By Tiffany Haimof, Southwestern Law School Law Commentator, Managing Editor
On November 15, 2015, Southwestern Law School’s Sport Law Society and the Donald E. Biederman Institute on Entertainment and Media Law along with promotion from the Sports Lawyers Association brought together several influential legal minds in the world of sports on a panel called “The Law & Business of Sports.”
Moderated by Seyfarth Shaw LLP Partner Robert Buch, the panel was comprised of Fox Sports’ Robert “Bobby” Hacker, the Tampa Bay Lightning’s Danna Haydar, the Los Angeles Angels’ Alex Winsberg and Kroenke Sports and Entertainment’s Jaimie Wolf. The panel focused on the inner workings of professional sports teams in various leagues from the legal point of view, particularly, how teams work with the television networks and ancillary businesses as well as navigate through potential legal liabilities.
Sports and Television
Sports and television was a heavily discussed topic throughout the panel. Leading the conversation on sports and TV, Robert Hacker explained that there are a lot of new breakthroughs happening with TV, and that most of these changes deal with the new ways by which content is being delivered to consumers. Hacker said that because around 97 percent of sports games are watched live, sports is the most valued content on TV right now. “Sports is virtually DVR-proof,” Hacker noted, explaining that the value in sports is watching it live, rather than after the original broadcast.
The panelists also discussed how TV viewing today is about more than just watching what is actually on the TV screen; now the major focus is on the “second screen.” The second screen experience is the way by which television viewers use their laptops or mobile devices to follow whatever they are watching on TV, on their “second screen.” It allows fans to connect with other fans via hashtags and with sports analysts who may be live-tweeting from the sidelines and locker rooms.
Representing Sports Teams
Another focus of the panel centered on the panelists’ main jobs: representation of sports teams. Jaimie Wolf explained that sometimes, as general counsel for a sports team, you also have to become the general counsel to the family, too. The owner’s family, that is. He went on to say that when you work for a “family business,” like a sports organization, you can certainly expect to find yourself in those types of situations.
Sponsorships
Danna Haydar kicked off the topic of sponsorships by noting that “sponsorships are the bread and butter of revenue for sports teams.” She explained that negotiating sponsorship deals for the Tampa Bay Lightning is a big part of her workday. “Naming rights are the beast of sponsorship deals,” Haydar said. Other important aspects of a sponsorship deal include negotiating “stoppage” in force majeure clauses; defining ways to deal with partners if or when labor disputes arise; and determining fault with respect to liability issues. Haydar added that it’s important to always remember whom you are dealing with, when it comes to leverage and drafting forms.
Alex Winsberg brought up an interesting point during this conversation when he said that sports teams have to be strategic about who they do business with because “you can’t have a Monster logo right next to a Red Bull logo in a stadium.” Winsberg also noted with respect to partnerships with brands that “it’s not always about winning a case; it’s about maintaining relationships with the other side.”
Gambling and Fantasy Sports
Robert Hacker noted that the NFL is the most anti-gambling organization in the world. It is ironic, then, that “the most anti-gambling organization” indirectly encourages one of the biggest gambling movements: Fantasy Football. Hacker said that advertisements during NFL games cannot even show poker tables and “even an ad showing dogs playing poker is considered gambling.
