1. Laws & Contracts Impact World of Sports & Entertainment 1. Sports & entertainment perishable 2. Technology = duplication and transmission 3. Protect celebrities, producers, promoters, and investors 4. Increase safety of consumer, viewer, and fans

2. Laws & Contracts Managing Risk  Review law/legal issues to ensure compliance and/or prevent injury or loss  Risk: possibility of a financial loss or personal injury  Liable: legally responsible for damages (physical & financial harm)  http://www.youtube.com/watch?v=gPuc_P wI06k http://www.youtube.com/watch?v=gPuc_P wI06k

3. Laws & Contracts Steps to Risk Management  Identify the Risk  Estimate the Possibility of each risk  How great are the consequences?  Determine how to control the risk Control The Risk  Limit possibility of risk through planning  Purchase insurance to transfer the risk  Transfer liability through a contract  Cover the risk in the event budget  Avoid offering a risky event

4. Laws & Contracts  An event sponsor has a legal duty to protect spectators unreasonable risk of harm or injury. Using the guidelines discussed, plan how you would identify & control the risks at a concert by a band that is rising to national prominence.

5. Laws & Contracts Who Has Rights?  Musicians, Athletes, Artists, Authors, and Professional Sports Leagues sell their product (talent).  Ownership of talent, image  Copyright Laws: protect the originator of unique works within geographic boundaries to which the law applies

6. Laws & Contracts Who Has Rights?  Copyright Laws: works copyrighted for the lifetime of the artist plus 70 years  Exclusive right to reproduce, sell, perform, or display the work  Royalty: payment received for use of a copyrighted work  “Fixed & Original” set down on a permanent medium  http://www.youtube.com/watch?v=kxG1kimjLNA http://www.youtube.com/watch?v=kxG1kimjLNA  http://www.youtube.com/watch?v=7lDpQSmEElY http://www.youtube.com/watch?v=7lDpQSmEElY  http://www.youtube.com/watch?v=P0AJM6HMYjM http://www.youtube.com/watch?v=P0AJM6HMYjM

7. Laws & Contracts Who Has Rights?  The men and women on our annual Celebrity 100 list--the most powerful people in the entertainment business this year—earned billions over the last 12 months by starring in films, playing basketball, walking the catwalk and more. But they also rose to the top by garnering influence.  http://www.forbes.com/celebrities/ http://www.forbes.com/celebrities/

8. Laws & Contracts  Celebrities name/likeness/voice/ image major source of income  Celebrity has the right to grant/deny permission to use the above for commercial purposes  http://www.cbsnews.com/video/watch/?id=7228500n http://www.cbsnews.com/video/watch/?id=7228500n  http://www.forbes.com/special-report/2012/1024_dead- celebrities.html http://www.forbes.com/special-report/2012/1024_dead- celebrities.html

9. Laws & Contracts US Laws  Us law not enforceable in other countries  Exception: International Copyright Convention  China & Russia largest producer of pirated works  Pirating of movies, CD’s, computer programs, designer clothing

10. Laws & Contracts Federal Laws  Regulate Commerce 1. Sherman Anti Trust (restraint of trade, price fixing, monopoly) 2. Clayton Act (sue for damages, gave rights to organized labor to challenge violations of Sherman Act) 3. National Labor Relations Act (right to organize, collective bargaining, prohibited company coercing in labor matters)  http://www.oursportscentral.com/usfl/trial.htm http://www.oursportscentral.com/usfl/trial.htm

11. Laws & Contracts Contracts That Bind  Contract: written agreement of business transactions  Contract wording should not be open to dual interpretations  Examples: player/performer contract, broadcast rights, venue rights, licensing, concession contracts, etc.

12. Laws & Contracts  Enforceable By Law When Involve A Promise In Exchange For Something Of Value Athletes Suspended (contract violations) Musicians (contracted to perform or record albums) Actors (contract to appear in a movie/TV show)  Noncompete Clause: prohibits a person from working in a competing business for a specified period  http://www.cbsnews.com/video/watch/?id=50135410n http://www.cbsnews.com/video/watch/?id=50135410n

13. Unions Organized Labor  Entertainment: Screen Actors Guild, Broadway Actors & Musicians, “Roadies”  Professional Sports: Players Associations  Union: A union is a legal entity consisting of employees or workers having a common interest, such as all the assembly workers for one employer, or all the workers in a particular industry. A union is formed for the purpose of collectively negotiating with an employer (or employers) over hours and other terms and conditions of employment. Unions also often use their organizational strength to advocate for social policies and legislation favorable to workers.legal entityemployees workersemployment

14. UNIONS  Collective Bargaining: The Collective Bargaining Agreement (CBA) is the contract between the NHL and the NHLPA that defines the structure of procedural, financial, and disciplinary relationships between the NHL, its teams, and its players. NHLNHLPA  Strike: a strike, in which employees refuse to workstrike  Lockout: A lockout is a work stoppage in which an employer prevents employees from working.work stoppage employer

15. Unions Organized Labor  Issues: Salaries, Benefits, Working Conditions  Pro Sports: Salary Cap  Labor/Management Issues 1. Millionaires vs. Billionaires 2. Picking Up The Pieces--Sponsorships 3. Winning Back the Fans--Promotions

16. Unions Labor Relations  Soccer Success Owners are investors & partners Select Players/Negotiate Salary Salary Cap= $1.7 million Owners keep 50% ticket revenue  Entertainment Screen Actors Guild American Federation of Television & Radio Artists  Cooperation = Success

17. Licensing Big Deal: EA & NFL Ink Exclusive Licensing Agreement  What is Licensing?  What Advantages do EA & The NFL receive through this agreement?  Why would a company enter into a licensing agreement?  Who would you enter into an exclusive licensing agreement with? Why? What would you use it for?

18. Licensing  Licensing: permission to copy the logo of a league, athlete, team, entertainer, film, or TV show for a fee paid to the rights holder of the image.  Legally Protected Property  Purchase License, Assume All Risk  Show Support For Team  Promotional Item: Give-a-way

19. Licensing  Best money maker associated with sports & entertainment events  Unique to United States  Growing Overseas Due To Unification Of Europe

20. Licensing Getting Licensed  League or Players Association sell rights and receive a percentage of each item sold  Allows league and players to focus on their primary business  Company will manufacture, market, sell products and assumes all risk

21. Licensing  Applying for a License 1. Complete Business Plan 2. Sample or Drawing of Product 3. Production Costs and Distribution 4. Marketing Plan 5. The existing Distribution Channels  Limited Number of Licenses

22. Licensing  Keep Merchandise Current 1. Change logo, color, or uniform 2. Retro uniforms/merchandise 3. Creative new items, licensing, sales methods 4. Market to World

23. Licensing Managing Licensing  Distribution/collection of license applications  Review/selection of licensees  Collection of minimum guarantees/bank guarantees  Development & dissemination of design handbook and marketing plan

24. Licensing  How new product will be introduced and how many designs will be allowed  Development and distribution of approval process guidelines  Review all designs for suitability  Account for all sales and royalties  Protect against counterfeit merchandise

25. Licensing  New Success Story: NASCAR Nextel Cup Formerly Winston Cup  Legal Protection

26. Licensing Licensing The Lancer  Identify a product not currently sold as a fundraising item in the Lakeland community.  Justify the selection, provide detailed information about the product (color size, price, etc.)  Create a sample visual of the product with the Lakeland Lancer  Create a an ad for your product.