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ESPN Open to Equity Deals
ESPN’s recent equity swap with the NFL, giving the league a 10% stake in its cable channel while acquiring control of NFL Network and associated live sports rights, represents a significant financial move to strengthen ESPN’s sports-rights portfolio and future growth. The arrangement, which will integrate NFL media content into ESPN’s direct-to-consumer app and expand the RedZone brand, exemplifies the rising importance of strategic media rights acquisitions and partnerships in the sports broadcasting sector. While additional acquisition opportunities may be limited in the near term, ESPN’s openness to further equity exchanges signals a flexible approach to maintaining long-term financial competitiveness, especially as the value of sports assets and international packages continues to rise. Such deals may set a new industry precedent, drawing attention to the financial leverage and stability media companies can achieve by exchanging equity interests for premium sports content.
ESPN Open to Equity Deals with Other Top Leagues
Ion Television Signs Broadcast Rights Deal
Washington Nationals Named in Lawsuit
CBS Notches 27-Year Ratings High
Unrivaled Valued at $340 Million
NFL Can Leverage a Major Court Decision
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Brian Anderson
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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A weekly summary of the key trends and stories in sports business.
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Athlos, a track event organization founded by Alexis Ohanian, secured a multiyear broadcast agreement with Scripps Sports to televise its annual events on Ion Television, exploiting renewed public interest in track following the Paris Games to grow viewership and attract media partners. While financial terms of the deal were not disclosed, the agreement is part of a wider strategy by Ion to expand its portfolio of women’s sports content, shown by its multi-million dollar contracts with leagues such as the WNBA and NWSL. Athlos has further enhanced its financial profile by bringing in athlete-investors, including Sha’Carri Richardson, Gabby Thomas and Tara Davis-Woodhall, although specifics of their equity stakes remain confidential. This media partnership, especially given the financial struggles experienced by competitors like Grand Slam Track, signals a more stable and potentially lucrative model for professional track events through diversified revenue streams and growing broadcast exposure.
Ion Television Signs Multi-Year Broadcast Rights Deal with Athlos Track Meet
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A class action lawsuit was filed against the Washington Nationals, alleging the team used “junk fees”—hidden or unexpected charges—in ticket sales, resulting in consumers paying more than the advertised price. The complaint seeks damages for ticket buyers who paid service, handling, and processing fees not revealed upfront, claiming millions of dollars in such fees were collected before July 2024. If successful, the suit could entitle class members to treble damages or a $1,500 statutory award per person, highlighting significant financial exposure for the Nationals under the D.C. Consumer Protection Procedures Act. The timing coincides with recent FTC rule changes addressing junk fees, suggesting organizations in the live-event industry face increasing regulatory and litigation risks over non-transparent pricing practices.
Washington Nationals Named in ‘Junk Fees’ Lawsuit
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Week 1 NFL game broadcasts delivered impressive TV ratings, with CBS averaging 23.9 million viewers in its Sunday national window—the network’s highest Week 1 audience since regaining NFL rights in 1998. NBC’s Sunday Night Football premiere drew an even larger 24.7 million viewers on both NBC and Peacock, marking its biggest season opener since 2022 and highlighting strong audience engagement. Fox also posted gains, with its early window reaching 17.9 million viewers, a substantial year-over-year increase, in part due to standout matchups and prominent announcers. These viewership figures confirm the NFL’s central value proposition for broadcasters and suggest media rights remain a lucrative asset, especially as Nielsen’s new measurement currency captures broader audiences.
CBS Notches 27-Year Ratings High with NFL Week One
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Unrivaled, the women’s 3-on-3 pro basketball league, closed an oversubscribed Series B funding round at a $340 million valuation, which included many high-profile investors such as Serena Williams, Alex Morgan and Trae Young. This new capital funds a Miami-based facility expansion and increases Unrivaled’s average player salary to $220,000, which nears the WNBA’s maximum base salary and positions Unrivaled as a lucrative offseason alternative for athletes. Many Unrivaled players have also received equity stakes, which provides financial protection and upside amid the ongoing and unresolved WNBA collective bargaining negotiations. With this strong funding base and investor support, Unrivaled is positioned to further disrupt the women’s basketball landscape by creating a sustainable, lucrative model for players and stakeholders.
Unrivaled Valued at $340 Million After Series B Closing
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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
Who was the first European NHL player to win the Hart Trophy?
Weekly Trivia Question
Answer
Sergei Fedorov
REveal Answer
Who was the first European NHL player to win the Hart Trophy?
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
A class action lawsuit was filed against the Washington Nationals, alleging the team used “junk fees”—hidden or unexpected charges—in ticket sales, resulting in consumers paying more than the advertised price. The complaint seeks damages for ticket buyers who paid service, handling, and processing fees not revealed upfront, claiming millions of dollars in such fees were collected before July 2024. If successful, the suit could entitle class members to treble damages or a $1,500 statutory award per person, highlighting significant financial exposure for the Nationals under the D.C. Consumer Protection Procedures Act. The timing coincides with recent FTC rule changes addressing junk fees, suggesting organizations in the live-event industry face increasing regulatory and litigation risks over non-transparent pricing practices.
Washington Nationals Named in ‘Junk Fees’ Lawsuit
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