November 28, 2005

Contact Lee Miller

970-472-1000

FEDERAL TRADE COMMISSION

ASKED TO INVESTIGATE

HARLEM GLOBETROTTERS BUSINESS PRACTICES

FORT COLLINS, COLORADO – Antitrust busting President Theodore Roosevelt gave a now-famous speech in 1910 where he saluted the competitor who is “actually in the arena … who strives valiantly … who actually strives to do the deeds.” Fortunately for President Teddy, he wasn’t a business competitor of the Harlem Globetrotters, or he might have never even gotten into the arena, his path blocked by the very type of restrictive agreements he sought to eliminate.

Harlem Ambassadors, Inc., a Colorado-based producer of show basketball entertainment announced today that it has filed a formal complaint with the Federal Trade Commission (FTC) charging the Harlem Globetrotters with using unreasonable methods to restrain competition in the marketplace.

The 20 page complaint alleges that the Harlem Globetrotters have limited competitive access to major municipal and collegiate arenas, auditoriums, and gymnasiums through a contractual clause prohibiting exhibition basketball contests during a lengthy period both before and after a Harlem Globetrotters event. This 14 week period in most instances comprises the bulk of the traditional basketball season.

“This clause totally restrains our ability to perform in the major arenas in this country during basketball season,” explained Ambassadors President Dale Moss. The complaint details the business practice which blocks the Harlem Ambassadors and their local co-promoters from being able to perform in over 200 different facilities throughout the United States during the traditional basketball season. The overwhelming majority of these facilities are municipal, county, or state government-owned arenas, auditoriums, and gymnasiums.

The eight-year old Harlem Ambassadors basketball show performs over 200 events annually, promoting events in conjunction with community organizations such Habitat for Humanity, Big Brothers/Big Sisters, Boys and Girls Clubs, Girls Scouts and others. These types of groups have been blocked from presenting events in the most attractive venue within their communities as a result of the “Use of Arena” restriction clause used by the Harlem Globetrotters.

“This business practice by the Globetrotter organization locks the Harlem Ambassadors out of an astonishing 20,000 performance nights annually, which limits our revenue opportunities, the perception of our product with media and consumers who haven’t seen it, and creates a ceiling limiting our ability to grow,” observed Moss. The complaint also notes that these Agreements severely constrain the Harlem Ambassadors’ opportunities to pursue joint venture arrangements with other entertainment providers using these same arenas such as World Wrestling Entertainment, Feld Productions, Stars on Ice, and others.

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FTC Filing

The filing was made with FTC’s antitrust arm, the Bureau of Competition. According to the FTC, the Bureau of Competition “seeks to prevent business practices that restrain competition – including monopolistic practices, attempts to monopolize, conspiracies in restraint of trade, and anticompetitive mergers and acquisitions.”

Moss concluded his remarks by noting that “our desire is for the FTC to look into this matter, eliminate what we believe to be an illegal practice, permit the Harlem Ambassadors to compete on an equal playing field, and ultimately offer the consumer a choice in a truly free marketplace.”

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