Business LawBusiness LawLAP 3LAP 3

ObjectivesObjectives

Explain issues of unfair trade practices in sport/event marketing.

Explain issues of risk management in sport/event marketing.

Explain issues of contract law in sport/event marketing.

Explain issues of unfair trade practices in

sport/event marketing.

• Legal issues affect Legal issues affect sports at every level!sports at every level!

• Sport/event marketers Sport/event marketers must be in the know.must be in the know.

The Businessof Sports

• Capitalism

• Free trade can’t be restricted.

Trademarks

• Importance of trademarks:

Money

Reputation

Trademarks

• Lanham Act

Prevents trademark infringement

Violations result in injunctions, fines.

Antitrust Issues

• Sherman Antitrust Act

Regulates interstate commerce

Outlaws monopolies

Antitrust Issues

• Baseball exemption

Exempt from antitrust lawssince 1922

League can:

Block relocation

Contract (downsize)

Control all minor-league teams

Antitrust Issues

• Sports Broadcasting Act of 1961

Limited antitrust exemption for sports teams

Can pool broadcasting rights

Can “black out” games

Sorry. Today’s game will not be shown due to a

broadcasting blackout .

Rights of Publicityand Privacy

• Right of publicity:Right of publicity:

Protects person from Protects person from unauthorized use of unauthorized use of name/likenessname/likeness

Gives person exclusive Gives person exclusive right to identity for right to identity for commercial gaincommercial gain

Kool ColaThe gold medalistof colas!

Jamal WilliamsOlympic gold medalist

Rights of Publicityand Privacy

• Right of privacy—person can Right of privacy—person can sue when:sue when:

Seclusion is invadedSeclusion is invaded

Unreasonable amount of Unreasonable amount of publicity is givenpublicity is given

False light is shedFalse light is shed

Explain issues of risk management in

sport/event marketing.

Risk Management

• Loss prevention

Security—keeping fans safe

Ticketing:

Counterfeits

Ticket scalping

Risk Management

• Insurance

Fire, theft, injury, etc.

Prize indemnity

Explain issues of contract law in

sport/event marketing.

Contract Law

• Labor relations

National Labor Relations Act

Collective bargaining

Players’ associations

Strikes and lockouts

Contract Law

• Other contracts

Sponsor contracts

Option to renew

Right of first refusal

Television contracts

Venue and personnel contracts

• Your school’s logo or mascot

• Is it trademarked?

• Licensing?

• Alcohol at college games or in advertisements

• Is it ethical?

Acknowledgments

Original Developers:

Christopher C. Burke,Sarah Bartlett Borich, MBAResearch

Version 2.0

Copyright © 2013MBA Research and Curriculum Center

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