Floor Statement - Muhammad Ali Boxing Reform Act

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
BY MR. LOTT (FOR MR. MCCAIN (FOR HIMSELF AND MR. BRYAN)):

S2238. A bill to reform unfair and anticompetitive practices in the professional boxing industry; to the Committee on Commerce, Science, and Transportation.

MUHAMMAD ALI BOXING REFORM ACT
Mr. MCCAIN. Mr. President, I am pleased today to introduce a new bipartisan proposal to improve several aspects of the professional boxing industry in the U.S. I am joined by Senator BRYAN of Nevada in offering this legislation. He has been a great partner in my efforts to improve the safety and integrity of this major industry in the public interest.

This bill is intended to protect boxers from some of the most egregious and onerous business practices which they have been subjected to across the U.S. over the last several decades. It will also help State officials provide more effective public oversight of boxing events held in their jurisdiction, so that they can better prevent business practice abuses and unethical conduct. Furthermore, this legislation will improve integrity and open competition in professional boxing, by curbing its most restrictive and anti-competitive business practices. This is a limited and modest proposal in many respects, but it is the product of months of consultation with experienced State athletic officials and the most respected and knowledgeable members of the boxing industry.

Let me say a few words about the title of this legislation. I thought it would be a fitting tribute to name an important new reform measure on professional boxing after Muhammad Ali. Mr. Ali had perhaps the most impressive and exciting career in the history of professional boxing, and his many championships and achievements are legendary in the sport. Of course, Muhammad Ali's character, integrity, and personal charm appealed to tens of millions of Americans who did not even consider themselves to be boxing fans. His entire life has been a story of tremendous determination, accomplishment, and perseverance against daunting odds. I feel it most appropriate for the Congress pass a measure to protect the interests of boxers, encourage fair competition, and vastly improve the overall integrity of the boxing industry, that is named in his honor. I want to thank Mr. Ali for his graciousness in letting this legislation be so named.

I have been deeply involved in exploring ways to improve the professional boxing industry for most of this decade. It is a complex task. Many of the steps that need to be taken to permanently end the disreputable and abusive business practices which have long marred the sport must be taken either by members of the industry, or by State officials. I firmly believe that State boxing commissioners and industry leaders must be the primary agents of reform in this sport. It is they who I have continually turned to for advice and recommendations on how the federal government might be of help, albeit in a limited and supportive role.

# This proposal seeks to remedy many of the anti-competitive, oppressive, and unethical business practices which have cheated professional boxers and denied the public the benefits of a truly honest and legitimate sport. This reform measure is designed to prohibit the harmful and arbitrary business practices which have clearly hurt the welfare of professional boxers, without imposing unnecessary restrictions or federal intrusions into the sport. I want to emphasize that this proposal requires no State or federal funding; creates no federal bureaucracy; imposes no # mandates on State commissions; and requires no new regulatory actions by State boxing commissioners. It is a modest and practical measure that will establish several "fair contracting" standards to protect professional boxers, and enhance important financial disclosures that are made to State commissions by business entities in the industry.

This bill also would establish certain federal standards with which boxing's "sanctioning organizations" must comply. These entities are notorious in the sport for engaging in arbitrary and manipulative activity with respect to their ratings of professional boxers. Though often foreign-based, these entities operate on an interstate basis in the U.S. with virtually no oversight at the State or federal level. For several decades they have been repeatedly and credibly criticized by boxers and sportswriters for business practices that are highly questionable. Their inconsistent and subjective methods of rating boxers, often in apparent collusion with powerful promoters in the sport, clearly has had negative consequences for boxers. A boxer's career can be effectively stalled or crippled by these entities' arbitrary decisions. This legislation would establish a series of prudent business conduct standards and financial disclosure requirements on sanctioning organizations to ensure they are subject to legitimate public oversight by State officials.

I want to note the vital need for these reforms at the federal level, Mr. President. Boxing in the U.S. is regulated by individual State boxing commissions, many of which are severely underfunded and understaffed. Many do not have more than a single employee. Though many State commissions have extremely knowledgeable and dedicated members, they do not have the capacity to prevent the indefensible interstate business abuses which this legislation address. Indeed, when a small group of states boxing commissions tries to crack down on the promoters and others who are engaged in fraudulent or unethical activity, State officials face the prospect of losing all their professional boxing events to another jurisdiction. Promoters and sanctioning bodies can avoid State reforms by seeking out new forums where public interest protections are fewer and weaker. That is not good for the boxers who bear all the risks of this punishing profession, and it not good for the ticket-buying fans, either.

Decades of scandals, controversy, and corruption have shown professional boxing to be an industry where public oversight is absolutely critical, Mr. President. Therefore, this limited series of national fair business standards and public disclosure requirements will be of tremendous service to the State officials and general public concerned about this industry. This bill will in no way interfere with any legitimate, good faith business practices in the sport.

Senator BRYAN and the many industry members that I have worked with over the past five months to develop this bill have come up with a solid, practical, and no-cost way to protect the interests of the athletes and the public in the boxing industry. The sole objectives of this bill are to ensure that boxers are not cheated of their fair earnings in the sport; that State officials are given better information with which to supervise major boxing events, and take corrective actions when necessary; and to encourage integrity and honest business practices by the business interests which dominate professional boxing. I have attached a one page summary of this proposal, and ask unanimous consent to print the bill and summary in the RECORD. I look forward to comments on this proposal by members of the industry and State commissioners across the U.S., and ask my colleagues for their support.