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Professional Athletes’ NIL in Advertising
A federal district judge in Philadelphia allows a lawsuit by MLB Players Inc. (“MLBPI”) to proceed against DraftKings and Bet365, focusing on the unauthorized commercial use of players' names, images, and likenesses (“NIL”) in advertising. Specifically, MLBPI objected to the defendants’ use of MLB players' images in online and mobile sportsbooks, such as displaying players' images appear alongside player-specific prop bets. The defendants' motion to dismiss claims related to NIL misappropriation and unjust enrichment was denied by the judge, who emphasized that these uses are more about advertising than news reporting. The case underscores the legal complexities in distinguishing between commercial exploitation and newsworthy content, with significant implications for industries utilizing athletes' NIL in promotional activities.
Professional Athletes’ NIL in Advertising may Lead to Future Legal Issues
Silver Lake Acquires Endeavor
NBA Owners to Vote on European Expansion
Ally & Sports Innovation Lab Launch Club
The Caitlin Clark Effect
NFL Can Leverage a Major Court Decision
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A weekly summary of the key trends and stories in sports business.
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Silver Lake has completed its acquisition of Endeavor Group Holdings, taking it private with the help of investors like Mubadala and Michael Dell's DFO Management. The deal restructures Endeavor, with Ari Emanuel becoming executive chairman of WME Group and Mark Shapiro as president, while Patrick Whitesell transitions to CEO of a new venture investing in sports and entertainment properties. The acquisition price of $27.74 per share, a 16% increase over the company’s IPO price, resulting in an annualized return of 4%, which is significantly lower than the S&P 500's return in the same period. Despite Silver Lake facing legal challenges from investors, arguing the purchase price undervalues Endeavor, this development underscores the growing trend of private equity firms investing into entertainment and sports industries.
Silver Lake Acquires Endeavor for $25 Billion
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NBA owners are reviewing a plan to launch a pro basketball league in Europe, aiming to expand the sport's presence and share in the continent's economic growth. The proposed league would include eight to ten franchises, with opportunities for top EuroLeague teams to compete, and franchise sales potentially reaching $500 million. The NBA intends to sell franchises to outside investors, maintaining a 50% equity stake, similar to the WNBA's structure before it raised outside capital. As the NBA explores international expansion, aligning with the growing interest and talent in Europe, it could strategically position itself to capitalize on the lucrative market and further globalize basketball.
NBA Owners to Vote on European Expansion
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The Women's Sports Club, launched by Sports Innovation Lab and Ally Financial, aims to break the cycle limiting investment in women's sports by uniting businesses that buy and sell sports media. This initiative seeks to address the longstanding issue where brands hesitate to advertise due to insufficient media coverage, and broadcasters hesitate to increase coverage due to a lack of advertising dollars. The club will facilitate collaboration among influential brands and media to enhance the visibility and economic value of women's sports, supported by data showing the rapid growth and engagement of women's sports fans. By fostering strategic partnerships and increasing media inventory, the Women's Sports Club has the potential to significantly boost investment in women's sports, leading to greater parity and opportunity in the sports industry.
Ally & Sports Innovation Lab Launch Women’s Sports Dealmaking Club
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Caitlin Clark's influence in the WNBA is prompting teams to relocate games against the Indiana Fever to larger NBA-sized arenas, with each game potentially generating an estimated $400,000 in additional revenue. The Dallas Wings, Connecticut Sun, and Chicago Sky are among the teams relocating games, tapping into increased ticket demand and higher resale prices. For example, secondary market prices for Clark’s games are soaring, with court-side tickets reaching as high as $23,370. This development relates to our prior posts about the growing interest and investments into women’s sports, underscoring the substantial demand and profitability of both Clark and the WNBA. This story reflects a broader strategy within the WNBA to capitalize on star players' popularity, potentially increasing the league's financial growth and visibility in the sports market.
The Caitlin Clark Effect shifts WNBA Games to NBA Arenas
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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
The official state bird of Georgia was the mascot for what Atlanta NHL hockey team that played from 1999 until 2011?
Weekly Trivia Question
Answer
Thrashers
REveal Answer
The official state bird of Georgia was the mascot for what Atlanta NHL hockey team that played from 1999 until 2011?
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
NBA owners are reviewing a plan to launch a pro basketball league in Europe, aiming to expand the sport's presence and share in the continent's economic growth. The proposed league would include eight to ten franchises, with opportunities for top EuroLeague teams to compete, and franchise sales potentially reaching $500 million. The NBA intends to sell franchises to outside investors, maintaining a 50% equity stake, similar to the WNBA's structure before it raised outside capital. As the NBA explores international expansion, aligning with the growing interest and talent in Europe, it could strategically position itself to capitalize on the lucrative market and further globalize basketball.
NBA Owners to Vote on European Expansion
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