1.01 Explain the role of Agents in Sports & Entertainment

Agents Agents represent the interest of athletes, actors, and entertainers particularly in contract negotiations. They also handle other matters including sponsorships, public relations, and financial planning, just to name a few of the issues.

Show me the Money $$$$$$

How to Become an Agent

Agents who do not have a law degree may hire lawyers to review contracts. Typically leagues or players’ associations require agents to be certified in order to represent players. Agents who do not have a law degree may hire lawyers to review contracts. Typically leagues or players’ associations require agents to be certified in order to represent players. Agents (cont)

Charity Athletes normally seek marketing firms to help with organizing charity tournaments. Athletes normally seek marketing firms to help with organizing charity tournaments. –Example: Lebron James organizes charity events for his hometown of Akron, Ohio with the assistance of a marketing firm.

There is a wide pay range for sports agents, who typically receive payment as a percentage of the contracts they negotiate. That payment is usually between 3 percent and 5 percent. There is a wide pay range for sports agents, who typically receive payment as a percentage of the contracts they negotiate. That payment is usually between 3 percent and 5 percent. Agents (cont)

Advantages of Having an Agent –Issues, such as salary negotiations, networking and self-promotion all take away time you could have spent in the gym or on the field to stay sharp or improve your skills. –If you spend too much time managing your career, you may end up as a less than desirable athlete.

Problems Associated with Sports Agents The first drawback to having a sports agent is that they make money by taking a % of the money you earn. Additionally, there are a lot of agents on the market; with whom you sign a contract can have significant effects on your career. If you pick a bad agent, you could find yourself in an undesirable position. The first drawback to having a sports agent is that they make money by taking a % of the money you earn. Additionally, there are a lot of agents on the market; with whom you sign a contract can have significant effects on your career. If you pick a bad agent, you could find yourself in an undesirable position. If an amateur athlete signs with a sports agent, that athlete loses amateur eligibility If an amateur athlete signs with a sports agent, that athlete loses amateur eligibility

30 for 30 – The Dotted Line

1.02 Describe legal issues affecting the marketing of sport/event products

Discuss legal issues associated with marketing products. Trademarks and service marks. Trademarks and service marks. –A trademark is a symbol used as a sign or logo under which a company does business. When registered, no other business can use it. (McDonald’s “Golden Arches”, for example, are a registered trademark)

Discuss legal issues associated with marketing products. (cont..) Trademark Infringement – violation of the exclusive rights attaching to a trademark without the authorization of a trademark owner, meaning it is also an unfair and anticompetitive trade practice. Trademark Infringement – violation of the exclusive rights attaching to a trademark without the authorization of a trademark owner, meaning it is also an unfair and anticompetitive trade practice.

Discuss legal issues associated with marketing products. (cont..) The owners of logos can license others to use their logo to sell merchandise. What are these called?? The owners of logos can license others to use their logo to sell merchandise. What are these called?? Billions of dollars of merchandise are sold without licensing. Billions of dollars of merchandise are sold without licensing.

How does trademark infringement have an effect on a sports or entertainment business? Give examples

Using an Athlete’s Identity You may use their identity in a book, TV news show, newspaper, or magazine, but marketers must learn where to draw the line between freedom of expression and violations of rights of privacy or publicity. You may use their identity in a book, TV news show, newspaper, or magazine, but marketers must learn where to draw the line between freedom of expression and violations of rights of privacy or publicity. You may not use their identity on your advertisements without their consent! You may not use their identity on your advertisements without their consent!

Celebrity Rights Right of privacy Right of privacy –celebrity can sue for invasion of privacy when his/her seclusion has been intruded upon, when s/he has been given an unreasonable amount of publicity, or when s/he has been placed in a false light. –Tabloids

Celebrity Rights (cont’d) Right of publicity Right of publicity –protects a person from the unauthorized use of his/ her name and likeness for financial gain.

1.02 Describe legal issues affecting the marketing of sport/event products (cont)

Sherman Antitrust Act Federal legislation to protect industries from having one competitor that discourages competition within the industry. Federal legislation to protect industries from having one competitor that discourages competition within the industry.

MLB is the only branch of sports identified as exempt from the Sherman Antitrust Act. Baseball teams cannot relocate without approval from MLB. Other sports teams do not have to have permission. WHY??????

Broadcasting Rules Sports Broadcasting Act of 1961 Sports Broadcasting Act of 1961 –allows leagues to pool their broadcasting rights and sell them as a package to television networks. Blackouts Blackouts –League can block its broadcast in the home territory if the game is not a sell-out. n-ratigan-show/ #

Counterfeit tickets Buy tickets at an official ticket outlets to avoid counterfeit tickets. Buy tickets at an official ticket outlets to avoid counterfeit tickets.

Prize Indemnity Insurance Prize indemnity insurance protects sport/event organizations »Prize indemnity insurance is for a promotion in which the participants are offered the chance to win prizes. Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be given away. prizespremiumprizespremium

1.Search the Internet to find current information about a legal issue in sports or entertainment. 2.Write a synopsis of the article, explaining the nature of the issue, its impact on sports or entertainment, and the issue’s outcome. 3.Share your article with a classmate, and as a team, determine how the issue impacts sport or entertainment marketing. 4.Submit your paper.

1.02 Describe legal issues affecting the marketing of sport/event products (cont)

Contracts in Sports Industry Sponsor Sponsor Television Television Venue and Personnel Venue and Personnel

Sponsor contracts –Exclusivity »Sponsors usually insist on being the only ones in their particular category of goods or services. –Option to renew »allows the sponsor to extend the agreement after the contract expires –Right of first refusal »event organizers will allow the sponsor the opportunity to renew before offering the contract to any other sponsors

Television contracts –Negotiations with broadcasters are very complex due to the high interest in sport events and the increase in satellite, cable, and Internet options for viewing them.

Venue and personnel Venue contracts usually include: Venue contracts usually include: –lease rate along with –provisions for security and concession. Venue contracts with personnel include: Venue contracts with personnel include: –a detailed list of responsibilities, –begin and end dates for work, –payment schedules, and –tax withholding. –These agreements also specify any provisions for changes in the contract, such as an extension or an increase in responsibilities.

1.Search the Internet to find current information about a legal issue in sports or entertainment. 2.Write a synopsis of the article, explaining the nature of the issue, its impact on sports or entertainment, and the issue’s outcome. 3.Share your article with a classmate, and as a team, determine how the issue impacts sport or entertainment marketing. 4.Submit your paper.

1.03 Describe the impact of unions on the sport/event industries

Players’ Associations The labor unions that represent athletes and function the same as unions in other industries. The labor unions that represent athletes and function the same as unions in other industries. They help aid athletes in issues such as salaries, contracts, and profit sharing. They help aid athletes in issues such as salaries, contracts, and profit sharing. The sports’ leagues represent the owners and managers and their goals = control costs. The sports’ leagues represent the owners and managers and their goals = control costs.

Collective bargaining agreements are agreements between players’ associations (or unions) and team ownership/management. Gives players the right to organize, use the agent of choice and protect themselves. Also includes: Gives players the right to organize, use the agent of choice and protect themselves. Also includes: –A minimum salary –Player’s rights –Medical disability insurance –Labor rules –Length of contract –Restrictions of certain activities or behaviors. –Rules for agents –Player and team travel (CB Explained ) CB ExplainedCB Explained

STRIKE! When negotiations between a players’ union and the owners’ organization cannot be reached, the players might vote to determine to go on strike. When negotiations between a players’ union and the owners’ organization cannot be reached, the players might vote to determine to go on strike. This leads to no revenue being generated, employees not working, and a decrease in consumer spending. This leads to no revenue being generated, employees not working, and a decrease in consumer spending.

Determine whether you are for or against union involvement in sports/events. Write a paper citing examples and providing evidence to support your stance. Present your ideas to the class. Search the Internet to determine current issues being addressed by players’ unions. Determine your position on one of the matters. Write a defense of your position. Share your information with a classmate.