Sports & Entertainment Spotlight

Welcome back to the Spotlight! For time immemorial (since 1906, to be exact), the National Collegiate Athletic Association’s (NCAA) so-called amateurism rules sought to enforce a bright-line distinction between college sports and professional sports.  To the NCAA, the platform of college sports was educational, while professional sports had underpinnings of commercialism.  Under these rules, prospective and current college athletes were, amongst other things, precluded from profiting off their name, image and likeness (NIL) from endorsements without losing their athletic scholarship or eligibility. But, over time, the core assumptions of those dividing lines became blurred as college sports evolved, ballooning into a multibillion-dollar business itself.  Why could coaches and school administrators make millions in revenue from sports, while athletes of those same schools were relegated to being students first?  Well, after years of feet dragging, antitrust litigation, lobbying and intervention of state legislatures across the country, a watershed moment occurred in July 1, 2021, with the NCAA issuing interim guidelines to enable prospective and current collegiate athletes to enter into endorsement, influencer and other revenue-generating deals centering around the commercial exploitation of their NIL. In the nearly four years since that fateful day, we have borne witness to the rise of NIL collectives, prominent use of the NCAA transfer portal and more litigation. Along the way, many high school and college athletes have earned sums of money that would not have otherwise been available to them unless/until they play professional sports. Now, with a federal judge approving the terms of a $2.8 billion antitrust settlement in House v. NCAA, schools themselves will be able to pay their athletes directly: a stunning development that seemed impossible just a few years ago. Key questions do remain, however: How will sports less lucrative than football and basketball fare? Will athletes be treated as employees? Will athletes have collective bargaining rights? Is it too late for me to go back to college? What happens from here is anyone’s guess, but one thing’s for sure: there will be lawyers.

• • Online mental health service BetterHelp partners with three WNBA teams in a sponsorship deal, enabling them to reach more fans to assist with pointing them in the right direction particularly when they’re back on the block and on the rebound after someone steals their heart.

• • Viral drinkware company Stanley 1913 partners with Post Malone on his own collection featuring styles evocative of the artist himself including bolo tie accessories. To make it even more evocative, consumers can pay my sons $5 to scribble on it.

• • Tennis great Andre Agassi is among an impressive list of investors in a racquet sports social club concept called “Ballers.” You might say, Agassi is hoping you love it.

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