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The reason that Houston is able to [Mr. HART), the Senator in charge of the other team would be able to invade, and, have such enormous television receipts bill, was very frank to admit that this because the bill would provide that, we is not because the people there support was done for the reason that the ma
would have a territorial and geographic the team. Indeed support until this time jority of the Senate felt that this would franchise over this particular area, given has been near the bottom. However, the However, the be one way to preserve effective league as a monoply
monoply gift by the Federal reason that Houston receives these tele- balance, so that we could have an oppor
Government. vision receipts is that there is no other tunity for some kind of equal competi- Mr. NELSON. Mr. President, the team in that particular area of the coun- tion between the teams. Otherwise the amendment of the Senator from Wiscontry. In the State of Ohio, there is the team with the greatest amount of money sin would in no way affect the television Cleveland team, the Cincinnati team, would hire the best players and that station itself or the network. It would and the team across the State border in would be it. If the Senate is going to make no difference to them who might Pittsburgh. Those teams are bound to go that far and abrogate the freedom of see or hear the game once the air time have low receipts. In a case in which contract to that extent_and I voted for was paid for. a community will not support the team, the Ervin amendment_it would seem to Mr. PROXMIRE. The Senator is corwe have a logical and strong argument me that that television relationship, rect. All this amendment would do for moving to some place where the which is far less important than the would be to distribute the revenues. people are interested enough to support freedom of contract of the individual Mr. NELSON. The difference would it.
player, ought to be modified in this way, be only as to the baseball teams themMr. PASTORE. Mr. President, does as it has been in football.
selves. that not depend on how good the team Mr. President, I yield to the junior
Mr. PROXMIRE. I suppose that we is? People tune in on certain baseball Senator from Wisconsin.
could make the argument that there games because they like the competition
Mr. NELSON. Mr. President, I com- would be some fringe situation in which between the two teams.
mend the Senator from Wisconsin for a network or radio or TV station or I believe I understand what the Sen- a very persuasive presentation.
some other group selling network or teleator is trying to accomplish. However, Mr. President, I ask unanimous con
vision time could bargain between teams the Senator from Rhode Island is afraid sent that my name may be added as a
in an area and get a little more money that when we try to create equalization, cosponsor of the amendment of the sen- for them than it would if they did not we might take a chance of losing a little ior Senator from Wisconsin.
pool. competition. How much can we do by The PRESIDING OFFICER. Without
But I think that this is a minor conlegislative fiat? objection, it is so ordered.
sideration, particularly in view of the Mr. PROXMIRE. It has been tried in
Mr. NELSON. Mr. President, it is per- fact that radio and television are given football. The receipts were divided tinent to point out that the revenues that a governmental franchise, or, in effect, equally. It has worked out very well. are produced as a consequence of broad- a monopoly. Mr. PASTORE. They did that on their casting and televising flow as a result
Mr. NELSON. The money they can own?
of the people of the United States, get depends on the advertising they can Mr. PROXMIRE. They did that on
They did that on through their Government, loaning or get and the audience they can reach. their own, but it works out extremely granting, on a temporary basis, a license
Mr. PROXMIRE. That is correct. well. As the Senator well knows, the to a private group to use the public air- Broadcasting estimated that sponsors argument that people will support a good ways, so that if one television or radio will pay a total of $85 million to purteam has been pretty well rebutted by the station in a city which has a baseball chase the air time, put on their shows, New York Mets, which is probably the team has an advantage in the revenue it and sell their products. The broadcastworst team in either league. produces, it is not something that is a
ing estimates include sale of local rights Mr. PASTORE. Mr. President, I believe that the situation that prevails now ticipating baseball team. consequence of the effort of the par- by individual teams, sale of package
rights to networks, and sale of rights for might be due to the retirement of Casey Mr. PROŠMIRE. Mr. President, the the all-star games and the world series. Stengel. Most people were here to see point made by the Senator from Wiscon- Broadcasting also furnished a teamthe antics of Casey Stengel, more than sin is one which frankly had eluded by-team listing of the sale of local broadto see the teams play.
me. It is a very important and crucial cast rights. That is a very unusual situation. I do point. We are not only talking about A study of the sale of local TV and not believe that we could use that as a
the fact that this is a sport which has radio rights by individual team shows criterion.
been given a territorial exemption and clearly that such income is substantial Mr. PROXMIRE. Milwaukee has had has been given protection and safe- and that a great variation exists between some good teams and some bad teams guarded from competition. We are also teams. A breakdown of such revenue for over the 12 years between 1953 and 1964, talking about a situation in which the American and National League teams in However, the teams have been supported television and radio revenue itself is reg- the past 2 years illustrates this. on the average. They have been sup- ulated necessarily by the Government. In the American League, revenue from porting their teams better than any Those who broadcast or televise are the sale of local rights for 1965 ranges other major league teams have been given a Government monopoly, in a from $300,000 for Kansas City and Washsupported.
sense, over their frequencies. For that ington to $1,200,000 for the New York Mr. PASTORE. Mr. President, I have reason, it is different than the usual Yankees and $1,300,000 for Detroit. In sympathy for what the Senator is trying kind of direct competition experienced the National League Pittsburgh gets to do. However, we may be approaching in most industry.
$450,000, St. Louis gets $500,000, while too closely to the area of competition Mr. NELSON. It is true that, theoreti- Houston receives $1,770,000—which is when we begin to equalize these things. cally, at least, we could have a baseball easily the largest amount received by I can see that clubs can work this prob- team with no stadium which would still any major league team and Philadellem out for themselves. However, I be a most profitable enterprise if there phia gets $1,300,000. Because of the prowonder if we are not interfering too were a large enough and lucrative enough posed move the Braves were unable to much as a legislative body in the free- outlet through a federally regulated find a Milwaukee sponsor and are obdom and exercise of a competitive sport radio or television station.
taining only $150,000. The Braves rewhen we place such conditions upon the Mr. PROŠMIRE. The Senator is cor- ceived $400,000 in 1964 and would have sport.
rect. We could have a situation in
situation in received $525,000 this year if the team PROXMIRE. Mr. President, the an- which hardly anyone attended the game, had agreed to remain in Milwaukee. swer is that the Senate has just voted perhaps 500 people. Nevertheless, the Mr. President, I have tables showing by a decisive majority to abrogate the team might make much more money and the estimated American and National freedom of contract that a young college hire the finest players and be able to do League revenues from television and man might have to sign a contract with so because it had an opportunity such radio contracts.
radio contracts. I ask unanimous conone of several competing teams. The as that afforded by this bill to sell the sent that they be printed in the RECORD distinguished Senator from Michigan television rights in an area which no at this point.
There being no objection, the tables be prudent for Congress to study closely In the last case, which of course is the were ordered to be printed in the RECORD, the impact of this increased revenue one with which I am most familiar, I as follows:
before granting monopolistic territorial can assure you that it was not lack of Estimated American League revenues from
franchises which would include radio local support, but the lure of a television television and radio contracts 1 and TV rights.
bonanza that prompted the two Chicago The problem has been recognized by businessmen, who bought the team sev1965 1964 professional football.
eral years ago, to make the decision to
As I indicated in my colloquy with the move. Atlanta, Milwaukee—it makes Baltimore.
$700,000 $700,000 distinguished Senator from Colorado, the no difference to these businessmen. Boston.
TV and radio pooling system used in the They will go where the television gravy Chicago.
900, 000 900, 000 Cleveland. 700,000 700,000 National Football League has kept the
is the richest. Detroit.. 1,300,000 650,000 teams competitive and has prevented the
This becomes transparently clear upon Kansas City
300,000 300,000 Los Angeles.
examination of the attendance record of 850,000 825, 000
inordinant number of franchise shifting Minnesota. 600,000 600,000 that we are witnessing in major league
the Braves during their 12-year stay in New York.
1, 200,000 1, 200,000 Washington baseball. Pooling of radio and TV re
Milwaukee and comparing the average 300,000 300,000
ceipts has allowed the Green Bay Pack- attendance during this period with that Total... 7, 540,000 6, 775,000 ers, whose home is a city with a popula
of other clubs in both leagues. Average club income if revenues were
tion of 60,000, to remain in Green Bay. Braves attendance in Milwaukee, 1953–64 pooled... 754, 000 677, 500 It can do the same for baseball. It has 1953
1, 826, 397 also allowed the Green Bay Packers to 1954.
2, 131, 388 1 Broadcasting magazine, vol. 60, No. 9, Mar. 1, 1965, compete on an equal financial basis, and 1955--
2, 005, 836 pp. 44-49. as every football fan knows, field a great
2,046, 331 Estimated National League revenues from team. This would be flatly impossible if
2, 215, 404
1958.-television and radio contracts 1 the NFL followed major league prac
1,971, 101 1959
1, 749, 772 tices.
1, 497, 799 1965 1964 It might be well to discuss for a mo- 1961.
1, 101, 441 ment what has been happening to base- 1962.
766, 927 Chicago. $550, 000 $550,000 ball in recent years regarding these fran- 1963--
773, 018 Cincinnati.
910, 811 Houston..
1,770,000 1,600,000 Los Angeles
1,000,000 1,000,000 shifts are good for baseball and good for During the past 12 years, average Milwaukee 400,000 the public.
Braves attendance exceeds the average (Atlanta)
150,000 New York.
1,000,000 1,000,000 In the past 12 years there have been of any team that has remained in one Philadelphia.
1,300,000 650,000 six transfers of major league baseball city during this period. Only the Los Pittsburgh
450,000 450,000 St. Louis.
teams from cne city to another. Each of Angeles Dodgers, bolstered by the record San Francisco..
1,000,000 900,000 these transfers were accompanied by breaking attendance that accompanied Total...
7,550,000 widespread complaints by the cities the team's move from Brooklyn 7 years Average club income if
losing the clubs. Thus iar, fortunately ago, have compiled a better record, and revenues were pooled.- 827,000 755,000
none of the moves has resulted in the that for only 7 years.
loss of professional baseball to a com- The outstanding attendance record 1 Broadcasting magazine, vol. 60, No. 9, Mar. 1, 1965, munity which has been a major league achieved in Milwaukee can be better seen pp. 44-49.
city. But this could happen if the in comparison with records compiled by Mr. PROXMIRE. Mr. President, the Braves move from Milwaukee, which other teams in both leagues. committee at one point, at least, recog- seems likely.
National League average attendance 1 nized the growing importance of TV
When the Braves moved to Milwaukee,
Los Angeles Dodgers and radio revenue to baseball and it Boston retained the Red Sox. When
(last 7 years)
2, 213, 897 pointed this out in its report, stating: the Browns moved to Baltimore, St. Louis Braves
1,583, 027 Organized baseball relies increasingly on still had the Cardinals. Philadelphia San Francisco Giants (last 3 television for financial stability and the lost the Athletics to Kansas City, but fans
1,485, 650 position CBS has gained by its acquisition there still enjoy the Phillies. The same
New York Mets (last 3 years))--- 1, 161, 407 raises serious competitive questions that re- situation existed in the moves of the Pittsburgh Pirates
St. Louis Cardinals..
1, 016, 312 quire the availability of antitrust weapons Dodgers to Los Angeles and the Giants to Philadelphia Phillies.
960, 743 to protect the public interest.
906, 482 San Francisco. The Senators were re- Cincinnati Reds..
851, 419 The report failed to note other joint placed in Washington when the team Houston Astros (last 3 years). 805, 316 TV and radio-baseball relationships that moved to the Twin Cities in Minnesota. Chicago Cubs ---
785, 781 I pointed out in my testimony in sup- Although this shifting around caused
1 12-year average, except where noted. port of my amendment. These joint grumblings and even dismay among But they are making more money than holdings include:
sportswriters, baseball could and did Gene Autry, who owns the Los Angeles argue that the shifts strengthened the guished junior Senator from Wisconsin
anybody else because, as the distinAngels, also owns two television stations league and did not deprive baseball fans pointed out, they have a very rich teleand shares joint control of 65 percent in the stricken communities of the enjoy- vision market. of Golden West Broadcasters. John ment of watching major league baseball. Fetzer, owner of the Detroit Tigers, owns And it was argued that in most of the
American League average attendance 1 five television stations. John Allyn of shifts the fans were somewhat respon
New York Yankees.
1,496, 309 the White Sox is president of a company sible because they failed to support the Chicago White Sox
Minnesota Twins (last 4 years) --- 1, 326, 001 which holds a franchise for pay TV in teams by attending the games.
1, 190, 497
Detroit Tigers--Dallas and Houston. Judge Roy Hof
1, 117, 031 Surely, it would be difficult to argue Boston Red Sox..
1,007, 442 heinz, president of the Houston Astros, that a team should have to stay in a Baltimore Orioles (last 11 years) -- 944, 127 owns 16 percent of the stock in a Hous- community even after the community Cleveland Indians..
915, 362 ton television station. And both the failed to support it. So far, I am aware Kansas City Athletics (last 10 Giants and the Dodgers have substantial of no responsible person who is making Los Angeles Angels (last 4 years) -
869, 733 holdings in pay TV. such a demand.
Washington Senators.The importance of radio and TV rey- But I ask baseball and Members of the
559, 161 enue seems to be obvious to those baseball Senate, Was the absence of fan support 1 12-year average, except where noted. owners who are moving into radio and the sole cause of the moves of the Dodg- The county of Milwaukee has provided TV and to those in the radio and tele- ers, the Giants, and the former Senator the team with a new, well-designed stavision industry who are buying into team?. And I ask baseball and Mem- dium and has granted numerous conbaseball.
bers of the Senate, Is the absence of cessions to make their stay in Milwaukee It would seem that Congress, too, fan support the sole reason the Milwau- profitable. When rumors began to cirshould note the growing importance of kee Braves have decided to move to At- culate that the team was considering a this relationship. I submit that it would lanta, Ga.?
move, even though the owners categor
ically denied the rumor, county officials abling them to obtain better television and ready exists. The National Football offered to sweeten the Braves contract radio contracts.
League has thrived on a pooling system with the county. Civic and business in
The variation in revenues received by and major league baseball, in its conterests indicated they would rally to sup- major league baseball teams for local tele
tracts for network package deals, has alport the team and as a result, the team proposal to be equitable. casts and broadcasts is too great for the
ready embarked on a pooling arrangedrew almost 1 million persons last year,
ment on a modest scale. despite a relatively poor season.
If it were not so great, there would In order to give the Senate the benefit Throughout this period, the team own- be no necessity for it.
of the results of the pooling arrangeers denied any intention of moving and
ments which have already been in praceven tried to dampen efforts by the well- There is a trend for pooling television and tice in the National Football League, I meaning county officials and fans who broadcasting revenues and that practice should like to quote from a statement sought to gain additional concessions for should not be discouraged as it tends to made by Pete Rozelle, Commissioner of the team.
equalize further the strength of the various
the National Football League, before the This does not fit the picture of a group
House Judiciary Committee on the House of altruistic sportsmen who, after dili- I should like to make several points on hearings, regarding the permission he gent efforts to make a go of it in Mil- the committee's appraisal.
obtained from the National Football waukee, reluctantly decided to move to In the first place, a cursory glance at League for this pooling. save their enterprise from bankruptcy. the current television and radio revenue This is what he said: The fact is that the several enterprising picture quickly dispells the notion that
The fundamental issue is relatively simChicago businessmen saw an opportunity having “established a large following” ple-whether the National Football League to move into a vast, unexploited tele- in the franchise areas has any relation- and its member clubs are to have any say as vision and radio market which domi- ship to the revenue amounts. Some of to how their games are to be televised. If nates at least five States and jumped at the teams having the lowest totals have they cannot, the matter must be left entirely
to the determination of the networks. The the opportunity. In doing so, they ab- been in established areas for many years
networks have their own problems of producdicated their responsibility to the com- while some of the teams receiving the
tion costs, cable charges, costs per homes munity which provided an outstanding most have been in their present loca
reached, and sponsor availability. If the facility for their team and to the millions tions for a relatively short period.
league cannot have any voice in the manner of fans who supported the team in Mil
Among the lowest are Pittsburgh
in which its games are telecast, the networks waukee.
$450,000. The Pirates were in Pittsburgh will be guided, as they necessarily must, by As I have pointed out earlier, while long before I was born—in fact before their own economic interests—which in this there have been six baseball franchise the turn of the century.
instance are not the interests of professional shifts in the past 12 years, the blow was
football, of the sports fans of America, or of somewhat softened by the fact that in Cincinnati—$550,000. I believe Cin- the National Football League and its 14
member clubs. none of the cases was a major league city cinnati was the first major league base
The immediate result will be television deprived of major league baseball. ball team.
programing for 1962 and all successive footThis is not true with the contemplated
Chicago Cubs—$550,000—while among
ball seasons which will deprive many memmove by the Braves. It is also not true the highest are Houston—$1,770,000. ber clubs of the National Football League of with the anticipated move of the Kan
How can anyone argue that this means all access to television facilities and tele
vision income. It will also deprive homesas City Athletics or of the possible move we are favoring an established team of the Cleveland Indians. which has cultivated a market over many town fans in many National Football League
cities of telecasts of the games of their home In each of these cases, major league years when we compare those revenues baseball is abandoning a sizable public with those of Houston, which is a brand club, sharply reduce TV income to the following, a significant number of local new team, and received $1,770,000 last league, and seriously impede the league's
efforts to maintain a balanced league. businesses which have been built up year; San Francisco, Los Angeles, and the around the teams and, in the case of New
York Mets, all a million dollars each. its limited playing schedule and its emphasis
In the sport of professional football, with Milwaukee, a modern, multimillion dol- They are, of course, all new teams in their on team play, equality of competition is lar facility which will stand as a vacant, locations.
essential to the maintenance of fan interest expensive white elephant to remind the
Second, while the committee concludes and the survival of the league. Balance in
the league has only been achieved during the community of the ruthless business tac- that the variations in revenue are too tics of professional baseball.
great to be equitable, it admits that pool- past decade of the National Football League's There can be little complaint if a team ing of revenues is desirable because it 41-year existence. Without it, 41 franchises
had failed earlier. moves because it lacks community sup- would “tend to equalize further the
We are now threatened with losing what port. But the community cannot be strength of the various teams."
has taken so many years to develop unless held responsible for the vagaries of tele
Indeed, equalization of playing Chairman CELLER's bill can be passed at this vision and radio marketing. strength and the need to prevent the session of Congress.
These are not speculative concerns. The wealthiest clubs from dominating play, The Judiciary Committee took note of
league's problem is real and immediate. All the impact of such franchise shifts and is cited earlier in the report by the com
teams have been able to secure access to telemittee as a justification for an exemption said in its report: which allows the leagues to use draft
vision facilities for the present season simply Concern has been expressed regarding systems and other
because their individually negotiated conmoving baseball franchises from one city to "equalization of
devices for the tracts carry through 1961. Most of these another in order to increase revenues.
of competitive playing contracts expire at the end of this season. Baseball franchise owners have an obliga- strengths.”
For the 1962 season, the networks have altion to the public to remain with their
On this point, the report states: ready announced their intentions. They will franchised territories, absent compelling Although the exemptions provided in this
abandon the league's longtime policy of telereasons to transfer.
bill, it is generally agreed that the wealthiervising the road games of each team back to Naturally, there is a desire of many cities teams would absorb the best talent and force
the team's home area. It no longer makes to secure a team; however, it seems that the the dissolution of the poorer teams and of
economic sense for the networks to purchase public interest would best be served by ex- the leagues themselves.
individually the rights of all 14 member clubs pansion of the existing major leagues or the Therefore, there is a special situation af
of the league for local and regional telecastformation of another major league rather fecting the public interest involving team ing. Costs and other factors make it more than the movement of existing franchises. sports which does not apply
to the tradi- productive for them to acquire the television The committee report correctly detional competitive situation.
rights of only a select few clubs for national
or quasi-national telecasting. scribed my amendments a device to dis- It seems to me that this argument ap- Thus, unless the league is permitted to courage moving a major league franchise plies one for one to my amendment. exercise some control over its television proto a more lucrative television market. The statements in the committee re- graming, only a limited number of teams in Regarding the amendment, which was port support my position even better than the National Football League will have acnot accepted by the committee, the re- my own arguments.
cess to television facilities in 1962. Only
those fans in the large metropolitan centers port said:
The committee's own report provides and favored by their geographical locationThe committee views the amendment as the rationale for the desirability, need, such as New York, Los Angeles, and Chiunfair to teams which have established a and justification of my amendment. The cago_will be assured of seeing the games of large following in their franchise areas en precedent for such an arrangement al- their home team on television.
I don't think I have to tell this committee
Regarding my proposed amendment, To summarize, the Hart proposal, if what the response of fans in Green Bay, Mr. Finley said:
passed without the Proxmire amendment Minneapolis-St. Paul, Dallas, St. Louis, Detroit, and even such cities as San Francisco
I might stop right here for a moment, Sen- added, would kill major league baseball and Philadelphia will be when they are in
ator HART, and would like to state if I may in Wisconsin and in other States which formed that they will no longer be able to
that I was very much impressed with Senator do not enjoy a huge TV market. follow the road games of their home teams
PROXMIRE'S statement and would like to go Professional baseball constitutes busion television. on record at this moment and state that the
ness. The Hart bill recognizes this by The bill would resolve the problem by per
Kansas City Athletics Baseball Club agrees bringing baseball under the antitrust mitting the commissioner and the member with Senator PROXMIRE 100 percent.
laws. It also recognizes that if baseball clubs of the league to act jointly in the sale Baseball Commissioner Ford Frick, is to continue to provide roughly equal of their TV rights. Only by grouping the
who also testified before the committee, competition, there must be some exempweaker and stronger clubs and the clubs with more and less favored geographic locations
has conceded that baseball has con- tions for baseball. can the league hope to achieve any control
sidered pooling TV revenue. In a letter The rationale of the Hart measure is to over the manner in which its games are tele
to Representative HENRY REUSS, of Mil- limit exemptions to those phases of basecast. This is the only way the league waukee, dated July 15, 1964, Frick said: ball's operation which would otherwise can maintain sponsorship interest in tele
The pooling of television revenue by the result in destructive competition and casts of National Football League games, major league clubs has been considered by bring about domination of the sport by restore order and stability to league televi
them and is worthy of further consideration. one or two teams. sion arrangements, equalize television income
But the provision in the Hart bill for among the clubs, secure realistic values for Frick went on to say that he did not television, rights, and assure all member think pooling was feasible at this time. geographic monopoly to include radio clubs of the league of continued access to
and TV rights does precisely the opposite
Warren Giles, president of the Natelevision facilities and television income.
of this. TV is far and away the most tional Baseball League, in a letter to If the 14 teams of the National Football League and the 8 teams of the American Representative REUSS, dated July 16, rapidly growing source of revenue for
major league baseball. Football League are each required to act sep1964, said that the “pooling of television
It will soon be by all odds the main arately in disposing of their TV rights, no
receipts has been discussed by our clubs." more than a handful of these teams will,
source of revenue. Without the ProxGiles went on to say that while the pool- mire amendment, the Hart bill would after this season, be able to find a home on ing of weekly network shows might be hand a few teams located in rich TV marthe limited network facilities available. worked out, sharing of receipts from kets an immense advantage. Of course, the argument can be made, local television coverage "seems imprac
This TV advantage will build a finanWhy not leave it to the owners of the tical.”
cial imbalance into baseball permitting major baseball teams to make their own
It is clear from these responses that domination by one or two teams. My arrangements? The fact is that these there is strong opposition to pooling of
amendment would prevent this by rearrangements are made only when there
all television revenue by some of the quiring that major leagues pool and is a three-fourths vote to sustain them;
teams in both leagues. Dan Topping, equally divide TV and radio revenue as that is, it is necessary to get 8 of the 10 president of the Yankees, told the com
the National Football League now does. teams in each league to vote affirmamittee that he opposes pooling TV re
This would be like passing a law which tively. To get an affirmative vote on
ceipts. Topping explained that the would state, in effect: “You cannot this issue would seem to be almost im
Yankees need television revenue from henceforth play major league baseball possible. Dan Topping has indicated
the huge New York TV market in order in Milwaukee or other cities of the the view of the Yankees. It requires to pay the higher salaries Yankee
country.” only two other teams to block the Amer- players command.
The public would be better served if the ican League from acting. If they did
In this answer, Mr. Topping hit the bill were defeated than if it were passed act to equalize the revenues by pooling,
nail right on the head. This is pre- in its present form. I earnestly hope it would deprive the Yankees of perhaps cisely the point. With a pooling of re
that my amendment will be adopted. millions of dollars in profits. We should ceipts other teams could afford to pay
Mr. HART. Mr. President, the Sennot expect the leagues to act, under
greater salaries and attract better ator from Wisconsin and Senators who those circumstances, on a voluntary players.
have joined him in offering the amendbasis. They will not do so until the sit- What does that do to the Yankee
ment hold their point of view with deep uation reaches the point where they fea
competition with Kansas City or with conviction. It is not alone the result of some action by Congress.
other teams in the American League? the experience that Milwaukee has had, Mr. President, I was speaking about a
It is true that the Yankees are having but, of course, necessarily that experipackage deal. In one such package deal a bad season this year. However, that ence does affect the attitude of not only 18 baseball teams from both major
is a rather rare situation. This is that the Senator from Wisconsin, but also of leagues have contracted with ABC for rare year in which the Yankees lost the other Senators whose States, find themtelevising 81 games. Each of the teams pennant.
selves in similar circumstances with reinvolved receives a flat $300,000 whether Is it in baseball's interest or in the spect to a baseball franchise. they play in 1 or 10 of the telecast games. public's
public's interest to perpetuate the I believe the amendment should be Mr. Charles Finley, owner of the Kan- Yankees domination of baseball?
rejected, as it was rejected in committee, sas City Athletics, testified before the Is it in baseball's interest or in the principally for the reason that this deJudiciary Committee:
public interest to encourage the oppor- gree of regulation on the part of ConTelevision and radio income is the differ- tunistic moving of teams from one loca- gress of a business aspect of a substanence between profit and loss for almost every tion to another in a never-ending quest tial business in this country is unwise. At major league team. for optimum television revenue?
least it is unwise at this time. Mr. Finley told the committee that
Is it in baseball's interest or in the I know, as the Senator from WisconHouston and the New York Yankee were
public interest for the Congress to grant sin has argued, that football has decided
territorial franchises able to get outstanding TV and radio con- monopolistic
that it wishes to pool its television revetracts because they were in rich market which include blank checks for incredibly nues. This is a business decision, which areas. He said:
valuable TV and radio rights in the face Congress certainly will not undertake to
of the overwhelming evidence that such reverse. Up to this point the baseball * * represents the Senator, Houston Southwest and they have an enormous tele
a policy would give a clear and distinct interests have not decided that they wish vision market, and they were able to obtain business advantage, a financial advan- to pool their revenues. This points up this outstanding contract on the same basis tage to some over others when there is the disparity and the difference between as the New York Yankees have been able to not a scintilla of evidence that such an the two games. Baseball has never been obtain such good contracts year by year. advantage is necessary for the sport. presented by the television networks with
The same reason for Milwaukee going to Indeed, it is sure to hurt the sport. the opportunity that football had been Atlanta. A very, very lucrative contract.
While I realize that it is conventional presented with. Baseball's TV and radio And it is getting to the point today where it is almost impossible for a ball club such as
for Senators to follow a committee re- revenues are primarily local in nature. my club—and I could name you several port, I would respectfully urge Senators Football has a season of some 14 others—to compete with clubs that have a to do some soul searching on this games. Baseball has some 160 or more $1.4 million TV contract. matter.
on an annual schedule. When the time
comes when baseball can obtain receipts Mr. HART. I gladly yield to the Sen- that kind of thing, and not strictly on the from pooling comparable to football, I ator from Wisconsin.
basis of money. would anticipate that the decision to Mr. PROXMIRE. The Senator has Mr. HART. Mr. President, I think we pool would be made by the businesses in- indicated—and, as usual, he is very fair
have demonstrated by our vote on the volved.
and thoughtful in his appraisal of my Ervin amendment our desire to insure I feel that it is not desirable for Con- amendment, even though he opposes it that player strength be balanced. gress to make the judgment that is in- his agreement that there are certain at
But I would hope that by the adopvolved in the Proxmire amendment with tractive aspects to the amendment, in
tion of the Proxmire amendment, we respect to the distribution of profits by that it might be desirable from the pub- would not add an effort to stabilize independent businesses, even though they lic interest aspect, the interest of the profits as between businesses. are in a league operation. As a result of fans, if franchises were stabilized, for The question can be asked, "Yes, but this bill, baseball will be required to sur- example, by a greater equalization of if we permit one club to develop, generate render some of the broad immunity that revenues.
substantially more revenue from televiit now has under the Court decisions.
But the Senator has said, as I under- sion than another, are we not thereby With respect to the deterrent to the stand, that this would be wrong because enabling that club to unbalance player freedom of movement of franchises that the decision should be left to baseball to strength?” would be provided if the Proxmire
if the Proxmire make the authorization itself; is that Not so long as we have the draft; and amendment were adopted, I think that correct?
it is for that very reason that we argued under certain conditions it might well
Mr. HART. The Senator from Mich- against the adoption of the Ervin stabilize the movement of franchises. igan stated that he sympathizes with and
amendment. But if baseball, for reasons of its own, generally shares the feeling that it would Mr. PROXMIRE. If the Senator will decided not to pool thereby forfeiting the be desirable that the location of fran- yield on that point, the draft is only one exemption in this area the amendment chises be stable and predictable. I did source of players. might have quite the contrary result. make that statement.
Is it not a fact that although the farm It might induce a broader movement in
Mr. PROXMIRE. Will the Senator systems have deteriorated quite a bit, relocation of franchises. At least there not concede that if Congress does not act they are still of some importance and is a partial brake on the movement of on the question, it is very unlikely that significance in the building of a strong baseball franchises now because league baseball will pool revenues, in view of the baseball team?
baseball team? Also, the salaries that approval is required. If it was not re
fact that it takes, as I understand it, players are paid, and that sort of thing, quired any team would be free to move perhaps I am misinformed a three- can be important. anywhere at any time. Further, if all quarters vote—in other words, it takes The draft is not the only method. teams pool revenues, all teams would eight votes of the ten teams in each Furthermore, I voted for the Ervin have a financial interest in member clubs league, to act in this particular way- amendment. I did so because it seemed moving into a richer TV area. This
and that there are at least three teams to this Senator that the freedom might also encourage moves.
that have such an immense revenue of contract between the employee and I would also make the point that we
from television, and expect a sky-rocket- the baseball team should certainly take should not dismiss too lightly revenues ing revenue in the future, that it would precedence over the right of owners to and receipts from sources other than be most unlikely, short of some very un- get a more profitable television contelevision. It is quite true that in recent usual development, for them voluntarily tract than would some other owner. years income to baseball from television to take this action? So if Congress does Mr. HART. That is the point of view has increased appreciably. But the live not act, we simply will not get this pool- of the Senator from Wisconsin. gate remains a significant revenue
ing, and the disparity, the imbalance, is source. . It is the bread and butter reve- built in and guaranteed.
Mr. PROXMIRE. The distinguished nue of baseball, though perhaps not of
Senator from Michigan stated that on
Mr. HART. I think the Senator from balance, limiting freedom of contract for football The Senator from Wisconsin very great likelihood or even a remote possi
Michigan would not argue that there is a young players is justified. It seems to properly cited the situation of the Green bility that baseball, within its organized contract this way. Is that justifiable in
me we would violate their freedom of Bay Packers. The Green Bay Packers structure, would in the future agree to the judgment of the majority of the Senhave survived, indeed flourished, at least pool television revenues. I really do not ate? If equality is to be this important, artistically—I do not know whether know. But I do feel that there are many should we not consider applying the same financially-for a long period of time, factors other than the pooling of tele- kind of equal distribution of revenues in and there was no pooling of television vision revenue that would persuade or- baseball that football now has? I subuntil a couple of years ago. But there ganized baseball generally to maintain a was no movement out of Green Bay of stable distribution of the franchises. equalization of profits, we have only
mit that in football, we do not have any the Packer franchise.
Over a long period of years, this gener- equalization of gross receipts from one There is a very great difference be
of their important sources. tween baseball and football, not alone ally has proved true.
Mr. PROXMIRE. Is it not also true in the schedules, but in the individual
Mr. HART. The position of the Senateam arrangements and the suitability has been bread and butter income from reflects, as it well should, the concern
that over the long period of years there tor from Wisconsin, eloquently voiced, of the game for television sponsorship. gate receipts and such other receipts as It appears that football is a more dra
that the people of Milwaukee have with matic attraction to the television tube
the various concessions, and so forth, but respect to a franchise transfer of recent than baseball.
that now in recent years television rev- day. I hope it will not persuade Congress
enues have shot up enormously? After to adopt an amendment which the maBut overriding all, I think, is the undesirability for Congress to get into what all,
in 1956, revenues from television were jority of the committee felt was unwise.
$6 million, and this year they are going The effect of this amendment would is primarily a business decision, a decision that relates to how businesses
to be $25 million; by the early 1970's be to make a common denominator of across the country shall be permitted to they are likely to be close to $50 million profits among the franchise holders.
or more. As the Senator himself has treat the profit that may be derived as
I am not at all persuaded that the a result of their management effort. It pointed out and conceded, gate receipts adoption of an amendment which would is for this reason, at least at this point
are fairly stable; it seems most likely tend to create a common denominator in time, that I think it would not be that the major revenue, the main rev
for profits is desirable or would even desirable to require that exclusive terri- enue, will come from television receipts. serve, in the long run, the job of statorial rights be permitted to organized If one team is to get 3, 4, or 5 times as bilizing the franchises.. baseball only if they agree to pool, to much in television receipts as another, For that reason I hope the amendment spread their television revenues.
its seems to this Senator that we shall will be rejected. Therefore, Mr. President, I hope that destroy any real prospect for a balance Mr. MAGNUSON. The amendment is the amendment is not agreed to.
in the leagues and any real prospect for not practical. Mr. PROXMIRE. Will the Senator the winning teams to be determined on Mr. ERVIN. I have been intrigued by yield?
the basis of skill, good managership, and the colloquy between the Senator from