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The Bowl Championship Series: Is It Fair and in Compliance with Antitrust Law?

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The Bowl Championship Series: Is It Fair and in Compliance with Antitrust Law? S. HRG. 111–352 THE BOWL CHAMPIONSHIP SERIES: IS IT FAIR AND IN COMPLIANCE WITH ANTITRUST LAW? HEARING BEFORE THE SUBCOMMITTEE ON ANTITRUST, COMPETITION POLICY AND CONSUMER RIGHTS OF THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION JULY 7, 2009 Serial No. J–111–35 Printed for the use of the Committee on the Judiciary ( U.S. GOVERNMENT PRINTING OFFICE 55–645 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 10:36 Apr 13, 2010 Jkt 055645 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\GPO\HEARINGS\55645.TXT SJUD1 PsN: CMORC PATRICK J. LEAHY, Vermont, Chairman HERB KOHL, Wisconsin JEFF SESSIONS, Alabama DIANNE FEINSTEIN, California ORRIN G. HATCH, Utah RUSSELL D. FEINGOLD, Wisconsin CHARLES E. GRASSLEY, Iowa CHARLES E. SCHUMER, New York JON KYL, Arizona RICHARD J. DURBIN, Illinois LINDSEY O. GRAHAM, South Carolina BENJAMIN L. CARDIN, Maryland JOHN CORNYN, Texas SHELDON WHITEHOUSE, Rhode Island TOM COBURN, Oklahoma AMY KLOBUCHAR, Minnesota EDWARD E. KAUFMAN, Delaware ARLEN SPECTER, Pennsylvania AL FRANKEN, Minnesota BRUCE A. COHEN, Chief Counsel and Staff Director MATT MINER, Republican Chief Counsel SUBCOMMITTEE ON ANTITRUST, COMPETITION POLICY AND CONSUMER RIGHTS HERB KOHL, Wisconsin, Chairman CHARLES E. SCHUMER, New York ORRIN G. HATCH, Utah SHELDON WHITEHOUSE, Rhode Island CHARLES E. GRASSLEY, Iowa AMY KLOBUCHAR, Minnesota TOM COBURN, Oklahoma EDWARD E. KAUFMAN, Delaware ARLEN SPECTER, Pennsylvania AL FRANKEN, Minnesota CAROLINA HOLLAND, Democratic Chief Counsel/Staff Director JACE JOHNSON, Republican Chief Counsel (II) VerDate Nov 24 2008 10:36 Apr 13, 2010 Jkt 055645 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\GPO\HEARINGS\55645.TXT SJUD1 PsN: CMORC C O N T E N T S STATEMENTS OF COMMITTEE MEMBERS Page Kohl, Hon. Herb, a U.S. Senator from the State of Wisconsin ............................ 1 WITNESSES Brett, Barry, Esq., Partner, Troutman Sanders, New York, New York .............. 8 Monts, William, III, Esq., Partner, Hogan and Hartson, Washington, D.C. ...... 12 Perlman, Harvey, Chancellor, University of Nebraska-Lincoln, Lincoln, Ne- braska .................................................................................................................... 10 Young, Michael, President, University of Utah, Salt Lake City, Utah ............... 6 SUBMISSIONS FOR THE RECORD Brett, Barry, Esq., Partner, Troutman Sanders, New York, New York: statement .......................................................................................................... 33 FoxSports.com, December 12, 2008, article .................................................... 61 FoxSports.com, November 25, 2008, article ................................................... 65 FoxSports.com, March 13, 2006, article .......................................................... 66 FoxSports.com, July 20, 2007, article ............................................................. 68 FoxSports.com, BCS Chronology, article ........................................................ 70 Global Competition Policy, May 2009, article ................................................ 78 Rush, Hon. Bobby L., a U.S. House of Representatives from the State of Illinois, statement ..................................................................................... 86 Bleymaier, Gene, Director of Athletics, Boise State University, Boise, Idaho, statement ........................................................................................... 88 Fox, Derrick, President and Chief Executive Officer, Valero Alamo Bowl, San Antonio, Texas, statement .................................................................... 91 Troutman Sanders, charts ............................................................................... 99 Hatch, Hon. Orrin, a U.S. Senator from the State of Utah, news release and letter ....................................................................................................... 106 Troutman Sanders, charts ............................................................................... 108 Mountain West, Colorado Springs, Colorado, proposal ................................. 110 Troutman Sanders, charts ............................................................................... 123 Law360, New York, New York, article ........................................................... 127 Kaplan, Paul Michael, Esq., Partner, and Jennifer L. Bougher, Esq., Asso- ciate, Arent Fox LLP, Washington, D.C., statement and attachments ........... 137 Hatch, Hon. Orrin G., a U.S. Senator from the State of Utah, and Hon. Robert F. Bennett, a U.S. Senator from the State of Utah, May 8, 2009, letter .................................................................................................... 163 Frohnmayer, Dave, President, University of Oregon, and John D. Swofford, Commissioner, Atlantic Coast Conference, June 9, 2009, let- ter ................................................................................................................... 165 Kustra, Bob, President, Boise State University on behalf of Presidents and Chancellors, Western Athletic Conference, statement ...................................... 171 Monts, William, III, Esq., Partner, Hogan and Hartson, Washington, D.C., statement .............................................................................................................. 174 Perlman, Harvey, Chancellor, University of Nebraska-Lincoln, Lincoln, Ne- braska, statement ................................................................................................ 185 Swofford, John D., Commissioner, Atlantic Coast Conference, Greensboro, North Carolina, statement .................................................................................. 195 Thompson, Craig, Commissioner, Mountain West Conference, Colorado Springs, Colorado, statement .............................................................................. 207 Young, Michael, President, University of Utah, Salt Lake City, Utah, state- ment ...................................................................................................................... 230 (III) VerDate Nov 24 2008 10:36 Apr 13, 2010 Jkt 055645 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\GPO\HEARINGS\55645.TXT SJUD1 PsN: CMORC VerDate Nov 24 2008 10:36 Apr 13, 2010 Jkt 055645 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\GPO\HEARINGS\55645.TXT SJUD1 PsN: CMORC THE BOWL CHAMPIONSHIP SERIES: IS IT FAIR AND IN COMPLIANCE WITH ANTI- TRUST LAW? TUESDAY, JULY 7, 2009 U.S. SENATE, SUBCOMMITTEE ON ANTITRUST, COMPETITION POLICY, AND CONSUMER RIGHTS COMMITTEE ON THE JUDICIARY, Washington, D.C. The Committee met, pursuant to notice, at 2:30 p.m., in room SD–226, Dirksen Senate Office Building, Hon. Herb Kohl, Chair- man of the Subcommittee, presiding. Present: Senators Kohl, Schumer, and Hatch. OPENING STATEMENT OF HON. HERB KOHL, A U.S. SENATOR FROM THE STATE OF WISCONSIN Chairman KOHL. Good afternoon to everybody here today. Today we will examine the state of competition in the college football Bowl Championship Series. College football is a sport enjoyed by millions of fans and is the central focus of the athletic programs at dozens of colleges and universities across our great Nation. I myself, of course, am a Badger fan and a fan of the Big 10. The revenues derived from participation in the end-of-year college foot- ball bowl games are essential to supporting college athletic depart- ments. Dozens of lower-profile sports enjoyed by thousands of stu- dents are funded by successful college football programs. The Bowl Championship Series was created more than a decade ago in an effort to find a fair and equitable way to select univer- sities to participate in the lucrative end-of-year bowl games and in order to have an objective means to select teams to participate in a National Championship game. While many believe this system is working well, critics of the BCS argue that it unfairly disadvantages those universities that are not aligned with the large athletic conferences. Today’s hearings will be an examination of whether the current BCS system truly serves the interest of competition of universities and of millions of college football fans. Today’s hearing was called at the request of Senator Orrin Hatch, and so I will now turn over the gavel to my good friend and our esteemed Ranking Member who will chair and conduct this hearing. I thank Senator Hatch for his work on this issue, and I also thank our panel of witnesses for the testimony that they will be of- fering today. (1) VerDate Nov 24 2008 10:36 Apr 13, 2010 Jkt 055645 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 S:\GPO\HEARINGS\55645.TXT SJUD1 PsN: CMORC 2 Senator Orrin Hatch. Senator HATCH [PRESIDING.] Well, thank you, Mr. Chairman. Mr. Chairman, I appreciate your willingness to schedule this hearing because I believe it will address a number of important issues, not the least of which is the legality of the Bowl Champion- ship Series. I continue to enjoy our long service together on this Committee, Mr. Chairman, due in large part to your willingness to work with those of us on both sides of the aisle to address a wide variety of issues. Indeed, your willingness to address the concerns of members from both parties is almost unheard of in today’s very partisan climate. Turning to the BCS, I think we all
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