Considering the Eminent Domain of Sports Franchises
“In a thought-provoking article, Anthony F. Della Pelle considers the interesting question of whether the City of Los Angeles could simply “take” the LA Clippers via eminent domain. One might typically associate California’s Eminent Domain Law with the taking of land for public utility easements or mass transit projects. Della Pelle was inspired by an article by Harvey Wasserman, in which Wasserman proposed that the power of eminent domain should be used to take all sports franchises nationwide. Wasserman reasoned:
The Fifth Amendment says the public has the right to take property with “just compensation.” It’s called “eminent domain.” Let’s use it to condemn all [sports] franchises, buy out their “owners” and have the teams run by the cities, counties and/or states in which they reside, and to which they rightfully belong.
Della Pelle notes that the use of eminent domain to take a sports team would not be novel, particularly in California. When Al Davis sought to move the Oakland Raiders to Los Angeles in 1982, the city sought to use the power of eminent domain to take ownership of the franchise. The trial court granted the team’s motion for summary judgment, but in City of Oakland v. Oakland Raiders (1982) 32 Cal. 3d 60, the Supreme Court of California reversed the summary judgment, holding:”
Suarez, Alexander. JD Supra Business Advisor 9 September 2014.