Laws & ContractsImpact World of

Sports & Entertainment1. Sports & entertainment

perishable2. Technology = duplication

and transmission3. Protect celebrities,

producers, promoters, and investors

4. Increase safety of consumer, viewer, and fans

Laws & ContractsManaging 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_

PwI06k

Laws & ContractsSteps 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

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.

Laws & ContractsWho 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

Laws & ContractsWho 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=7lDpQSmEElY http://www.youtube.com/watch?v=P0AJM6HMYjM

Laws & ContractsWho 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/

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.forbes.com/special-report/2012/1024_dead-cel

ebrities.html

Laws & ContractsUS 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

Laws & ContractsFederal 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

Laws & ContractsContracts 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.

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

UnionsOrganized 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.

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.

Strike: a strike , in which employees refuse to work Lockout: A lockout is a work stoppage  in which

an employer  prevents employees from working.

UnionsOrganized Labor Issues: Salaries, Benefits, Working

Conditions Pro Sports: Salary Cap Labor/Management Issues

1. Millionaires vs. Billionaires2. Picking Up The Pieces--Sponsorships3. Winning Back the Fans--Promotions

UnionsLabor 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

LicensingBig 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?

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

Licensing Best money maker associated with

sports & entertainment events Unique to United States Growing Overseas Due To

Unification Of Europe

LicensingGetting 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

Licensing Applying for a License

1. Complete Business Plan2. Sample or Drawing of Product3. Production Costs and Distribution4. Marketing Plan5. The existing Distribution Channels

Limited Number of Licenses

Licensing Keep Merchandise Current

1. Change logo, color, or uniform2. Retro uniforms/merchandise3. Creative new items, licensing, sales

methods4. Market to World

LicensingManaging Licensing Distribution/collection of license

applications Review/selection of licensees Collection of minimum

guarantees/bank guarantees Development & dissemination of

design handbook and marketing plan

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

Licensing New Success Story: NASCAR

Nextel Cup Formerly Winston Cup

Legal Protection

LicensingLicensing 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.