Cover Your Legal Issues in SportEvent Marketing Bases

Cover Your Legal Issues in Sport/Event Marketing Bases Business Law LAP 3

Objectives 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 sports at every level! • Sport/event marketers must be in the know.

The Business of Sports • Capitalism • Free trade can’t be restricted.

Trademarks • Importance of trademarks: Ø Money Ø Reputation

Trademarks • Lanham Act Ø Prevents trademark infringement Ø Violations result in injunctions, fines.

Antitrust Issues • Sherman Antitrust Act Ø Regulates interstate commerce Ø Outlaws monopolies

Antitrust Issues • Baseball exemption Ø Exempt from antitrust laws since 1922 Ø League can: § Block relocation § Contract (downsize) § Control all minor-league teams

Antitrust Issues • Sports Broadcasting Act of 1961 Sorry. Today’s game will not be shown due to a broadcasting blackout. Ø Limited antitrust exemption for sports teams Ø Can pool broadcasting rights Ø Can “black out” games

Rights of Publicity and Privacy • Right of publicity: Ø Protects person from unauthorized use of name/likeness Kool Cola The gold medalist of colas! Ø Gives person exclusive right to identity for commercial gain Jamal Williams Olympic gold medalist

Rights of Publicity and Privacy • Right of privacy—person can sue when: Ø Seclusion is invaded Ø Unreasonable amount of publicity is given Ø False light is shed

Explain issues of risk management in sport/event marketing.

Risk Management • Loss prevention Ø Security—keeping fans safe Ø Ticketing: § Counterfeits § Ticket scalping

Risk Management • Insurance Ø Fire, theft, injury, etc. Ø Prize indemnity

Explain issues of contract law in sport/event marketing.

Contract Law • Labor relations Ø National Labor Relations Act Ø Collective bargaining Ø Players’ associations Ø Strikes and lockouts

Contract Law • Other contracts Ø Sponsor contracts § Option to renew § Right of first refusal Ø Television contracts Ø 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

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