MEMORANDUM ORDER
Pending before the court is the motion by defendants National Football League and its member clubs (the “NFL”), including Pittsburgh Steelers Sports, Inc. (the “Steelers”) and Philadelphia Eagles Limited Partnership (the “Eagles”) (collectively referred to as “defendants”), to dismiss the complaint of plaintiff Robert C. Warnock (“plaintiff’ or ‘Warnock”) for lack of standing (Doc. No. 5). Plaintiff in his complaint alleges that defendants violated the Sherman Antitrust Act, 15 U.S.C. §§ 1-2, and the Clayton Act, 15 U.S.C. § 15, by acting in concert to force NFL host cities and counties to build new football stadiums — including Pittsburgh’s Heinz Field, home of the Steelers — and lease the stadiums to NFL clubs under favorable lease terms. Plaintiff alleges in particular that “by limiting the number and barring public ownership of NFL franchises, defendants forced Allegheny County to pay ... far more to build Heinz Field and to agree to more onerous lease terms to keep the Steelers in Pittsburgh than a marketplace free of these restraints would have demanded.” PL’s Compl. ¶ 64. Defendants argue in their motion to dismiss that plaintiff, a municipal taxpayer purporting to sue “[o]n behalf of Allegheny County,” lacks standing to assert his antitrust claims. The court agrees with defendants and will dismiss plaintiffs suit for lack of standing for the reasons set forth below.
Facts Accepted As True For Purposes of Deciding the Motion
In deciding defendants’ motion to dismiss for lack of standing, the merits of plaintiffs substantive claims are not at issue.
Warth v. Seldin,
Plaintiff alleges that the NFL and its member teams have created a system in which demand for NFL franchises remains higher than the number of regions actually awarded franchises.
Id.
¶ 8. In effect, plaintiff argues that the system created by the NFL is one of “franchise free agency.”
Id.
Plaintiff contends that the NFL and its member teams exploit this system in order to apply leverage to the cities, regions and
The crux of plaintiffs claims are as follows:
The citizens of Allegheny County were willing to build a new stadium for the Pittsburgh Steelers and agree to lease terms that allowed the franchise to field a competitive team while remaining profitable. Allegheny County residents never intended, however, to spend tax dollars merely to increase the Steelers’ profits or to increase the franchise value. Yet, the cumulative effect of the NFL’s antitrust violations forced Allegheny County to pay money far more [sic] to build Heinz Field and to agree to more onerous lease terms to keep the Steelers in Pittsburgh than a marketplace free of these trade restraints would have demanded. Execution of the lease required consent by the National Football League.
Id. ¶ 64. According to plaintiff, the Steel-ers’ lease terms provide that the team does not pay an annual base rent, that the team receives nearly all of the new revenue from Heinz Field, and that the Sports & Exhibition Authority of the City of Pittsburgh and Allegheny County (the “Sports & Exhibition Authority”) will be responsible for capital repairs and future expenditures at Heinz Field. Id. ¶¶ 57-60.
With respect to defendants’ alleged antitrust violations, plaintiff requests the court to award the following relief: (1) declare that the Heinz Field Stadium lease is voidable at Allegheny County’s discretion; (2) grant compensatory and punitive damages to Allegheny County in excess of $200 million dollars against the NFL and its member teams, trebling such damages if the court finds that defendants violated the Sherman Antitrust Act and the Clayton Act; (3) order plaintiff attorney fees and litigation costs; and (4) order other relief as the court deems just. Id.
Defendants filed their motion to dismiss arguing that plaintiff lacks standing to pursue his claims. Defendants contend that plaintiff cannot satisfy the constitutional requirements of standing encompassed in Article III of the United States Constitution solely on the basis that he is a municipal taxpayer. Defendants further assert that even if plaintiff alleged sufficient evidence to satisfy Article III standing requirements, plaintiff would be barred from pursuing his claims based upon prudential limitations to standing because plaintiffs claims amount to (1) a generalized grievance shared by all Allegheny County taxpayers and/or (2) an attempt to assert the legal rights of a third party. The parties requested oral argument, and a hearing on defendant’s motion to dismiss was held on October 8, 2004. At that time, plaintiff filed with the court letters from Allegheny County and the Sports & Exhibition Authority which stated that neither entity wanted to join plaintiff’s suit against defendants. See Doe. No. 15.
Standard of Review
A motion to dismiss tests the legal sufficiency of the complaint.
Kost v. Kozakiewicz,
When a motion to dismiss is brought on the basis that a party lacks standing, that party bears the burden of proving the requisite standing to pursue his or her claim.
ACLU-NJ v. Township of Wall,
Analysis
I. Standing Generally
The doctrine of standing “asks whether a litigant is entitled to have a federal court resolve his [or her] grievance.”
Kowalski v. Tesmer,
543 U.S. -,
In addition to the constitutional requirements for standing, federal courts also place prudential limitations on the right of a party to maintain an action. These prudential limitations have been referred to as “matters of judicial self-governance” that are necessary to prevent the courts from deciding abstract questions where other government institutions might be more competent and where “judicial intervention may be unnecessary to protect individual rights.”
Warth,
422 U.S. at
(1) a litigant assert his [or her] own legal interests rather than those of third parties, (2) courts refrain from adjudicating abstract questions of wide public significance which amount to generalized grievances, and (3) a litigant demonstrate that her interests are arguably within the zone of interests intended to be protected by the statute, rule or constitutional provision on which the claim is based.
Id. (quoting Davis by Davis v. Philadelphia Housing Authority,
II. Municipal Taxpayer Standing
A. In General
One way in which litigants have attempted to achieve standing in federal court is through their status as municipal taxpayers. If standing is “one of the most amorphous [concepts] in the entire domain of the public law,”
Flast v. Cohen,
The court in dicta, however, recognized “the rule” that “resident taxpayers may sue to
enjoin
an illegal use of the moneys of a municipal corporation.”
Id.
at 486,
The interest of a taxpayer of a municipality in the application of its moneys is direct and immediate and the remedy by injunction to prevent their misuse is not inappropriate. It is upheld by a large number of state cases and is the rule of this court. Nevertheless, there are decisions to the contrary. The reasons which support the extension of the equitable remedy to a single taxpayer in such cases are based upon the peculiar relation of the corporate taxpayer to the corporation, which is not without some resemblance to that subsisting between stockholder and private corporation.
Id.
at 486-87,
His interest in the moneys of the treasury — partly realized from taxation and partly from other sources — is shared with millions of others, is comparatively minute and indeterminable, and the effect upon future taxation, of any payment out of the funds, so remote, fluctuating and uncertain, that no basis is afforded for an appeal to the preventive powers of a court of equity.
Id. (emphasis added).
The Court in
Frothingham
cited an earlier decision,
Crampton v. Zabriskie,
Of the right of resident tax-payers to invoke the interposition of a court of equity to prevent an illegal disposition of the moneys of the county or the illegal creation of a debt which they in common with other property-holders of the county may otherwise be compelled to pay, there is at this day no serious question. The right has been recognized by the State courts in numerous cases; and from the nature of the powers exercised by municipal corporations, the great danger of their abuse and the necessity of prompt action to prevent irremediable injuries, it would seem eminently proper for courts of equity to interfere upon the application of the tax-payers of a county to prevent the consummation of a wrong, when the officers of those corporations assume, in excess of their powers, to create burdens upon property-holders.
Crampton,
Crampton
and
Frothingham
suggest at a minimum that a party may only assert municipal taxpayer standing if the party is (1) suing a governmental entity or representative; and (2) requesting equitable relief. Subsequent decisions have reaffirmed these dual requirements.
See Doremus v. Board of Education,
B. Article III Limitations and Prudential Considerations
It is unclear whether municipal taxpayer standing is governed by Article III considerations or prudential considerations. The Court in
Frothingham
commented on the fact that federal taxpayers did not have a sufficient injury to bring suit, suggesting that the focus was on Article III limitations to standing. In
Flast v. Cohen,
The United States Court of Appeals for the Third Circuit views the determination of whether a municipal taxpayer has a sufficient stake in the proceedings to invoke the court’s jurisdiction as a prudential standing consideration.
Rocks v. City of Philadelphia,
On appeal, the court of appeals recognized the Article III right of the appellants to bring suit against the city to enjoin an allegedly unconstitutional governmental action.
Id.
at 648. The court of appeals,
III. Plaintiff Does Not Have Standing
Whether a litigant has standing “often turns on the nature and source of the claim asserted.”
Warth v. Seldin,
Under these factual circumstances, plaintiff is essentially bringing derivative claims on behalf of Allegheny County and the Sports & Exhibition Authority. Plaintiff does not allege he was injured in any way by Allegheny County or the Sports & Exhibition Authority. In fact, plaintiff alleges that he and the other taxpayers of Allegheny County were “willing to build a new football stadium” for the Steelers and “to agree to lease terms that allowed the franchise to field a competitive team while remaining profitable.” Id. ¶ 64. Plaintiff contends, however, that defendants’ actions “forced” Allegheny County to pay far more tax revenue than what the taxpayers, himself included, expected to contribute toward the Steelers becoming “a competitive team while remaining profitable.” Id. Thus, under the allegations in plaintiff’s complaint, Allegheny County and the Sports & Exhibition Authority are characterized as victims beholden to defendants in order to keep the Steelers in Pittsburgh. 4
The court, however, cannot find that plaintiffs injury is “fairly traceable to the conduct” of defendants.
Allen v. Wright,
If plaintiffs theory was accepted by this court, any municipal taxpayer could bring suit against any private entity that receives tax dollars from a local government by arguing that the entity violated federal law. Federal courts could be flooded with a litany of claims by municipal taxpayers seeking to sue private entities as long as the litigant could successfully allege a nexus between a violation of federal law and the entity’s receipt of municipal tax dollars. This outcome, however, would run anathema to the constitutional standing requirement that the injury alleged be “fairly traceable” to the actions of the defendants). In such cases, and in the present case where plaintiffs suit was brought to redress the allegedly improper distribution of local tax dollars to private entities, the missing link is that the litigant, while disputing the judgment of the local government entity, did not sue the local government entity that actually made the tax distribution. As a result, plaintiff cannot satisfy the causation prong because his alleged injury is not “fairly traceable” to the conduct of defendants, but rather “results from the independent action of some third party not before the court.’ ”
Allen,
Additionally, plaintiff failed to allege any connection with defendants beyond his status as a municipal taxpayer.
Rocks
suggests that plaintiff is required to establish more than an injury received “solely” on his status as a municipal taxpayer in order to overcome prudential standing limitations. Otherwise, according to the court of appeals, plaintiffs complaint amounts to a “generalized grievance” that may be “shared in substantially equal measure by all or a large class of citizens.” Here, plaintiff alleges no facts connecting him to defendants other than the fact that he is a taxpayer of Allegheny County. In fact, plaintiffs counsel reinforced during oral argument that plaintiffs only connection to the suit was that he is a municipal taxpayer.
See
Transcript of Proceedings on Oc
Plaintiffs final possible basis for standing is third party standing. The rule prohibiting litigants from asserting the rights of third parties is not absolute.
Kowalski,
543 U.S. at —,
Plaintiff failed to allege sufficient facts upon which this court can find that he has standing to pursue his claims. Plaintiff does not have standing under the constitutional standing requirements of Article III of the United States Constitution. Alternatively, plaintiff is unable to overcome prudential barriers to standing with respect to his claims. In football terms, plaintiff is like a spectator in the stands who is unable to challenge a disputed call by the referee because he does not hold the head coach’s red challenge flag. Accordingly, plaintiffs complaint will be dismissed for lack of standing.
Conclusion
AND NOW, this 9th day of February 2005, upon consideration of the motion by defendants National Football League and its member clubs (the “NFL”), including Pittsburgh Steelers Sports, Inc. (the “Steelers”), and Philadelphia Eagles Limited Partnership (the “Eagles”) (collectively referred to as “defendants”), to dismiss the complaint of plaintiff Robert C. War-nock (“plaintiff’ or “Warnock”) for lack of standing (Doc. No. 5), IT IS ORDERED that defendant’s motion is GRANTED. The clerk shall mark this case closed.
Notes
. Prudential barriers to standing may be abrogated by Congress.
Warth,
. Each time the Court in Frothingham discussed either federal taxpayer or municipal standing, the Court described the nature of relief as an equitable remedy against a government body or official. Plaintiff in the present case does not ask solely for equitable relief against Allegheny County. Indeed, no relief is sought against the municipal corporation. Rather, plaintiff requests a declaratory judgment that the stadium lease is voidable at the county's discretion, as well as for compensatory and punitive damages to be awarded to the county for defendants' purported antitrust violations. Plaintiff also requests, “other relief as the court deems just.” As noted, however, Allegheny County is not a defendant in this case. For further discussion, see part III of this opinion, infra.
. Defendants further suggest that municipal taxpayer standing is only available in situations where a party brings suit for a
constitutional violation.
The opinions cited by defendants appear to support this general proposition.
See, e.g., Rocks, supra.
In fact, in some of the opinions courts have explicitly framed the standing requirement as requiring an unconstitutional action.
See Freedom from Religion Foundation v. Zielke,
. Interestingly, however, now that Allegheny County and the Sports & Exhibition Authority have decided not to join plaintiff's case,
see
Doc. No. 15, plaintiff states that Allegheny
. The court "assumes” that plaintiff has suffered the requisite injury only because the proceedings are at the motion to dismiss stage. Plaintiff directs the court’s attention to paragraphs 54-57 in his complaint in an attempt to demonstrate a sufficient "injury" for purposes of establishing standing. The court notes that at this stage in the proceedings, plaintiff's allegations are sufficient to establish a sufficient injury under existing decisional law. Plaintiff did allege that tax money has been funneled to the Steelers' as a result of defendants’ disputed conduct. PL’s Compl. ¶ 64. Plaintiff's allegations, however, for the most part, are devoted toward speculative future injuries county taxpayers might incur, such as: (1) possible major repairs and improvements over the life of the 30-year stadium lease; (2) the possibility that the Steelers might not contribute $2.9 million annually to the stadium's capital reserve fund starting in 2017; and (3) the fact that the Steelers' lease "provides no guaranty" that the Sports & Exhibition Authority will receive sufficient revenue to fund its $650,000 annual obligation to the stadium reserve fund. In this regard, plaintiff might have difficulty demonstrating a sufficient “concrete and particularized” injury that is "actual or imminent" were this case to proceed.
Lujan,
. The Supreme Court noted that the "fairly traceable” and "redressability" requirements are identical in situations where the relief requested by the litigant is simply the cessation of the allegedly illegal conduct.
Allen,
. Even if Allegheny County was a party to the lawsuit, plaintiff would have difficulty meeting the more demanding requirements of antitrust standing. These requirements are summarized in the authoritative antitrust treatise as requiring plaintiff to show:
(1) that the acts violating the antitrust laws caused — or in an equity case, threatened to cause — the private plaintiff injury in fact to its "business or property;” (2) that this injury is not too remote or duplicative of the recovery of a more directly injured person; (3) that such injury is "antitrust injury,” which is defined as the kind of injury that the antitrust laws were intended to prevent and "flows from that which makes defendants' acts unlawful;” and, in a damage case, (4) that the damages claimed or awarded measure such injury in a reasonably quantifiable way.
II Phillip E. Areeda & Herbert Hovenkamp, Antitrust Law § 335a (2d ed.2000).
See In re Lower Lake Erie Iron Ore Antitrust Lit.,
. In Davis, a municipal taxpayer in Cincinnati brought suit against the National Football League and its member clubs and asserted claims similar to those made by plaintiff in this case. In that decision, the district court determined that the plaintiff had standing under the doctrine of municipal taxpayer standing to pursue her antitrust claims against the defendants. During oral argument in the present matter, counsel for defendants informed the court that the district court in Ohio granted a motion to amend the complaint to substitute the commissioners of Hamilton County, Ohio, as plaintiffs. According to the representation of defendants, the plaintiffs in Davis no longer rely upon municipal taxpayers standing.
. The United States Supreme Court indicated, however, that third party standing has generally been granted in only two types of cases: (1) First Amendment cases; and (2) cases "to litigate the rights of third parties when enforcement of the challenged restriction
against the litigant
would result indirectly in violation of third parties' rights."
Id.
(emphasis in original)
(citing Warth,
at
