies to unfair methods of competition; and (B) includes any State law similar to the laws referred to in subparagraph (A). (2) Community.--The term ``community'' means a city, county, parish, town, township, village, or any other general function governmental unit established by State law. (3) Investor.--The term ``investor'' means any person or group of persons, including a community. (4) League.--The terms ``league'' and ``professional sports league'' mean an association composed of two or more professional sports teams (which have been engaged in competition in their sport for more than seven years) which has adopted, accepted, or put into effect rules for the conduct of professional sports teams which are members of that association and for the regulation of contests and exhibitions in which such teams regularly engage. The term includes-- (A) the National Football League; (B) the National Hockey League; (C) the National Basketball Association; and (D) Major League Baseball. (5) Located.--The term ``located'', with respect to a professional sports team, means situated in the stadium or arena in which the professional sports team plays its home games. (6) Professional Sports Team.--The term ``professional sports team'' means any group of professional athletes organized to play major league football, hockey, basketball, or baseball. SEC. 10. EFFECTIVE DATE. This Act takes effect as of August 1, 1995.
summary: Fan Freedom and Community Protection Act of 1996 - Requires a professional sports team owner seeking to relocate the team to provide notice to the local government for the community in which the team's stadium or arena is located (home community), the sports authority with jurisdiction over the stadium or facility, any owner or operator of such stadium or facility, and the professional sports league concerned and each member team. Requires such notice to: (1) be delivered in person or by certified mail and published in one or more newspapers of general circulation within the home community; and (2) include the proposed new location, a summary of the reasons for moving, and the date on which the change is scheduled to become effective. (Sec. 4) Directs a league, within a year after the submission of the name of an investor, to grant to the investor a new expansion team franchise at a fee no greater, and on terms and conditions no less favorable, than those granted to the last expansion team franchise granted. Authorizes the league, for ten years after granting an expansion team franchise, to approve a resale of the team but not the team's relocation, except as provided herein. Makes this section inapplicable to a team that relocates within 25 miles of the home community and remains within the State in which the home community is located. (Sec. 5) Permits, under the antitrust laws, a league to enforce rules or agreements authorizing its membership to decide whether a member team may relocate. Requires a league, in determining whether to approve such relocation, to make specific written findings, including findings regarding fan loyalty and the extent to which the team received public financial support. Specifies that no decision by a league to permit a relocation shall be valid or final until the league has: (1) conducted at least two public hearings in the home community; (2) permitted any interested member of the public to deliver oral, or file written, comments; (3) published written findings in a local home community newspaper setting forth the basis of such decision; and (4) delivered copies of such findings to the local government of the home community and any sports authority. (Sec. 6) Requires (except where recovery of financial assistance is a remedy under the contract) an owner who relocates a team from one playing facility to another and who, in so doing, breaches a contract with the State or local government to pay to such government the value of financial assistance provided by the State or local government to the team. Makes a team owner who violates the requirement of this section liable to the State or local government that provided financial assistance to the team for an amount equal to three times the value of the assistance provided. (Sec. 7) Makes a league that violates the requirement to grant a new team franchise: (1) liable to the home community in which a team was previously located for damages of three times the purchase price or market value of the team, whichever is greater; (2) subject to the suspension for one season of its antitrust exemption for pooling the broadcasting rights to games; and (3) subject to the loss of the antitrust exemption under this Act for the franchise relocation that led to the violation. Sets forth enforcement provisions.