1. Sports and Entertainment Legal Issues13
Sports and Entertainment Legal Issues
13.1 Laws
13.2 Labor Unions
13.3 Agents and Contracts

2. Winning Strategies A Perfect Match
Sanders Morris Harris Group paid $5 million for a 50% interest in Select Sports Group.
The combined group offers services in:
salary/contract negotiations
financial planning
This new group has the resources to expand.
Major League Baseball clients
National Basketball Association clients
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3. Goals Discuss how laws impact sports and entertainment marketing.
Lesson 13.1 Laws
Goals
Discuss how laws impact sports and entertainment marketing.
Explain copyright law.
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4. Terms franchise broadcast flags copyright laws intellectual property
royalty
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5. THE LAW
In 1966, Congress allowed two exemptions from the Sherman Antitrust Act to allow the formation of an expanded NFL.
Congress also allowed the owners of the merged leagues to form a cartel.
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6. Governing Sports and Entertainment
The laws governing sports and entertainment are designed to protect:
players
celebrities
producers
promoters
investors
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7. franchise
an authorization from local governmental agencies to sell services in a given area
Competition tends to drive prices down and improve the quality of service for customers.
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8. The Broadcast Flag Rule
broadcast flags
digital bits that can be imbedded in digital programming to prevent programs from being recorded and redistributed
In 2005, a federal court ruled that the FCC could not regulate equipment, only communications.
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9. The major TV networks are working to add the use of broadcast flags into pending federal laws.
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10. Federal Laws
Federal laws that have had a major impact on the sports and entertainment industry include
Sherman Antitrust Act (1890)
Clayton Act (1914)
National Labor Relations Act (1935)
In 1998, Congress passed the Curt Flood Act to give baseball players more protection.
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11. What are two general purposes for laws governing sports and entertainment?
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12. WHO HAS THE RIGHTS? copyright laws
protect the unique work of the originator within the geographic boundaries to which the laws apply
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13. intellectual property
the unique works of writers, artists, and musicians that can be protected under copyright law
royalty
payment to the owner of copyrighted work for the use of their copyrighted material
fixed
the work must be recorded on a permanent medium
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14. All material available over the Internet is protected by copyright law.
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15. U.S. Laws
U.S. copyright laws are not enforceable in other countries except where the U.S. is part of an international copyright convention.
Countries with high levels of piracy are:
China
Russia
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16. Legal Listening
The Recording Industry Association of America (RIAA) regards file sharing as theft and has begun to aggressively prosecute violators.
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17. Consumer-oriented companies like Apple Computer are helping the music industry rethink its distribution channels and find ways to please customers while protecting profits.
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18. What do copyright laws protect?
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19. Goals Explain the need for salary caps.
Lesson 13.2 Labor Unions
Goals
Explain the need for salary caps.
Describe the financial and public relations impacts that strikes may cause to a sport.
Discuss owner-labor relations and the impacts of labor unions.
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20. Terms collective bargaining collective bargaining agreement salary cap
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21. ORGANIZED LABOR players’ associations collective bargaining
the labor unions of athletes in professional sports
collective bargaining
when a group of employees join together as a single unit to negotiate with employers
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22. Bargaining Rights collective bargaining agreement (CBA)
negotiated by the players’ association
covers all league players
includes salary ranges, contract length, and operating rules
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23. Topping the Salary salary cap
a maximum amount that a team can spend on players’ salaries
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24. How do players’ salaries influence the financing of professional sports?
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25. OWNERS VERSUS PLAYERS
When owners and players can not come to an agreement on contracts, strikes can result.
Everyone looses out during a strike.
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26. Picking Up the Pieces
Congress can design laws to control the loss of wages by third-party victims.
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27. Winning Back the Fans
Despite assorted promotional efforts, it is often hard to win back fans after a strike.
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28. Why do labor conflicts hurt the promotion of a sport?
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29. LABOR RELATIONS Soccer Success Major League Soccer (MLS)
owners are considered business partners
structure was designed to keep teams with big audiences from dominating teams in smaller markets
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30. Getting Along
Labor and management must cooperate if a business is to succeed.
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31. Entertainment Labor Unions that represent celebrities are:
The Screen Actors Guild (SAG)
The American Federation of Television and Radio Artists (AFTRA)
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32. How do strikes and lockouts financially affect a sports team?
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33. Lesson 13.3 Agents and Contracts
Goals
Discuss athlete agents, handlers, and advisers.
Describe contract law.
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34. Terms agent handlers advisers contracts agent contract
noncompete clause
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35. SHOW ME THE MONEY
agent
the legal representative of an athlete or celebrity
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36. Legally Speaking
Most agents for big-name celebrities are either attorneys or accountants.
Agents are paid a percentage of the celebrity’s negotiated earnings.
Most leagues require the agent to be registered with the league as an agent.
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37. Handlers
handlers
work closely with athletes who are unable or unwilling to police themselves
behavioral monitors
Athletes need to have a positive public image to stay valuable to their sponsors.
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38. Advisers advisers are financial and business counselors
help athletes manage their newfound wealth for long-term financial security
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39. What are some of the responsibilities of a sports agent?
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40. LEGAL AGREEMENTS Contracts That Bind contracts agent contract
agreements enforceable by law that detail the transaction of business
agent contract
an agreement in which an athlete allows a person or agency to represent the athlete in marketing the athlete’s ability and name
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41. Contracts are enforceable by law when they involve a promise in exchange for something of value.
noncompete clause
prohibits a person from working in a competing business for a specific period of time
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42. Whom do contracts protect?
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43. PERFORMANCE INDICATORS EVALUATED
Demonstrate effective communication skills.
Demonstrate skills in developing a speech that includes an introduction, body, and conclusion.
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44. Use appropriate tempo and pitch.
Utilize nonverbal gestures as appropriate.
Achieve the purpose of the speech.
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45. THINK CRITICALLY
Why is extemporaneous speaking a valuable skill in the business world?
How are amateur, college, and professional sports business issues?
Why is the introduction to a speech important?
Why should the conclusion of the speech be related to the introduction?
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