text: 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.
target: 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.
feat_title: Professional Sports Antitrust Clarification Act of 1996