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1 TABLE OF CONTENTS
2 Page
9 1. The NFL’s Complete Market Power Over NFL Franchise Locations ........ 11
21 C. The Unlawful Conspiracy Behind The Raiders’ Relocation ................................... 28
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1 COUNT III: Violation of the Sherman Act (15 U.S.C. § 1) Price Fixing:
Damages/Disgorgement .......................................................................................... 36
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COUNT IV: Violation of the Sherman Act (15 U.S.C. § 1) Declaratory Judgment .......... 37
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COUNT V: Breach of Contract (Cal. Civ. Code § 1559) Damages .................................. 39
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COUNT VI: Quantum Meruit Restitution ......................................................................... 41
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COUNT VII: Unjust Enrichment Under California Law Damages/Disgorgement ........... 43
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VII. PRAYER FOR RELIEF ...................................................................................................... 44
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VIII. DEMAND FOR JURY TRIAL ........................................................................................... 45
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COMPLAINT FOR DAMAGES
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1 Plaintiff City of Oakland (“Oakland” or “Plaintiff”), by and through its attorneys, the
2 Offices of the Oakland City Attorney; Berg & Androphy; and Pearson, Simon & Warshaw, LLP,
3 as and for its complaint against Defendants The Oakland Raiders, a California Limited
4 Partnership, d/b/a Oakland Raiders (“Raiders”); Arizona Cardinals Football Club LLC, d/b/a
5 Arizona Cardinals (“Cardinals”); Atlanta Falcons Football Club, LLC, d/b/a Atlanta Falcons
6 (“Falcons”); Baltimore Ravens Limited Partnership, d/b/a Baltimore Ravens (“Ravens”); Buffalo
7 Bills, LLC, d/b/a Buffalo Bills (“Bills”); Panthers Football, LLC, d/b/a Carolina Panthers
8 (“Panthers”); The Chicago Bears Football Club, Inc., d/b/a Chicago Bears (“Bears”); Cincinnati
9 Bengals, Inc., d/b/a Cincinnati Bengals (“Bengals”); Cleveland Browns Football Company LLC,
10 d/b/a Cleveland Browns (“Browns”); Dallas Cowboys Football Club, Ltd., d/b/a Dallas Cowboys
11 (“Cowboys”); PDB Sports, Ltd., d/b/a Denver Broncos (“Broncos”); The Detroit Lions, Inc., d/b/a
12 Detroit Lions (“Lions”); Green Bay Packers, Inc., d/b/a Green Bay Packers (“Packers”); Houston
13 NFL Holdings, LP, d/b/a Houston Texans (“Texans”); Indianapolis Colts, Inc., d/b/a Indianapolis
14 Colts (“Colts”); Jacksonville Jaguars, LLC, d/b/a Jacksonville Jaguars (“Jaguars”); Kansas City
15 Chiefs Football Club, Inc., d/b/a Kansas City Chiefs (“Chiefs”); Chargers Football Company,
16 LLC, d/b/a Los Angeles Chargers (“Chargers”); The Rams Football Company, LLC, d/b/a Los
17 Angeles Rams (“Rams”); Miami Dolphins, Ltd., d/b/a Miami Dolphins (“Dolphins”); Minnesota
18 Vikings Football, LLC, d/b/a Minnesota Vikings (“Vikings”); New England Patriots LLC, d/b/a
19 New England Patriots (“Patriots”); New Orleans Louisiana Saints, LLC, d/b/a New Orleans Saints
20 (“Saints”); New York Football Giants, Inc., d/b/a New York Giants (“Giants”); New York Jets,
21 LLC, d/b/a New York Jets (“Jets”); Philadelphia Eagles, LLC, d/b/a Philadelphia Eagles
22 (“Eagles”); Pittsburgh Steelers, LLC, d/b/a Pittsburgh Steelers (“Steelers”); Forty Niners Football
23 Company LLC, d/b/a San Francisco 49ers (“49ers”); Football Northwest LLC, d/b/a Seattle
24 Seahawks (“Seahawks”); Buccaneers Team LLC, d/b/a Tampa Bay Buccaneers (“Buccaneers”);
25 Tennessee Football, Inc., d/b/a Tennessee Titans (“Titans”); and Pro-Football, Inc., d/b/a
26 Washington Redskins (“Redskins,” and with the Raiders, Cardinals, Falcons, Ravens, Bills,
27 Panthers, Bears, Bengals, Browns, Cowboys, Broncos, Lions, Packers, Texans, Colts, Jaguars,
28 Chiefs, Chargers, Rams, Dolphins, Vikings, Patriots, Saints, Giants, Jets, Eagles, Steelers, 49ers,
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1 Seahawks, Buccaneers and Titans, the “NFL Clubs”); and The National Football League (“NFL,”
3 I. PRELIMINARY STATEMENT
4 1. This is an action for damages and other relief arising out of the Defendants’
5 unlawful decision to boycott Oakland, as the host city of the Raiders, and relocate the Raiders to
7 2. In 2017, the Raiders announced that they were leaving Oakland for Las Vegas.
8 Although Oakland went to extraordinary efforts to keep the Raiders from leaving, the ultimate
9 calculation was purely monetary: Las Vegas offered $750 million, ostensibly for a new stadium,
10 and the Raiders are paying $378 million to the NFL Clubs for voting “yes” on the Las Vegas
11 relocation. This $378 million “relocation fee” served no legitimate purpose and, instead, skewed
12 the bidding process for the Raiders in favor of relocation by enriching the NFL Clubs for their
13 positive votes for the Raiders’ move. While Oakland proposed a $1.3 billion new stadium that
14 included a mix of public and private funding to the tune of $750 million, Oakland’s offer did not,
15 and could not, put tens of millions of additional dollars in additional supra-competitive cartel
16 payments in the form of a relocation fee directly into the pockets of each of the remaining 31 NFL
18 3. The Raiders’ move – and the bidding process which preceded it – violated not only
19 the antitrust laws, but also the NFL’s own relocation policies. More than 35 years ago, the United
20 States Court of Appeals for the Ninth Circuit affirmed that Article 4.3 of the NFL Constitution and
21 Bylaws (“NFL Constitution,” attached hereto in its entirety as Exhibit “1”) – which requires three-
22 fourths approval of all NFL Clubs for team relocations – amounted to an unreasonable restraint of
23 trade in violation of Section 1 of the Sherman Act because no objective standards or durational
24 limits were incorporated into the voting requirements. Los Angeles Memorial Coliseum Comm’n
25 v. National Football League, 726 F.2d 1381 (9th Cir. 1984). The Ninth Circuit found that, while
26 some collective restraints may be necessary to producing a successful NFL product, such restraints
27 must be closely tailored to advancing that purpose in order to withstand antitrust scrutiny. The
28 court enumerated objective considerations – then lacking in Article 4.3 – such as population,
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1 economic projections, facilities, regional balance, fan loyalty, and team rivalries, among others,
2 that should guide Defendants’ territorial allocations of NFL teams in order to mitigate their
3 collective actions under the rule of reason. In response to the Ninth Circuit’s antitrust ruling
4 against it, and to ensure future relocation decisions withstand antitrust scrutiny, the NFL
5 subsequently adopted the Policy and Procedures for Proposed Franchise Relocations (the
6 “Relocation Policies” or “Policies,” attached hereto as Exhibit “2”) that ostensibly incorporate the
9 each club’s primary obligation to the League and to all other member clubs is to
advance the interests of the League in its home territory. This primary obligation
10 includes, but is not limited to, maximizing fan support, including attendance, in its
home territory.
11
12 (emphasis added). The Relocation Policies further confirm that “no club has an ‘entitlement’ to
13 relocate simply because it perceives an opportunity for enhanced club revenues in another
14 location.” In other words, the Relocation Policies first and foremost favor a team’s home territory
15 over relocation in order to promote team stability – which is thus clearly one of the procompetitive
16 goals of the Relocation Policies - and all other considerations are viewed through that narrow lens.
17 Because the Relocation Policies were adopted to address Defendants’ antitrust violations,
18 Defendants are not free to disregard them. When Defendants breach the Relocation Policies that
19 are in place to mitigate their collective actions, they essentially re-violate the antitrust laws those
20 Policies were designed to comply with. This has the effect of putting Defendants in the same
21 place they were at the time the Ninth Circuit rendered its decision in Los Angeles Memorial
22 Coliseum 35 years ago, i.e., in violation of the antitrust laws. That is precisely what happened
23 here.
25 from Oakland, and had one of the most loyal fan bases in the NFL in Oakland (also known as
26 “Raider Nation”). Further, under both Oakland and Las Vegas’ proposals, the Raiders would
27 reportedly contribute $500 million toward building a new stadium, and both proposals involved
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1 6. Accordingly, under the Relocation Policies (which presumptively favor NFL teams
2 staying in their home territories), there was simply no justification for a Raiders’ relocation.
3 However, Defendants openly ignored those Policies and approved the Raiders’ relocation not
4 because of some perceived lack of support by Oakland – or some concern about what Oakland was
5 willing to pay or not pay toward a new or renovated stadium – but because of the supra-
6 competitive payment Defendants coerced from Las Vegas which they would individually pocket
9 publicly promising Oakland that they would negotiate in good faith. These statements were
10 blatant misrepresentations and a direct violation of those Policies, which require that Defendants
11 negotiate in good faith. From 2014 to 2017, the Raiders, through their owner representative, Mark
12 Davis, publicly stated their desire to stay in Oakland (presumably to continue to reap massive
13 profits at the expense of Raiders fans and the citizens of Oakland) while they affirmatively sought
14 to move anywhere else: San Antonio, Los Angeles, San Diego, or Las Vegas. In fact, at one
15 point, Davis simply stopped speaking to Oakland’s Mayor, Libby Schaaf. By 2016, the NFL
16 became directly involved through Eric Grubman (“Grubman”), its Executive Vice President in
17 charge of stadia and relocations. Although Grubman supposedly “negotiated” with Oakland, he
18 actually criticized Oakland’s every move, including its $1.3 billion proposal for a new stadium
19 near the Coliseum, the current home of the Raiders. The Raiders, the NFL, and ultimately the vast
20 majority of NFL Clubs, were just stringing Oakland along as part of their collusive scheme to
22 8. For decades, Defendants have tightly limited the supply and territorial allocation of
23 the professional football teams in the United States by not only limiting the number of NFL Clubs
24 in the United States, but also collectively controlling, and dictating under what terms and
25 conditions, cities can have a professional football team presence. There are just 32 teams for the
26 entire United States and thus cities fiercely compete to be a host city (“Host City”). A three-
27 fourths vote of all 32 NFL Club owners is required to determine what city a team calls its home,
28 and under what terms and conditions, including the price. The “price” includes not only hundreds
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2 benefit the billionaire club owners, but also the “relocation fee” component that – in recent years –
3 amounts to hundreds of millions of additional dollars that are paid to the other 31 NFL Club
4 owners whose collective votes control whether a team relocates or stays put. Like the Raiders’
5 move, the recent relocations of the Rams and Chargers also generated hundreds of millions in such
6 fees for the remaining NFL Club owners, including Raiders owner Mark Davis. Notably, not a
7 cent out of these fees is actually committed to directly accommodating any relocation-related
8 expenses.
10 that, contrary to the Policies, promotes relocations in order to further line the pockets of NFL Club
11 owners with millions of dollars paid by their billionaire competitors to the sole detriment of the
12 Host Cities that are unwilling or unable to pay. It is, essentially, a leveraging of the NFL’s
13 monopoly power, used to extract value from municipalities through an auction that ignores the
15 considerations and factors supported a decision to keep the Raiders in Oakland. However, as a
16 Host City, Oakland was unable to pay Defendants’ cartel fee, so the Raiders are moving and
18 10. Worse yet, the Relocation Policies provide no real standard for setting the
19 relocation fee other than it “will compensate other member clubs of the League for the loss of the
20 opportunity appropriated by the relocating club and/or the enhancement (if any) in the value of the
21 franchise resulting from the move.” This guideline indicates that there must be some tangible and
22 objective economic “value” to relocating a team to support a particular relocation fee. However,
23 the factors to be supposedly considered are so vague that they support setting the fee as high as
24 Defendants desire whether the relocating team gains or loses value from the move. But this has
25 not always been the case; when the Rams left Los Angeles for St. Louis in 1995, they were
26 charged $29 million, which clearly had more to do with the fact that there were 29 other NFL
27 teams at the time, rather than any relative comparison of the value of the St. Louis market they
28 took and the Los Angeles market they returned to the league. Here, objective factors indicate that
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1 the Defendants lose significant value, with the Raiders moving from a market with proximity to
2 vibrant and wealthy economic hubs like Silicon Valley and San Francisco/Oakland to a city of
3 transient vacationers (Las Vegas), and from the 6th largest media market in the country
4 (encompassing Oakland) to the 40th (encompassing Las Vegas). Thus, this case demonstrates the
5 sheer arbitrariness of the process by which Defendants set relocation fees and generally decide on
6 team relocations.
7 11. The costs of Defendants’ collective scheme is enormous, particularly to the public
8 who bear the brunt of Defendants’ anti-competitive conduct – whether in hundreds of millions of
9 tax dollars committed to new stadia and paying Defendants’ relocation fees, supra-competitive
10 ticket and seat licensing fees justified by gigantic and expensive stadia, or in lost investment and
11 business opportunities when an incumbent Host City, like Oakland, loses a team. And none of this
12 even begins to consider the toll on the Host City fans who are not only emotionally invested in a
13 local team, but spend considerable sums of money on team merchandise. Because of the great
14 demand for professional football, on the one hand, and Defendants’ collective market power over
15 the allocation of professional football teams to Host Cities, on the other, Defendants can demand
16 supra-competitive terms – often involving new or renovated stadia at enormous cost to Host Cities
17 and ultimately the members of the public. This is a case of leveraging of monopoly power,
20 12. As a core part of the process of demanding these stadia, NFL Clubs, assisted by the
21 NFL, employ the relocation threat: pay up or watch your team move somewhere else. Other NFL
22 Clubs are only too happy to support these threats: the relocation threats set the floor for all NFL
23 stadium negotiations and – when an NFL Club ultimately does relocate – the other NFL Clubs
24 receive illicit cartel payments in the form of the relocation fee and their own future threats to
25 relocate become all the more credible. Since 2013, three NFL Clubs have made good on these
26 relocation threats: the Rams moved from St. Louis to Los Angeles, the Chargers moved from San
27 Diego to Los Angeles, and the Raiders will be moving from Oakland to Las Vegas. As a result,
28 the NFL Clubs have shared, or will share, in more than $1.4 billion in relocation fees.
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1 13. The NFL’s boycott of Oakland violates the antitrust laws. Specifically, the NFL
2 controls the number of professional football franchises and where they are located, which gives
3 them complete market power. Also, as a cartel, courts have subjected the NFL to antitrust liability
4 in the context of team relocations, and that liability compelled the NFL to adopt the Relocation
5 Policies described above. Contrary to these Policies, Defendants simply boycotted Oakland in
6 favor of Las Vegas, even though Oakland is a lucrative market and made a significant stadium
7 proposal to Defendants to keep the Raiders at home. Once again, Defendants acted in this manner
8 to collect the massive relocation fee that the Raiders’ move generates.
9 14. Moreover, Oakland was significantly handicapped in its effort to keep the Raiders
10 by the fact that only a relocation would result in a payment to the other 31 NFL Clubs; there is no
11 mechanism for a Host City to match these payments. So if the Raiders remained in Oakland, the
12 other NFL Clubs would receive nothing. Through this decidedly skewed process, Defendants
13 concertedly refused to deal with Oakland (like the Rams with St. Louis and the Chargers with San
14 Diego before). It was immaterial to Defendants that the Raiders were financially successful in
15 Oakland, received significant support from Oakland, and had one of the most loyal fan bases in the
16 NFL, the Raider Nation. Maximizing their cartel fee – ultimately at the expense of the consuming
18 15. The Defendants’ unlawful conduct has caused Plaintiff significant injury and loss.
19 Among other things, Plaintiff has lost the value of its significant investment in the Raiders, is
20 burdened with a stadium of significantly diminished value, and has lost the revenues generated by
21 the Raiders’ continuing presence. Defendants disregarded every objective factor in the Relocation
22 Policies when they collectively agreed to relocate the Raiders from Oakland, thus concertedly
23 boycotting and refusing to deal with Oakland on objective terms in an effort to maximize their
25 another host city (Las Vegas) and the consuming public (fans) for the presence of a professional
26 football team. Because Defendants’ collective action was not grounded in objective criteria and
28 / / /
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1 16. Accordingly, Plaintiff brings this action for violations of the antitrust laws and
2 breach of contract, among other claims, arising from Defendants’ unlawful conduct. As
3 demonstrated in more detail below, because of this unlawful conduct, Plaintiff is entitled to,
4 among other remedies, treble damages from Defendants under 15 U.S.C. §§ 1 and 15; a
5 disgorgement of the enormous supra-competitive payments that Defendants have received, and
6 will receive, from their unlawful conduct; and damages for Defendants’ breach of their own
7 Relocation Policies– i.e., Policies to which Plaintiff, as the host of the Raiders, is an intended
8 beneficiary.
9 II. PARTIES
11 is an indirect owner of the Coliseum at which the Raiders currently play professional football in
12 the NFL.
14 consisting of the NFL Clubs. The NFL’s principal place of business is 345 Park Avenue, New
17 football franchises organized and operating for profit in the states set forth below. In total, NFL
18 Clubs play, or practice in, at least 23 different states and collectively generate revenue of
20 State of
Defendant NFL Club Organization
21 NFL Club Name
Address (state of operation,
if different)
22
Arizona Cardinals Football Club LLC
Delaware
23 8701 Hardy Drive Arizona Cardinals
(Arizona)
Tempe, Arizona 85284
24 Atlanta Falcons Football Club, LLC
4400 Falcon Parkway Georgia Atlanta Falcons
25 Flowery Branch, Georgia 30542
26 Baltimore Ravens Limited Partnership
1 Winning Drive Maryland Baltimore Ravens
27 Owing Mills, Maryland 21117
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1 State of
Defendant NFL Club Organization
2 NFL Club Name
Address (state of operation,
if different)
3
Buffalo Bills, LLC
Delaware
4 One Bills Drive Buffalo Bills
(New York)
Orchard Park, New York 14127
5 Panthers Football, LLC
800 South Mint Street North Carolina Carolina Panthers
6 Charlotte, North Carolina 28202
7 The Chicago Bears Football Club, Inc.
Halas Hall Delaware
Chicago Bears
8 1920 Football Drive (Illinois)
Lake Forest, Illinois 60045
9 Cincinnati Bengals, Inc.
One Paul Brown Stadium Ohio Cincinnati Bengals
10
Cincinnati, Ohio 45202
11 Cleveland Browns Football Company LLC
Delaware
76 Lou Groza Boulevard Cleveland Browns
(Ohio)
12 Berea, Ohio 44017
Dallas Cowboys Football Club, Ltd.
13 Cowboys Center
Texas Dallas Cowboys
14 One Cowboys Parkway
Irving, Texas 75063
15 PDB Sports, Ltd.
13655 Broncos Parkway Colorado Denver Broncos
16 Englewood, Colorado 80112
The Detroit Lions, Inc.
17
222 Republic Drive Michigan Detroit Lions
18 Allen Park, Michigan 48101
Green Bay Packers, Inc.
19 1265 Lombardi Avenue Wisconsin Green Bay Packers
Green Bay, Wisconsin 54304
20 Houston NFL Holdings, LP
Delaware
21 Two Reliant Park Houston Texans
(Texas)
Houston, Texas 77054
22 Indianapolis Colts, Inc.
Delaware
7001 West 56th Street Indianapolis Colts
23 (Indiana)
Indianapolis, Indiana 46254
Jacksonville Jaguars, LLC
24 Delaware
One Alltell Stadium Place Jacksonville Jaguars
(Florida)
25 Jacksonville, Florida 32202
Kansas City Chiefs Football Club, Inc.
Texas
26 One Arrowhead Drive Kansas City Chiefs
(Missouri)
Kansas City, Missouri 64129
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1 State of
Defendant NFL Club Organization
2 NFL Club Name
Address (state of operation,
if different)
3
Chargers Football Company, LLC
4 3333 Susan Street California Los Angeles Chargers
Costa Mesa, California 92626
5 The Rams Football Company, LLC
Delaware
29899 Agoura Road Los Angeles Rams
6 (California)
Agoura Hills, California 91301
7 Miami Dolphins, Ltd.
7500 SW 30th Street Florida Miami Dolphins
8 Davie, Florida 33314
Minnesota Vikings Football, LLC
9 Delaware
9520 Viking Drive Minnesota Vikings
(Minnesota)
Eden Prairie, Minnesota 55344
10
New England Patriots LLC
Delaware
11 One Patriot Place New England Patriots
(Massachusetts)
Foxborough, Massachusetts 02035
12 New Orleans Louisiana Saints, LLC
Delaware
5800 Airline Drive New Orleans Saints
13 (Louisiana)
Metairie, Louisiana 70003
14 New York Football Giants, Inc.
Timex Performance Center New York
New York Giants
15 1925 Giants Drive (New Jersey)
East Rutherford, New Jersey 07073
16 New York Jets LLC
Delaware
1 Jets Drive New York Jets
17 (New Jersey)
Florham Park, New Jersey 07932
18 The Oakland Raiders,
A California Limited Partnership
California Oakland Raiders
19 1220 Harbor Bay Parkway
Alameda, California 94502
20 Philadelphia Eagles, LLC
21 1 Novacare Way Pennsylvania Philadelphia Eagles
Philadelphia, Pennsylvania 19145
22 Pittsburgh Steelers LLC
3400 South Water Street Pennsylvania Pittsburgh Steelers
23 Pittsburgh, Pennsylvania 15203
Forty Niners Football Company LLC
24 Delaware
4949 Centennial Boulevard San Francisco 49ers
(California)
25 Santa Clara, California 95054
Football Northwest LLC
26 12 Seahawks Way Washington Seattle Seahawks
Renton, Washington 98056
27
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1 State of
Defendant NFL Club Organization
2 NFL Club Name
Address (state of operation,
if different)
3
Buccaneers Team LLC
Delaware
4 One Buccaneer Place Tampa Bay Buccaneers
(Florida)
Tampa, Florida 33607
5 Tennessee Football, Inc.
Delaware
460 Great Circle Road Tennessee Titans
6 (Tennessee)
Nashville, Tennessee 37228
7 Pro-Football, Inc.
Maryland
21300 Redskin Park Drive Washington Redskins
(Virginia)
8 Ashburn, Virginia 20147
10 20. This is an action for violations of federal antitrust law, including 15 U.S.C. § 1.
11 Accordingly, this Court has subject matter jurisdiction over this proceeding and all claims asserted
12 herein pursuant to 28 U.S.C. §§ 1331 (federal question jurisdiction), 1337 (antitrust jurisdiction)
14 21. Venue is proper in this district under 15 U.S.C. §§ 15 and 22, and 28 U.S.C. § 1391
15 because: (i) each of the Defendants transact business, committed an unlawful or tortious act,
16 and/or are found, in this district; and (ii) a substantial portion of the conduct detailed herein, and
17 which affected interstate trade and commerce, has been carried out in this district.
19 22. Pursuant to the Northern District Civil Local Rule 3-2(d), the intradistrict
20 assignment should be to the Oakland Division or the San Francisco Division. This action arises in
21 Oakland and the County of Alameda because a substantial part of the events giving rise to these
22 claims occurred in the City of Oakland and Alameda County, and the property that is the subject
23 of the action (the Coliseum) is situated in the City of Oakland and Alameda County.
24 V. FACTUAL ALLEGATIONS
25 A. Background
27 23. The NFL is a league of professional football franchises that places strict limits on
28 the number of member clubs, controls where those clubs are located, and requires that all member
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1 clubs share certain revenues and financial benefits of NFL participation. The NFL is made up of
2 only 32 teams in 30 cities, and has been characterized as a “cartel” by the United States Court of
3 Appeals for the Ninth Circuit. Los Angeles Memorial Coliseum, 726 F.2d at 1389. Past efforts by
4 the NFL to claim it is a single entity have been strongly rebuffed by Courts, most notably when
5 the Supreme Court ruled against this view 9-0 in American Needle, Inc. v. National Football
7 24. With nearly 40 percent of Americans preferring football as their favorite spectator
8 sport, it is not surprising that, at various times, there have been more than 30 cities vying to host
9 professional football clubs. However, without any reasonable hope of a professional football
10 league that can compete with the NFL, the market for owning or hosting such a club is
11 significantly constrained. The NFL’s complete control over professional football in the United
12 States, combined with its ability to artificially limit the supply of professional football clubs,
13 enables it to hold cities hostage by imposing anticompetitive conditions on being a Host City. As
14 the Ninth Circuit recognized, the NFL acts as a cartel, limiting the supply of member clubs to
16 25. Recently, NFL Clubs have increasingly used the NFL’s complete market power to
17 exert this anticompetitive pressure on Host Cities by demanding new and publicly subsidized
18 stadia. These new stadia have sent the value of NFL Clubs soaring because of the significantly
19 increased revenues that the NFL Clubs generate from higher ticket prices, personal seat licenses,
20 luxury boxes and related amenities, services and revenue streams. The NFL is currently the
21 world’s most valuable sports league, generating approximately $14 billion in 2016 alone. In fact,
22 Forbes magazine has estimated that NFL Clubs make up 29 of the world’s 50 most valuable sports
23 franchises. By 2027, the NFL projects that its revenues will be $25 billion per year.
24 26. As noted above, broken seats and leaky pipes are not driving team relocations;
25 rather it is cartel payments from relocation fees and stadia designed to generate more profits. As
26 proven in the case of the Coliseum, even when a Host City is willing and able to renovate or
27 construct a new stadium, NFL Clubs opt to relocate as it is the only way the other NFL Clubs will
28
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1 receive the cartel payment (the relocation fee). Of course, this completely ignores the Relocation
2 Policies. A sample of stadium funding by the Host City and NFL Club is set forth below:
3
Cost Public funding Public
City Year Type
4 (in millions of $) (in millions of $) funding (%)
13 27. Part of an NFL team’s demand for a new stadium is often a threat to move. If a
14 Host City is unwilling or unable to pay for a new or renovated stadium, the club threatens to move
15 to one that will. The NFL, as an organization, is only too happy to support such threats: hard-ball
16 stadium negotiations set the floor for all NFL Clubs and – if a relocation decision is made and a
17 team receives a vote in favor of relocation from the NFL Clubs – each of those teams shares in the
18 benefits of the move through the relocation fee. But the teaching of the Raiders litigation of the
19 1980s is that relocation threats based on subjective factors are condemned by the antitrust laws.
20 28. The NFL and its Clubs hold closed-door meetings to collectively decide on whether
21 and where to move a team. Under Section 4.3 of the NFL’s Constitution – the agreement
22 governing the relationship between and among the 32 NFL Clubs – no NFL team can move from
23 one Host City to another without a three-fourths vote of approval from the NFL Clubs. As an
24 award for saying “yes” to a relocation, NFL Clubs share among themselves the relocation fee that
25 is paid by the moving team. In fact, since 2013, NFL relocations have resulted in the NFL Clubs
26 sharing in, and receiving cartel payments of, approximately $1.4 billion in relocation fees paid by
28 / / /
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2 move for any NFL Club: The Host City could reject the demand and seek out a new team willing
3 to play in the existing, upgraded or new stadium. In addition, both the demanding team and the
4 Host City would face the prospect of “over building” in a market where stadium costs and ticket
5 prices had reached an equilibrium. However, by acting together to limit the supply, and regulate
6 the location of professional football teams, Defendants are able to demand new stadia regardless
10 30. The NFL’s considerable power over relocation decisions has not gone unnoticed.
11 In the early 1980s, the NFL violated federal antitrust laws in a well-known effort to prevent the
12 Raiders from moving from Oakland to Los Angeles. In Los Angeles Memorial Coliseum, the
13 Ninth Circuit affirmed a decision finding that the NFL had violated federal antitrust laws by
14 voting against the Raiders’ proposed relocation. In its ruling, the Ninth Circuit suggested that the
15 NFL adopt policies that would guide relocation decisions in ways that comport with federal
16 antitrust law:
25 31. In the absence of such policies, the Ninth Circuit upheld a finding that the
26 collective behavior of the NFL Clubs in voting to block the Raiders’ relocation to Los Angeles
28 / / /
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COMPLAINT FOR DAMAGES
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1 The NFL argues that the requirement of [NFL Constitution] Rule 4.3 that three-
quarters of the owners approve a franchise move is reasonable because it deters
2 unwise team transfers. While the rule does indeed protect an owner’s investment in
a football franchise, no standards or durational limits are incorporated into the
3
voting requirement to make sure that concern is satisfied. Nor are factors such as
4 fan loyalty and team rivalries necessarily considered.
5 The NFL claims that its marketing and other objectives are indirectly accounted for
in the voting process because the team owners vote to maximize their profits. Since
6 the owners are guided by the desire to increase profits, they will necessarily make
reasonable decisions, the NFL asserts, on such issues of whether the new location
7 can support two teams, whether marketing needs will be adversely affected, etc.
8 Under the present Rule 4.3, however, an owner need muster only seven friendly
votes to prevent three-quarters approval for the sole reason of preventing another
9 team from entering its market, regardless of whether the market could sustain two
franchises. A basic premise of the Sherman Act is that regulation of private profit
10 is best left to the marketplace rather than private agreement.
11 Id. at 1396-1397 (emphasis added).
12 32. In response to the Ninth Circuit’s holding in Los Angeles Memorial Coliseum, the
13 NFL Clubs collectively agreed to amend the NFL Constitution by adding the Relocation Policies
14 as an addendum to Section 4.3. The Policies seek to integrate the Ninth Circuit’s suggestions in
15 Los Angeles Memorial Coliseum into a set of requirements meant to ensure that the NFL’s
16 exercise of its control over relocation decisions complies with federal antitrust laws.
17 33. The Relocation Policies expressly require that the NFL and NFL Clubs consider the
18 conduct and interests of Host Cities in any decision to relocate a club. Indeed, the Relocation
19 Policies affirmatively state that each NFL Club’s “primary obligation” is to “advance the interests
20 of the NFL in its home territory” (emphasis added). The Relocation Policies declare that because
21 “League policy favors stable team-community relations, clubs are obligated to work diligently and
22 in good faith to obtain and to maintain suitable stadium facilities in their home territories, and to
23 operate in a manner that maximizes fan support in their current home community” (emphasis
24 added).
25 34. The Relocation Policies also require NFL team owners to consider the following
26 factors, among others, with respect to voting on any relocation request:
27 The extent to which the club has satisfied, particularly in the last four years, its
principal obligation of effectively representing the NFL and serving the fans in its
28
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1 current community; whether the club has previously relocated and the
circumstances of such prior relocation;
2
The extent to which fan loyalty to and support for the club has been demonstrated
3 during the team’s tenure in the current community;
4 The adequacy of the stadium in which the club played its home games in the
previous season; the willingness of the stadium authority or the community to
5 remedy any deficiencies in or to replace such facility, including whether there are
legislative or referenda proposals pending to address these issues; and the
6 characteristics of the stadium in the proposed new community;
7 The extent to which the club, directly or indirectly, received public financial
support by means of any publicly financed playing facility, special tax treatment, or
8 any other form of public financial support and the views of the stadium authority (if
public) in the current community;
9
The club’s financial performance, particularly whether the club has incurred net
10 operating losses (on an accrual basis of accounting), exclusive of depreciation and
11 amortization, sufficient to threaten the continued financial viability of the club, as
well as the club’s financial prospects in its current community;
12 The degree to which the club has engaged in good faith negotiations (and enlisted
13 the League office to assist in such negotiations) with appropriate persons
concerning terms and conditions under which the club would remain in its current
14 home territory and afforded that community a reasonable amount of time to address
pertinent proposals;
15
The degree to which the owners or managers of the club have contributed to
16 circumstances which might demonstrate the need for such relocation; and
17 Whether the proposed relocation, for example, from a larger to a smaller television
market, would adversely affect a current or anticipated League revenue or expense
18 stream (for example, network television) and, if so, the extent to which the club
proposing to transfer is prepared to remedy that adverse effect.
19
20 35. Host Cities, like Oakland, rely on these Relocation Policies to ensure that NFL
21 Clubs stay committed to their home markets, comply with the antitrust laws, and provide Host
22 Cities a fair and level playing field in any negotiations with the NFL and its home club.
26 relocating NFL Club will “ordinarily” be expected to pay a relocation fee “[i]f a club’s proposal to
27 relocate to a new home territory is approved.” Ultimately, the non-relocating NFL owners
28 determine the relocation fee, “if any, at the time [they approve[]any proposed club relocation.”
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 21 of 49
1 The NFL Clubs’ owners typically decide the amount of the relocation fee before a relocation vote
2 is taken. In other words, the NFL owners decide in concert how much money they will receive for
4 37. Tellingly, the relocation fee is a source of income that the NFL Club owners do not
5 share; it is pure cartel payment that goes straight to the NFL Club owners’ bottom lines when they
8 (a) The Raiders’ Identity Is Inextricably Linked With Its Oakland Fans
9 38. The Raiders have been inextricably linked with Oakland since Oakland was
10 awarded the franchise in 1960. In fact, the Oakland community itself chose the club’s name:
11 “Raiders” reflects the history of Oakland, celebrating the rough-and-tumble merchant marines who
12 came ashore on Oakland’s blue-collar eastside of the San Francisco Bay and their banter after off-
14 39. Similarly, the Raiders’ national identity and image reflect the grit and hard-nosed
15 passion of their Oakland fans. The now famous Raiders image originated in the 1960s and 1970s,
16 and, in part, came from their renegade image cultivated in the old AFL. From there, the Raiders’
17 tough play on the field followed. The Oakland fans reflected their home club’s toughness by
18 dressing from head-to-toe in black and silver, and coined the term “Raider Nation” to describe
19 their unity. An especially passionate contingent of the club’s fans were infamously dubbed “The
20 Black Hole” for dressing in costume and cheering with ferocity at games. Today, Raiders’ fans
21 are famous throughout popular culture for being some of the most devout, dedicated, loyal, and
22 passionate fans in all of sports. The Raiders and NFL, of course, have not been shy about
23 monetizing the image created by, and through, the consistent passion of its incredibly loyal
26 40. In the mid-1960s, Al Davis took an ownership stake in the Raiders and became one
27 of three general partners of the club. In 1966, the Raiders began playing in the Coliseum. In
28
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1 1972, Davis revised the partnership agreement to make himself the managing general partner of
3 41. No later than 1979, the Raiders began negotiating with the Los Angeles Coliseum
4 to relocate the club. In 1980, Davis signed a memorandum of agreement to move the Raiders to
5 Los Angeles. Up until Davis officially agreed to the relocation of the Raiders, Oakland had
6 engaged in good faith negotiations to upgrade the Coliseum (in Oakland). Oakland and the
7 Raiders at one point came to terms on an agreement for the Raiders to stay, when the Raiders
8 suddenly submitted new demands that caused negotiations to collapse. The NFL subsequently
9 rejected the Raiders’ proposed move to Los Angeles, and the aforementioned Los Angeles
10 Memorial Coliseum litigation followed. The Raiders officially moved to Los Angeles on
12 42. Soon after the relocation, history repeated itself when Al Davis and the Raiders
13 began bickering with their new Host City of Los Angeles. By August 1987, Davis agreed to move
14 the club out of the Los Angeles Coliseum to Irwindale, California for, in part, a $10 million cash
15 advance. Despite ultimately never moving the team to Irwindale, Davis kept the advance.
16 43. After the Irwindale deal fell through, Sacramento and Oakland became potential
17 cities for a Raiders move. Following a series of negotiations with Los Angeles, Sacramento, and
18 Oakland, Al Davis conditionally agreed to move the club back to Oakland in March 1990.
19 44. Even with the conditional agreement in place, Al Davis continued his flirtations
20 with other markets. Within six months, he reneged and agreed to a 20-year lease in Los Angeles.
21 Eventually, that deal fell through. Davis continued negotiating with a number of potential Host
23 45. On January 17, 1994, the Northridge Earthquake struck Los Angeles, severely
24 damaging the Los Angeles Coliseum. In May 1994, Al Davis signed a one-year contract with
25 Oakland. The contract stipulated that the Raiders would play in Oakland if repairs to the Los
26 Angeles Coliseum were not completed in time for the following season. The contract was later
28 / / /
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 23 of 49
1 46. In April 1995, Al Davis reached a tentative agreement with Hollywood Park to
3 47. In May 1995, Oakland officials met with the Raiders in an effort to bring the club
4 back to Oakland. On June 23, 1995, the Raiders signed an agreement to play in the Coliseum (in
14 The Raiders and the Coliseum sharing concessions, parking, and stadium naming
rights revenue; and
15 A $1 surcharge on all tickets sold to benefit Oakland schools and other public
16 services.
17 48. Despite having just signed a generous 16-year pact with Oakland, Al Davis almost
18 immediately sought to break the Oakland lease. As a result, in 1997, Oakland was forced to file a
19 suit that, in part, sought to declare the agreement with the Raiders valid and enjoin the club from
20 leaving Oakland. The Raiders countersued seeking to break the lease. The countersuit was
21 dismissed. Nonetheless, rumors soon emerged that the Raiders were seeking to move to either Los
22 Angeles or Chicago.
24 sued the NFL for allegedly sabotaging its plans for a new stadium in Los Angeles. In 2000, Davis
25 countersued Oakland for supposedly fraudulently inducing the Raiders into moving back to
27 / / /
28 / / /
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 24 of 49
2 50. Despite Al Davis’ hectic ownership style, and a Raiders team that only managed 29
3 victories in 112 games from 2003 to 2009, the remarkably loyal Oakland community continued to
4 passionately support their home team year after year. However, unbeknownst to Plaintiff, the
6 51. Tellingly, as early as 1998, Mark Davis, Al Davis’ only child and the heir apparent
8 renewed the domain name yearly. Within two years, Mark Davis also purchased a cellphone
11 52. In December 2008, NFL Commissioner Roger Goodell (“Goodell”) announced that
12 the NFL wanted the Raiders to receive a new stadium. Nonetheless, in November 2009, the
14 53. Soon thereafter, however, Raiders officials began publicly discussing the
15 possibility of sharing a facility with the San Francisco 49ers in Santa Clara, California. In
16 addition, in April 2010, Anschutz Entertainment Group, a sports and entertainment conglomerate,
17 proposed building a football stadium in downtown Los Angeles for several potential NFL Clubs,
19 54. On October 8, 2011, Mark Davis assumed control of the Raiders after his father, Al
21 55. In June 2012, the NFL sent a memo to the NFL Clubs providing guidelines for any
22 potential relocation to Los Angeles. The memo was believed to be largely addressed to the
23 Raiders, Rams and Chargers, as it was widely believed that the NFL wanted those clubs to leave
24 their Host Cities. In fact, the NFL had made it all but a foregone conclusion that those clubs
26 56. The NFL’s June 2012 memo made clear that two clubs would move into the Los
27 Angeles market, as the NFL advised teams that relocation approval would be contingent on any
28
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 25 of 49
1 proposed Los Angeles stadium “being able to host two teams.” The Raiders, Rams and Chargers
3 57. In 2014, the Raiders agreed to a short-term lease to remain in Oakland. Soon
4 thereafter, Mark Davis began meeting with high-level NFL officials regarding where he would
5 relocate the Raiders. In July 2014, he informed NFL Executive Vice President Grubman, “I’m
6 going to Vegas, baby!” This declaration came despite the NFL’s long-time stance against
7 gambling. For example, in 2012, Goodell testified that gambling was number one on his list of
8 threats to the integrity of professional football in the United States. And, in a May 14, 2018 press
9 release, the NFL reasserted its “long-standing and unwavering commitment to protecting the
10 integrity” of professional football against the threat of gambling. Nevertheless, the NFL and its
11 owners would soon throw their full support behind moving one of its marquee teams to “Sin City”
14 58. Despite all his backdoor dealings and public maneuvering, Mark Davis claimed
15 that he was “trying everything possible to get something done in Oakland.” Davis asserted that
16 “99 percent of my interests and energy are going towards getting something done [in Oakland].”
17 In 2014, Oakland proposed donating land to the Raiders for a new stadium even though the city
18 was still paying off the debt outstanding on upgrades to the Coliseum requested by the Davis
19 family. Later, by early 2015, Oakland proposed a $500 million renovation of the Coliseum (to
20 which Oakland would have contributed significantly) in an effort to retain the Raiders.
21 59. On May 19, 2015, after the NFL’s Spring Meeting, Mark Davis publicly announced
22 that he was willing to commit $500 million for a new $900 million stadium in Oakland. He then
23 asserted that Oakland would be required to fill the $400 million funding gap. Despite the
25 60. On January 4, 2016, the Raiders, Chargers and Rams each officially filed for
26 relocation to Los Angeles. Prior to these filings, an NFL.com reporter, Ian Rapoport, reported that
27 any NFL Club that relocated to Los Angeles would be required to pay a $550 million relocation
28
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 26 of 49
1 fee. Since 2 teams were going to Los Angeles, the total relocation fee for that Host City would be
2 $1.1 billion.
3 61. Almost two weeks later, the NFL Club owners voted 30 to 2 to allow the Rams to
4 move to Los Angeles for the 2016 season. As the NFL had already determined that two teams
5 would leave their Host Cities for Los Angeles, the Chargers were given a one-year option to join
6 the Rams in Los Angeles. If the Chargers elected not to exercise that option, the Raiders would
7 then be given a one-year option to relocate to Los Angeles. Remarkably, prior to the vote, all
8 three clubs signed a waiver, agreeing not to sue the NFL if their Los Angeles relocation proposal
9 was rejected.
10 62. On January 29, 2016, a few weeks after Mark Davis announced his commitment to
11 Oakland at an NFL-sponsored town hall meeting, Davis privately met with billionaire casino
12 mogul Sheldon Adelson (“Adelson”) to discuss funding for a $1.7 billion stadium for the Raiders
13 in Las Vegas. On April 28, 2016, while speaking before the Southern Nevada Tourism
14 Infrastructure Committee, Mark Davis again announced his desire to move the Raiders from
15 Oakland to Las Vegas and pledged to commit $500 million towards a new stadium, $200 million
16 of which was an NFL loan. Mark Davis said, “We’re not using Las Vegas as a bargaining chip. I
18 63. By May 2016, multiple owners were publicly stating their support for a Raiders’
19 move to Las Vegas. Mark Davis declared, “I’ve given my commitment to Las Vegas and if they
20 can come through with what they’re talking about doing, then we’ll go to Las Vegas.” In August
21 2016, Adelson convinced the Nevada state legislature to create a bill that appropriated $750
22 million in public money, which had originally been intended to fund a public project, to a
23 professional football stadium. Later that month, the Raiders filed a trademark application for the
25 64. In September 2016, Goodell publicly stated that he hoped the Raiders would come
26 to terms on a stadium in Oakland. Yet, that very same month, Jerry Jones, the owner of the Dallas
27 Cowboys and one of the most powerful and influential owners in the NFL, told Nevada lawmakers
28 to be aggressive in landing the Raiders. Then, less than a month later at an NFL league meeting,
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 27 of 49
1 Mark Davis stated, “I made a promise to [the Nevada Governor], and if he comes through with the
3 65. Though the Raiders and NFL had given up on Oakland in express contravention of
4 the Relocation Policies, Oakland had not given up on the Raiders. In late November 2016, an
5 investment group led by former NFL players Ronnie Lott (“Lott”) and Rodney Peete, in
6 partnership with Fortress Management Group, pledged $600 million to build a new stadium near
7 the Coliseum. This offer was $200 million more than the $400 million funding gap that Mark
8 Davis claimed Oakland needed to fill. Then, on December 13, 2016, Oakland officials voted to
9 enter into negotiations with Lott’s investment group on a proposed $1.3 billion stadium project. A
10 total of $350 million in public funds was earmarked for the proposal. The plan was to have Lott’s
11 group contribute $400 million and the Raiders contribute the $500 million they had earlier
13 66. The Lott Proposal also included the possibility that Mark Davis would eventually
14 sell some part of the team to the Lott group. In a league marked by a lack of African-American
15 representation in leadership positions, this should have been heralded as a positive development.
16 Indeed, the NFL has long applied the “Rooney Rule” to NFL Clubs, which rule requires each team
17 to interview at least one minority coaching candidate before filling a head coaching vacancy.
18 67. Instead of taking the Lott Proposal seriously, Mark Davis passed off his
19 responsibility to deal with Oakland officials to an NFL representative, Grubman, while Davis
20 followed through with his and the NFL’s predetermined plan to move the Raiders to Las Vegas.
21 Of course, Grubman almost immediately dismissed the Lott Proposal as “not yet a proposal” and
22 expressed his “doubts” regarding its workability. Though Grubman told Davis that he had an
23 “obligation” to listen to Oakland, no one actually listened. In fact, at a closed-door NFL meeting,
24 Marc Badain, a high-level Raiders official, referred to the Lott Proposal – a proposal that could
25 have finally introduced African-American ownership into the NFL for the first time in the league’s
26 history – as a “political, cover-your-ass joke.” Badain announced that “it would have been better
27 if [Oakland] offered nothing.” Contrary to that assertion, the Lott Proposal was real.
28 / / /
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 28 of 49
1 68. On January 19, 2017, the Raiders officially filed an application with the NFL to
2 relocate to Las Vegas. At the time of the filing, Jim Wunderman, president and chief executive of
3 the Bay Area Council, a business and public policy group, summarized the sentiments of Oakland:
4 The Bay Area, millions of stalwart fans and the business community are not giving
up on keeping the Raiders here where they belong[.] We continue to believe that a
5 deal can be reached to build a modern stadium complex that the Raiders deserve
and that benefits Oakland. We urge the Raiders, the NFL, and Oakland to work
6
together to find an agreement that can benefit everyone and avoid the disruption
7 and pain of a costly move. Relocating a franchise with the deep roots and storied
history that the Raiders have here in the Bay Area would be a disaster for the
8 community.
9 3. Defendants’ Collusive Relocation Fee Determination And Relocation Vote
10 69. On March 6, 2017, Bank of America agreed to provide necessary financing for the
11 Raiders’ Las Vegas stadium. On that same day – a full 21 days before the NFL owners were set to
12 vote on the Raiders’ proposed Las Vegas relocation – the NFL owners convened to determine the
13 amount of the Raiders’ relocation fee. The meeting was effectively an auction for a “yes” vote:
14 the relocation fee was bid up until enough NFL owners were satisfied with their personal
15 payments to vote “yes.” Revealingly, according to an ESPN report, one NFL owner who was
16 opposed to the Raiders’ Las Vegas relocation “wouldn’t stop talking about how high the fee
17 needed to be.” Goodell eventually cut off the owner and stated, “[s]o let me make sure I
18 understand: You’re opposed to the relocation, but you want to vote on the relocation fee?”
19 Ultimately, the NFL Clubs agreed that the cost of their approval for a Raiders’ move to Las Vegas
21 70. Mark Cuban (“Cuban”), an entrepreneur and owner of the NBA’s Dallas
22 Mavericks, expressed the thoughts of many when he publicly stated that “[t]here’s just no good
23 reason” for the Raiders to move to Las Vegas. Oakland is a far more economically attractive
24 market than Las Vegas, as Oakland is based in the United States’ 6th largest media market,
25 whereas Las Vegas is in the 40th. Additionally, as Cuban noted, Las Vegas is a transient vacation
26 city. Oakland, on the other hand, is an emerging metropolis located nearby the booming city of
27 San Francisco (home of major tech companies Salesforce, Uber and Twitter), the East Bay area
28 (which includes Fremont, home of Tesla Motors), and, of course, Silicon Valley.
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 29 of 49
1 71. In March 2017, Oakland submitted final plans to the NFL regarding the Lott
2 Proposal, and Mayor Schaaf made a presentation to a joint meeting of the NFL’s Stadium and
3 Finance Committees that outlined the terms of the Lott Proposal, as well as Oakland’s significant
4 financial and other contributions to the Raiders. “We’re not giving up in the fourth quarter,”
6 72. Unfortunately, the NFL and Raiders had fixed the game before it ever started,
7 negotiating all along in bad faith. The same day that Mayor Schaaf made her final presentation,
8 Goodell wrote to her, “the information sent today does not present a proposal that is clear and
9 specific, actionable in a reasonable timeframe, and free of major contingencies” and “[a]ll of these
10 efforts, ours and yours, have not yet identified a viable solution.” The Raiders – in an agreement
11 decided among the other NFL Clubs and in direct contravention of the Relocation Policies – for all
13 73. The NFL voted on the Raiders’ relocation at its annual meeting in March 2017. On
14 March 23, 2017, Oakland Mayor Schaaf wrote Grubman and Goodell of the NFL to provide
15 further information regarding the Lott Proposal. On March 26, 2017, Mayor Schaaf also wrote the
16 NFL Club owners, urging them to consider Oakland’s superior market and plans for a new
17 stadium. Her plea revealed the true dedication of Oakland to the Raiders:
18 I write to you on the eve of what may be one of the most critical decisions in the
National Football League’s history. While I write on behalf of my community, I
19 also ask you to consider deeply the lasting impact your choice will have on the
future and legacy of the broader NFL community. This decision will not just be the
20
next chapter in the history of one of the most storied franchises in the league, the
21 Oakland Raiders, it will also impact the town where that tradition was forged –
Oakland, California.
22
23 74. She also noted that if the NFL approved the Raiders’ move, “[t]his will be the first
24 time ever where the NFL has abandoned an existing market which is bringing a fully financed new
25 stadium to the table.” (emphasis in original). Although Mayor Schaaf recognized that Oakland
26 was “unable to provide the level of public subsidy Nevada offers,” she publicly hoped for a
28 / / /
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 30 of 49
1 The NFL is more than a business. You have an obligation to recognize that
professional football teams are the lifeblood, culture and identity of the places
2 where they play. Your own policies state you will not remove teams from their
home markets when a viable alternative to stay exists. The trust of fans and the
3
league’s reputation have already been damaged by recent decisions on the Rams
4 and Chargers. Another betrayal in a community as valuable and deserving as the
Bay Area will further destroy fan loyalty and the NFL’s brand. I know this because
5 I hear it every day from NFL fans in my community, and others who care about the
league and what it means to our national culture.
6
7 75. Mayor Schaaf, Oakland and the Raider Nation were resoundingly disappointed.
8 The NFL Clubs voted 31 to 1 to approve the Raiders’ relocation. The NFL, indeed, was more than
9 a business: it was an unlawful cartel violating its own Relocation Policies and abusing its
11 76. The lone dissenting vote, Dolphins’ owner Stephen Ross, effectively admitted that
13 [W]e as owners and as a League owe it to the fans to do everything we can to stay
in the communities that have supported us until all options have been
14 exhausted. . . . I believe when you own a team, you’re a steward for the city . . . . I
just don’t think everything was done to try and stay in Oakland.
15
16 77. With the Las Vegas deal a fait accompli, the other NFL Clubs began to circle the
17 wagons. Jerry Jones, the owner of the Cowboys, told ESPN that he believed the NFL could be
18 “successful” in Las Vegas. Robert Kraft, owner of the Patriots, stated that a move to Las Vegas
19 “would be good for the NFL. I know Mark Davis has tried so hard in Oakland [sic] I want to
20 support him.” Jim Irsay, owner of the Colts, claimed that “[t]here isn’t any opportunity in
21 Oakland” and that in Las Vegas, “[t]here is a real want and real enthusiasm from the powers that
22 be that run that state to have an NFL team.” Apparently, gambling was no longer an issue, despite
24 78. Of course, no one associated with the NFL, including Mark Davis, “tried hard” to
25 keep the Raiders in Oakland. In fact the opposite occurred; the Relocation Policies had been
26 blatantly ignored throughout the process. The Relocation Policies do not allow the NFL and the
27 NFL Clubs to shut out a viable Host City from the process and it does not award an NFL Club to
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 31 of 49
1 whether an NFL Club’s fans are “loyal.” Answer: Raider Nation encompasses
some of the most loyal fans in the country;
2
whether the Raiders had, in the prior four years, represented the NFL and served
3 their fans in Oakland. Answer: Putting aside the conduct of Mark Davis, and
focusing on the team members themselves, the Raiders had indisputably
4 represented the NFL and served Raider Nation, in Oakland;
5 “the adequacy of the stadium in which the [NFL Club] played its home games in
the previous season; and the willingness of the stadium authority or the community
6 to remedy any deficiencies in or to replace such facility.” Answer: The Coliseum
7 was more than adequate - especially with the proposed renovations - for the Raiders
and, if not, Oakland was willing to build a new $1.3 billion stadium;
8 “the extent to which the [NFL Club,] directly or indirectly, received public
9 financial support by means of any publicly financed playing facility, special tax
treatment, or any other form of public financial support and the views of the
10 stadium authority (if public) in the current community.” Answer: The Raiders
received significant public support from Oakland, including loans for operations,
11 training facilities and monies for stadium renovations;
12 the NFL Club’s “financial performance, particularly whether the club has incurred
net operating losses (on an accrual basis of accounting), exclusive of depreciation
13 and amortization, sufficient to threaten the continued financial viability of the
club.” Answer: The Raiders always made money in Oakland, and it remains an
14 extremely valuable and growing market;
15 “the degree to which the [NFL Club] has engaged in good faith negotiations (and
enlisted the League office to assist in such negotiations) with appropriate persons
16 concerning terms and conditions under which the club would remain in its current
17 home territory and afforded that community a reasonable amount of time to address
pertinent proposals.” Answer: The Raiders and NFL acted in bad faith in their
18 negotiations with Oakland, deceived Oakland as to the Raiders’ true intention to
move, gave Oakland no time to address any purported concerns the Raiders had
19 with the Coliseum or Oakland in general, rejected outright Oakland’s $1.3 billion
proposal for a new stadium (without giving Oakland any reasonable amount of time
20
to address any of the Raiders or NFL’s purported issues with that proposal), and
21 never made any good faith proposal of their own.
22 Pursuant to the Relocation Policies, the question of the Raiders’ relocation was not even close: the
24 79. In sum, every objective factor to be considered in the Relocation Policies favored a
25 stay in Oakland. The Oakland community and “Raider Nation” are among the most loyal and
26 passionate fans in the world. Oakland’s many proposals, and particularly the Lott Proposal, were
27 more than generous and showed Plaintiff’s eagerness to work with, and support, the Raiders. The
28 Raiders received significant public support while playing in Oakland and were profitable every
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 32 of 49
1 year. Further, Plaintiff negotiated in good faith and went to incredible lengths to keep the Raiders
2 in its far superior and growing market. What Plaintiff could not do was offer the NFL owners the
5 80. The NFL’s approval of the Raiders’ relocation – and its approval of the relocations
6 of the Rams and Chargers as well – is a classic act of a cartel misusing market power to achieve
7 monopolistic cartel payments and generating anticompetitive profits. By forcing Host Cities to
8 choose between paying those monopolistic cartel payments – which far exceed the marginal costs
9 of operating a professional football team – and losing the football team their citizens cherish, the
10 NFL places Host Cities in a Hobson’s choice that all consumers of monopolistic goods and
11 services face: pay up, way up, or lose. Further, with payments in the neighborhood of $750
12 million or more, only the wealthiest cities stand a chance of being an NFL Club host. The
13 antitrust laws, and the Relocation Policies, were adopted to prevent this exact kind of economic
15 81. In a competitive marketplace, NFL Clubs could not demand billion dollar stadia
16 with premium seating and amenities; instead, they could only seek the repairs and renovations
17 necessary to the maintenance of the NFL brand and each NFL Club. But the NFL is anything but
18 a competitive market. Once again, in a country with over 325 million citizens, the NFL currently
19 limits its product to 32 clubs, and courts have repeatedly found that professional football is its own
20 market. For a fan of professional football, the NFL is the only game in town.
21 82. And fans pay. As noted above, the vast majority of the costs of stadia are paid for
22 by Host Cities. However, the fans pay as well, above and beyond their role as tax payers within
23 the Host Cities. For example, four new NFL stadia were built between 2007 and 2012. Ticket
24 prices for those newly-housed franchises “jumped by an average of 26 percent in the season those
25 stadia opened, and . . . many fans [also] paid thousands of dollars more in personal seat licenses
26 merely for the right to buy [those] tickets.” Two of the clubs, the Jets and the Giants, “increased
27 their average ticket prices by 32 and 26 percent, respectively” in 2010, their first season in their
28 new shared stadium, versus a five percent jump throughout the NFL.
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1 83. Likewise, when the Cowboys moved into their new stadium in 2009, the franchise
2 raised ticket prices by an average of 31 percent, compared to a 4 percent jump throughout the
3 NFL. When the Colts moved to their new stadium in 2008, they raised ticket prices by an average
4 of 14 percent, against the NFL average of 8 percent. At their new stadium, the 49ers have
5 increased average season ticket prices by 45 percent. In 2011, the newly-housed Jets, Giants,
6 Cowboys and Colts ranked among the NFL’s seven most expensive clubs in terms of the cost to
7 attend a game. Current predictions are that Raiders’ ticket prices will similarly skyrocket in cost
9 84. Because of the complete control that the NFL has over the supply of NFL
10 franchises, demand for stadium tickets is effectively inelastic: i.e., the value of higher ticket prices
11 far exceeds any reduction in demand caused by the higher prices, in part because demand is
12 generally well above stadium capacity, so even if some existing fans choose not to renew their
13 season tickets, others are eager to buy. In short, NFL fans have to pay anticompetitive prices if
14 they want to attend games and, if they cannot, they can stay home:
15 The NFL is a business that . . . generate[d] more than $10 billion in revenues in
2014. With media rights more or less in place for the next nine years, if the league
16 is going to meet its projected revenue goals, ticket prices remain an area fans can
expect to see annual increases. Demand exceeds inventory.
17
It doesn’t matter if games are no longer affordable for “Joe football.” The 2014
18 season begins with him enjoying contests from the comfort of his home, and the
NFL doesn’t mind.
19
20 H. Bloom, NFL Increases Ticket Prices Because It Can, Sporting News, Sept. 8, 2014.
21 85. No NFL Club could demand these anticompetitive prices alone; indeed, holding
22 Host Cities hostage requires the collective effort of all the NFL Clubs. As the United States Court
23 of Appeals for the Second Circuit has recognized, such industry-wide agreements tend to “stiffen
24 the spines” of otherwise competing interests. U.S. v. Apple, 791 F.3d 290, 305 (2d Cir. 2015). By
25 acting in concert – in an agreement in violation of Section 1 of the Sherman Act – the NFL Clubs
26 “stiffen” their “spines” to ensure that all Clubs demand the same of the Host Cities and use the
28 / / /
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 34 of 49
2 unlawful group boycott (i.e., an agreement by a group of competitors to boycott a particular buyer
3 or group of buyers). Here, the NFL Clubs, as a group, are boycotting Host Cities, like Oakland,
4 who will not succumb to their demands. In fact, Oakland and similarly situated cities and
5 communities are not only losing their home teams, they have no chance of being a Host City in the
6 future unless they agree to pay the NFL’s always increasing supra-competitive prices. Notably, all
7 three cities that lost an NFL Club in recent years (St. Louis, San Diego and Oakland) currently
8 have no other NFL team prospects. Defendants’ boycott of these Host Cities is a core violation of
9 the antitrust laws and the NFL’s own Relocation Policies, which were meant to promote existing
12 Oakland and ultimate relocation to Las Vegas is also a horizontal price fixing scheme. Defendants
13 have collectively acted to increase the prices paid by Host Cities for the ability to host an NFL
14 team to sums that far exceed the prices any Host City would have to pay in a competitive NFL
15 marketplace. Specifically, the Defendants met and agreed collusively to impose the $378 million
16 Relocation fee at the NFL annual meeting in March 2017. As a collective, the Defendants
17 leveraged their monopoly position as the sole major football league in the United States.
19 88. The relevant market in this action is the market of all Host Cities offering, and all
20 cities and communities that are willing to offer (i.e., potential Host Cities), home stadia and other
21 support to major league professional football teams in the geographic United States.
22 89. With respect to the product market, as alleged above, there is no substitute for an
23 NFL franchise. There is no other major professional football league in the United States. The
24 Canadian Football League is no substitute for the NFL and even to the extent the CFL has made
25 limited attempts to enter the United States, those efforts have failed. NFL football is a unique
26 market as recognized in Los Angeles Memorial Coliseum. The Defendants wholly control the
27 process of establishing NFL teams, their locations, and the stadia in which they play. If a Host
28 City, or a potential Host City, does not abide by the process controlled by Defendants, then they
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 35 of 49
1 stand to lose their franchise or not get selected as a location. Those Host Cities cannot go
2 elsewhere. For example, an NFL Host City faced with the situation that Oakland now faces
3 cannot shift its host status to another professional sport like Major League Baseball. Not only is
4 the entire Host City status tied up in the NFL process, a professional baseball team is not a
6 90. With respect to the geographic market, the vast majority of demand for the NFL is
7 in the United States, and the teams are located in the United States. Despite some games now
8 being played abroad, no NFL team has based itself in a foreign city, and at the time of the anti-
9 competitive conduct alleged herein, the United States market dominated professional football, and
10 there was no substitute outside of the United States. Moreover, Canadian Football League efforts
11 to enter the United States (including a Las Vegas team in the mid-1990s) have all fallen flat. Even
12 the coverage of the CFL by U.S. networks is relegated to a far distant third behind NFL and
13 college football.
14 91. Thus the NFL has a monopoly in the U.S. market for Host Cities for major league
15 professional football.
17 92. In a competitive market, actual and potential Host Cities (often with investing
18 private interests) could build or renovate stadia for the purposes of hosting professional football
19 teams, and they would be able to compete to host an NFL club on a level playing field. However,
20 the NFL has complete control over professional football and Defendants have agreed to strictly
21 limit the number and location of NFL franchises to maintain that power. Thus, even if a Host City
22 and/or private investor built a new stadium and had the capital and infrastructure to operate an
23 NFL franchise, they could not do so without NFL permission and the requisite cartel payment to
24 Defendants.
25 93. As a result of the artificially restricted supply in the market of professional football
26 teams, Defendants have caused excess demand among actual and potential Host Cities for an NFL
27 franchise. Defendants then capitalize on their complete market power by charging supra-
28 competitive prices to participate in the market. Those who will not pay are boycotted.
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COMPLAINT FOR DAMAGES
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2 realistically participate in the professional football market even though there is, or would be,
3 considerable interest in their communities in hosting an NFL franchise. The market has been
4 limited to the small number of Host Cities willing to meet Defendants’ supra-competitive
5 demands.
7 95. Defendants’ consciously joined and participated in the conspiracy by violating the
8 Relocation Policies, supporting and approving the Raiders’ relocation to Las Vegas (including but
9 not limited to voting and collecting the relocation fee), and boycotting Plaintiff as a Host City for
10 an NFL Club. Such collusive conduct has been enormously injurious to Plaintiff and its citizens.
11 96. Among other damages, Plaintiff has invested and borrowed significant sums of
12 money, totaling over $240 million, in reliance on the Relocation Policies and the presence of the
13 Raiders in Oakland and at the Coliseum. Further, Plaintiff will soon lose the significant tax and
14 other income that it derives from the presence of the Raiders and the economic activity their
15 presence generates. In addition, Plaintiff now owns a stadium that has been boycotted by the NFL
16 and, thus, has incurred the significant diminution in property value caused by that boycott.
17 97. All of these losses and injuries are directly related to, and caused by, the
19 restraint of trade and interstate commerce, and their resulting breach of the Relocation Policies.
25 99. Defendants have violated Section 1 of the Sherman Act (15 U.S.C. § 1), by
27 the nature and effect of which is to restrict the ability of Plaintiff and other Host Cities to maintain
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 37 of 49
1 100. Through their unlawful contract, combination or conspiracy to restrain trade and
2 interstate commerce, Defendants have imposed anticompetitive prices and complete control for
3 hosting an NFL Club by offering Host Cities a Hobson’s choice: pay the enormous demands
4 associated with new and renovated stadia or lose your NFL Club. These demands have forced
5 municipalities like Plaintiff – cities and counties that will not pay the supra-competitive price of
6 the NFL’s demands for new and renovated stadia – out of the market for NFL franchises, as
7 evidenced by the Raiders’ relocation to Las Vegas. Indeed, as a result of Defendants’ boycott and
8 refusal to deal, Oakland lost not only the Raiders, but also any chance to host a NFL team in the
9 future. In a competitive marketplace, Defendants could not have successfully demanded these
14 Defendants have complete control over the NFL Clubs and their Host Cities. Second, the clear
16 teams and to increase Defendants’ profits, voting in favor of relocations in direct opposition to the
17 Relocation Policy in order to collect exorbitant relocation fees, and monopolistic rents paid by
18 wealthier Host Cities. Third, Defendants’ group boycott is not necessary for the production of
21 conspiracy.
22 104. As a result of Defendants’ violations of the Sherman Act, Plaintiff has suffered
23 injury from the impending loss of the Raiders and the economic activity generated by the Raiders’
24 presence in Oakland. These losses, current and future, are significant and were directly caused by
26 105. Further, Defendants’ unlawful group boycott has resulted in enormous profits for
27 each of the NFL Clubs, including monetary concessions from Las Vegas and inflated stadium
28 revenue enjoyed by the Raiders, and all other NFL Clubs sharing in the relocation fee assessed on
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 38 of 49
1 the Raiders. The policies underlying the Sherman Act, and the federal proscription of
2 anticompetitive behavior (including group boycotts), demands that these illicit profits be
3 disgorged.
5 jointly and severally, in an amount to be determined at trial. Further, under Section 15 of the
13 109. There is a relevant market for the hosting of NFL teams in the United States, as
14 alleged above.
15 110. Within this relevant geographic market, Defendants have violated Section 1 of the
16 Sherman Act (15 U.S.C. § 1), by engaging in a contract, combination or conspiracy in restraint of
17 trade and interstate commerce, the nature and effect of which is to restrict the ability of Plaintiff
18 and other Host Cities to maintain and sponsor an NFL Club at competitive prices.
19 111. Through their unlawful contract, combination or conspiracy to restrain trade and
20 interstate commerce, Defendants have imposed anticompetitive prices and complete control on the
21 market for hosting an NFL Club by offering Host Cities a Hobson’s choice: pay the enormous
22 demands associated with new and renovated stadia or lose your NFL Club. These demands have
23 forced municipalities like Plaintiff – cities and counties that will not pay the supra-competitive
24 price of the NFL’s demands for new and renovated stadia – out of the market for NFL franchises,
25 as evidenced by the Raiders’ relocation to Las Vegas. Indeed, as a result of Defendants’ refusal to
26 deal, Oakland lost not only the Raiders, but also any chance to host a NFL team in the future. In a
27 competitive marketplace, Defendants could not have successfully demanded these monopolistic
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 39 of 49
4 Defendants have complete market power in the relevant market. Second, the clear objective of
5 Defendants’ misconduct is to freeze the number of competitive professional football teams and to
6 increase Defendants’ profits through a concerted refusal to deal, voting in favor of relocations in
7 direct opposition to the Relocation Policy in order to collect exorbitant relocation fees, and
8 monopolistic rents paid by wealthier Host Cities. Third, Defendants’ refusal to deal is not
9 necessary for the production of professional football or the achievement of any pro-competitive
10 NFL objective.
12 conspiracy.
13 115. As a result of Defendants’ violations of the Sherman Act, Plaintiff has suffered
14 injury from the impending loss of the Raiders and the economic activity generated by the Raiders’
15 presence in Oakland. These losses, current and future, are significant and were directly caused by
17 116. Further, Defendants’ unlawful refusal to deal has resulted in enormous profits for
18 each of the NFL Clubs, including monetary concessions from Las Vegas and inflated stadium
19 revenue enjoyed by the Raiders, and all other NFL Clubs sharing in the relocation fee assessed on
20 the Raiders. The policies underlying the Sherman Act, and the federal proscription of
21 anticompetitive behavior (including concerted refusals to deal), demands that these illicit profits
22 be disgorged.
24 jointly and severally, in an amount to be determined at trial. Further, under Section 15 of the
28 / / /
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5 120. There is a relevant market for the hosting of professional football teams in the
7 121. Within this geographic market, Defendants have violated Section 1 of the Sherman
8 Act (15 U.S.C. § 1), by engaging in a contract, combination or conspiracy in restraint of trade and
9 interstate commerce, the nature and effect of which is to restrict the ability of Plaintiff and other
11 122. Through their unlawful contract, combination or conspiracy to restrain trade and
12 interstate commerce, Defendants have imposed anticompetitive prices and complete control on the
13 market for hosting an NFL Club by offering Host Cities a Hobson’s choice: pay the enormous
14 demands associated with new and renovated stadia or lose your NFL Club. These demands have
15 forced municipalities like Plaintiff – cities and counties that will not pay the supra-competitive
16 price of the NFL’s demands for new and renovated stadia – out of the market for NFL franchises,
18 could not have successfully demanded these monopolistic rents and the Raiders would be staying
19 in Oakland.
23 First, Defendants have complete market power in the relevant market. Second, the clear objective
24 of Defendants’ misconduct is to control the location and the number of competitive professional
25 football teams and to increase Defendants’ profits through the artificially inflated and
26 monopolistic rents charged to, and paid by, wealthier Host Cities. Third, Defendants’ price fixing
27 scheme is not necessary for the production of professional football or the achievement of any pro-
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COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 41 of 49
2 conspiracy.
3 126. As a result of Defendants’ violations of the Sherman Act, Plaintiff has suffered
4 injury from the impending loss of the Raiders and the economic activity generated by the Raiders’
5 presence in Oakland. These losses, current and future, are significant and were directly caused by
7 127. Further, Defendants’ unlawful price fixing scheme has resulted in enormous profits
8 for each of the NFL Clubs, including monetary concessions from Las Vegas and inflated stadium
9 revenue enjoyed by the Raiders, and all other NFL Clubs sharing in the relocation fee assessed on
10 the Raiders. The policies underlying the Sherman Act, and the federal proscription of
11 anticompetitive behavior (including horizontal price fixing schemes), demands that these illicit
12 profits be disgorged.
14 jointly and severally, in an amount to be determined at trial. Further, under Section 15 of the
19 Declaratory Judgment
22 131. There is a relevant market for the hosting of NFL football teams in the United
23 States.
24 132. Within this geographic market, Defendants have violated Section 1 of the Sherman
25 Act (15 U.S.C. § 1), by engaging in a contract, combination or conspiracy in restraint of trade and
26 interstate commerce, the nature and effect of which is to restrict the ability of Plaintiff and other
28 / / /
899062.9 37
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 42 of 49
1 133. Through their unlawful contract, combination or conspiracy to restrain trade and
2 interstate commerce, Defendants have imposed anticompetitive prices and complete control on the
3 market for hosting an NFL club by offering Host Cities a Hobson’s choice: pay the enormous
4 demands associated with new and renovated stadia or lose your NFL Club. These demands have
5 forced municipalities like Plaintiff – cities and counties that will not pay the supra-competitive
6 price of the NFL’s demands for new and renovated stadia – out of the market for NFL franchises,
7 as evidenced by the Raiders’ relocation to Las Vegas. Indeed, as a result of Defendants’ boycott
8 and refusal to deal, Oakland lost not only the Raiders, but also any chance to host a NFL team in
9 the future. In a competitive marketplace, Defendants could not have successfully demanded these
12 interstate commerce operates as a horizontal group boycott and concerted refusal to deal.
15 Defendants have complete market power in the relevant market. Second, the clear objective of
16 Defendants’ misconduct is to freeze the number of competitive football teams and to increase
17 Defendants’ profits through a concerted refusal to deal, voting in favor of relocations in direct
18 opposition to the Relocation Policy in order to collect exorbitant relocation fees, and monopolistic
19 rents paid by wealthier Host Cities. Moreover, Defendants’ group boycott, refusal to deal and
20 price fixing scheme are not necessary for the production of NFL football or the achievement of
23 conspiracy.
25 Court declaring that Defendants’ (a) boycott of Oakland and refusal to comply with their own
26 Relocation Policies, and (b) redistribution of the resulting ill-gotten supra-competitive gains
27 through artificially set relocation fees to all NFL Clubs as a quid pro quo for breaching the terms
28
899062.9 38
COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 43 of 49
1 of those Policies, amount to an unreasonable restraint on trade and interstate commerce and a
4 Damages
7 139. Pursuant to California Civil Code section 1559, “[a] contract, made expressly for
8 the benefit of a third person, may be enforced by him at any time before the parties thereto rescind
9 it.”
10 140. The NFL Constitution (see Exhibit 1) and the Relocation Policies promulgated
11 pursuant to Section 4.3 of the of the NFL Constitution (see Exhibit 2) are collectively a binding,
12 enforceable contract among the NFL Clubs. The Relocation Policies, as a binding contract, were
14 141. Plaintiff, as the Host City for the Raiders, is an express and intended beneficiary of
15 the NFL Constitution and Relocation Policies. Defendants, in enacting the Relocation Policies,
16 intended to benefit Host Cities by establishing standards and procedures for relocation decisions.
17 The Policies limit subjective decision-making and are designed to protect the interests and
19 142. Indeed, there can be no doubt that the Relocation Policies were enacted for the
20 benefit of Plaintiff. The Relocation Policies were promulgated after the Raiders decided to leave
21 Oakland in 1982 for Los Angeles. The NFL undertook substantial efforts to prevent the Raiders’
22 move and to keep the club in Oakland. Having failed to do so, the NFL crafted the Relocation
23 Policy to prevent the type of “franchise free agency” which led to the Raiders’ decision to leave
24 Oakland in the first place (before their return to Oakland in 1995). Now, 33 years after their
25 enactment, the NFL has turned its back both on the purpose of the Relocation Policies and
26 Oakland.
27 143. Pursuant to the NFL Constitution, and the Policies promulgated thereunder,
28 Defendants assumed direct obligations to Plaintiff, including, but not limited to, the obligation to
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 44 of 49
1 “work diligently and in good faith to obtain and to maintain suitable stadium facilities in [each
2 NFL Club’s] home territor[y], and to operate in a manner that maximizes fan support in their
3 current home community.” As to the Raiders’ desire to relocate, Defendants also had an
4 obligation to consider:
5 “[t]he extent to which fan loyalty and support for the club has been demonstrated
during the team’s tenure in the current community;”
6
“the willingness of the stadium authority or the community to remedy any
7 deficiencies in or to replace such facility, including whether there are legislative or
referenda proposals pending to address these issues; and the characteristics of the
8 stadium in the proposed new community”;
9 “[t]he extent to which the club, directly or indirectly, received public financial
support by means of any publicly financed playing facility, special tax treatment, or
10 any other form of public financial support and the views of the stadium authority (if
11 public) in the current community”;
“[t]he club’s financial performance, particularly whether the club has incurred net
12 operating losses (on an accrual basis of accounting), exclusive of depreciation and
13 amortization, sufficient to threaten the continued financial viability of the club, as
well as the club’s financial prospects in its current community”; and
14 “[t]he degree to which the club has engaged in good faith negotiations . . . with
15 appropriate persons concerning terms and conditions under which the club would
remain in its current home territory and afforded that community a reasonable
16 amount of time to address pertinent proposals.”
18 144. During the past 25 years, Plaintiff has contributed hundreds of millions of dollars to
19 attract, retain and support the Raiders, all spent in reliance on the Relocation Policies and the
21 145. Despite the financial support and loyalty provided to the Raiders by Plaintiff and
22 the Oakland-based fans, Defendants have breached the terms of the Relocation Policies in
26 Plaintiff. As a direct and proximate result of Defendants’ breach of the Relocation Policies,
28 football franchise and all of its benefits, damaging Plaintiff in an amount to be determined at trial.
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 45 of 49
2 Restitution
5 148. Defendants, in enacting the Relocation Policies, intended to benefit Host Cities by
6 establishing standards and procedures for relocation decisions. The Policies limit subjective
7 decision-making and are designed to protect the interests and investments of Host Cities like
8 Plaintiff.
9 149. Indeed, there can be no doubt that the Relocation Policies were enacted for the
10 benefit of Plaintiff. The Relocation Policies were promulgated after the Raiders decided to leave
11 Oakland in 1982 for Los Angeles. The NFL undertook substantial efforts to prevent the Raiders’
12 move and to keep the club in Oakland. Having failed to do so, the NFL crafted the Relocation
13 Policy to prevent the type of “franchise free agency” which led to the Raiders’ decision to leave
14 Oakland in the first place (before their return to Oakland in 1995). Now, 33 years after their
15 enactment, the NFL has turned its back both on the purpose of the Relocation Policies and
16 Oakland.
17 150. Pursuant to the NFL Constitution, and the Policies promulgated thereunder,
18 Defendants assumed direct obligations to Plaintiff, including, but not limited to, the obligation to
19 “work diligently and in good faith to obtain and to maintain suitable stadium facilities in [each
20 NFL Club’s] home territor[y], and to operate in a manner that maximizes fan support in their
21 current home community.” As to the Raiders’ desire to relocate, Defendants also had an
22 obligation to consider:
23 “[t]he extent to which fan loyalty and support for the club has been demonstrated
during the team’s tenure in the current community;”
24
“the willingness of the stadium authority or the community to remedy any
25 deficiencies in or to replace such facility, including whether there are legislative or
referenda proposals pending to address these issues; and the characteristics of the
26 stadium in the proposed new community”;
27 “[t]he extent to which the club, directly or indirectly, received public financial
support by means of any publicly financed playing facility, special tax treatment, or
28
899062.9 41
COMPLAINT FOR DAMAGES
Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 46 of 49
1 any other form of public financial support and the views of the stadium authority (if
public) in the current community”;
2
“[t]he club’s financial performance, particularly whether the club has incurred net
3 operating losses (on an accrual basis of accounting), exclusive of depreciation and
amortization, sufficient to threaten the continued financial viability of the club, as
4 well as the club’s financial prospects in its current community”; and
5 “[t]he degree to which the club has engaged in good faith negotiations . . . with
appropriate persons concerning terms and conditions under which the club would
6 remain in its current home territory and afforded that community a reasonable
amount of time to address pertinent proposals.”
7
9 151. During the past 25 years, Plaintiff has invested hundreds of millions of dollars to
10 attract, retain and support the Raiders, all spent in reliance on the Relocation Policies and the
11 obligations of Defendants under those Policies. Plaintiff made those investments with the express
12 understanding between Plaintiff and the Defendants that: (a) Defendants would comply with the
13 Relocation Policies; (b) Defendants would support Oakland as the Host City for the Raiders, and
14 (c) Plaintiff would recoup its investments in the Raiders through the revenues generated by the
15 Raiders’ continued presence in Oakland. The Raiders, the NFL and all NFL Clubs benefited
17 152. Neither Plaintiff nor Defendants believed that Plaintiff’s investment in the Raiders
18 was gratuitous, or that the Relocation Policies somehow did not apply to Plaintiff or the Raiders.
19 153. By virtue of allowing the Raiders to relocate, in blatant violation of the Relocation
20 Policies, Defendants have deprived Plaintiff of the revenues necessary to recoup its investment in
21 the Raiders. Defendants have made no effort to reimburse Plaintiff for the investments it made in
22 the Raiders, or otherwise compensate Plaintiff for the unlawful relocation of the Raiders.
23 154. Defendants are estopped from denying the obligatory nature of the Relocation
24 Policies. The NFL adopted the Policies specifically to provide a process and standards to reign in
25 subjective decision-making in the hope of avoiding further antitrust liability. Defendants, through
26 NFL representatives, have admitted that the Policy imposes obligations on the NFL Clubs, and
27 that the Policies must be satisfied for a relocation petition to be approved. Given the history of the
28 Relocation Policies – and the NFL’s position regarding the Policies’ role in the relocation
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 47 of 49
1 process – Plaintiff relied on the Relocation Policies in structuring its relationship with the Raiders.
2 Plaintiff’s reliance caused Plaintiff to lose its significant investment in the Raiders, and allowing
3 Defendants to reverse course and reject the Relocation Policies – while enriching themselves –
4 would be unjust.
5 155. As a direct and proximate result of Defendants’ actions, Plaintiff lost, and has been
7 156. Accordingly, Plaintiff is entitled to restitution in the amount of all sums invested by
10 Damages/Disgorgement
13 158. As a result of their unlawful and inequitable conduct described above, Defendants
14 have and will continue to benefit and be unjustly enriched as a direct result of their collusive
16 159. Plaintiff is entitled to the amount of Defendants’ ill-gotten gains resulting from
17 their unlawful, unjust, and inequitable conduct, and are entitled to reimbursement of all ill-gotten
18 gains.
19 160. The economic benefit Defendants derived is a direct and proximate result of
22 Defendants have retained these benefits bestowed upon them under inequitable and unjust
23 circumstances at the expense of Plaintiff. Defendants were enriched by their illegal activities at
24 the expense of Plaintiff and thus Defendants should be ordered to make restitution for the benefit
26 / / /
27 / / /
28 / / /
899062.9 43
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 48 of 49
2 WHEREFORE, Plaintiff City of Oakland respectfully requests that the Court enter
5 Defendants, jointly and severally, in an amount to be determined at trial and trebled pursuant to 15
8 Defendants, jointly and severally, in an amount to be determined at trial and trebled pursuant to 15
11 Defendants, jointly and severally, in an amount to be determined at trial and trebled pursuant to 15
13 4. On Count Four of the Complaint, an Order of the Court declaring that Defendants’:
14 (i) boycott of Oakland and refusal to comply with their own Relocation Policies, and (ii)
15 redistribution of the resulting ill-gotten supra-competitive gains through artificially set relocation
16 fees to all NFL Clubs as a quid pro quo for breaching the terms of those Policies, amount to an
17 unreasonable restraint on trade and interstate commerce and a violation of the antitrust laws;
26 9. Any other relief to which Plaintiff may be entitled as a matter of law or equity, or
28 / / /
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Case 4:18-cv-07444-JCS Document 1 Filed 12/11/18 Page 49 of 49
2 Pursuant to Federal Rule of Civil Procedure 38, Plaintiff hereby demands a jury trial on all
3 issues so triable.
26
27
28
899062.9 45
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