Divestiture and remedies

(a) Divestiture Not later than 2 years after the date of enactment of this Act or after designation as a vulture investor, a vulture investor shall cure any violation of this Act by— (1) divesting or unwinding any ownership stakes, acquisitions, rights, agreements, contracts, terms, and exclusivity arrangements related to the ownership, operation, control, management, or other direction of any youth sports entity; (2) returning, transferring, or assigning ownership of all assets, real estate, and intellectual property, including trademarks, copyrights, patents, and related rights acquired by a vulture investor from a youth sports entity or generated by its activities, or, in the event of a non-reversible sale of a physical asset or real estate to an unaffiliated third party, the vulture investor shall pay the youth sports entity the full proceeds the vulture investor received from the sale or the market value at the time of sale, whichever is higher; and (3) at the time of designation as a vulture investor, removing any individuals installed by the vulture investor from any management, senior executive, or board position within any youth sports entity. (b) Divestiture process (1) Guidance Not later than 30 days after the date of enactment of this Act, the Chair of the Commission shall issue guidance specifying milestones for divestment within the deadline established under subsection (a) by publishing notice thereof in the Federal Register without regard to the provisions under section 553 of title 5, United States Code. (2) Penalties for failure to comply For any entity subject to divestiture under subsection (a) that does not comply with the milestones specified under paragraph (1), except in cases in which divestiture is blocked under paragraph (5), the Chair of the Commission or the Assistant Attorney General shall cause 10 percent of all revenue received by the vulture investor attributable to the youth sports entity to be transferred into escrow on a monthly basis, which shall be— (A) returned to the vulture investor if divestment occurs by the deadline under subsection (a); or (B) deposited into the Youth Sports Fund if divestment does not occur by the deadline under subsection (a). (3) Reporting period Any divestment required under subsection (a) shall be reported to the Commission and the Assistant Attorney General under section 7A of the Clayton Act (15 U.S.C. 18a) without respect to the thresholds under subsection (a)(2) of that section. (4) Review of divestiture With respect to each divestiture undertaken pursuant to subsection (a), in addition to any applicable review under section 7A of the Clayton Act (15 U.S.C. 18a), the Commission and the Assistant Attorney General shall review the effect on competition, financial viability, and the public interest— (A) of the divestiture; and (B) of the subsequent acquisition of the divested entity by the acquiring person. (5) Blocking divestiture The Commission and the Assistant Attorney General, jointly or separately, may bring a civil action in any court of competent jurisdiction to block any divestiture that would constitute a violation of this Act or harm competition, result in financial insolvency, or result in a conflict of interest to the detriment of the public interest. (6) Trustee If divestiture does not occur by the divestiture deadline under subsection (a), a divestiture trustee appointed by the Chair of the Commission or the Assistant Attorney General and paid for in full by the vulture investor subject to divestiture shall oversee the required divestiture and shall have the authority to sell the youth sports entity to which the divestiture requirement applies. (c) Remedies in connection with divestiture (1) In general As a condition of or in connection with any divestiture under this section, the Commission or the Assistant Attorney General may impose, require, supervise, and enforce such restrictions and remedies as are necessary to cure, mitigate, or prevent any violation of this Act. (2) Divestiture compliance No divestiture required under this section shall be considered complete or in compliance with this Act unless and until the Commission or the Assistant Attorney General determines that all such remedies have been satisfied. (3) Types of remedies The Commission or the Assistant Attorney General may require a vulture investor to— (A) cease and desist from any violation of this Act; (B) disgorge any revenue, fees, special dividends, or other forms of profit extracted from a youth sports entity through vulture practices, including any pre-judgment and post-judgment interest; (C) refund all junk fees charged directly or indirectly to customers; (D) forgive and void in full any debts or outstanding payments owed by the youth sports entity, the local community, and any employees, families, participants, or customers that were related to or resulted from vulture practices under this Act; (E) fund any scholarship or financial aid programs that existed at the acquisition, including during the 1-year period before the date of acquisition, at the pre-acquisition funding level for a minimum period of 5 years; (F) pay the youth sports entity any proceeds the vulture investor received from leasing, licensing, or granting access rights to any asset, real estate, or intellectual property the youth sports entity owned, controlled, generated, procured, or paid for prior to or during the period of investment; (G) transfer all data, algorithms, software, licenses, platforms, and other technology necessary to operate the business effectively to the youth sports entity, and relinquish any past, present, or future ownership or rights thereto; (H) disgorge or delete any proprietary customer, participant, or operational data acquired or collected during the period of investment, as directed by the Commission or the Assistant Attorney General; (I) compensate for any asset transfers or transactions that diminished the value or viability of the youth sports entity; and (J) provide any other relief necessary to restore the financial viability, operational independence, and competitive position of the youth sports entity. (d) Post-divestiture jurisdiction The Commission and the Assistant Attorney General shall retain jurisdiction for a period of not less than 1 year following the completion of any divestiture under this section to— (1) monitor compliance with this Act and any conditions or remedies imposed under this subsection; (2) impose additional conditions or remedies as necessary; (3) modify or terminate previously imposed conditions or remedies; and (4) require additional transfers, payments, or operational changes to ensure compliance with this Act and the effectiveness of the divestiture. (e) Administrative authority (1) In general The authority under this section may be exercised without any requirement to prove a violation in court and may be based on designation as a vulture investor or a failure to obtain or maintain certification under section 4, or the application of this section. (2) Orders The Commission or the Assistant Attorney General may issue such orders as are necessary to carry out this section, including orders requiring compliance with any condition or remedy imposed under this subsection. (3) Escrow The Commission or the Assistant Attorney General may require that funds, proceeds, or other assets be placed in escrow or otherwise withheld pending satisfaction of the divestiture, or any condition or remedy imposed under this section.