laws & contracts impact world of sports & entertainment 1. sports & entertainment...
TRANSCRIPT
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.