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<br />381 N.W.2d 842 Page 4
<br />381 N.W.2d 842
<br />(Cite as: 381 N.W.2d 842)
<br />be - responsible for the operating expenses, but
<br />would receive all the advertising revenues.
<br />The Commission studied the reports during January,
<br />1981, and was to vote for one of the scoreboard
<br />systems by January 28, 1981, in order to allow
<br />enough time for the system to be installed and
<br />operational before the Minnesota Twins' opening
<br />game in April, 1982. On January 20, 1981,
<br />however, Midwest Federal, which formed a joint
<br />venture with Stewart-Warner for the purposes of
<br />financing ' the scoreboard system, informed the
<br />Commission that it was *845 withdrawing the
<br />Stewart- Warner/Midwest Federal proposal, citing
<br />delays in obtaining the Commission's decision and
<br />changing ! economic conditions. Stewart-Warner
<br />requested- that the Commission postpone its
<br />decision on the scoreboard until Stewart-Warner
<br />could establish a different joint venture.
<br />Concerned that the scoreboard would not be
<br />operational in April, 1982, Poss refused to postpone
<br />the Commission's consideration of scoreboard
<br />proposals. On January 28, 1981, the Commission
<br />voted to accept the proposal submitted by American
<br />Sign and executed an agreement.
<br />The Scoreboard System Agreement executed by
<br />American Sign and the Commission incorporated,
<br />for the most part, the provisions of the proposal
<br />submitted earlier by American Sign. Under the
<br />agreement, for the first 10 years of the 15 -year
<br />period, American Sign retains the first $500,000 of
<br />net revenues from advertising exhibited on the
<br />scoreboard. Any net advertising revenues over
<br />and above $500,000 per year are divided 75 percent
<br />to the Commission and 25 percent to American
<br />Sign. During the final 5 years of the agreement, all
<br />advertising revenues revert to the Commission.
<br />American Sign holds title to the scoreboard system
<br />until the 15 -year period expires, when title
<br />automatically passes to the Commission. The
<br />agreement gives American Sign the exclusive right
<br />to "construct, install and maintain" a scoreboard in
<br />the Metrodome and allows American Sign "to sell
<br />and contract for" advertising that is exhibited on the
<br />scoreboard system.
<br />After the execution of the scoreboard agreement
<br />American Sign began contacting national and local
<br />© 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
<br />advertisers concerning available space on its
<br />scoreboard system. In the early spring of 1982,
<br />American Sign representative Turner contacted both
<br />Hubbard (KSTP) and Midwest Radio, and
<br />Television, Inc. (WCCO) to advise them that
<br />advertising space was available in the Metrodome
<br />and that he would be in Minneapolis . on March 2,
<br />1982, to solicit advertisers. Upon arriving in
<br />Minneapolis, Turner had lunch with WCCO
<br />executives and presented several alternative
<br />advertising packages. He sold a basic advertising
<br />package to WCCO on that date on an "exclusive
<br />by- product - category basis." Because WCCO now
<br />had the exclusive right to advertise in the
<br />Metrodome in the "broadcast" category, Turner
<br />did not contact Hubbard (KSTP).
<br />Shortly after March 2, 1982, Turner informed
<br />Hubbard that the advertising for the broadcast
<br />category had already been sold to WCCO. On
<br />March 25, 1982, Hubbard contacted the
<br />Commission, American Sign and Twin City
<br />Federal, demanding that it be allowed to advertise
<br />in the Metrodome. In July 1982, American Sign
<br />formalized with WCCO the advertising contract,
<br />which provided that WCCO reserved the right to
<br />terminate the contract if any competing
<br />broadcaster's advertisement was displayed in the
<br />Metrodome.
<br />On September 30, 1982, Hubbard brought suit in
<br />federal district court, alleging deprivation of free
<br />speech and equal protection, and violation of the
<br />Sherman Antitrust Act. Seven • other counts were
<br />alleged. Four were state -law versions of the federal
<br />claims, one was a third antitrust violation, and two
<br />were allegations that the state public bidding
<br />statute, Minn.Stat. § 471.345 (1984), had been
<br />violated and that there was an unlawful delegation
<br />of the Commission's authority to American Sign.
<br />In several pretrial orders the district court granted
<br />American Sign's motions for summary judgment on
<br />the first amendment and equal protection claims. It
<br />also dismissed the unlawful delegation claim, ruling
<br />that the Commission provided appropriate standards
<br />for the sale of advertising and reserved the right to
<br />control the types of ads appearing on the
<br />scoreboard. The court further ruled that the
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