1. Foreign Investment in Sports Teams in the United States Robert J. Caldwell, Esq. Kolesar & Leatham 400 South Rampart Boulevard, Suite 400 Las Vegas, Nevada 89145 – United States of America +1 (702) 362-7800 RCaldwell@KLNevada.com

2. Major Professional Leagues (Listed by Average Attendance per Game)  National Football League (68,397)  Major League Baseball (30,504)  Major League Soccer (19,149)  National Hockey League (17,721)  National Basketball Association (17,407)

3. Noteworthy Foreign Investors  Jacksonville Jaguars (NFL): Shahid Khan (Pakistan)  Seattle Mariners (MLB): Nintendo (Japan)  New York Islanders (NHL): Charles Wang (China)  San Jose Sharks (NHL): Hasso Plattner (Germany)  Brooklyn Nets (NBA): Mikhail Prokhorov (Russia)  Sacramento Kings (NBA): Vivek Ranadive (India)  D.C. United (MLS): Erick Thohir (Indonesia)  Orlando City F.C. (MLS): Flavio Augusto da Silva (Brazil)  New York City F.C. (MLS): Joint venture between Manchester City (Sheikh Mansour/UAE) and New York Yankees  Miami (MLS/Pending): David Beckham (England)

4. Foreign Investment in the US Alexander Hamilton wrote (1791): “It is not impossible that there may be persons disposed to look with a jealous eye on the introduction of foreign capital, as if it were an instrument to deprive our own citizens of the profits of our own industry; but, perhaps, there could never be a more unreasonable jealousy. Instead of being viewed as a rival, it ought to be considered as a most valuable auxiliary, conducing to put in motion a greater quantity of productive labor, and a greater portion of useful enterprise, than could exist without it.” “It is not impossible that there may be persons disposed to look with a jealous eye on the introduction of foreign capital, as if it were an instrument to deprive our own citizens of the profits of our own industry; but, perhaps, there could never be a more unreasonable jealousy. Instead of being viewed as a rival, it ought to be considered as a most valuable auxiliary, conducing to put in motion a greater quantity of productive labor, and a greater portion of useful enterprise, than could exist without it.”

5. Restricted Businesses  Shipping  Aircraft  Mining  Energy  Communications  Banking  Government Contracting  National Security The Committee on Foreign Investment in the United States (CFIUS) may review when foreign control would result when it might affect national security. The Committee on Foreign Investment in the United States (CFIUS) may review when foreign control would result when it might affect national security.

6. Major League Soccer  Started in 1996 with 10 teams  Part of bid to host 1994 FIFA World Cup  Single-entity structure  League investors operate all teams  League holds all contracts  Single table, no promotion/relegation  Lower: NASL, USL Pro (Reserve Teams)

7. Major League Soccer  League winner: Supporters’ Shield  Playoffs: MLS Cup  Cup: US Open Cup (includes amateurs)  2015-2016: 20 teams in 2 divisions  36 games/”unbalanced schedule”  2017: 2 additional teams (LA2, Atlanta)  League expects 24 teams by 2020

9. Major League Soccer  Salary cap: $3.1 million per team/season  $387,500/season for any player  3 “designated player” slots  Average: $226,000 (median $92,000)  Minimum: $48,500 ($36,500 <25 years)  Nearly 1/3 to top 7 players: Kaka ($7.1m), Dempsey ($6.7m), Bradley ($6.5m), Dafoe ($6.1m), Donovan ($4.5m), Keane ($4.5m), Henry ($4.3m)

10. Fraser v. Major League Soccer 284 F.3d 47 (1st Cir. 2002)  Antitrust lawsuit filed by 8 players  Not a monopoly because MLS competes with other leagues in the US and around the world  “MLS and its operator/investors compromise a hybrid arrangement, somewhere between a single company [and] a cooperative arrangement between existing competitors.”  The “creation of MLS did not reduce competition in an existing market” because there was no existing top-tier professional league in the US when MLS was formed.