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House Settlement Appeal
Attorneys for current and former Division I athletes are urging the Ninth Circuit to overturn a multibillion-dollar NCAA antitrust settlement, arguing it violates Title IX by distributing most damages and revenue-sharing benefits to male athletes, particularly in football and men's basketball. The approved $2.6 billion payout, covering lost NIL opportunities over eight years, will be paid largely by colleges, raising concerns about inequitable compensation and ongoing legal exposure under Title IX for participating schools. While the district court found the settlement "fair, reasonable, and adequate" for resolving antitrust claims, it did not address Title IX issues, leaving open the possibility of future litigation by female athletes if colleges disproportionately assign direct payments. As commercial pressures reshape college sports finance, the unresolved interplay between antitrust remedies and Title IX compliance suggests significant operational and regulatory uncertainty ahead for athletic departments.
House Settlement Appeal Argues Title IX Violated by Payments
School Ordered to Reinstate Women’s Sports
NBA Betting Scandal
Austin FC Adds Investors
NHL Expansion Fee May Jump to $2 Billion
NFL Can Leverage a Major Court Decision
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Sheppard Mullin's Sports Industry Team is uniquely positioned to address the complex and dynamic needs of our sports industry clientele. Our sports practice offers the expertise necessary to provide full service legal counsel to owners, teams, leagues, governing bodies, facility operators, key rights holders, advertising companies, sponsors and others involved in sports-related transactions or disputes.
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Concordia University Irvine tried to save $550,000 yearly by cutting men’s and women’s tennis and swimming and diving programs, citing financial challenges. A federal Title IX lawsuit by female athletes led to a preliminary injunction requiring reinstatement of the women’s teams, joining a trend where courts have blocked similar athletic program cuts at universities nationwide. While reinstatement creates immediate financial strain, the court clarified that long-term Title IX compliance could involve alternative roster management or program reshuffling, not necessarily permanent reinstatement. These legal developments reinforce that cost-cutting decisions can quickly escalate into costly litigation and regulatory uncertainty for educational institutions.
Division II School Ordered to Reinstate Women’s Sports It Cut
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The Department of Justice’s charges against Terry Rozier for allegedly manipulating in-game performance to help illicit betting highlight escalating financial risks and regulatory gaps in U.S. sports betting. Since the Supreme Court struck down PASPA in 2018, sports betting has become a significant revenue stream for leagues and players, with 39 states now legalized and major partnerships between leagues and betting companies. However, the surge in gambling has also prompted concerns over integrity, consumer protection, and the potential need for federal regulation—such as proposed legislation to restrict advertising and set new standards—which remains stalled by current Congressional inaction. The intertwining of sports and wagering suggests future legal frameworks must balance financial interests with safeguarding athletes and consumers, especially as technology and novel betting platforms emerge.
NBA Betting Scandal May Lead to Congress Intervention
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The Borgen family, through FirstTracks Sports Ventures, has joined a high-profile investment group acquiring a stake in Austin FC at an enterprise value of about $912 million, signaling strong market confidence in MLS team valuations. This latest transaction reflects a rising trend where minority stakes in top MLS franchises are no longer trading at steep discounts to control stakes, with Austin FC now valued among the league’s most valuable clubs and showing strong revenue performance ($96 million in 2024). As Austin FC remains the city's flagship professional sports team and benefits from sustained population growth and continuous stadium sellouts, investors appear to bet on continued financial upside and brand ascendance. For prospective sports investors, this deal illustrates how urban market dynamics and successful venue management are now key drivers of franchise value in major league soccer.
Austin FC Adds Investors at $192 Million Valuation
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The NHL is considering an expansion team with an unprecedented minimum fee of $2 billion, plus an additional $500-600 million equity commitment for a new arena, reflecting a dramatic increase in franchise valuations over the past generation. This marks a significant escalation compared to the $650 million paid by the last expansion team, the Kraken, in 2021, and the mere $85 million paid for the Capitals in 1999. The league’s strong financial position—bolstered by historic revenues, labor stability, and high-profile player contracts—has contributed to the skyrocketing costs for prospective owners. The steep price tag suggests expansion teams are now seen as ultra-premium investments reflective of broader trends in sports franchise valuations.
NHL Expansion Fee May Jump to $2 Billion
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A U.S. District Court jury ordered the National Football League to pay more than $4.7 billion in damages for antitrust violations. The ruling held that restricting negotiations over rights to broadcast teams’ out-of-market Sunday games to a single, bundled TV package violated competition laws. The lawsuit covered 2.4 million residential subscribers and 48,000 businesses in the United States who paid for out-of-market games from 2011 through 2022 on DirecTV. The plaintiffs claimed that the NFL broke antitrust laws by selling its Sunday games package at an inflated price. While the League plans to appeal the decision, the ruling could prompt changes in how rights to air games are distributed, potentially benefiting football teams and fans alike. If the ruling stands, the NFL could lose out on one big-ticket payday. But dicing up rights could spark a wider feeding frenzy. The pot for sports rights is expected to grow to $30 billion annually by 2024.
NFL Can Leverage a Major Court Decision to Boost How Teams and Fans Watch Games
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Weekly Trivia Question
Weekly Trivia Question
What is the only team to defeat the Boston Celtics at home during the 1985–1986 season?
Weekly Trivia Question
Answer
Portland Trail Blazers
REveal Answer
What is the only team to defeat the Boston Celtics at home during the 1985–1986 season?
Weekly Trivia Question
In which organization are teams individually owned and belong to governing bodies which promote and relegate teams to different leagues based on performance?
Weekly Trivia Question
a. National Football League (American Football)
b. English Premier League (Soccer)
c. Major League Soccer (Soccer)
d. Serie National de Beisbol (Cuba) (Baseball)
Correct!
b. English Premier League (Soccer)
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Incorrect
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Hide Answer
In which organization are teams individually owned and belong to governing bodies which promote and relegate teams to different leagues based on performance?
Weekly Trivia Question
a. National Football League (American Football)
b. English Premier League (Soccer)
c. Major League Soccer (Soccer)
d. Serie National de Beisbol (Cuba) (Baseball)
Correct!
b. English Premier League (Soccer)
Hide Answer
Incorrect
try Again
The Department of Justice’s charges against Terry Rozier for allegedly manipulating in-game performance to help illicit betting highlight escalating financial risks and regulatory gaps in U.S. sports betting. Since the Supreme Court struck down PASPA in 2018, sports betting has become a significant revenue stream for leagues and players, with 39 states now legalized and major partnerships between leagues and betting companies. However, the surge in gambling has also prompted concerns over integrity, consumer protection, and the potential need for federal regulation—such as proposed legislation to restrict advertising and set new standards—which remains stalled by current Congressional inaction. The intertwining of sports and wagering suggests future legal frameworks must balance financial interests with safeguarding athletes and consumers, especially as technology and novel betting platforms emerge.
NBA Betting Scandal May Lead to Congress Intervention
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