COMMONWEALTH OF PENNSYLVANIA STATE GOVERNMENT AD HOC COMMITTEE HOUSE OF REPRESENTATIVES In re: Sunset Review State Athletic Commission * * * * * Stenographic report of hearing held in Majority Caucus Room, Harrisburg, Pennsylvania Thursday June 11, 1987 9:30 a.m. fi t ' HON. FRANK L. OLIVER, CHAIRMAN HON. MARVIN E. MILLER, JR., MINORITY CHAIRMAN MEMBERS OF STATE GOVERNMENT AD HOC COMMITTEE Hon. Robert L. Freeman Hon. Gordon J. Linton Also Present; Hon. Hon. Hon* Hon* Thomas C. Corrigan,. Sr. George C. Hasay Vincent Hughes Jere W. Schuler Stanley Mitchell, Chief Counsel D o r o t n 4 M - M « l one Registered Professional Reporter 135 S - LanJis Street Hommelstown, Pennsylvania 17036 { ^' ' INDEX PAGE James J. Binns, Chairman State Athletic Commission 3 Richard R. Baer, Commissioner State Athletic Commission 77 Linda McMahon, Executive Vice-president Titan Sports, Inc. 82 Robert Robbins. Middle Atlantic Amateur Union 123 Russell Peltz, Boxing Promoter 136 Newton Tattrie, Retired Wrestler/Coach 145 i •f i' i. THE CHAIRMAN: order. Good morning. This meeting will now come to Today we have the Sunset Review hearing on the State Athletic Commission. We do have an agenda here. Our first speaker this morning will be the present and former officers of the State Athletic Commission. The Chairman, James J. Binns, will be the first speaker. Mr. Binns, you may proceed, sir. I understand you do not have prepared testimony. MR. BINNS: That is correct, Mr. Chairman. Mr. Chairman, I am here to answer whatever questions this Committee may have with respect to the audit that was performed by the Sunset Audit Committee. I have spoken with your legal counsel and advised him that I would be prepared to answer whatever questions any member of the Committee might have or whatever questions Mr. Dario might have with respect to the audit that was performed. THE CHAIRMAN: Would you be prepared to make an opening statement prior to questions from any members of the Committee? MR. BINNS: Not unless the Chair pleases. THE CHAIRMAN: the members? Are there any questions from any of Mr. Mitchell. BY MR. MITCHELL: Q Prior to the members making questions, Mr. Chairman, I will just ask a couple of questions of Mr. Binns. Perhaps you are familiar with the issue regarding the professional wrestling, matter? A I am. Q The matter of Titan Sports. the Committee your views in that regard? Could you provide for And, of course, I understand, Mr. Chairman, that Titan Sports will be providing testimony themselves. So, we are sort of jumping the gun, but if HT. Binns would be so kind to provide at the outset the Commission's views regarding professional wrestling. A Yes, sir. Mr. Chairman and members, it is the view of the Athletic Commission, the unanimous view, that professional wrestling should be regulated within the Commonwealth of Pennsylvania. We understand that the representatives and officers of Titan Sports are here today to request that this Committee take under advisement the releasing of professional wrestling from the aegis of the Pennsylvania Athletic Commission. The reason that we feel as a Commission, and this is the unanimous view, that wrestling should continue to be regulated is that it is necessary, in our view, for someone, preferably the State Athletic Commission to oversee the .1 health, safety and welfare of the wrestlers who are engaged in the professional sport of wrestling. And in addition to that, it is necessary for the Athletic Commission to regulate what is required for the health, safety and welfare of the public who attend these matches. And X may say that wrestling . is alt an all-time high with respect to its popularity. And accordingly we have, in the various venues throughout the state, instances where 15 to 20,000 people per event attend a professional wrestling show. Now, when I speak of the health, safety and welfare of the wrestlers, it has come to our attention that in the past, professional wrestlers, in order to earn more money have engaged in the practice of flicking their foreheads with razor blades in order to draw blood to excite the crowd. We have, as a Commission, taken a position in Pennsylvania that that is no longer allowed. This position was not accomplished without some degree of hostility on the part of both wrestlers and promoters. However, it is a fact that if any member of the Committee would like to accompany me to a wrestling show, I could demonstrate to you by physical examination of the wrestlers, that they have engaged in this practice in the past and in fact continue to engage in it in states other than the Commonwealth of Pennsylvania. We take the position that it is dehumanizing to permit or cause a professional athlete to do that to himself in an effort to earn more money and we continue to do that. We have had instances where I have directed a doctor to examine wrestlers immediately after they have cut themselves with razor blades, and in at least one instance, the wrestler refused and we had to confront the promoter with the prospect of closing his show down on that spur of the moment unless he submitted to the examination by the physician, and there were written reports evidencing this. We continue to incur problems with wrestlers coming in from other states already having cut themselves a day or two before and then having the cut opened up. But we have a policy that if they t continue to do that, we suspend them and I have done that in the past. It. seems to be clearing the problem up. In addition to that, there are the pre-bout physicals that are conducted by physicians who are licensed by the State Athletic Commission and who routinely examine both professional boxers, amateur boxers and professional wrestlers as part of their duties and they are paid to do this. And some of those physicians are, or rather will become members of the Medical Advisory Board once: it is implemented by Governor Casey. With respect to the health, safety and welfare of the citizens of our Commonwealth, it is no secret that when you have 20,000 people in venue anything can happen, especially when, as is the case in Pennsylvania, alcholic beverages are permitted to be sold on the premises. There is nothing wrong with that. We consider wrestling to be good family entertainment. We discourage rowdyism. When it occurs, we encourage the security staff at the venue to eject the people who.are guilty of the rowdy conduct and to go further and have them arrested if it is warranted. We see nothing wrong with the sale and consumption of alcholic beverages so long as it is kept to a modicum and it is not something that gets out of hand. There have been instances and there continue rathex to be instances of feigned violence where certain, an undesirable element of the fan populus will throw objects intq the ring. Their latest trick, if you will, was to throw in a rock the size of your hand at the wrestlers and this occurred at the Civic Center two weeks ago. We are dealing with that problem rather and I have scheduled a meeting in my office with not only the head of all of the Philadelphia police who attend these events, but also the officers at the t higher echelon of Spectacor Corporation and Spectaguard Corporation who provide the security forces at the Spectrum in Philadelphia, the Civic Center in Philadelphia and the Pennsylvania Hall, and they have responded. I dare say that without the input of a commissioner who has the power of the state behind him to take and grant sanctions that that would not occur. That you would have, if you "will, the good old boy system of live and let live and let's just see what we can do to get beyond this problem. We deal with the problem swiftly, we deal with the problem deliberately and we think that we serve a real benefit to the populus of the state of Pennsylvania. For those two main reasons, I would suggest that it woulfi be unthinkable to deregulate professional wrestling in the Commonwealth of Pennsylvania. I have read the prewritten testimony of the representative of Titan Sports where they say certain states have deregulated boxing. That may be true, but that! doesn't make it good for our Commonwealth. There are certain states, a number of them don't have boxing commissions and they are the states where you have the greatest problem with respect to fighters being knocked out repeatedly, fighters being allowed to participate more than one bout in a week, sometimes more than one bout in a day. I dare say, given a free hand and a free hfead that the same would occur with respject to professional wrestling. We have it to a point now where we treat the promoters with dignity. We have dignified the wrestlers themselves even against their own wishes and they have come to not only appreciate it but to make public statements on radio and in the press that they are proud to come to Pennsylvania and they are proud afttotft the way they are treated here. Whether or not they can get another hundred or $150 for giving juice, and that is what it is called in the tra4e, so I am not making up something that isn't a time-honored method of doing business in wrestling communities. To get juice, you get another hundred to $150 and,it goes from the very lowest of the wrestlers in the ratings to the very highest. We don't permit it. And that is a major, major factor that you should take into consideration, I think, with respect to your decision as to whether or not wrestling would be deregulated. Q Mr. Chairman, if I may. I guess my concern now is based upon your information provided to the Committee. Do you believe honestly that wrestling is a competitive sport? A It is not, sir. Wrestling is an exhibition. If I may direct your attenton to the Athletic Code, Mr. Mitchell, you will see the differentiation between the verbage that is used in connection with boxing and that which is used in connection with wrestling. contest. Wrestling is not a contest. Boxing is a It is an exhibition. It. is meant for the entertainment of the fans who come. Whether or not the winner or loser is predetermined is unimportant to how the exhibition is carried out. It is the way and manner in which the exhibition is carried out that leads to the fan entertainment. And the. only item that we have to quarrel with at this point is the intentional cutting of one another and one's self with razor blades or other sharp objects. In addition to that, Mr. Mitchell and Mr. Chairman, let me assure that we also control whether or not people throw chairs into the ring, that is wrestlers, which they do if yoi are not there and whether or not they throw other objects or use otb er objects on one another in an effort to heighten the performance of the exhibition. Q Mr. Binns, what type of guidelines do you have to control the cutting with the razor blade and/or throwing of objects into the ring? The Audit Report, if I may go on, Mr. Chairman, briefly sets forth that oftentimes the Commission is top-heavy with deputy commissioners and I am just wondering whether you have enforcement capability to control the cutting with razor blades, throwing of rocks. And you yourself stated that: it is not a competitive sport. I guess my primary question, Mr. Chairman, is whether or not the promoters themselves could not deal with the issue at hand in terms of controlling professional wrestling. Whether or not you have the capability to control professional wrestling or regulate it. And I guess that is my question. A The answer to that question is very simple. The promoters themselves would not and could not control it because it is in their interest to have it happen. It is they who are the direct beneficiaries of the heightened performance, if you will, and it is completely controlled by the Athletic Commission because we grant or refuse to grant the sanctions for:;that show. What I have done is told them that we will refuse to grant sanctions for the show if it continues. We have' suspended the boxers on the spot — I mean the wrestlers don't do it again. I misspoke when I said boxers. wrestlers don't do it again. So that the So, without the intervention of the State Athletic Commission there would be absolutely no control. It would be a wild west arena. Q My final question, Mr. Chairman. What is your view of the various states that have deregulated professional wrestling? A I don't know what you mean by my view. Q Your view of that. A I disagree with them. Q You have nothing to add in that regard? A No. MR. MITCHELL: Thank you, Mr. Chairman. BY CHAIRMAN OLIVER: Q I know you have one wrestler who has a tendency to bring a snake in the ring with him. Why do you allow something like this? A Well, to this time it has not proven, Mr. Chairman, to be dangerous. It is once again, it. is simply an acoutrement of the show. It is no different than a ballerina wearing a tutu that would be cut too low. Q You say it hasn't been proven to be dangerous. What if that snake got away? A Well, I can't disagree with you. I mean, if a ii snake got away and bit somebody, it would be dangerous. But the snake seems to be a friendly type, Mr. Chairman, and he has been around for a long time. In fact, he even has a name. And I am embarrassed to tell you that I don't know. would. My son Damieh is the snake's name. Q If .he seems so friendly, Would you allow him to sleep in bed with you at night? , A No, sir.. I'll tell you what. I wouldn't allow Gorilla Monsoon to sleep in bed with me either and he's friendly. (Laughter.) Q I have often wondered about that and if that snake did get away, whose responsibility would that be? A It would be the responsibility of the promoter and the owner of the venue and they would be liableLin damages, ; sir for whomever the shake" injured. ; Q As far as you are concerned being the Chairman, you would not assume any responsibility for that? A Do you mean legally, sir, do I think the state would be liable? Q Yes. A I can't say it jwouldn't be", no~."~ And if you felt that that would be something else that we would have to curtail, I would certainly follow your lead. Q Well, positively, I really feel that way. I think it is dangerous. You don't know what that snake might do, i who he night bite if he should get away. A I. can't disagree with you, Mr.. Chairman. Q I think that should be stopped. Another thing, Mr. v Chairman, some of the things you said like as far as using razor blades on themselves. real. A Yes, sir. Q I mean, I watch wrestling and to me it seems so So, actually, in a sense, that is misleading as far as the public is concerned. A That is true. Q I think that is wrong also. A Well, so do I. Q Even today, presently, I see these wrestlers That is why I stopped it. picking up chairs and things and hitting one another on the head. A That's not real. . Q That is not real? A No, sir. Q It is misleading also. A Well, it is misleading but it is kind of the same type of misleading that you and I may have encountered when we went to the Saturday matinee and saw whomever the hero was being beaten for 90 minutes of the movie and then in the last ten minutes, he would come on with the cavalry at his back and he would be victorious. Q In your.honest opinion, if the general public was aware of this, do you think that you would still have 15,000 people like you mentioned earlier attending these shows if they were really aware of this? A I think so because I think they crave the entertainment, Mr. Chairman. Some of them view it tongtie-in-cheek and there are others who believe as though it were the written word of the Lord. But I think that even if it were to be exposed for everything that it is, that it would still be an attraction to the people who hunger for entertainment, the type of people who don't like to go to movies but like to see and live vicariously through the eyes of a 350 pound wrestler. I must tell you this, Mr. Chairman, these wrestlers are superb athletes. They do things with the human body that you cannot imagine and don't hurt themselves. They wrestle seven days a week, some of them, and they go from city to city and they do absolutely marvelous gymnastics and don't hurt themselves. Sometimes there is a misstep and someone is hurt, but by and large, it is a wonderful thing for people to watch. Q So long as it is controlled. Since we know that some of these things are really misleading, for an example, let's take the consideration if there was a match taking place next Saturday. Would you know in advance who is going to be the winner of that match? A ; Would I, no, sir. Q Would anybody know? A I cannot honestly answer that question, sir, but to be honest with you, it would defy belief that somebody doesn't know, yes. Q As far as professional boxing is concerned, then if it was leaked out that something like that happened, this would be a fixed fight? A Boxing? Q Boxing, yes, illegal and somebody possibly could go to jail because of it. A No, not possibly, probably. Q All right. So, if that applies as far as boxing is concerned, it should also apply, in my opinion, as far as wrestling is concerned. this! does exist. A I have been told, Mr. Chairman, that This does exist. I'm not disagreeing with you. I'm saying it would defy/ imagination to believe that it does not exist. But the difference, Mr. Chairman, is, you must go back to the operative words, contest versus exhibition. Whoever wins an exhibition doesn't matter because it is only a exhibit. It is an exhibition of an art form and this art form is that of professional wrestling. And people who go to professional wrestling know all of the dramatis personae and they follow them on a weekly, sometimes daily "basis, "Yrbm^eriuefto"yenue^_j There is a soap opera created, if you will, between the wife of Randy Macho Man Savage and George the Animal Steele who covets her and has her picture ripped up so he is infuriated I I; and places it back together. It is a funny, funny scenario, if you are into it and there are millions of Americans who are. Q The only thing that really bothers me, and I have some, personal friends who really crave wrestling. A They would not believe you if you told them what 1 just told you. Q They would believe me if I told them some of the things that have been told to me and also some of the things you have said here this morning. A They won't believe you. Q Which is a matter of record. A They won't believe you. Q Yes they will. A Well, it is the same as trying to convince a five year old there is no Santa Claus. It is that simple. They won't believe you. I don't want to disillusion you, but i I want to be there when you tell them. And if they ask me, if they say, is that true and if I just give them the slightest reason to doubt you, they will say that is not true. You may think it is, but we know it is real. CHAIRMAN OLIVER: Representative Miller. REPRESENTATIVE MILLER: BY REPRESENTATIVE MILLER: Thank you, Chairman Oliver. Q Commissioner Binns, you are aware of the process certainly that we are undertaking today and that is the beginning of the Sunset Review procedure? A Yes, I am. Q One of the traditional requirements of that law, as I hope you are aware, is to require that the appropriate agency undergoing Sunset Review have its chief executive officer, in this case you, come before the Committee and make a formal recommendation as to whether we ought to continue its existence or not. With respect to the fact that you do not have written testimony today to recommend that, I might, for the record, ask you, should we continue with the State Athletic Comnjission? A Yes, sir. I am happy to answer that question. Incidentally, I was not aware that written testimony was preferred or required. Had I been so aware, I would have certainly provided you with something. Let me say to you that there is no question in my mind that the continuation of the Pennsylvania Athletic Commission is warranted and is a real necessity. We have a very prolific base of professional boxing and certainly professional wrestling as well as amateur boxing. I believe that; the citizens of the Commonwealth are well served by the granting of sanctions under controlled circumstances such as where physicians are assigned, the crowd control is insured, the safety, welfare and health of the boxers and wrestlers, that is, the participants look toward and looked after. Regulations having to do with the younger individual at the amatjeur level' is assured and guaranteed by the rules and regulations and cooperation between the State Athletic Commission and the Amateur Boxing Federation. And I believe that to not continue the Pennsylvania Athletic Commission in its present form would be a mistake. Q Thank you, sir. % The reason I asked that question, for your information, is that traditionally that chief executive officer of the particular group undergoing Sunset Review also takes the opportunity of this hearing to present to the Committee of the legislature that will be redrafting the statute his or her suggestions for areas of improvement. They may be in the arena of administrative needs, fiscal needs of the agency, i.e., hiring investigators, et cetera, maybe in the ;arena of records keeping. Since we don't have that, I wonder if you would be kind enough to answer a couple of questions as they relate to suggestions in the Sunset Review Report? i A I would be delighted. Q Do you, sir, have a copy of the report? A I do. Q One of the items was Finding C of the review repon: where the finding states, "Despite revenues generated by the Commission having exceeded Commission expenses, my compliments to you, sir, for staying in budget in fiscal year '85-86, the period of review, that we have discovered that the Department of State has not offered the backup and support services that the statute would have be made available to the Commission and to you, sir." those. I wonder if you might comment on a number of I see one sticks out in particular, and that is, the lack of support for a Medical Advisory Board which is particularly critical in the regulation of amateur and professional boxing? A Yes, sir. I will be happy to. If I may first, let me say that we agree practically entirely with that which has been recommended by Mr. Dario and his staff. And all members of our Commission worked very closely with Mr. Dario and his staff. Happily, I may tell you that the scenario at the Department of State now is 180 degrees reversed from that whicti it was under Mr. Gleason, the former Secretary of the Commonwealth. Mr. Haggert>yand his staff, Mr. Grant and his staff have endeavored to implement each and every suggestion that has been made by Mr. Dario. Unfortunately, during the calendar year of '85-86 when it came to pass that the revenues exceeded the expenses by more than $100,000, there apparently was a plan that we did not know about to abolish boxing in the state of Pennsylvania and this plan was being engineered by the Secretary of the i Commonwealth, Robert Gleason. He has told that, he has i suggested and recommended to Mr. Haggert*y that he abolish boxing. I was astounded when I heard that and could not understand how some of the things that were happening wete happening. But once you hear that, it makes it very simple. Now, all of the'suggestions having to do with computerization are being implemented. Secretary Baggerty?ba* taken it upon himself to canvas the members of the Athletic Commission to get names for the Medical Advisory Board. Those names are being submitted to Governor Casey and the doctors are willing, ready and willing and anxious to serve. We are ready, willing and anxious to have them. And I must tell you, sir,: that during the past five years, when the Medical Advisory Board was mroTfctbTarn3„ I personally called for the suspension of boxing no fewer than six times in public meetings and in letters to the then Secretary of the Commonwealth. Because 1 felt that it was most unwise and very unsafe to operate without the help of a medical advisory board. All of those things that have been detected and brought to the fore:* by the audit, the Sunset Audit j Commit teej I must "t el T^yolithaTweTrave tfr i greatest respect for and work very closely with, all of the things that they recommended are being implemented. They are being done on a daily basis. We meet once a month with ;l I Secretary Haggerty and Mr. Grant, his chief aid. We have now been afforded counsel at every opportunity, whenever we need t t him, and things are really looking up. Q You answered my next question, the availability of counsel to Commission staff. ' A Yes. Q Do you feel your legal complement will be satisfactory for the future? A Yes. Q Or do you want us. to address that in the statute . to assure that you have, i.e., independent counsel to the Commission or would you prefer loaning legal counsel from state government? A Well, unless the counsel, her or himself were to tell you it is too burdensome, we are delighted to be an integral part of the Department of State. Because in being that integral part, we have Mr. Grant's ear on a daily basis which means we have Secretary HaggertyVs ear and the funds that rightfully should have been employed in the operation of the Athletic Commission are now being so employed. on the road toward computerization. We have star tec We have a computer in the Harrisburg office. We are getting computer parts shipped on a weekly basis to our regional offices. We are getting a much higher caliber of morale in our employees in the regional offices and things are really turned around. i, Q Thank you, Chairman Bitms. Just for the record, with respect to those, do you have a target date for the Medical Advisory Board to be sitting and as well as for your computer services to be up and running and on board? A We have a target date for the Medical Advisory Board which has passed, but we are very close. With respect to the computer, it is rough. We are just really doing it pragmatically and everyone is using their best efforts. Every indication has been that the leadership of the State Department is committed to it and our people are preparing for the training, and really it is just going to be ASAP. Q Mr. Chairman, if you would, be kind enough as the next weeks and months unfold while we are conducting this rewrite, if you see any difficulties developing, particularly in the formation of your Medical Advisory Board, if you would be kind enough to contact us and advise us about that, we woulc be most willing to put specific language in the rewrite to guarantee you have those necessary services. Because the Committee in general feels there are critical needs of the Commission and we will do our best to supply them. If I might go on, Mr. Chairman, to another series of questions that deal with past record keeping and staffing supervision problems at the Commission which were brought out by the Legislative Budget and Finance report. Two of particular note, the subject of boxers fighting while under suspension in the Commonwealth and the fact that no specific action was taken in a number of cases as well. Boxers fighting after as many as six or seven consecutive defeats. Without the type of medical .examination that New Jersey gives with the EEGs, EKGs, the ophthalmology exam, et cetera. Would you now perhaps make recommendations to us if there are suggestions specifically we ought to put in the law with respect to those post fight exams that might assist you as well as the necessary fees to cover that activity? I understand in the New Jersey requirement those fees can hit five, $600 for a traditional post fight exam. Who would be responsible? If you are not prepared now to make a thorough suggestion, we would certainly solicit frojn you, sir, those suggestions as this rewrite continues. For the time being if you might just respond briefly as to what has been done to clean up that record keeping, what you may need to assist that those proper medical exams are given and if need be, to expand the required scope of the exam. In fact, a regular EE6 exam, an EK6 and the ophthalmological exam in the event that a fighter is knocked out unconscious. A With respect to the need for the record keeping, that, is being addressed by virtue of the implementation of the computer. Once we have the computer in place, we will be able, on a moment's notice literally, to punch in the results of a fight that occurrs in Johnstown and Rave that appearance on the screen in Philadelphia. So that the fighter cannot traverse the state and engage in a contest after he has been severely beaten or knocked out or anything of that sort. We are continuing to upgrade that system. licenses that are in use. We have passport The most important thing, the sine qua non to a working is a computer system. With respect to the examinations, the present state of affairs is woefully Inadequate. It is my view and the view is shared by other members of the Commission that there should be, at a minimum, a yearly examination that would include the basic't e>s t you just enumerated, an EKG, an ophthalmological examination, perhaps a CAT Scan. Back in 1981, I obtained from a Philadelphia hospital a quote of some $260 per boxer at that time. Really, when we are talking about examinations, this is boxing and not wrestling. It would not obtain in wrestling. The problem is, we can get hospitals interested in doing it in the inner cities, however, the cost has to be defrayed somehow and I don't really know the answer to that unless we are given added funds to our budget. I would be prepared to come back at a later date and tell you exactly what those funds would be. Because I do think that if we are going to continue boxing in our Commonwealth, it should be the safest, the best and the highest that there is at least in these United States. The cost of that examination would have to be borne by the state. It would not be able to be borne by a promoter because you could not apportion it. Some of the fighters that you are talking about would be impecunious young men who are of the amateur level and they certainly could not afford it. basis But there should be some basic test on a yearly that should be given. Now, with respect to a fighter and a post fight examination, it, too, would be costly and would not be practical for it to be borne by the promoter. Because the promoters, at least as they tell me, are living on string. And ten dollars either way makes the difference whether they are going to go to lunch the next day or not go to lunch the next day. I take that with a block of salt when they tell me that, but that is what they tell me. So, if we are going to be able to come to grips with that problem, I think we are going to have to bite the bullet and assume that cost as part of our budget. However, if we continue, and I don't see any reason why we should not continue to have revenues exceed our of expenses such as they did last year to the tune/$100,000, we should be able to do that so long as the money is put back in where it came from which is has not in the past. It has been part of the general budget, and I really don't understand the nuances of the budgetary process. But you all do, and if you could see to it that it comes back to where it started from, we would be able to defray tfoo.s-e costs. Of course, we would combine the revenues from boxing and wrestling, but it would be to the benefit and welfare of the citizens of this Commonwealth. Q Thank you. I apologize for that brief aside, Chairman Binns. Next, a request, if I might. Would it be possible for you to direct your staff to do, at the very least, a cursory examination of that post knockout fight medical requirement? And include in that recommendation to the Committee what type of examinations you feel would be necessary. Also, as part of that, would you ask your legal folks to research the potential liability that the Commission may have with respect to the Commission ordering a fighter not to fight if indeed his promoter has a hot event scheduled and would couzitersue the Commission? you get For example, I'm curious to see if involved in any of that activity that would suddenly threaten your ability to administer the Commission A I can answer that now. Q Please. A There is a provision in the Athletic Code that enables members of the Commission to act for the general health, safety and welfare of participants. So that I don't know of an instance where a fighter has ever brought a suit and I cannot envision one to tell you the truth. Because practically speaking, it is not feasible for them to do it. Once a commission has spoken with respect to a suspension, that1 order is given comity throughout every operating commission in the United States of America. I have been the Chairman now since 1980. I cannot remember one instance, and I can even go further and tell you that even though we don't have a written.rule of law prohibiting boxers with detached retinas from fighting again, we have implemented a policy of not allowing them. I have had one fighter come as far as to say that he demanded a hearing and I gave it to him. He brought his doctor in and after I finished cross examining the doctor, there was never anything more said about it. Because under the power to control and do that which is necessary for the general health, safety and welfare of it, we have a very, very wide latitude. It has never been abused to my knowledge. We have never had one complaint of heavy-handedness or abuse. been deemed necessary. It has only been used where it has If I may, I can give you instances where I've refused to license professional fighters"?after, in my own opinion, they have had too much. I bring them in. I i bring their families in. I bring their minister or their religious person and I have a very intelligent discussion with them. Now, these are people with a lot at. stake. I am talking about world class fighters, ex-champions of the world i whom I have refused to license. Never a problem. Now, that is not to say that they did not go to a state where there wasn't a boxing commission and fight. have done that. They But they have never come back to Pennsylvania. Once they have had that other fight, it is turned out to be a disaster in the end. So, I think without doing a lot of research, I can give you some cold comfort in telling you that has never happened to my knowledge and I can't see it happening. Q arena. One final question, if I might, in the safety It is my understanding that the regulations of the Commission require EKGs to be given within 24 hours after a fighter has been knocked out, amateur or professional. Why is that not happening? A It is not happening because we don't have the staff i to follow it up. I mean, we have been operating literally on a wing and a prayer. Each office, each regional office, has a secretary and part-time deputies. are paid to go to an event. These part-time deputies It is unreasonable to ask them to assume the burden of following up on something that happens during their own period. The secretary, for instance, in the Philadelphia office, could not cope with it because she has so many other duties and the secretary in the two offices in Scrahton and Pittsburgh are really part time. They are there a couple days a week and they could not cope with it. So, what we need is a professional atmosphere whereby when the fighter is knocked out that we have the capability of seeing that he is transported to a hospital. up. That a physician will follow it Once again, our physicians who attend the fights are paid for the event. It would be unreasonable to ask them to take a day or so out of their private practice to follow it up. Q If I might take a bone of contention, it would not be unreasonable, in fact it is the law and in fact the Commission has no system in place, no administrative system in place to provide that function? A Correct. Q I would hope you would get us a recommendation very soon on how that ought to be provided unless you wish us to etch it out ourselves in the statute. A We will be happy to do that and will do it. Q Are there any plans underway to fill that deficiency? A Only the plans that I told you earlier on about, an overall revamping of the Commission, yes. Q I would hope that one critical safety feature is addressed immediately by the Commission. A That one critical safety feature will be addressed by the Medical Advisory Board and they are the ones that can help us do it. Q Well, it is very easy to pass the buck off on the Medical Advisory Board. now. It is in fact a Commission regulation It has been some time a matter of information, reported admission that it is not being performed. We are sitting here with .a budget surplus. You could certainly independently contract physicians available or contract with the hospital, such as Temple, to provide the service. A I agrees Q I don't see any reason why we can't do anything. You have the authority, sir, to order it, am I correct? A I did not view myself as having that authority. If you tell me I have it, it will be done immediately. REPRESENTATIVE MILLER: MR. BINNS: Thank you, sir. Thank you. BY CHAIRMAN OLIVER: Q Just one other questions for me. I think you stated you became Chairman in 1980? A Yes. Q When did you stop wrestlers from using razor blades on their foreheads? A That has been in effect for about the past three ox four years, sir. i CHAIRMAN OLIVER: Representative Schuler. REPRESENTATIVE SCHULER: Thank you, Mr. Chairman. i BY REPRESENTATIVE SCHULER: 'i Q Mr. Chairman, I am new at this so, bear with me. For the record, would you just tell us basically what the Commission's function A is? The Commission's function is that of collecting taxes and insuring the safety of participants in both amateur boxing the professional boxing and insuring the health and safety of participants in professional wrestling and insuring the health and safety and welfare of the citizens of the Commonwealth of Pennsylvania who attend those functions that are characterized as boxing and wrestling. Q Thank you. Now, I am having a conflict here and I have; not made up my mind until I hear all. this testimony that is going to be presented here today. But to clear some of my thinking, during your comments here you made some statements to the effect that professional wrestling is an exhibition and I see you agree. a soap opera. It is a show. It is an art form. It is a funny scenario. It's It is not a competitive sport. You see no problem with that. If your definition is what I read here, professional wrestling, should it really be in the realm of sports? A Well, I think so. Q But that's my problem. I think I have a problem with: that because this is what it is all about, is it really a sport? You made a statement it is not a competitive sport. Should we be regulating? i has to be resolved. i< That is one of the issues I think A Only for the reasons I gave you, yes. Q I understand that, but my feeling is when I go to some, hockey games, you know, I'm not coming down on hockey because I love hockey, but I see some situations that were very dangerous among the players. You have no control over that, do you? A No, sir. Q And those gentlemen are serious when they are playing. In your testimony you are saying this is not really serious, am I. correct? • A If you mean the hostility part. Q Yes. A Yes. But with respect to the hockey, that is why you have a situation in Boston where they are going to start to arrest hockey players. Somebody has got to It is bad. Somebody has to be there. ~ Q You said they are going to arrest hockey players? A Yes, sir. Q Who? A The police, the mayor. Q Right, but they are going through a civil — A No, that is criminal. Q Well, criminal, okay, but it is being handled by the Boston Police Department. A That is unfortunately the way it is going to have to happen, but if they had someone in control, they wouldn't need that. Because they would have someone who is forceful commissioner controlling it, it doesn't get out of hand like that. ( t Q Now, just a word on boxing. I see we have a referee coming on here later this morning. Maybe he will clarify this. But from your perspective, do we have some kind of guidelines that a referee uses to stop a fight? A A referee is empowered to use his judgment. Q It is his call? A Yes, sir. t, Q And when we have no guidelines whatsoever? ', A Well, the only guidelines that you have are whether of not he is a competent and qualified referee and you only know that by seeing him perform his professional past. REPRESENTATIVE SCHULER: Thank you, Mr. Chairman. Thank you. CHAIRMAN OLIVER: Representative Battisto. REPRESENTATIVE BATTISTO: Thank you, Mr. Chairman. BY REPRESENTATIVE BATTISTO: Q Mr. Chairman, you indicated that from time to time youfraatfe' a boxer come in your office, interrogate him and his family and assess the situation. I assume you look at his age, his!physical condition and determine that he is or is not capable to proceed. Therefore, you either license him or you don't license him, right? A Yes. Q You sort of assess the situation. some history. You have had But with respect to the ongoing boxing in the state, I'm not sure if it is regulatory or statutory, but there is something that says if a boxer has lost six consecutive fights, he is to be investigated by the Commission. Now, apparently, I think you answered Representative Miller with respect to another regulatory or statutory mandate. You indicated there was not enough staff to you have the staff to carry — A carry that out. Do is this being done? It is being done, yes, sir. The way it is being done; is, what we do is make the promoter provide us with a professional record of the contestant that he is matching and interrogate the promoter as to who has won and lost and when they have occurred. However, it is an imperfect science without the use of the computer. Once we have a computer system, it will be foblpppofir Q I was going to say how do you know whether somebody lost in Seattle, Washington one week and in Savannah, Georgia? A Without the use of a computer and the passport license system, we don't know. We have one part of that equation. We have the passport license that they have to take with them from state to state. And once we get the computer, it will be a very easy task to punch up the name of a fighter to find out where he has been and there is also a computer service in New Jersey that is operated by a gentleman by the name of Ralph Citro (phonetic) that catalogues the records of all the boxers in the United States of America. We have access to that. At least we will have. We will be able to network it. We can do that. REPRESENTATIVE BATTISTO: Thank you. Thank you, Mr. Chairman. CHAIRMAN OLIVER: Representative Hasay. REPRESENTATIVE HASAY: Thank you, Chairman Oliver. BY REPRESENTATIVE HAS AY: Q Good morning, Chairman Binns. I am concluding from your testimony this morning that you feel that professional wrestling should be regulated? A Yes, sir. Q Now, in some of the states where it is deregulated, what do you think see some of the disadvantages for the wrest tier or the wrestling itself where it is deregulated? A Only those that I enumerated before, sir, and I think there can be a real threat to the health, safety and welfare of the wrestler if he is allowed to go unbridled and do that which someone tells him he can earn an extra $100 for. Be it cutting himself with a razor, allowing himself to be hit over the head for real with a chair. We are about to embark on drug testing and I can only tell you what I read in the newspapers about other athletes and other sports ingesting drugs,. I don't know what happens with respect to wrestlers. thing we would be looking at. That would be another If your question is limited to the wrestler, that would be it. In other words, there would have to be someone, in my opinion, that can oversee the health, safety and welfare of that particular individual to insure that he is allowing himself to be treated like a human being. Q Well, what happens in some of the other states that are deregulated? They don't have anything of that nature at all? A No. Q Nothing? A No. That is why they come to our state with cuts that they got the day before. And then they say, oh, I didn't cut myself here. Somebody just opened it up. It just happened last Saturday. REPRESENTATIVE HASAY: Thank you. Thank you, Chairman Oliver. CHAIRMAN OLIVER: Representative Hughes. BY REPRESENTATIVE HUGHES: i Q Good morning, Mr. Chairman. You discussed, it sounds like computers would kind of solve everything? A It won't solve everything but it will go a long step, yes. Q Would be very helpful. My limited knowledge of computers indicates to me before you have the computer you have to have the process, the system for getting the information out of the field into the computer. My question basically, is your system in place to get the information from the Blue Horizon and the Shetter (phonetic) Recreation Center and all the other places out there where there is some kind of a form of boxing taking place to get that information into your computer? A reports. Yes, it is. We have what are called after contest These reports are a chronology of what happens at the event. For instance, the Blue Horizon, the chief deputy goes to that show and he submits at the end of that show an after contest report which has the identiy of the fighters, the result of the contest, the amount of additional license fee collected, who was knocked out, who was technically knocked out;, has all the information in written form which then can very easily be transcribed into the computer by the secretary at the regional office, be it Philadelphia, Pittsburgh or Scran ton. Yes, that is in place and has been in place. The problem is, a written document such as that is too Unwieldy in the written form and if it is broken down into different segments that go into the computerized program, it will be something that will be very facile to operate with. i Q A How many chief deputies do you have? is Every deputy/capable of being a chief deputy. We have, in the Philadelphia area, approximately 20 deputies. All of those deputies have been instructed as to how to operate as a, chief deputy and in rotation they do operate as a chief deputy. Some are better than others, but everybody is supposed to have the capability. Q Is there a criteria set up that they have to meet before they can become deputy? A No. They have to be able to read and write and add and subtract. But other than that, there is not a great deal that goes, on at a professional boxing or a professional wrestling or amateur boxing show that someone with those capabilities cannot learn and cannot operate within that rubric to perform after contest reports. We have not had any problem with respect to the reports. Q No problems with respect to the reports. It would just seem to me that it would kind of be necessary, especially with respect to the safety of the participants that an individual who is responsible for monitoring the situation should have some kind of knowledge beforehand. It seems like you indicated that on-the-job training almost is what goes on. A Oh, no. We have training seminars where they are trained. But the chief deputy would have little or no impact on the safety of the boxers. I mean, the boxers are trained professionals or amateurs with coaches and there are two physicians present at the ringside. There is a physical examination given at the weigh-in, the day of the fight. The chief deputy is someone who is to go there and see that the show; is run according to the rules and regulations. have very little — He would he would have some role to play if a stretcher wasn't present. He would have to see that one was there. He knows that before he goes in. I am not talking about taking you down, if you have never been a chief deputy and say, here, operate.. You would be trained. You would have operated as a deputy, an assistant deputy before, a deputy athletic commissioner before you.were given the assignment. But we don't have any problems in that regard. BY CHAIRMAN OLIVER: Q Mr. Biims, during your tenure as Chairman have you had jbccasion to investigate any boxer who lias lost six , consecutive bouts, and if so, what was your findings? A I have prohibited certain boxers from boxing, yes, Q For what reason? A For recurring losses. Q What were your findings for you to arrive at that sir.; decision? A Just the fact of the losses and we have had instances where there have been public hearings and I have tolc 'l the young man involved that he has to seek another area of employment. I have had other instances where a hearing was never requested and on the basis of an abysmal performance or a repitition of knockouts, I have just advised the fighter that they would not be fighting again. But when you say the basis of it, it is kind of an ad hoc thing, Mr. Chairman. I mean, boxing is not something that is mechanical and there is a lot of it that you have to be knowledgeable about boxing to know.about. You can look, as someone who is not knowledgeable about the fight game, and I put that term in quotes, it is term of art, you can look at an individual who looks to be, appears to be to you a superb physical specimen, but he might not be able to fight a lick. That, is where you have to have some control over who gets matched with whom. I can think of one particular instance where in the case of a former world champion, who was a superb physical specimen, but he had lost and he had sustained some severe beatings even when he won fights and it was necessary for me to retire him. He is happily retired now and it is going to happen to another one. It is happening right now to another one whose name does not have to be mentioned on this record. Because I know he has sustained two severe beatings, and if you are a boxing fan, you.probably saw them. There is no way that he can convince me that he has anything to gain by continuing on as a fighter. Coincidentally, his father agrees with me. But that is a call that I have to make when I shave In the morning. I mean, it would be very easy fox !me to say let him end up on his heels. CHAIRMAN OLIVER: MR. MITCHELL: Mr. Mitchell. Thank you, Mr. Chairman, BY MR. MITCHELL: Q Mr. Binns, when did you become Chairman of the State Athletic Commission? A When? Q Yes. A I think it was in April of 1980. Q When is your term up? A I don't know that it ever is up. i It is up when i whomever the present governor is sends a name over to be confirmed and that individual is confirmed. Q What governor appointed you? Was that Governor Thornburgh? A Yes. Q Are you paid for this position? A Yes, sir, $7500 a year. Q Do you have an executive director for your Commission? A Yes. Q Who appoints him or her? A I believe that the Secretary of the Commonwealth appoints him. That was something that was in doubt for years, but I think it has been finally resolved, that he is the direct appointee of the Secretary of the Commonwealth. According to the audit that was done, I think at one point he was appointed by the Secretary of Revenue. But I think it has been now decided that he is an appointee of the Secretary of the Commonwealth and works directly for the Secretary of the Commonwealth. Q Is any of your staff under civil service jurisdiction? A No, sir. Q None at all? A No, sir. Q How many daysj~~a /-Lw~ e e k do "you put" in'TTe aspects of our professional wrestling exhibitions, from booking the arenas, booking the talent, promoting the matches, executiig the event and coordinating all facets of our television production. We are a fully integrated company, and all the work is done in-house. We sponsored over 7500 events in 1986 in the continental United States in such major arenas as i Madison Square Garden, the Philadelphia Spectrum and the Pittsburgh Civil Arena as well as the Hershey Park Arena and the Johnstown War Memorial. In 19,86 we sponsored 77 events in Pennsylvania which were attended by. over 400,000 people These 77 events generated, as a result of the five percent license tax, over $194,000 for the Commonwealth of Pennsylvania. What is hot part of your notes, gentlemen, that in addition we paid $44,000 for State Athletic Commission officials, license and permits. And above the taxes and fees charged as a result of the State Athletic Commission, we also paid over $275,000 in other municipal permits, licenses and fees for a total off of our gross of about 13 percent that we paid to the Commonwealth of Pennsylvania. We attract these large numbers of people because we provide quality, family entertainment for all age groups and for people from all walks of life. Unlike professional boxers, professional wrestlers are not competing in contests where points are scored, and the winner determined, by potentially injurious blows struck at an opponent. Instead, like the skilled athletes you see in the circus or the Harlem Globetrotters, our athletes are well-conditioned professionals who are the best at what they do. And what they do is entertain people. I am pleased that the Legislative Budget and Finance Committee, in its Sunset Audit of the Commission, recognized these basic facts, because they should lead to major changes in Pennsylvania's way of regulating wrestling events. As the Sunset Audit found, many of the State Athletic Commission's statutory provisions and regulations are antiquated and either not enforced or enforced arbitrarily. More importantly, these regulations require a considerable expenditure of the Athletic Commission's time and state funds, even though no need for these services has ever been demonstrated with respect to professional wrestling. The law, for example, presently requires that a Commission employee be in attendance at every wrestling exhibition. To comprehend the absurdity of this requirement you need only to compare this level of enforcement with other state-regulated activities in which the Commonwealth has very strong safety and health reasons to require strict enforcement. For example, does the LCB assign an agent to every tavern? Does the Game Commission assign a game warden to every hunter? To such questions, the answer is obviously no, and these are areas where real dangers exist to society. There is no such danger in wrestling and no Commission enforcement is necessary. There are many more exacfjples of useless and even counterproductive Commission regulations that I could give. i The audit performed by the Legislative Budget and Finance Committee recognized the need for a different approach by the Commonwealth to professional wrestling. Page 37 of the report says "Many of these (existing) statutory and regulatory requirements are unrealistic, and major revisions in the r regulatory environment for these activities are necessary." The audit also recognized that the State Athletic Commission i' has been generally ineffective in administering its regulations, such as they are. We coupletely agree with the basic findings of the Sunset Audit. It is time for major changes in the operation of the State Athletic Commission. We believe, however, that you should go farther than the recommendations made by the staff of the Legislative Budget and Finance Committee, and completely deregulate professional wrestling. There are at least 21 states which do not regulate professional wrestling and, of those, several states have deregulated professional wrestling within the last five years, including such states as Connecticut and Delaware. In addition, the neighboring states of West Virginia and Ohio do not regulate professional wrestling, the regulations are much more limited than the Pennsylvania scheme. The other states appear to be more concerned with effectively taxing professional wrestling as opposed to regulating its activity. The Sunset Audit fails to demonstrate any real neec for the Commission to continue to license and oversee wrestling events. Improving the operation of the Commission would add nothing to the many precautions that we already take, as concerned citizens and as prudent business persons, to protect the health and safety of our athletes and our patrons. I cannot emphasize enough that the safety of our fans and our wrestlers is of paramount importance to us. Nothing is more important than safety. is in our wrestling talent. Our biggest investment I don't think I have to tell you how much prestige and money it would cost Titan Sports if Hulk Hogan or Andre the Giant or any number of our wrestlers were seriously injured and unable to perform. Let me assure you that we do everything in our power to insure safety. Our wrestlers are professional athletes who are required to train daily to maintain optimal physical fitness thereby reducing the risk of injury. Our wrestling rings are specially constructed under our supervision and are inspected on a nightly basis. Our highly trained crews transport, erect and maintain the rings. Spare parts are carried on our trucks. Nothing is left to chance. While wrestling is undeniably a very physical form of entertainment, we have never had a fatality in the over 67 years we have been promoting professional wrestling. The safety of professional wrestling was also recognized on page 1: of the Sunset Audit, "Neither the Commission's Executive Secretary nor a major wrestling promoter with whom the auditors spokfc knew of any deaths or serious injuries having occurred during a professional wrestling match." As additional safety precautions, we always have an ambulance on call or on the premises as well as a physician in attendance. All of our wrestlers have routine physical examinations. We take these precautions even in states that have deregulated or have no regulations for professional'wrestling. Our concern for safety, however, does not end with the protection of our wrestlers. We recognize that if a fan has a bad experience at a wrestling match, not only could it cause us legal problems and the loss of that fan's patronage, but it will ultimately reflect badly upon our reputation for safe, quality entertainment. Crowd control is handled in conjunction with the various arenas in which we appear, the same as any concert or promotion. I can assure you that public arenas or school gymnasiums don't want unruly, destructive crowds any more than the Commonwealth. If, however, we feel that a particular arena is not staffing enough security, we will employ extra security at our own expense. We have not hac any crowd control problems as a result of either unruly fans ox an oversold arena in Pennsylvania. And I might add, gentlemen, nor in any other state. Of course, for the mutual protection of ourselves and our fans we have a substantial amount of liability insurance coverage for each and every event that we sponsor. The Sunset Audit questioned the feasibility of deregulating professional wrestling in the absence of a league, as in football or basketball, that would provide self-regulation. In response, I would simply say that the Harle.m Globetrotters, the Ice Capades and the circus do not belong to a league but they are not regulated. In those I ( activities the legislature has implicitly recognized the high level of skill of the performers and the efforts made by these organizations to insure their performers' safety. We seek the same recognition today. There is much more that I could say in support of our proposal, but there is not enough time for it today. Jack and Rick will be available to work with you and your staff in the future, and will provide you with any additional information you need. Thank you for the opportunity to speak with you. I'll be happy to answer any questions you may have. CHAIRMAN OLIVER: Thank you very much. MR. KRILL: Mr. Chairman, excuse me. We have.also provided to the Committee a summary of state regulations of professional wrestling. That should appear as an exhibit to the;testimony. BY CHAIRMAN OLIVER: Q athletes. You speak of your concern for the welfare of your In fact, you have a physician as well as an ambulance available. How do you feel about these wrestlers cutting themselves with razors? Do you have someone there to stitch them up or do they require any stitches? How do you feel about that? A I might add that I am aware there are past practices of that happening. I can assure you within the World Wrestling Federation it is not permitted or condoned. : Q It Is not permitted? A Nor condoned. And we have never offered more money to a wrestler for cutting himself nor would we ever do that. CHAIRMAN OLIVER: Any other questions? Representative Miller. i REPRESENTATIVE MILLER: Thank you, Mr. Chairman. BY REPRESENTATIVE MILLER: Q Welcome before our Committee, Mrs. McMahon. A Thank you for letting me speak. Q Our pleasure. Could you give the Committee a brief overview of the industry you are in from an economic perspective? Obviously, the World Federation's success, i.e., Titan's success particularly in the past five or six years is certainly commendable from a business aspect. You have excellent marketing people, excellent promotion people. You axe obviously popular with the public. successful. Certainly it is economically The question I am getting to is one I would really like you to phrase for me. What is your Competition all about? I asked that question because you outline your interest in safety in the business and you can really only speak for your business. Your interest in providing liability protection, arena security. I wonder if you might comment from your knowledge on what your competition is doing. Obviously, there are business folks out there who see your success who want to spin off on it. Offer a similar product to maybe cutting those t t very corners that you suggest that your particular business is very strong on, particularly the safety questions and the appropriate taxpaying questions. A I guess if I had to sum it up, I can't really speak to what other organizations do. X am not privy to their policies and procedures. that I guess the way to address that is we believe we have set a standard within the industry. The public is accustomed to that standard. It is, you have a choice of watching the NFL football game or you want to watch the USFL. The USFL didn't succeed very long. The marketplace, in our public, believe it or not, is quite sophisticated in what they do like and what they don't like. We have a greater interaction with our fans at our events and they look for quality talent. Basically what is necessary to have a successful operation is no different in wrestling than any other. If you want your wrestling stars to be recognized, you have to have a forum to present them to the public. Our forum is pur television show. Our competitors are certainly trying to produce their shows and get on television stations so that their talent can be presented to the public. I must tell you that while there are a couple of other organizations that are making good progress and are healthy competitors, which we welcome, there is still a wide gap. What we hope is.that by setting a standard which others have to come up to, we will improve • the qualify of everything that is going on within our industry. It is certainly not something that can happen within a short term. Quite frankly, I hope they don't have great success. But I would certainly say that we are competing in an open marketplace and we are establishing a standard that other organizations have to live up to. That follows through in our television show. That follows through in our publications that we publish in-house that cross our talents. We have upgraded those publications in general though they still have a long ways to go. There is certainly, I think, a marketplace reaction to some of the other smaller outfits who are not comirg through with quality. It really has nothing to do with size. If a small company comes in, and we certainly have been small and we operated as a small company, but if your goal is always to produce quality in family entertainment, then you have a measure of success or at least everything you do you feel like producing quality. I think evey competitor has to be aware whether they come into a local high school to produce an event, whether they go into the Civic Arena, the Pittsburgh Civic Arena, or the Philadelphia Spectrum, that your public must be protected and they must be entertained. No police commissioner, no municipality that has to issue a license or a permit for a public gathering or any sort of performance, is going to allow those kinds of practices to continue. We certainly protect ourselves with liability insurance because things do happen. Unfortunately, if a fan slipa on a banana peel at the Philadelphia Spectrum and hits his head, our insurance pays fox t that. Whether or not it is a result of poor maintenance on the part of the Spectrum or whatever. We cannot afford not to insure safety nor can any other organization that is dealing with the public. You simply cannot afford it or you will be out of business. Q Thank you. Just two brief follow-up questions. While you certainly present to the Committee very persuasive i; testimony from what the Committee appreciates as an established business in the industry, one with reasonably good credentials, there is a choice of argument for deregulation. I still have the reservation of the difference in the wide gap, as you call it, if we deregulate for your purposes. We are also deregulating the other promoters who perhaps may be exploiting their professionals and indeed indirectly exploiting the public by whipping up too much hysteria in the arena, i.e., fire and panic act problems in a crowded arena. Is there a way we can differentiate among the businesses in the business of exhibition wrestling and perhaps regulate those that have problems and permit those that do not to be self-regulated? Is there any suggestion in that that indeed you can make to the Committee? We don't have a great deal of alternative if indeed you have that kind of operations causing problems. The legislature will indeed look at regulations recognizing you, as a responsible business entity 'paying~yd"ur~taxesT"paying Jatttm^ojp to the health, safety arealsojpaying the price_"of that regulation. A I guess really the only way I can respond to that is saying that I am not sure there is no need for regulation. I'm only saying that I think regulations exist in other forms and that there is double regulation going on in many instances. I believe if a small promoter or a promoter that is not as well recognized is coming into a particular town, I don't know of an instance where you don't have to have at least the permit or if you are going into a high school or whatever, you have to provide proper liability insurance and assure the superintendent of the board of education that you are providing proper police and if the police are involved, the fire marshall is involved, all of those different entities. I mean, if fights break out in a crowd, that can be a civil disobedience resulting in criminal charges that can be filed against those people. I think that certainly anytime there is any kind of a performance of that nature, the local police department should definitely be involved in assigning security and helping to regulate those performances. There are certainly adequate measures available now under our civil services that should provide regulations for a lot of those different entities. I guess I just feel that regulations are already in effect. We don't need the regulations of the State Athletic Commission, which quite frankly, I must say in general instances, we certainly have a better knowledge of what it takes to control a crowd than what a State Athletic Commission official who has never had the responsibility of putting on an exhibition, of maintaining crowd control. It is our own policy, the policies of most arenas that we are in to evict any kind of disturbance. • it * If people come in who are going to be throwing things in the ring, they are immediately evicted by the building security or the arena. No facility, no municipality, no state can afford to have those kinds of practices going on and I don't think that they can be regulated by the State Athletic Commission. We are fully in agreement that those practices should not happen. Q It is just that the proper agency should handle it. 1 think that is a very salient point you make and I want to share with my Committee members that once the State Athletic Commission has issued the proper fees, licenses, et cetera and an exhibition begins, it becomes your responsibility as the promoter with respect to the liability, et cetera. The Commonwealth does not share any liability in that. It has been a strong argument for deregulation. One final question, and that is, as we sit down in our research product to develop regulations, with your permission we would appreciate the flexibility to call on your counsel with!respect to the insurance question and if we might call on i in the future for advice, Mr. Krill, on the types of liability insurance you buy which you feel is necessary in the industry. We would find that information very helpful in addressing the insurance liability question with respect to exhibition. We aren't experts in that subject matter and we would need some assistance. A Could I just let you know right now, peripherally, there are many of the arenas in which we play that carry their own Insurance requirements. Whether they have been mandated by municipality, if they are in fact municipal arenas . or whether or not whether for their own protection realized what the coverage must be in order for them to exist? We carry no less than a million dollars coverage for every event and we have an umbrella which will go up to three million dollars for liability. There are some instances where you need to exceed that. When we had Wrestlemania at Pontiac Silver Dome, we went up to five million dollars in liability insurance. So, those are just general parameters. REPRESENTATIVE MILLER: Thank you for joining us. ; We~a"p~p'reci"ate"ybur assistance^,.Thank you, Mr. Chairman. CHAIRMAN OLIVER: Representative Battisto. REPRESENTATIVE BATTISTO: Thank you, Mr. Chairman. BY REPRESENTATIVE BATTISTO: Q I would like to commend you on your articulate presentation. Let me just begin by saying this. How does the regulation of professional wrestling interfere with your i operation or how does it bother you? A I almost hate to get into answering that question. Q But I would like you to. A Only because it looks as though we are taking sides and throwing stones. Before I answer that question, I would like to first say that Commissioner Binns and his commissioners, I think, have done a job what they believe was in the best interest of the public. I just think there are instances where professional wrestling, not being considered a sport, should not be under this"xdgutation. Having said that, there have been instances where our wrestlers have been fined for perhaps not being examined before going into the ring when in fact the examination was checking their pulses, listening to their heart or looking at • ' their eyes. We have had instances where commissioners have threatened to close our event because we wouldn't set up tables at ringside and put white tablecloths on them so that members of the family or other press media could sit at ringside. That is a dangerous spot to sit at our event. And I have been flatly told the event would be closed down if that didn't happen. We have had instances where some of our wrestlers were fined or suspended and we would recieve a suspension notice for Hulk Hogan or a couple of our top stars that would be in effect two days before our event in the Philadelphia Spectrum in which all our advertising were in place. We have had instances where the commissioners come in and stated that because of the ring setup, the ring setup wasn't proper, they weren't going to allow the event to go on. There are a lot of picayune things, if you are in an arena and you are trying to present your program, they are really not things that affect the public safety or they affect the safety of the wrestlers. There are those instances which it is simply a hassle to have to deal with them. If you have a commissioner who has the authority to close down your event, and mind you, if you want a riot on your hands, walk out and say your event has been cancelled. That is when instances of public safety can really become a big argument. So, there are times when just to get our event in process, there are rules and regulations, in order to have our event sanctioned, we have to notify the State Athletic Commission anytime we book an event. So that they have a list of the dates and times so that they can supply the public officials that are necessary. We won't get sanctioning notices. We won't even know if our event can go on. We always assume that it can and it hasn't been stopped because we haven't gotten a sanctioning notice. It is always dangling out there. I think the one other thing that is really almost •t more Important to our event It3elf, our event comes as a package. We have our announcers, ve have our referees, we have our timekeepers. We have everything that is necessary for our event. For the state to appoint to our form of entertainment an announcer who cannot pronounce the names of our wrestlers or a referee who is not necessarily part of our event and may not act accordingly in the ring for our particular kind of performance, a timekeeper who, I don't know why we have to have him and pay him anyway. every night just for a timekeeper. That is 40 to $50 Those are the things that are really impediments to our performance.. Q I won't pounce upon white tablecloths but I will the way a ring is set up. You did say you think the Commission is sincere in doing what they think they are doing with respect to safety. With respect to the way the ring is set up, the Commission must have standards, I guess. From the standpoint of safety, my son was a high school and college wrestler so he wasn't even backed up with ropes and so forth. I've seen them, but I don't understand all the intimacies in setting up a ring. But you obviously think that your ring is set up safely, but the Commission has certain standards, I guess, as far as elasticity of the ropes maybe or whatever it might be? A No, that is not really the question. It is really the Commissioners being able to sit inside our barricade. Our wrestlers come out over the top rope. You know, there is activity which they are flung out the ring over the top rope. We set up a barricade around the ring so that no one is allowed inside that inner area. There have been instances when it is mandated that the physician must sit inside, the Commissioners must sit inside there ostensibly to better view the performance. Well, it is really the best seat in the house for viewing. But it is not a safe place to be. So, we have objected to that. There have been instances when shooting our television show when we have asked not to have anyone within a certain are because it absolutely, you know, it is a detriment to the program which we were presenting and it servec no purpose. That is what I am saying. If it served a purpose. i Judges in a boxing match have to sit, and I have been on promotions of boxing matches, judges have to sit at a certain height. They have to be able to look into the ring. They have to be able to watch the boxers who are in there, to watch for their eyes, to do all kinds of things relative to their safety. It is just not necessary in a professional wrestling match. Our rings, to further answer that question, are designed by an engineer. they are constructed. They are inspected every night as They are just the best available. The suspension, the plywood that goes underneath, everything and we carry everything spare to fix it on the spot. Q Thank you. I take it that you are one of the largest maybe promoters of professional wrestling in the country. 7000 some events is no small operation. A No, we are the largest. Q You are the largest. You promoted the event in Pontiac, Michigan? A Yes. Q You say you mostly, you mostly promote wrestling. What other kinds of things A do you promote? Well, quite frankly, now we are only promoting professional wrestling. But we do other things in conjunction with that, like produce a record album. Q I'm sort of inferring that maybe most of your promotions are in states which wrestling is deregulated. The reason why I'm inferring that is you said last year you events promoted 7500/and 77 in Pennsylvania. You don't have to be a genius to figure that is about one percent in one of the largest states in the country. Am I correct in inferring that probably you promote more events in states that do not regulate at present? A We certainly promote all over the United States. What is currently happening now is that because of our organization,cities and states are really competing for our events insofar as our own scheduling goes. When we have to schedule an event that is going to be in Pennsylvania, we have to schedule an event that is going to be in Ohio, and the event that has the potential for making the most money, and the event certainly is not going to be regulated by an outside commission, it is a business choice to have the event take place in Ohio. Q You have answered my question. How about Michigan, does Michigan have — A Michigan does have a state athletic commission but the regulations are far less. Q You said in your testimony that the regulations in other states tend to be directed more in the area of revenue collecting and not so much the activity itself. A That is correct. Just recently, in the past two years, deregulated in the state of Connecticut. They did, however, maintain their taxing provisions. Q Now, you do say, and, of course, the Commissioner indicated, too. anyone here. I don't think anyone is trying to fool The fact that you do present an exhibition,' it's entertainment. My son would make a clear distinction between the two kinds. That is not in any way. to cast any aspersions at all. They are two different things. You did compare yourself perhaps to the Harlem Globetrotters and the Ice Capades, some other activities like that. I think we will have to admit there is less contact in those kinds of activities. However, you are saying in essence that they are exhibitions and there are no leagues for Ice Capades or for the Harlem Globetrotters. There is no wrestling, no professional wrestling league, therefore, you can take care of regulating your own activities. to collect revenue, so be it. If we want But you can regulate your activity and that is in essence what you are saying? A Yes. REPRESENTATIVE BATTISTO: Thank you. Thank you, Mr. Chairman. CHAIRMAN OLIVER: Representative Linton. REPRESENTATIVE LINTON: Thank you very much, Mr. Chairman. BY REPRESENTATIVE LINTON: Q A couple of questions I want to ask and I am glad I have a chance to ask them. One relating to, I hope I'm not being redundant since I was away from the.Committee for a moment, a question of referees. What functions do referees serve in a wrestling match? A As part of our performance? Q Yes. A Referees are there to, first of all, in a wrestling event, certainly we have established that part of the performance of our event is the establishment of certain rules. A winner is announced by a pin or disqualification, et cetera, et cetera, where the wrestlers, obviously, could not announce that themselves. There must be some regulatory person In the ring to make those announcements and assess the winner. It is part of our event. Q And that's the function that the referee serves? A Yes. Q Is the referee also the announcer? A No, not in our event. Q Who provides the referee? A In this state? i' ! Q Yes. A The state supplies the referee. Q Does that referee, there is no points involved in terms of — so, for instance, in boxing the referee is separating two combatants. He is providing the points, some ruling in that, making sure that the regulations are being prescribed to according to the match. Those kinds of things aren' t require^ of"responsible to t^ejref eree in a wrestling match? A Not from a technical point of proclaiming the winner of the match, no. Q So, in that respect, in other states you provide your own referee? A Yes. Q Pennsylvania, the State Athletic Commission provides the referee? A (Nod of the head.) Q At what cost to you? A I think that in the Audit Report — no, those are licensing fees, I think that a referee is between 75 and $120 and 1 would have to look, somewhere in that range. Q How about announcers? A Same. They are all run about the same. Q You also have announcers that you have to get from the State Athletic Commission? A And a timekeeper. Q What function does the announcer perform? A His function is supposedly to get in the ring, to announce the matches, the combatants who are going to be there, our performers. And if any time during the evening we have, you know, we would like them to announce the upcoming match or if the Spectrum has anything they want to announce during our matches, that is his function. Q Is that something you do yourself in other states? A Yes. Q The timekeeper, you also get from the State Athletic Commission? A Yes. Q This is not an official event to the point that there would be violations where one combatant would win ttfie-"" event"over the other if "there"was" some" problems with"time ribTj -being kept properly? A No. Q What function does the timekeeper have — I mean, it seems to me that the announcer could be the timekeeper in essence in terms of function? A In part of what we do, it is part of the scenario what goes on. If an announcer wants to come back and say the winner in one fall In five minutes and 25 minutes and 25 seconds is Hulk Hogan. Q It is part of what is going on. What I am saying, from a technical point of view, from a point of regulation of an athletic event where you may need a professional timekeeper is someone who will have the official time because that event involves two combatants. A Not necessary. Q That's not necessary? A No. Q In regards to a referee where you don't have the t kind of officiating that is necessary in an event where you have two combatants where there is purses, involved between those two combatants, the referee is not necessary? A No. Q In regards to an announcer who is basically the ceremonial person which we have at theaters and other kind of events which could be somebody else that is on your own payroll, that is not necessary? A Not necessary. Q I'm just trying to draw, for members of the Committee, trying to figure out what aspects of our regulatory process and what we are in fact requiring people to pay for that is in fact may not be necessary. I think that is something i that the Committee would have to look into, but I think that is in fact an issue and a concern of mine. You are the largest association or promotional organization of wrestlers. What are your other competitors? Even though you don't compete directly, what are the other people who are in the marketplace outside of Titan? A Do you mean organizational names? Q Yes. A There is a gentleman by the name of Jim Crockett who is based in Charlotte, North Carolina. He does promote, X think, under Jim Crockett Promotions or it could be NWA in the state of Pennsylvania. The AWA, which is a mid west organization, I believe, has brought some matches to Pennsylvania. Other than a few individual promoters, those are the only ones that I know of and I don't know the names of individual promoters. Q All those operations are in fact self-contained in that you don't compete against one another like leagues, but they have their own internal organizations? of A That is right. Q That performs t h e i r "performances aridj^controls a l l theirj^rformances? A Yes. Q Your liability insurance, you made reference to the fact that you do carry liability insurance that covers both the wrestlers and also the observers or those who are in attendance, an audience? A Our liability insurance does not cover a wrestler if he is injured in the ring. Our liability insurance covers a wrestler if he is injured on the way to the ring or a part of the general liability coverage at the arena that would be provided. •:3o that;alTo"f our^ patrons, a wrest^r.is^pyered under any of those circumstances that would treat him as a patron at the facility. If he slipped in the locker room or taking a shower, you know, if any of those kind of things happened. His actual performance in the ring is not covered by our liability insurance. Q You made reference in your remarks of physical examinations that you require annually. A Yes. Q We heard earlier in our testimony that even in the boxing commission the lack of a thorough physical examination as required, you do the same type of examination in your unregulated states as well as those who are regulated? A That is right. It is part of what we do internally. Q In the state, I think there was reference to Michigan, is it, where you had this large — A Wrestlemania. Q Wrestlemania? A Wrestlemania Three. Q Wrestlemania Three, okay. My daughters would love that. Wrestlemania Three, what would prohibit you from having a similar event here in Pennsylvania? A A facility to house that many for that large of a crowd. We actually have talked to the Philadelphia Spectrum and the Pittsburgh Civid Arena for Wrestlemania One and Wrestlemania Two about having our events in this facility. Certainly it is available. We don't always need an arena that will house 93,000. That was a spectacular event. Wrestlemania won't always have that kind of an event and we will use smaller buildings. The Spectrum on two different occasions was not available. But the other thing that really was a determining factor, we had to look at in addition to a five percent tax that we already ~p dy to the State Athletic Commission, if we have an event in the state of Pennsylvania and we broadcast it or cablecast it for television, we are taxed an additional five percent on top of that for any of the fees that we would receive for that broadcast. extent. So, it prohibits to a great I mean, when we can go to another state and have the same kind of facility, the same kind of support, the same kind of municipality, it simply becomes a business decision not to be there. Q Michigan still regulates wrestling, is that correct? A Yes, they do. Q Let me ask you something. In terms of the referees, the announcers, the timekeepers, what is the requirement of Michigan? Do you provide your own or do you also get those? A No, we provide our own. Q Could you also tell me some other things and if anyone else that you have with you could help with that, could you also tell me some other areas that are regulated in Pennsylvania that are not regulated in Michigan, just using that as an example? A All I can say in terms of Michigan, for instance, if we go there to have an event, primarily it is a revenue process that the state is looking to. Do they want an agent there to collect the tax? There is not a great deal of regulation that is involved. They did, when Wrestlemania came to town, we had a lot of commissioners suddenly appear that we hadn't talked to or heard ! from before. overseeing agency. They_haye an I am not saying there are not some areas where they want to supply us whatever, but by and large it is a much mareslaiaez-faire operation in the state of Michigan. That was a roundabout way of answering your question, but I really cannot be more specific than that. Q I think in our comparison with some of the i information that you provide and also some of the information from staff, I am sure that we will be able to draw some comparisons between what we are doing here in Pennsylvania,. v l _e. F_s .1L-B- total deregulation and where we can go in between. I think at some point we will begin to look at and assess. Maybe we are regulating too far or too much. Maybe we should not be regulating at all. Maybe we should be somewhere in between. I think that is something that this Committee must weigh and look at. A I think if I would have one statement, it would be that, the question was asked me by one of the representatives and I don't remember which one, your organization is top flight. How do we regulate smaller people who are coming in? I guess what I have to say to that is, and I addressed it briefly, I think the marketplace does some regulating. But also in those, we now promote in 40 some states, there are also other promoters who promote around the country. Even if they are regionals or whatever, the statistics, no injuries, no deaths, et cetera, et cetera, no crowd control problems, persist around the country even in those states which are not regulated. Maybe attention isn't paid to detail like we give in a lot of areas, but I think the suggestion that our crowds might be incite to riot or that they could get totally out of hand were it not for regulating, one regulating official being there I think is absurd. That certainly is not the case and it doesn't happen in other wrestling performances either. Any more so than it would in any instance where there aren't proper police or security people there regulating. Things i might get out of hand when there is a crowd. REPRESENTATIVE LINTON: to I am more fearful of going a Philadelphia Flyers game or a Boston Garden Celtic-Lakers game than I probably would be at a Wrestlemania Three, I would thinjk. No further comments, Mr. Chairman. CHAIRMAN OLIVER: Representative Miller. REPRESENTATIVE MILLER: Thank you for a brief question, Mr. Chairman. BY REPRESENTATIVE MILLER: Q Ma'am, when you bring your show to Pennsylvania and you have your block of employees, are you covered, either your wrestlers or any of your staff, under Pennsylvania Workmens.' Compensation law? A for us. Q Our wrestlers are independent contractors working Certainly all of our staff are. One quick question on the referee. I have observed a number of your productions on television and I have visited them personally. From watching them on television, many times, frankly, I am amazed at the choreography and the skills of the wrestlers in the ring, their act, so to speak. It is well coordinated. They do some fantastic maneuvers with their body and avoid injury. In part of your planning of / the event and the practice of the wrestlers prior to it, in their training, is part of their training having a company, so to speak, referee as part of that match to assist with it and in that regard if we put a referee in cold who is not familiar with the abilities and the tricks or maneuvers that your wrestlers do, could that be a detriment to their safety in the ring? Is there any argument with having your third person, so to speak, to guarantee your act is able to come off without undue injury to the participants? A First of all, let me correct one thing you said in the beginning. Our talents do not rehearse or practice. These are very trained athletes. They don't practice for an event at the Philadelphia Spectrum. what they do. There is a spontaneity to That is attributable to their fantastic condition that they are in. There are certain moves, there are certain holds, there are certain practices. But the top stars are the ones who are the best at their performance and the charisma that they create with the crowd. Certainly our trained referees move into any of those situations. It is just a question of if a football referee is on the field, and he has been doing it for many years, he knows if a play is moving to the right, he best be at a position for that charge that is coming at him. It becomes, too, a sixth sense with the referees that we have in our organization. It becomes a skill and it is a skill that is gained though many years of experience in doing it. It can be detrimental to both the wrestlers and the referee himself if he is not skilled in what he is doing. There are Commission referees who have been appointed to our events for many years and they have developed that same skill. We haven't had a problem working with them. We object to the fact that they are assigned and we have to pay for an official that is not necessary to what we do. REPRESENTATIVE MILLER: CHAIRMAN OLIVER: Thank you. Representative Schuler. REPRESENTATIVE SCHULER: Thank you, Mr. Chairman. BY REPRESENTATIVE SCHULER: Q Mrs. McMahon, you just started to touch on what I wanted to get to here. I'm trying to draw a comparison between a professional boxer and a professional wrestler. to talk about training. You started As far as professional wrestlers goes, there is no training as such other than what he comes with on his'. own or she? A Oh, no, there is training. There is training. Don't misunderstand. They physically work out. Q Lift weights? A They lift weights, they run, they jog, whatever kind of aerobic program they want to be on because our performers are the best trained athletes in the world. There is no season to what they do. They do it year-round so they must be in peak physical condition. There are training areas where they can go and have preliminary wrestling matches where they are taught basic holds. All those kinds of things, yes, they are trained. . My comment earlier was that our matches are not rehearsed. Q I didn't mean to say that they don't train. I was more referring to, you know, holds, how to fall properly, whatever. A Certainly. Q How do you go about recruiting, these individuals? What is the procedure that is used? Do they have a manager that you go to and make arrangements? A No. Quite often our talents are college athletes. We have observed different professionals, athletes in other sports. We have talked to them. Maybe they weren't first-stringers or whatever but primarily by and large we are in a comfortable position right now that we can't use all of the talents who are applying to the World Wrestling Federation. Actually now we require that they send in a video tape, still shots of themselves, a resume, wrestling experience if they have any, photos in different poses of what they do, et cetera. Why they want to be a professional wrestler. We council them and talk to them about what a commitment it is as a vocation to come in. a tryout. And after several of those sessions, we give them They would go to a training facility or whatever to see If they have the potential to develop the skill. If they do, we use them in different preliminary matches. Certainly not On our televised bouts and certainly not in the Philadelphia Spectrum. We use them in the preliminary matches to develop their skill and watch their development. Q They apply then to your organization for a position? A Yes. Q And then you sort of somewhat put them on the stage to see what you can do? A Certainly it is like giving a typing test to a potential secretarial candidate. If she doesn't have the skills, you don't need to go any farther. Q It is like an audition? A To a degree. I think more than that it is qualification rather than an audition to qualify. Q While you're seeing if they have the qualifications to do what you prefer them to do? A Yes. Q Do any of these professional wrestlers have managers? Are they their own managers? A They are their own managers. Q They do their own negotiating with your company? A Yes. Some of them are certainly represented by counsel, but insofar as having a manager, no, we haven't dealt with managers before. I night add that our talents, even on the lower to middle part area In the World Wrestling Federation, a relative newcomer who has proven himself and really starting to come along can make in the vicinity of $100,000 a year. Q Now, you say $100,000 a year, do they sign a contract for commission or event basis? A They are paid on a per event, basis. Q A flat fee? A No, it is usually on a percentage basis. Q Of the gate? A Yes. Q Now, you mentioned also about injuries. Is the wrestler responsible for injuries that occur in the ring? A To his own body, yes. Q In other words, if he breaks a leg? A Technically he is, by virtue of the fact he is a private contractor, responsible for maintaining his own medical,health and liability coverage. In fact, we point them in the direction of those people to talk to to help them be sure that they are covered. While it is not written into our contract, we certainly have an investment.in these talents. But above and beyond that we care about these individuals. We haven't had an instance where someone was hurt where we didn't at least help them take care of the situation. We have had. instances, unfortunately, where some of our athletes have been in automobile accidents or those kinds of things. We have actually had wrestling benefits and donated part of the proceeds of the show to his family or whatever. So, we have a very caring arrangement for our talents who are with us. Even though we certainly treat them as independent contractors and advise them to have their own medical coverage. Q One more area, I mentioned to the Commissioner in earlier testimony that would he recommend special rules and regulations be set up for professional wrestling. Since the present rules are not being followed or being enforced, should professional wrestling have its own set of rules? Now, let's assume we go that route. I'm not saying that we are. What would be your suggestion? What are some of the things you think would be acceptable to the professional wrestling organization such as in the state of Pennsylvania? What type of Regulations would you be satisfied? A I really have to say I don't see the need for any of those regulations. I really don't see the need for any. I think if the process continues whereby there is some regulations, it gives room for it to grow in the future and the State Athletic Commission certainly has within its purview to adopt regulations that are not statute and to make changes in those regulations. Regulations concerning some of the things that are outdated, not in force now "could actually have been changed. by the Athletic Commission as it exists now. I think if it is allowed to continue to regulate, there is always that open door for implementing policies that 5~years_from_now I_could.be. savin£_thle very same thing. Q These regulations don't apply. Maybe 1 was wrong. I thought at the very beginning of your testimony, I probably am wrong, I thought you said you felt we should have some regulations. A X think there are regulations that are necessary in terms of public safety and they are already in effect by the police departments and municipalities, et cetera, i' et cetera. REPRESENTATIVE SCHULER: Thank you. Thank you, Mr. !Chairman. CHAIRMAN OLIVER: Representative Hughes. REPRESENTATIVE HUGHES: Thank you, Mr. Chairman. i BY REPRESENTATIVE HUGHES: Q I will be the first to admit that when I was young i I used to go to the Philadelphia Arena and go to the wrestling matches — A Have you stopped going? Q I kind of had to grow up and become a politician. (Laughter.) A You're in the biggest arena of all. Q I won't argue with that. One question, you mentioned something about their never being any serious injuries during the course of the matches. Maybe this was part of the, this was part of the performance, but I do remember Bruno Sanmartino breaking his neck or something like that several years ago, A Is that true or is it not? He had a prior injury. It was aggravated in the ring, yes. Q Most of my concerns directed the wrestlers themselves and what provisions your organization makes for them in taking care of them, personal health and safety and welfare. Do you make any provisions for wrestlers for when they retire out of the performance, out of the business? A No. Q Do you ever try to look after them? A Not in terms of financially doing that. What we do is help counsel them in terms of financial planners that they should talk to. The money that they are earning, if it is taken care of properly and put aside in proper retirement accounts, will . provide for their future if they are smart business people. We do counsel them and offer any assistance that we can to help them do that. We will set them up with our. own accounting firm and we will recommend people for them to talk to. But it is something they must do on their own. But recognizing that is one of the reasons why we do pay the fees for their_seryices_.aboye_and_be.vond_.I be 11 eye.' what any of these people_could_ earn_In any other endeavor. ; That is not necessarily fair for me to say. There is some instances where I doubt that they could. We are happy i to " pa_ y f e e s ' for their services that will allow them to have, a very comfortable life, and if they are prudent, to set aside some money to take care of their own needs in the future. Q The average annual salary for one of your wrestlers is about how much? A 75, to $100,000. Q And their career expectancy is, how long would that be? A That really depends on the performer himself. It depends on how good he is. How he continues to develop. What we tell a performer when he starts to work for us is the clock is ticking on your career. Therefore, you should be the best that you can be. You should make these provisions for yourself because no one can continue indefinitely. injury. There is a risk of So, you should make those kind of provisions for yourself. I mean, we did have Bob Marello wrestle forever. He finally said he wasn't going to wrestle anymore after 1980. But Bruno Sanmartino was champion for 12 years. You know, there is longevity given the proper everything,, the whole mix. Q Do you internally, not based on any state requirements, do you do any internal testing of your wrestlers with an annual physical checkup, monthly checkups? Do.you require tests for substance abuse, anything along that line? A We do require annual physical examinations and that is something that is relatively new as part of our requirement the past couple of years. Substance abuse tests are given randomly and our talents are informed when they come to work at World Wrestling Federation that they will be subjected to random substance abuse testing. Q Do you discuss with your wrestlers, this gets into the area of referees, you provide your own referees in some states and in other states you have' to use theirs like in the Commonwealth of Pennsylvania. Are the outcome of your matches discussed beforehand with the wrestlers and with the referees? i A In instances, yes. Q In instances? A Not precisely how or what, but yes. Q How does that impact, for example, if you are in the state of Pennsylvania where you have to use the state's i • referees? A The s t a t e ' s referees have always endeavored to go along with any program that we would present. REPRESENTATIVE HUGHES: That is all. Thank you. CHAIRMAN OLIVER: Hra. McMahon, I want to thank you very much for appearing and testifying before this Committee. MRS. MCMAHON: Thank you very much for having me. CHAIRMAN OLIVER: The next person to testify is Mr. Robbins for Mr. Michael Smith who is the Chairman. Of the Middle Atlantic Amateur Union.. . i i i l MR, ROBBINS: Mr. Chairman, I would like to thank you and your Committee. Before we get started, also, I have been working on this for two years. I want to thank your staff for the help they have given me which has been exceptional. I appreciate that and, of course, the other people that have been; involved. I did want to mention that although I wasn't part of the Boxing Commission, I did attend all those hearings because I thought it was important. Now, .Mike Smith, who is the Chairman of the Middle Atlantic, well, he is the National Chairman of the Junior Olympic AAU wrestling program today. We are not going to go through our prepared talk that we put down because I know the > limitations on your time. I want to give a general overview of the role of amateur wrestling in Pennsylvania to show you the magnitude of what has been going o.n for the last 20 years. And,' of course, the role of the Pennsylvania Athletic Commission has,.or has not played in this event. So, beginning on that, I have put together a package of material, Mike and I have. We have included the credentials of both of us from the wrestling world, the amateur wrestling world, because I think that is very important to let you know that Mike and I have been involved in both of the major national organizations that have been involved in amateur wrestling. Mike, since 1960. I got involved when I came back to Pennsylvania in 1973. Both of us have been either chairman or president of the state organizations. So, then you can look at the rest of it. The one statement I wanted to make from the prepared statement is that I agree with the Legislative Budget and Finance Committee recommendations that amateur wrestling should be removed from the jurisdiction of the State Athletic Commission. And as I heard this morning and have been informed before, this is a recommendation that the State Athletic Commission agrees. I think to go on, we will then go on to some of the papers that we have provided, to give you a rundown of the history. I had a staff person, when I got involved a couple years ago, do a legislative research to s e e what the intent was back in the '50's when the Pennsylvania Athletic Commission was formed. Basically found there was no mention of amateur wrestling when the law was put together. I think mainly at that time there was an emphasis on boxing. There was also an emphasis on professional wrestling and amateur wrestling got carried along with it for two reasons. One is because.you are also talking about the amateur boxing. And secondly, in the mid '50's there was really not very much amateur wrestling activity going on in Pennsylvania outside of the scholastic system, the PIAA, or the collegiate system. The growth of . amateur wrestling in Pennsylvania started basically in the middle of the 1960's and has expanded tremendously since that time. You might say why didn't the Pennsylvania Athletic Commission get involved? aware. Well, very simply, they were not I think as I have looked back in the past, most of the people involved have been boxing people that were interested in the Pennsylvania Athletic Commission and they really did not become aware of the growth of amateur wrestling. And because there were no major problems health-wise or otherwise with the amateur wrestling.world, there was no public outcry or any message coming back to the Athletic Commission or the state legislature that something needed to be done. The first thing I included was a newspaper article. When you say, well, how did I get involved or find out that the Pennsylvania Athletic Commission controlled or had regulatory control over amateur wrestling? Mike and I both, and Mike has run approximately ten to 12 what we would call cultural exchanges with the Soviet Union, with the Polish National Team and with other countries that would come in, we put on amateur wrestling events. Mike had one in 1985 which had the Soviet National Team come in and wrestle some of our best collegiate and open talent in the country at the Farm Show Arena, and that was the first time that we found out the Pennsylvania Athletic Commission had control of amateur wrestling and we had been running these kind of events, at. least the two of us, for better than ten years. Up till that point, that was the first time that we ever had any intent or knowledge. I think the major reason, Mike trying to promote the sport put together a package that included a ticket of $100, two-night stay at the Penn Harris, three or four meals, a couple dinner dances with the Russians, et cetera, with that whole package, and the Athletic Commission saw that ad or one of the deputies and then we started to find out about the five percent gross tax, et cetera. From that point, and this article is nothing but the Harrisburg paper picked up on that fact and some of that summer, some of the summer tournaments that they went into and closed down or didn't allow to occur. That's how we got started. The next thing I added, I had LORL do a study to find out how amateur wrestling, professional wrestling, boxing is regulated in the country. Basically they came back to me and this was a study, again, they did in 1985. I didn't see the need right now to update it, but it can be done. But basically found out that there is no state regulation of amateur wrestling. Like the other amateur sports, baseball, football, track and field, soccer, whatever, there are control gymnastics or controlled through the participants, the parents, the.coaches, the volunteers and really come under the rules that are established by the PIAA or the national governing body of that sport. The terminology was used the marketplace by the lady that testified before,and the truth is in all of those activities, the marketplace controls the activity. Because if there was harm in that occurring to the sports, believe me, we all would hear about it. The next thing I provided, and I think this is most important right now for you to get a concept of the scope of amateur wrestling in Pennsylvania outside of the school systems. Most people are not aware, and I included a breakdown of some of the amateur wrestling activities that are going on just this year, this spring and will occur through the months of June and July. I would like to go down and review that with you. The Pennsylvania Wrestling Federation of which I was the president and the coach of their state team for eight years. This year, last year they had approximately 2600 members, dues paying members. 1987 will approximate that plus they also have 20 chartered clubs. They have a U. S. Kids program, five age groups of which is eight and under, nine and ten, 11 and 12, 13 and 14, 15 and 16. They have ten qualifying tournaments, two district tournaments and held one state tournament in Pennsylvania. Also, we had a U. S. Kids Regional Tournament which was held in Bloomsburg, May 15 through 17. This includes several of the states of the northeastern part of the United States. had 750 to 800 participants. That tournament alone Under eight group was not included in the regional tournament, the U. S. A. Wrestling, which is the national governing body of amateur wrestling right now, does not allow the younger age groups to progress past that point. There were a total of 14 kids tournaments held in Pennsylvania with well over 3500 competitors in those events. The United States Wrestling Federation Junior Tournament, which is four age groups, and there was Intermediate class which is 13 and 14, a Cadet class which 15 and 16, a Junior classification which is the ninth through twelfth grade. Now, you can see there is some overlapping. They can really wrestle in two different events and many times they do. It depends on what their age bracket is, and, of course, the open classification. In that area, the Pennsylvania Federation had 17 qualifying tournaments, all of them using Freestyle rules, five Greco Roman Tournaments, again, using U. S. A. Wrestling rules and the Pennsylvania Federation Greco-Roman State Tournament held at Lock Haven State University and also had in Pennsylvania or will have a Pennsylvania Federation Freestyle State Tournament, also held at Lock Haven. This is a total of 24 tournaments with well over 2300 competitors. Another event that occurs with the Pennsylvania Federation is we take the top three place winners in the Freestyle and the winner in the Greco Roman to a camp for one week in the summer and they go to a national tournament in Iowa. In other words, they compete with all the other competitors from every state in the United States and this has occurred every year since 1971 when it was started to be organized. Since about 1974, we have taken approximately 60 to 80 of the best high school wrestlers in Pennsylvania to this tournament. U. S. A. Wrestling, Freestyle Juniors, that is another category which is the ninth through twelfth grade. Then Espoirs which is 17 through 20 years old that was held April 24th and 25th at East Stroudsburg University. There were 300 plus competitors in that. Other events held in Pennsylvania that would fall under the control of the Pennsylvania Athletic Commission include the Wrestling Classic which is held every year at the University of Pittsburgh. the United States, team. Pennsylvania All Stars team versus Also includes a match with the WPIAL All Stars versus New England. Wrestling Challenge AAA versus AA at Lock Haven University and that is sponsored by the coaches association, high school coaches and a nonprofit organization. Also, we have the Keystone State Games which include Folk style and Freestyle. Folk style would fall under the PIAA and NCAA Rules and Freestyle under the USA Wrestling Rules or the International Rules. There are many wrestling clubs/booster clubs in Pennsylvania which indirectly support the local high schools or colleges. Many of these clubs hold wrestling tournaments. There are more than 200 of these types of tournaments. I really couldn't get a figure, but I know very well that it is two to 300 of these open tournament occur every year excluding the organized tournaments that are going on involving thousands of competitors. And this basically has been going on, it started in the '60's and been in these numbers since the early *70's. In this state, we also have All Star Tournaments such as the challenge and alumni matches, et cetera, et cetera. There are also organizations such as the YMCA, police leagues, et cetera, which either have wrestling teams or hold tournaments of their own. I have mentioned the cultural exchange meets held in Pennsylvania. I have personally hosted the Polish National Junior Team and also I had the Athletes In Action come in for an alumni match. Mike has hosted ten down here but I really believe it is 12 which have been held within Pennsylvania. An<3, of course, during that time, neither one of us was aware that amateur wrestling was controlled by the Pennsylvania Athletic Commission. We also have in the western part of the state an organization called Pennsylvania Junior Wrestling which includes most of the western part of the state from State College west, parts of West Virginia, Ohio, New York. They wrestle a tournament of age groups eight and under which advances only to an area tournament nine and ten, 11 and 12, 13 and 14. They use PIAA Rules which is Folk style. They had 35 Preliminary Tournaments, eight Area Tournaments and one All Area Tournament which is a total of 44 tournaments, again, thousands of competitors and matches. The Middle Atlantic Amateur Athletic Union, which Mike Smith is the chairman of, they held 20 wrestling tournaments . in Pennsylvania of which they use the PIAA Rules. I also added an attached sheet where Mike keeps track of the number of competitors in all these tournaments. As you go through, the tournaments range anywhere from 200 matches or 200 competitors to 400 and some competitors for a total of 6944 competitors in those 20 tournaments. He also holds five Freestyle qualifiers, one Middle Atlantic Championship which is held at Souderton High School and their league uses the AAU Freestyle Rules. He had more 2000 competitors participate in these six tournaments. I included then a sheet that shows the Keystone State Games, the weight classes, the age groups that they utilize in their four tournaments, and, of course, the state tournament they have. Then I think the thing that we are all concerned about and that is, of course, the health and welfare of the competitors. First, in dealing with most of our activities, the first and most concerned about it is the participant and the parents. In the amateur wrestling, we have a tremendous number of volunteers every year that get involved, and, of course, we are really concerned because very simply everything we own is on the line as you well know. I included a sheet here which is a rundown of the USA Wrestling Insurance. The United States Wrestling is the national governing body at this time through the Olympic Committee and we have our insurance through that group. As most of them are, it is an excess of coverage policy. $100 deductible, $100,000 maximum for medical or surgical expenses. Dental coverage: $500 after $100 deductible. Liability is one million per occurrence. And generally, medical coverage is for sanctioned competition, travel to and from, wrestling practice sessions dealing with a sanctioned team club or event or '.officials. Liability coverage provides first dollar defense for legal action initiated due to alleged negligence resulting in bodily injury, personal injury or property damage. Also, Mike included one there liability program, that is the AAU which is another national organization. Of course, up until a few years ago the AAU was the national governing body of wrestling. I then just quickly put a cultural exchange statement in there, and the reason I put that in there, as you look down the middle, the national policy, the first thing we are concerned with and we deal with Is first safety and well-being of participants. We then, of course, promote equal opportunity to participate educational and cultural experience and financial and administrative accountability. Then I put a paper in there just to show you illegal holds. All of our organizations have illegal holds for our younger aged kids and we have eliminated some of those wrestling holds, which again, allow the older wrestlers to use or which are considered a little but more dangerous, and really should not be used at a younger age. I :threw.uhat in as an example for your consideration to show you how we address that and the fact that we are aware it. The next thing I put in a list of four names of people who are directly involved with amateur wrestling, with the USA wrestling, the Keystone State Games and Pennsylvania Junior wrestling in Pennsylvania, and, of course, Mike, I didn't put his name and address there, but he is with the AAU national organization. Any information that he can get you that you might want, we can do that and we would be more than willing to. The last thing I included, that was an article which was in my local paper on June the 8th. It says local Freestyle wrestlers tuning up. Wrestling second season is about to begin its stretch drive for a number of Crawford County athletes who are i members of the French Creek Freestyle Club. I did that for a couple of reasons. One, again, one of the things I wanted to show you is the magnitude of what has been going on for the last 20 some years. out there in the community. It is accepted If you glance through that, you will see all the activites that these people have been participating in. Not only just in Pennsylvania, but throughout the entire country and will do so for the rest of the summer. I think with that, Mr. Chairman — CHAIRMAN OLIVER: I want to thank both you gentlemen for appearing before this Committee. Thank you very much. REPRESENTATIVE BATTISTO: .Can I make a comment? I don't want to ask any questions. very succinct. No questions. I just want to comment. I will be I have heard something about Bob Robbins today that I did not know he was involved in. He mentioned some places very familiar to me. I have been at those places with my son for about 12 years. I must say ( a ) , I don't see any reason why we should be regulating amateur wrestling. job themselves. It seems they do a hell of a Because I have been at Lock Haven and Cheltenham and all over the place. My son is involved in many they of these tournaments you are talking about and/do a fantastic job mainly with volunteers and I commend you for your work. MR. ROBBINS: Thank you very much. I would also like to offer my services. Mr. Chairman, I have been studying the Athletic Commission for two years and if your staff or anybody, in any way I can help, I am certainly available to assist. CHAIRMAN OLIVER: We certainly appreciate it. Representative Miller. REPRESENTATIVE MILLER: Yes, thank you. I asked the Chairman to indulge me for one quick question since we have the official House Court Reporter here for my colleague and caucus members. BY REPRESENTATIVE MILLER: Q some years. Mr. Robbins, it has been a matter of debate for I thought taking this opportunity of your testimony to ask one question, what weight class did you wrestle? A When I was in the service and I was the Army but I was stationed at the Army at Eglin Air Force, Florida. I'm getting around this. This is not a lie. Q We have some serious wagers on this answer. A I wrestled for Pensacola Wresting Team once, this was in 1969, against Troy State University and their heavyweight didn't show and I wrestled heavyweight. Q You got out of that one. REPRESENTATIVE MILLER: You got out of that one. Thank you, Mr. Chairman. CHAIRMAN OLIVER: The next scheduled person to give testimony will be Mr. Russell Peltz, boxing promoter. Mr; Peltz, I see you have prepared testimony. Please be as brief as possible because of the time element. MR. PELTZ: Mr. Chairman, my name is Russell Peltz. I have been promoting professional boxing matches in Pennsylvania since 1969. I am probably the leading boxing promoter in the state for the last 20 years. read through this. I'm not going to It is basically a history of professional boxing in Pennsyvania for the last 20 years. 90 percent of the shows I promoted were in Philadelphia. I did promote a couple more here in Harrisburg at the Zembo Mosque in 1985. I've been director of boxingf I was director of boxing at the Spectrum in Philadelphia for approximately eight years. In those years probably mid '70's, Philadelphia, along with Los Angeles and New York, were undoubtedly the three top boxing centers in the country. In the early 1980*s, with the advent t>f casino gambling in Atlantic City, we all moved to Atlantic City because financially there was no comparison between promoting in Atlantic City and promoting in Philadelphia. Just one quick example, Philadelphia, as I said, went from being one of the top three, went virtually out of existence in professional boxing in the early '80's. It is only slowly coming back now. When you promote a professional boxing match, you rent the hall, you hire the ushers, pay for the security, the box office, the tickets, the advertising and whatnot. You hope enough people will come. You will get enough money from television, if there is television, to cover your costs. With the sdvjexttof casino gambling and television, when the announcer gets on and says live from Resorts International, that attracted the casinos and what attracted the promoters was £he casino heads would say to us we'll pay you $50,000 to put your fight in Atlantic City in our hotel. You pay no rent, no advertising, no security, no ushers, nothing. We'll give you 30 free hotel rooms and feed all your people. You keep.all the revenue, we'll pay the taxes. That in a nutshell is what happened to boxing in Philadelphia in the early '80's. And along came 1985. By that time a lot of the cable systems that were televising fights got swallowed up by bigger ones, a lot went out of business. The medical requirements in New Jersey became such that only a few really elite promoters could handle it. Boxing went from a high of 153 boxing cards in Atlantic City in 1985 to 80 in 1986 and on the current e:v e%ria,^ge of probably no more than 60 boxing cards in Atlantic City in 1987. The end of my prepared statement basically talks about a rule book or lack of rule book in Pennsylvania. I was at the meeting in August 1978 when there was a revision of the boxing and wrestling rules In Pennsylvania. That rule book Is the one we are still operating under today and a call yesterday to the Philadelphia office told me that there is still no current up-to-date rule book in Pennsylvania. A lot of excuses because of clerical breakdowns, printing, whatever it is. We are still operating under an outdated rule book. One of the mentions in the report was 2043 concerning an on-site ambulance that is required. rule book. That is nowhere in the current I didn't know about that until I read it in your report. I was the promoter of the two fights mentioned in the report, one in March of '78 where a fighter got killed, died, as a result of a fight I promoted in Philadelphia and also the one in January of this year which the fighter is still semiconscious. site. It makes note that there was no ambulance on None of us even knew that an ambulance had to be on site in Pennsylvania. It is in the rule book in New Jersey. After the January fight, we ourselves contacted an ambulance company and now we have it on site but we never knew about it in the rule book. There are, as I mentioned, hear of things like the standing eight count in Pennsylvania. book. That is not in the rule It is in a separate two-page addendum that one of the referees mailed me because I openly criticized him at a recent show in Philadelphia for giving a fighter a standing t eight count, I went to the Commissioner. I said show it to me in the rule book where you can give a fighter a standing eight count in the rule book in Pennsylvania and they couldn't do it. It is only at a special seminar held in 1983 in which they passed some of these new rules. But none of them were ever passed down to people in the business. I would think that as the leading promoter in Pennsylvania, I at least should be aware of these things. There is no butt rul$ .in Pennsylvania. Two fighters accidentally clash. heads in the second round of a fight, one fighter bleeding profusely and the fight is stopped. According to Pennsylvania, regardless of who caused the butt, it was unintentional, the fighter who is not bleeding is the winner. In almost every other regulated state in the country, if the fight goes past three or four rounds, the fighter who is ahead on points wins it. If there is less than three rounds, then it is a technical draw. I listened to the testimony earlier of the pay scale, 68,000 in New York, 60,000 in New Jersey, 7500 in Pennsylvania. It is obvious that the New York and New Jersey jobs are full-time jobs staffed by full-time members of the Commission. It is full-time people., It is obvious when you are paying the Commissioners $7500 in Pennsylvania, it is at best a part-time job. the Philadelphia area. Mr. Binns is a successful attorney in There is no way he could survive on $7500 a year if that were in fact his only occupation. I am probably as well versed In professional boxing as anybody in the state and yet when the Sunset Committee did this report, it appears that not only I but none of the regulatees, the people who are directly affected by the rules and regulations of the Pennsylvania State Athletic Commission were interviewed or at least, according to the report, none of the boxers, none of the kids who make $150 for four rounds, $500,for six rounds. I don't see in the report any input from any of these people. These are the people that are most directly affected by the Athletic Commission. I think before any final decisions are made regarding the. future of the Athletic Commission, I'm sure we all agree that there should be a future, that these people should at least be randomly interviewed. I guess as far as the prepared statement, let me say one more thing concerning the Medical Advisory Board. In New York when a fighter applies for his license right there in the office he gets an EKG, EEG or whatever else. It costs him zero. He pays for his license and he gets those tests. In New Jersey, where the fighters have to get their own tests at their own expense, it can run up to $300. For a fighter making two or $300 tor a fight and oftentimes with a manager who is not financially able, it is cost prohibitive. There is only two major promoters right now operating out of Atlantic City and they can afford sometimes to pay for these tests. If there was an abundance of $100,000 in the boxing and wrestling budget in Pennsylvania in 1986, certainly I think a goodly portion of that should go to try to emulate the New York system. As far as if you are going to have EEGs and EKGs, try and have it supported by the state. As far as the computer, I run a two-man office. We have had a computer since 1983 on which approximately 3000 boxers are listed. Every boxer who has competed in New Jersey or Pennsylvania in the last three or four years is on my computer, his age, his social security number, his address, his manager's address, phone number, who he fought, when he fought and what he weighed. The computer may have cost us 14 or $15,000 to set up, but I think it certainly would fit within the budget of the state to provide at least one in the central office in Philadelphia. I only say that because 90 percent of the boxing activity in the state, 90 percent of the revenues generated from boxing in the state comes from Philadelphia. That is all I have to say. . CHAIRMAN OLIVER: Thank you, Mr. Peltz. Any questions from any of the members? Representative Linton. BY REPRESENTATIVE LINTON: Q Thank you, Mr. PeltE. Maybe we were remiss in not having testimony from the youngsters who participate in boxing and some of the promoters such as yourself. That's one of the reasons we have hearings such as we are having today and as much input as you would like to have, you have an opportunity to do so at this point. If there are any other points that you feel were not addressed in the report, we welcome your comments and anything that you may be able to provide this Committee to help us in our endeavors. You indicated in your prepared remarks, sir, you, too, the same as those in the wrestling profession must use announcers as provided by the Athletic Commission, is that correct? A Yes. Q You are prohibited from providing your own announcers? A Yes. The choice is up to the Athletic Commission which announcer we use out of the ones that are licensed. I don't really see where that should be a policy of the Athletic Commission. Q Do you think, now, I am looking at the decline in boxing in Pennsylvania. I saw somewhere there, what were the latest figures, 24 matches in a year? A Last year, 24 in the Philadelphia area. Q And we have had how many in New Jersey? A Last year was 80 in Atlantic City. comparing Atlantic City to Philadelphia. Q Just Atlantic City itself? A Yes. I was just Q You said 90 percent of the revenues, also about 90 percent of the bouts take place in the Philadelphia area in Pennsylvania? A Yes, I would say so. Q What would you contribute to the decline in boxing in Pennsylvania? A The advent of casino gambling in Atlantic City. The fact it just made it financially more acceptable for a promoter such as myself, from 1980 probably to 1984, I may have only promoted two fights in Philadelphia and that was only because I couldn't get the date in Atlantic City and had to come to Philadelphia. Q How many bouts would you say took place when, I'm talking about Philadelphia now and I guess we'll have to use that as our basis here, ten years ago? What would you say the number of bouts? A Well, I don't know it was that many more ten years ago. Probably JS or 20 fights were in Philadelphia, but in those days the fights that we promoted at the Spectrum drew between six and 8000 people. We are doing shows that grossed upwards 50 to $100,000 per month. Now the shows that I promote in an old dance hall in Philadelphia called the Blue Horizon, we are lucky to generate $10,000 in gross income. Q Stop calling my old dance hall the old dance hall. (Laughter.) It is interesting. I am just wondering how much work does our Athletic Commission have to do. I'm looking at the number of bouts we have just in the Philadelphia are. I am looking at their own regulations that they have not been following. I am looking at your comments about the rule book that has not been revised or published since '78. A August of '78 was the meeting. November of '78. I t was printed i n I t may have been revised recently but i t hasn't been published or distributed. Q Some of the testimony that we have heard today just raises a lot of questions about what we are doing and maybe we are doing some things we shouldn't be doing. There seems to be a whole lot of other areas that we are. definitely missing the boat in terms of what is going on in athletics in Pennsylvania. A I think the Commission is necessary if only to protect the safety, of the fighters. Q I'm not questioning the existence of the Commission. I would think that the members of this Committee would probably support continuation of the existence of the Commission. It seems to me that there are things that we are not doing that need to be done and there are other things that maybe we should look at, whether we should not have our hands in. A Since Mr. Walker moved from Philadelphia to Harrisburg not a single boxing passport has been issued out of the Philadelphia office. This is really the only safeguard the commissions have around the country. In other words, if a fighter comes into Philadelphia from Memphis, Tennessee, he's supposed to bring what they call a boxing passport. It will have the date, who that fighter fought on that date, the results and signed by the local commission. This is to prevent fighters from fighting under assumed names, fighting within the 30 day suspension time or knockout laws. All the fighters, all these new fighters who are coming in from out of town; even local Philadelphia based fighters, no one has been issued a new passport since Francis Walker left for Harrisburg. Q How long is that? A Maybe he has been gone eight months, nine months. I am not sure myself. REPRESENTATIVE LINTON: Thank you. No further questions, Mr. Chairman. CHAIRMAN OLIVER: Thank you, Representative Linton, and, Mr. Peltz, thank you so much for testifying before this Committee today. The next scheduled person to testify if Mr. Newton Tattrie, retired wrestler and coach. I also hope, sir, you will be brief as possible because of the time element. MR. TATTRIE: My name is not Minnie Pearl; but I am sure glad to be here. CHAIRMAN OLIVER: We are glad to have you. You may proceed. MR. TATTRIE: After you listen to what I have in this statement, you might be sorry you invited me here, but after listening to a half hour of Commissioner Binns, you should be tough enough to pray for the Chicago Bears. First of all, as a former amateur wrestler and boxer now involved in pro wrestling and having knowledge of them all with amateur wrestling being my first love, I feel that the termination of the part of the State Athletic Commission known as the Pro Wrestling Commission would be a benefit to the public health, safety, and welfare of the fans as well as the performers, bookers, and directors. This Commission is a dishonest body. The State Professional Wrestling Commission is a paradox or a misnomer. They,are saying, "We are an honest body, but we deal in dishonesty", or "We believe in absolutes but everything is relative", or "We would like to be hones»t, if possible, but we are dishonest when necessary." This cannot be allowed to continue only for the state to make money. I heard one of the Deputy Commissioner call the wrestlers "a bunch of whores". If that is so, then the Commission who makes money off the avails of this is known as a "pimp". Is the Pennsylvania State Government willing to take that title? » I am talking about the pro wrestling side of the Commission. On the boxing side, there is much gambling and I can understand why this would have to be controlled. In the sport of professional wrestling there is no gambling — that is the bottom line. In all my 30 years of being involved in professional wrestling I have never seen the Commission do any good for the safety or welfare of the wrestlers or the public. When there is a wrestling match either the promoter or the sponsor carry liability insurance for the protection of the public and themselves, similar to the rodeos, stock car races and the Ice Capades w tv,I c h I heard Mrs. McMahon make such a brilliant statement and I was so proud to be in the same room with her today. The Professional Wrestling Commission is a bad joke made up of political hacks and it has the approval of the state Governor. If you are going to insist upon maintaining this lie called the "State Wrestling Commission", at least hire people who know something about professional wrestling. The government spent a lot of money against me in the Commonwealth Court last year trying to protect this Commission. I have been fighting for many years the right of the government to control professional wrestling, an "entertainment sport". States like Ohio, North Carolina, South Carolina, West Virginia, Georgia, Florida, Minnesota, Texas, Montanna and the mid-western states either abolished the wrestling part of the commission or found it unnecessary to have such a thing. Vince McMahonis the biggest wrestling promoter in the world and a very decent, honest man. He is not unlike his father, a wrestling promoter before him, but he, in a much bigger way, is forced to work with this anathema around his neck; Thank you for your time. I can answer any of your questions concerning professional wrestling. CHAIRMAN OLIVER: Thank you very much for appearing before the Committee today and presenting your testimony. Are there any questions from any of the members? (No response.) CHAIRMAN OLIVER: There being no questions, that concludes our meeting. (Whereupon at 1:30 p.m. the hearing was adjourned.) i • I hereby certify that the proceedings and evidence taken by me in the within matter are fully and accurately indicated in my notes and that this is a true and currect transcript of same. DorothjvM. Ma lone Registered Professional Reporter 135 S. Landis Street Hummelstown, FA 17036 (The following letter from Larry Hazzard, Commissioner, State of New Jersey, Department of Law and Public Safety, State Atheletic Control Board is as follows: ) June 2, 1987 "The Honorable Frank L. Oliver The Pennsylvania House of Representatives Chairman - State Government Committee 1319 N. 29th Street Philadelphia, Penna. 19121 "Dear Chairman Oliver: "Responding to your May 20, 1987 letter directed to Acting Chief Administrative Officer Clive Crosbie of New Jersey's State Athletic Control Board, your invitation to testify at the June 11, 1987 Public Hearing in Harrisburg, Pennsylvania must be declined. "Your committee's Sunset Review of Pennsylvania's State Athletic Commission should play a significant role in the future of that body. With that responsibility in mind, our agency is hopeful the copies of New Jersey's laws, rules and documents provided previously will be beneficial to your Review. "It is unfortunate that your scheduled June 11, 1987 Public Hearing conflicts with New Jersey's preparations for the Gerry Cooney/Michael Spinks contest set for June 15, 1987 in Atlantic City. That major presentation, plus an extremely busy June schedule, will not allow us the opportunity to attend your Public Hearing. "Please accept my personal best wishes and those of our Board Members for productive testimony at your hearing. The Board requests that a copy of the June 11, 1987 hearing minutes be provided to this office. "Yours very truly, "Larry Hazzard Commissioner" (Prepared testimony of Hon. Joseph A. Lashinger, Jr.; was as follows:) "Mr. Chairman and fellow Members, thank you for :his opportunity to testify today regarding the Sunset Review of the State Athletic Commission. As you may know, it was my pleasure to serve as Republican Chairman of the House Special Commission on Boxing, which conducted an investigation last year into the health and safety of boxers in the Commonwealth. The insight which I gained into the State Athletic Commission during our investigation has prompted me to come before you today. "While some groups, such as the American Medical Association, urge a ban on boxing, it is my opinion that boxing can be an athletic art form, which also builds character in our young people. Of paramount concern to me is the health and safety of boxers who participate in matches in Pennsylvania, and I believe that the State Athletic Commission is the body which should provide the mechanisms for proper regulation of bouts, including the imposition of rigorous health and safety standards. "While I have been disillusioned by many aspects of the State Athletic Commission's performance over the past several years, I truly believe that this agency should be continued. However, I concur with the Sunset Performance Audit, conducted by the Legislative Budget and Finance Committee, which concludes that numerous changes must be made to the State Athletic Commission. While I will not take up the time of this Committee by reiterating all that was said in the sunset Performance Audit, I would like to make recommendations in several areas of special concern to me. "Initially, I think that the State Athletic Commission must develop comprehensive health and safety standards. This can only be done by reorganizing and activating the medical Advisory Board, which has been inactive since 1981. Although serious injuries and deaths in the ring are not the norm in Pennsylvania, they most certainly do occur. It should be the first priority of the State Athletic Commission to do everything humanly possible to protect the welfare of every person that steps into a ring. "I personally support mandatory drug testing as a specific component of pre-bout physical examinations, and I firmly believe that full computerization of all professional bout results in Pennsylvania is imperative. With computer- ization, the commission will be able to network with the national information bank and will be able to more efficiently screen boxers who are at potential risk to injury. Medical records and boxers' ring histories can quickly be accessed and potential disaster can hopefully be averted. In addition, the Commission must enforce provisions of the Athletic Code which call for: an EEG within 24 hours of a knockout, physical examinations within five days of a bout for all boxers, and the presence of an ambulance at the site of all professional and amateur boxing events. "Also, from a safety standpoint, regulations J.JJ should be considered by the Medical Advisory Board which would require the use of thumbless, leather, 16-ounce gloves^ for all professional bouts. According to Larry Holmes, a member of the House Special commission on Boxing, smaller gloves (12 oz. and 10 oz.) can cause greater damage to a fighter, as can gloves with plastic eyelets and seams. In addition, medical training seminars should be mandated for all ring personnel and commission employees, as required by the Athletic Code. "Safety and health guidelines are not the only area of concern for the State Athletic Commission. There are a number of procedural, administrative and enforcement matters which require immediate attention. First and foremost, I think that it is essential that the Commission's Chairman and the Executive Secretary of the Commission develop a working relationship. The lack of communication, and confusion about definition of responsibilities between these two people is causing irreparable harm to the very people placed in their charge. There must be a clear-cut job description for each position within the Commission, including: Commissioners, Deputy Commissioners, Executive Secretary and clerical staff. "The procedure for assigning ring officials and Deputy Commissioners must be put in writing and there must be a rotation of assignments among qualified officials and and deputies. We have a number of qualified officials here in Pennsylvania, and we should be using them, rather than bringing in officials from New York and New Jersey, In addition, there should be pre-employment tests for deputy commissioners, to insure that they possess the skills and knowledge necessary to perform their jobs, and licensing requirements for all positions (promoters, trainers, seconds, managers, referees, judges, announcers, matchmakers, physicians, timekeepers, booking agents, professional wrestlers, and professional boxers) licensed by the Commission should be reviewed and strengthened where necessary. "Fiscally, the Commission appears to be very sound, considering that revenues have exceeded expenses for the past several years. However, collection of fees and payment of ringside officials often do not adhere to state guidelines, and it is my recommendation that the Athletic Commission be required to develop specific regulations, within 60 days, regarding these matters. There is no excuse for not transferring state fees to the proper account immediately, and there must be proper accounting controls for the disbursement of funds to Commission officials. "Having the Commission oversee amateur wrestling is, in my opinion, unnecessary. The commission does not have jurisdiction over amateur wrestling conducted by schools and colleges, and I see no reason for even nominal jurisdiction over other amateur wrestling programs, which are usually promoted by parents groups and "booster clubs." The rules' of the PIAA/NCAA are already used by these organizations and to effectively regulate all of these local groups is beyond the scope of the Commission. As Dick Dario, of the Legislative Budget and Finance Committee said, "it's like trying to place state regulation on little league i football." "As far as professional wrestling is concerned, I think that the Commission should update its regulations to reflect the actual nature of professional wrestling. We all know that professional wrestling is a "show" and that professional wrestling "contests" are virtually non-existent. Therefore, we should eliminate the pretense of having virtually the same rules for professional wrestling that we employ for professional boxing, and concentrate on enforcing rules which protect the consumer and the safety of all those attending matches, including the wrestlers. I believe that continued licensing of promoters, wrestlers, and referees is necessary and promoters should be held accountable for the filing and payment of wrestler license fees and the 5% additional license fee on gross receipts. "In order to insure greater accountability on the part of the Commission, it is my recommendation that at least one public member be appointed to serve on the Commisison, in addition to one or more Members of the House and Senate, as appointed by the Speaker of the House and the President Pro-tern of the Senate. A public member on the Commission would be in line with the guidelines of the Sunset Review Act which call for public participation in the agency's rule-making and decision-making processes. Having a Member (s) of the General Assembly serve on the Commission would, I believe, provide for even greater accountability to the public. "Finally, I wholeheartedly, support a name change for the State Athletic Commission. Since the Commission regulates only boxing and wrestling (and not all "athletic" events), it seems reasonable to follow the lead of other states, such as New York and New Jersey, in renaming our agency. I would recommend "Pennsylvania Commission on Boxing and Wrestling" for your consideration. "I have only touched on several issues that I think are of particular significance to this Sunset Review, however, I urge you to examine closely all facets of the Commission before issuing your recommendations to the General Assembly. The Commission is most definitely in need of reform and reorganization and it is my hope that meaningful changes can be brought about by the recommendations of this Committee. The future of boxing and wrestling in Pennsylvania can be favorably influenced by the actions of this committee and I am looking forward to your recommendations. I appreciate your time and I thank you for your consideration. If you have any questions, please feel free to contact me."