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S. HRG. 106±484 STADIUM FINANCING AND FRANCHISE RELOCATION ACT OF 1999 HEARING BEFORE THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED SIXTH CONGRESS FIRST SESSION ON S. 952 A BILL TO EXPAND AN ANTITRUST EXEMPTION APPLICABLE TO PRO- FESSIONAL SPORTS LEAGUES AND TO REQUIRE, AS A CONDITION OF SUCH AN EXEMPTION, PARTICIPATION BY PROFESSIONAL FOOTBALL AND MAJOR LEAGUE BASEBALL SPORTS LEAGUES IN THE FINANCING OF CERTAIN STADIUM CONSTRUCTION ACTIVITIES, AND FOR OTHER PURPOSES WASHINGTON, DC; WASHINGTON, DC; PHILADELPHIA, PA JUNE 15, JUNE 22, AND SEPTEMBER 13, 1999 Serial No. J±106±32 Printed for the use of the Committee on the Judiciary ( U.S. GOVERNMENT PRINTING OFFICE 63±000 CC WASHINGTON : 2000 VerDate 11-SEP-98 11:14 May 12, 2000 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 63000.XXX SJUD4 PsN: SJUD4 COMMITTEE ON THE JUDICIARY ORRIN G. HATCH, Utah, Chairman STROM THURMOND, South Carolina PATRICK J. LEAHY, Vermont CHARLES E. GRASSLEY, Iowa EDWARD M. KENNEDY, Massachusetts ARLEN SPECTER, Pennsylvania JOSEPH R. BIDEN, JR., Delaware JON KYL, Arizona HERBERT KOHL, Wisconsin MIKE DEWINE, Ohio DIANNE FEINSTEIN, California JOHN ASHCROFT, Missouri RUSSELL D. FEINGOLD, Wisconsin SPENCER ABRAHAM, Michigan ROBERT G. TORRICELLI, New Jersey JEFF SESSIONS, Alabama CHARLES E. SCHUMER, New York BOB SMITH, New Hampshire MANUS COONEY, Chief Counsel and Staff Director BRUCE A. COHEN, Minority Chief Counsel (II) VerDate 11-SEP-98 11:14 May 12, 2000 Jkt 000000 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 63000.XXX SJUD4 PsN: SJUD4 C O N T E N T S STATEMENTS OF COMMITTEE MEMBERS Page Specter, Hon. Arlen, U.S. Senator from the State of Pennsylvania .............. 1, 52, 109 Thurmond, Hon. Strom, U.S. Senator from the State of South Carolina ........... 51 Feinstein, Hon. Dianne, U.S. Senator from the State of California .................... 54 Schumer, Hon. Charles E., U.S. Senator from the State of New York ............... 55 Feingold, Hon. Russell D., U.S. Senator from the State of Wisconsin ................ 56 Kennedy, Hon. Edward M., U.S. Senator from the State of Massachusetts ...... 57 Hatch, Hon. Orrin G., U.S. Senator from the State of Utah ................................ 58 Leahy, Hon. Patrick J., U.S. Senator from the State of Vermont ....................... 72 Biden, Hon. Joseph R., Jr., U.S. Senator from the State of Delaware ................ 110 PROPOSED LEGISLATION S. 952, a bill to expand an antitrust exemption applicable to professional sports leagues and to require, as a condition of such an exemption, partici- pation by professional football and major league baseball sports leagues in the financing of certain stadium construction activities, and for other purposes ................................................................................................................ 2 CHRONOLOGICAL LIST OF WITNESSES JUNE 15, 1999 Panel consisting of Hon. Thomas M. Finneran, speaker, Massachusetts house of representatives, Boston, MA; Hon. Edith G. Prague, assistant majority leader, Connecticut State senate, Hartford, CT; John Moag, Jr., Legg Mason Wood Walker, Inc., Baltimore, MD; Hon. Jean B. Cryor, delegate, Maryland house of delegates, Annapolis, MD; D. Bruce Poole, former delegate, Mary- land house of delegates, Annapolis, MD; Andrew Zimbalist, Robert A. Woods professor of economics, Smith College, Northampton, MA; and Mark S. Rosentraub, professor, School of Public and Environmental Affairs, Indi- ana University, Indianapolis, IN ........................................................................ 13 JUNE 22, 1999 Panel consisting of Jerry Richardson, owner and founder, Carolina Panthers, Charlotte, NC; Benjamin Klein, professor of economics, University of Cali- fornia at Los Angeles, Los Angeles, CA; Gene Upshaw, executive director, National Football League Players Association, Washington, DC; Paul Tagliabue, commissioner, National Football League, New York, NY; and Richard Horrow, president, Horrow Sports Ventures, Miami, FL ................... 61 SEPTEMBER 13, 1999 Statement of Hon. Rick Santorum, U.S. Senator from the State of Pennsyl- vania ...................................................................................................................... 112 ALPHABETICAL LIST AND MATERIALS SUBMITTED Carn, Hon. Andrew: Testimony .............................................................................. 128 Cryor, Hon. Jean B.: Testimony ............................................................................. 30 Finneran, Thomas M.: Testimony .......................................................................................................... 13 Prepared statement .......................................................................................... 18 (III) VerDate 11-SEP-98 11:14 May 12, 2000 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 63000.XXX SJUD4 PsN: SJUD4 IV Page Horrow, Richard: Testimony .......................................................................................................... 93 Prepared statement .......................................................................................... 95 Katz, Sam: Testimony ............................................................................................. 131 Klein, Benjamin: Testimony .......................................................................................................... 66 Prepared statement .......................................................................................... 67 Moag, John, Jr.: Testimony ..................................................................................... 25 Poole, D. Bruce: Testimony .......................................................................................................... 33 Prepared statement .......................................................................................... 35 Prague, Edith G.: Testimony .......................................................................................................... 20 Prepared statement .......................................................................................... 23 Rendell, Hon. Ed: Testimony .................................................................................. 114 Richardson, Jerry: Testimony .......................................................................................................... 61 Prepared statement .......................................................................................... 62 Letter from Jerry Richardson to Senator Thurmond, dated June 9, 1999 ......................................................................................................... 63 1999 Resolution G±3±As Amended .......................................................... 64 Rosentraub, Mark S.: Testimony .......................................................................................................... 42 Prepared statement .......................................................................................... 44 Saidel, Jonathan A.: Testimony .............................................................................. 124 Santorum, Hon. Rick: Testimony ........................................................................... 112 Tagliabue, Paul: Testimony .......................................................................................................... 76 Letters from: Joe Browne, National Football League, to Marc Morial, Mayor of New Orleans, dated June 11, 1999 ...................................................... 78 Marc H. Morial to Paul Tagliabue, dated June 21, 1999 ....................... 79 Prepared statement .......................................................................................... 79 Upshaw, Gene: Testimony .......................................................................................................... 73 Prepared statement .......................................................................................... 74 Zimbalist, Andrew: Testimony .......................................................................................................... 37 Prepared statement .......................................................................................... 40 APPENDIX QUESTIONS AND ANSWERS Responses of Professor Benjamin Klein to questions from Senator Leahy ......... 143 Responses of Jerry Richardson to questions from Senator Feingold ................... 144 VerDate 11-SEP-98 11:14 May 12, 2000 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 63000.XXX SJUD4 PsN: SJUD4 STADIUM FINANCING AND FRANCHISE RELOCATION ACT OF 1999 TUESDAY, JUNE 15, 1999 U.S. SENATE, COMMITTEE ON THE JUDICIARY, Washington, DC. The committee met, pursuant to notice, at 12:04 p.m., in room SD±226, Dirksen Senate Office Building Hon. Arlen Specter presid- ing. Also present: Senator Feingold. OPENING STATEMENT OF HON. ARLEN SPECTER, A U.S. SENATOR FROM THE STATE OF PENNSYLVANIA Senator SPECTER. Good afternoon, ladies and gentlemen. We will proceed with the hearing on S. 952, which involves the conditioning of the antitrust exemptions enjoyed by baseball and revenue-shar- ing on football on the major leagues and the National Football League contributing to new stadium construction. And another part of the legislation would give the National Football League an anti- trust exemption to control franchise moves. [The text of the bill follows:] (1) VerDate 11-SEP-98 11:14 May 12, 2000 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 63000.XXX SJUD4 PsN: SJUD4 2 VerDate 11-SEP-98 11:14 May 12, 2000 Jkt 000000 PO 00000 Frm
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