Toscano v. PGA Tour, Inc.

201 F. Supp. 2d 1106, 2002 U.S. Dist. LEXIS 9223, 2002 WL 1032588
CourtDistrict Court, E.D. California
DecidedMay 2, 2002
DocketCIV-S-97-1238 DFL PAN
StatusPublished
Cited by6 cases

This text of 201 F. Supp. 2d 1106 (Toscano v. PGA Tour, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toscano v. PGA Tour, Inc., 201 F. Supp. 2d 1106, 2002 U.S. Dist. LEXIS 9223, 2002 WL 1032588 (E.D. Cal. 2002).

Opinion

MEMORANDUM of OPINION and ORDER

LEVI, District Judge.

Plaintiff Harry Toscano (“Toscano”), a senior professional golfer, brings this antitrust action against defendants Professional Golfers Association (“PGA”) Tour, Inc., the PGA Tour’s player-directors, and the PGA Tour’s current and past commissioners. 1 Toscano contends that the Tour used its media rights and conflicting events rules to prevent the formation of competing senior professional golf events and tours. Having monopolized the market for senior professional golf, the Tour allegedly adopted restrictive eligibility rules to protect the player directors and other Tour members from competition from other senior golfers. As a result, Toscano alleges that he was: (1) excluded from competing in and winning prize money at Senior Professional Golf Tour Association tournaments; (2) denied the opportunity to earn money through endorsements; and (3) denied the opportunity to earn prize money by participating in golf tournaments organized by would-be Tour competitors. Defendants now move for summary judgment on the alternative grounds that: (1) Tosca-no lacks antitrust standing to challenge the media rights and conflicting events rules; (2) the eligibility rules are not anticompeti-tive and do not violate antitrust law; (3) Toscano’s claim for damages is overly speculative; and (4) the player directors and the current and past commissioners are not proper defendants.

I.

A. The PGA Tour’s Rules and Regulations

The Senior PGA Tour is a separate division of the PGA that co-sponsors professional golf tournaments for players over the age of 50. (Complaint at ¶ 50). Though substantially similar, Senior PGA Tour tournaments differ in several important respects from traditional PGA Tour tournaments. First, Senior Tour tournaments consist of three rounds of play instead of four. (Moorhouse Aff. at ¶ 22). Second, Senior Tour tournaments include a field of 78 golfers in contrast to a traditional 144-player field. (Id. at ¶ 23). Third, barring injury or illness, all 78 golfers who start a tournament on Friday are allowed to play through to its completion on Sunday while in traditional PGA Tour events there is a “cut” such that the 144-player field is “pared by fifty percent half-way through the tournament.” (Id.) The Senior Tour’s “no-cut” policy is designed to ensure that “the ‘marquee’ players who enter the tournament — the players the fans particularly want to see — will be playing during weekend tournament days, when most spectators will attend.” (Id.) Moreover, according to the PGA, limiting Senior Tour events to 78 players is central to preserving the no-cut format because: (1) it would be impractical to accommodate additional players and still have all players start from the first tee; and (2) in the rare situations in which Senior Tour events start from two tees, it would be impossible *1112 to accommodate more than 78 players. (Id. at ¶ 26-27). The “no-cut” rule further ensures that every player who enters a tournament will receive some prize money. (Id.)

As to eligibility, the 78 players in a Senior Tour event are drawn from the following categories of golfers in the following order: (1) players with 75 or more first-place finishes in PGA Tour or Senior PGA Tour Tournaments; 2 (2) the top 31 available players from the previous year’s Senior Tour Money List; (3) the top 31 available players from the All-Time Career Money List (which includes purses won both in Senior PGA Tour tournaments and in PGA tournaments); (4) the top eight players from the Tour’s annual National Qualifying Tournament (in order of finishing); (5) a winner of any Senior PGA Tour co-sponsored or approved event within the previous 12 months; (6) the top four scorers in the qualifying round of play held before the tournament at hand; (7) four players designated by the tournament’s local sponsor; and (8) on a space available basis, any otherwise non-exempt player who has won a Senior PGA Tour or PGA Tour tournament. (Id. at ¶ 31). Players in the All-Time Victories category, the top 31 players from the previous year’s money list, the top 31 from the All-Career Money List, and the eight qualifiers from the National Qualifying Tournament are exempt for the entire year, such that they do-not need to qualify for each open event. (Id. at ¶ 32). As a result, “[n]o more than approximately 5% of the places in any Tour open event are available to qualified professionals not playing under an exemption.” (Complaint at ¶ 61).

The Senior PGA Tour Tournament Rules and Regulations restrict the ability of Tour members to participate in non-Tour events. Under the “conflicting events” rule, a player who qualifies to play in a Tour event generally may not enter a non-Tour tournament scheduled on the same date unless he first obtains a written release from the Tour Commissioner. (Senior PGA Tour Tournament Regulations and Handbook at 25, Exh. 4 to Male-don Aff.). The Commissioner has discretionary authority to grant a Tour member two releases annually, assuming the member participates in 15 Tour events, and to grant an additional release for every five Tour events above 15. (Id. at 26). The Commissioner may deny a Tour member’s request for a waiver if the Commissioner determines that it “would cause [the] Tour to be in violation of a contractual commitment to a tournament or would otherwise significantly or unreasonably harm [the] Tour and such tournament.” (Id.) Moreover, under the “television release” or “media rights” rule, Tour , members must also seek the Commissioner’s approval before participating in a televised tournament that is not co-sponsored or approved by the Tour, whether .or not the tournament conflicts with a Tour event. (Id. at 27-28). Exemptions are almost always granted. (Finchem Depo. at 19:1-4). Tos-cano has never sought an exemption. (Toscano Depo. at 122:1-3).

The Rules' and Regulations governing the Senior PGÁ Tour are controlled by the Tour’s Division Board (the “Board”). (Senior PGA Tour Tournament Rules and Regulations at 48, Exh. 3 to Maledon Aff.). The Board is comprised of four player directors, the immediate past President of the PGA, and four independent directors, defined as “four public figures with a demonstrated interest in the game of golf.” (Id. at 45). Player directors are elected by voting members of the Tour and hold office for a period of two years. (Jd) Any amendment to the Rules and Regulations must be approved by a majority of the *1113 Board, including three player directors, unless a conflict of interest exists. Amendments adopted by the Board may be reversed by a two-thirds vote of all voting members of the Tour.

Although Senior PGA Tour events are highly competitive, the purpose of the Senior Tour is not “to determine which, of all professional golfers age fifty or older, can put together the best three rounds on a particular golf course during a particular weekend.” (Moorhouse Aff. at ¶ B6).

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201 F. Supp. 2d 1106, 2002 U.S. Dist. LEXIS 9223, 2002 WL 1032588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toscano-v-pga-tour-inc-caed-2002.