1. The Legal Environment of Sports and Entertainment

2. Reviewing Laws and Ethics
Is it illegal because its unethical or unethical because its illegal?
Ethics—doing what is right
Legal—doing what is right according to law
They are not always the same thing!

3. Purpose of Laws Laws impact the way we market sports
Distribution is particularly impacted
Sports and Entertainment laws meant to protect players, celebrities, producers, promoters and investors
Encourage and protect competition and increase safety of consumers, viewers and fans

4. Major Laws in Sports and Entertainment
Sherman Anti Trust Act
No monopolies
No price fixing
Clayton Act
Right to organize labor
Right to sue if there is a monopoly
National Labor Relations Act
Prohibit discrimination
Baseball legally exempt in 1922 from this ruling until 1998

5. Protecting Broadcasting
Franchising
TV service in any given area is authorized through a franchise
Provider must pay local governments to provide cable in that area
In 2005, cable providers wanted to keep braodcast flag
A digital way to prohibit recording on TV—only cable providers wanted rights to distribute
Court did not rule in their favor
Now controlled to DVR and OnDemand

6. Protecting Entertainment
Intellectual Property Laws
Protects ideas, inventions and artistic creations
Copyright Laws: protect the unique work of the originator
Writers, artists, and musicians
Copyright lasts for 70 years or lifetime of the artist
Copyrights entitle artists to royalties
Paid for using the work
Only problem…
Only valid in US

7. Listening Legally and Ethically!
The Recording Industry Association of America tries to regulate music industry
Increase in technology makes it difficult!
File sharing, duplicating, recording

8. YouTube and Copyright
What is protected on You Tube and what is not?

9. Current Event Activity
The Law and Ethics in Entertainment
Select a current event in the area of entertainment law
Suggested topics
Taylor Swift leave Spotify/negotiating new album
Jay Z and Tidal
Music artists against streaming
Harvey Wienstein
Time Warner suing AT&T
Assignment:
Summarize your article
Explain how this article relates to intellectual property laws and ethics
Give your personal reflection on the matter
2 paragraphs
Turn in on Edmodo

10. Sports Laws: Salary Caps and Bargaining

11. Labor Unions in Sports
Since the 1950’s professional athletes have organized player’s associations
Teams set up collective bargaining agreements with players association
Create Collective Bargaining Agreements that determine minimum and maximum salaries, contracts, team rules
Goal of these agreements is to avoid strikes and lockouts

12. Side Effects of Associations
Salary Caps
Maximum amount that teams can spend on player salaries
Only exception is baseball
Purpose is to prevent “wealthy” teams from attracting the best players

13. Entertainment Labor
In the past, actors were under contracts with single studio
Collective Bargaining Agreements with SAG, AFTRA regulate pay, benefits and working conditions
How many hours child actors can work
How long shoots can go
Medicating actors

14. MLB Players Association Activity
The MLB is the only league to not have a players association. Therefore, there are rich teams and poor teams. Each group represents a team!
Group 1—Oakland A’s
Group 2—New York Yankees
Group 3—Atlanta Braves
Your terms
Your salary min-max
Your trading agreement

15. Sports Law: Agents and Contracts

16. Show me the money! What is an agent?
A legal representation of an athlete or celebrity
Negotiate:
Salary/compensation
Contracts
Endorsements and marketing deals
Can represent individuals or whole organizations

17. Show me the money!
Agents make a percentage of clients earnings from negotiated deals
Agents must be familiar with contracts and laws
Agents and NCAA Athletes
College athletes can only have an agent AFTER their last college game
If found to have an agent athletes can be disqualified from the NCAA
Ex: Jerry get #1 draft pick

18. Managing the Money!
Athletes in particular are quickly propelled into wealth
Sponsors will often times provide handlers
Handlers help athletes to manage their wealth and behavior
No body likes a broke pro athlete!
Advisers often are registered with the league and help to maintain wealth and sponsorships
Example: Michael Jordan and Nike

19. Contracts A legally binding agreement between two or more parties
Can be written or spoken
Who uses contracts in Sports and Entertainment?
Professional teams
Sponsors and endorsers
Movie studios
Production companies

20. Steps in Creating a Contract
Offer
An invitation to make a contract
The person making the offer is the offeror
Acceptance
The agreement to participate in the contract once there is a valid offer
The person who accepts the offer is the offeree
Consideration
Both sides have to give up something and get something
Usually requires some negotiating!
Finalized
Both parties agree and contract is made

21. Case Studies You will work in groups of 4
2 will act as lawyer and athlete
2 will act as lawyer and company/league
You will work through the steps of creating a contract, each side will have confidential information
Must accept, negotiate and finalize the deal!
Last step
Write the contract!
What are the terms of the deal?
What happens if the contract is breached?
BE DETAILED!