Eminent Domain

Sportslaw Jargon: Eminent Domain

Eminent domain involves seizure of private property by a state or locality for "public purposes." Accompanying that governmental seizure of property is the requirement that the prior owner of the property be fairly compensated. Many states have mechanisms to attempt to find the correct level of compensation. This is important, since the right to be compensated for an expropriation of property is guaranteed by the Fifth Amendment to the U.S. Constitution as well as many state constitutions.

How does all this apply to sports. In the 1980s cities attempted to acquire the rights to a professional sports franchise by eminent domain as a way to make it more difficult for a team from moving to another city. What the city of Oakland wanted to do when the Raiders moved to Los Angeles was to "seize" any tangible or intangible property of the team. Not only the uniforms, and equipment, but also the trademarks and copyrights owned by the team.

This was also tried in Baltimore to stop the Colts from moving to Indianapolis. When the condemnation proceeding was going on in Baltimore, Colts owned Robert Irsay decided on his now-famous overnight move to Indianapolis. All its property and its certificate of membership in the NFL were whisked away before any property could be seized.

A question arises whether a seizure of a team can be a "public use" of the property as contemplated by the law. Courts have been divided on this issue, and in recent years this threat has abated be settlement. When the Cleveland Browns moved to Baltimore, it was agreed to give Cleveland a "new" Browns teams, with the same logos and colors. The old Browns had to change its name, logo and design.