The reach and intricacies of sports law: Understanding sports law

When a sports fan goes to a game, they get caught up in all the excitement unfolding on the field or arena. What team is up, what team is down, which player is having a good game, which player seems off, the defensive or offensive strategies being put into play—these are what the fans care about and what makes the game interesting. Other than the price of tickets or the cost of concessions, the average person attending a game is not thinking about the business or legal side of sports. But professional and high-level collegiate sports are businesses that operate within the rules of contracts and the other confines of sports law. Craig Esherick, academic program coordinator of the Sport Management program within George Mason University’s School of Sport, Recreation, and Tourism Management (SRTM), offered his perspective on the complexities of sports law.

Litigation seeks to allow collegiate athletes a share of the NCAA revenue received from televised games.

It is that time of year when March Madness is in full swing. But the competition is not only taking place on the basketball courts. It has found its way into the judicial courts where college athletes have filed litigation competing for a share of the revenue that the NCAA receives for its televised games. Under the current system, the NCAA shares this revenue with Division 1 conferences and conference member schools. The players do not receive direct compensation. Given the enormous amounts of revenue that the NCAA collects from giving television networks the contractual rights to broadcast the NCAA Division 1 Basketball Tournament, the outcome of this litigation could have a major impact on the NCAA’s revenue distribution model.

Land use restrictions must be considered in the proposed relocation of a professional sports team.

It is no easy task to move a professional sports team from one location to another. Careful deliberation must be given to a variety of factors that include the removal of any restrictions that govern how the land at the proposed site for a new stadium or arena can be used. The ownership of the Washington Commanders football team is considering the possibility of moving the team back to its former home of Washington, D.C. when its current stadium lease in Landover, Maryland ends. Up until 1997, the team played at Robert F. Kennedy Memorial Stadium, known as JFK Stadium, in Washington. To entice the team to return to Washington, D.C., city officials are working with Congressional leaders and the National Park Service to revise an existing covenant which limits the use of the site upon which the old JFK Stadium sits to sport and recreational uses only. Government officials are hoping to secure approval allowing for residential, commercial, and other mixed uses that would make the property more attractive to the team owners.

Sports betting has become widespread in both collegiate and professional sports.

The U.S. Supreme Court changed the landscape of sports betting in 2018 when it ruled that the federal government cannot prevent states from legalizing sports gambling. Before the Supreme Court ruling, sports betting in the United States was only legal in Las Vegas, Nevada. Now, 38 states have passed legislation legalizing sports betting. Among these, 30 have adopted rules that allow some form of online betting. The internet and the use of smart phones has made it easy to engage in sports betting and has contributed to a boost of betting at both the collegiate and professional levels.

However, some observers in the sport management community are concerned that with the explosion of sports betting, there is a greater chance that the integrity of the game can be corrupted. Players or coaches could be motivated to deliberately throw a game for financial gain, like what allegedly happened with the baseball scandal of the early 1900s when several members of the Chicago White Sox were accused of intentionally losing the World Series to the Cincinnati Reds in exchange for money. There could also be more chances for “insider” betting, where individuals close to the game have information about a player being injured, a change in roster, or other information that is not known to the public but could significantly influence the outcome of the game. To prevent this from happening, many states have enacted sportsbook laws that prevent players from betting on their own teams or from placing a bet within the stadium, arena, or facility where they play or practice.

With sports betting looking like it is here to stay, betting companies and sports leagues are forming partnerships in which sportsbook facilities used by the public are being established within the team’s own stadium or arena. These betting facilities are open to the public during hours that extend outside of when a game is scheduled to be played. Partnerships in which a portion of the stadium or arena is rented to a sportsbook company for public betting is another way to create a revenue stream for the team owners and the betting companies.

Title IX has significantly increased the participation of women in sports.

One piece of legislation that has opened the doors to women and girls interested in participating in sports is Title IX of the Education Amendments of 1972. This landmark civil rights law prohibits sex-based discrimination in any school or educational program that receives federal funding. Title IX requires high school and college athletic departments to fund women’s sports at the same level as sports programs for men. Because of Title IX, there are more women and girls involved in sports than ever before and that includes participation in the Olympics. It has also created a larger fan base of individuals interested in women’s sports. From a business perspective, Title IX has played a large part in spurring the increased sales of sports merchandise and services specifically geared to female athletes. Many people believe Title IX was one of the most impactful pieces of legislation to be enacted in the history of sports law.

For more information about degree offerings in the Sport Management program within Mason’s School of Sport, Recreation, and Tourism Management, please visit the program website.