As highlighted in this week’s Sports Law Roundup, Disney and Fox are entering into a doozy of a media deal that involves everything from movies to television shows to streaming platforms to sports programming. This transaction has Star Wars components, Hulu components, and Simpsons components that, rightfully, are making headlines. It would not be surprising, however, if some of the most visible changes for viewers that result from this asset purchase, for which approval by various supervisory entities remains pending, come for consumers of sports media.
Here are the top sports-related legal stories from the past week:
Louisville basketball: The fallout from the FBI’s announced investigation of Adidas-sponsored men’s college basketball programs resulted in the termination of Rick Pitino’s position as the head coach of Louisville’s team. That, in turn, spawned Pitino lawsuits against Louisville for wrongful termination and Adidas for intentional infliction of emotional distress. Louisville now has sued Pitino for breach of contract and negligence and seeks monetary from Pitino arising out of the school’s losses due to vacated wins, potentially including its 2013 national title, and other NCAA sanctions, lost donations, and other financial losses. Louisville’s complaint alleges Pitino admitted liability when he said in a post-termination interview that he knew about NCAA violations but did not report them and took “full responsibility” for his decisions to hire assistants who subsequently engaged in wrongful activity.
Television transfer: An announced transaction between 20th Century Fox and Disney involving the latter’s acquisition of more than $50 billion (exclusive of debt) of the former’s assets has potentially significant consequences for the entities’ sports properties. Included among the assets Disney (which already owns ESPN and ABC) is acquiring are all of the Fox Sports Regional Networks (e.g., Fox Sports Detroit, Fox Sports South, etc.) and the YES Network. Disney also is acquiring other substantial assets, including FX Network, Fox’s interest in Hulu, and all of Fox’s film and television studios, which would include the rights to film properties like “The Simpsons,” “Modern Family,” “Avatar” (for which one source reports there are four sequels in the works), “Deadpool,” and “X-Men.” In exchange, Fox shareholders will receive shares of Disney stock. In addition, a spinoff entity will take control of Fox’s primary national networks, including FOX, Fox News, Fox Business, FS1, FS2, and the Big Ten Network. The deal still requires approval from both existing entities’ boards of directors and shareholders, as well as government regulators.
Baylor sexual assaults: The flow of evidence of Baylor‘s apparently widespread sexual assault problems seems unlikely to abate anytime soon now that a judge is permitting discovery of sexual assault reports from students who are not parties to pending litigation involving the school, as well as records of third-party Code of Conduct violations limited to violations related to “sex” and is ordering Baylor to produce documents previously provided to independent auditors, those being “32,000 nonparty student records, and hundreds of thousands of additional documents, without regard to” relevance or federal privacy restrictions.
Gambler defamation: In June, an alleged “gambling guru” known as RJ Bell (real name: Randall James Busack) sued Deadspin (and its post-Gawker-bankruptcy owner, Gizmodo Media Group, LLC) and freelance writer Ryan Goldberg over an article Goldberg wrote and Deadspin published that was critical of Busack and which Busack alleges was libelous. On Tuesday, a New York bankruptcy judge announced that trial in the case will begin on Valentine’s Day 2018. An important legal question in the case is whether a provision in an order of the bankruptcy court overseeing the Gawker Media bankruptcy intended to operate as a release of third-party claims against Gawker Media writers applies to bar Busack’s claims against Goldberg, which is the position Goldberg takes. Busack contends that the release doesn’t apply to him because he didn’t sue Gawker during the bankruptcy and received no distribution from the Gawker bankruptcy estate. Gawker Media entered bankruptcy as a result of a prior lawsuit Hulk Hogan (real name: Terry Bollea) brought. The attorney who represented Bollea in that case also represents Busack in this case. On Wednesday, the judge, who previously indicated he found the release issue ambiguous, ruled that the release did, in fact, bar most of Busack’s claims.
Garbler defamation: Lou Holtz, former head football coach at Notre Dame and South Carolina and former football “analyst” for ESPN, has sued The Daily Beast and one of its writers, Betsy Woodruff, for defamation. Holtz claims that Woodruff’s article about Holtz’s comments during the 2016 Republican National Convention, in which she reported he said immigrants were “deadbeats” and “invading the U.S.,” contained information known to be false and caused Holtz to lose future speaking opportunities.
NFL Network sexual harassment: A former NFL Network employee has sued NFL Enterprises, LP (apparently the Los-Angeles-based television and broadcast arm of the NFL), Jessica Lee (allegedly a supervisor at NFL Network whose LinkedIn page describes her as the Network’s director of studio operations), and fifty unnamed defendants. The plaintiff’s lawsuit nominally is one for wrongful termination, but its most newsworthy allegations involve claims of sexual harassment, assault, and battery by other NFL Network employees, including former players Marshall Faulk, Donovan McNabb, Warren Sapp, Ike Taylor, Heath Evans, and Eric Davis and former executive Eric Weinberger, who now works as the president of Bill Simmons Media Group, which owns The Ringer.
I needed to take a few days off, but I finally am ready to write about what happened on Sunday night. Long story short, things got off to an amazing start, and then I really don’t know what happened. Continue reading →
Erin Andrews, an NFL sideline reporter for Fox, told Stephen Colbert last night (4:37 mark of the above video) that she is not allowed to report actual comments she hears from players or coaches.
“I hear the craziest things you could ever imagine,” Andrews said, explaining that she wished she could report them, but “the NFL doesn’t allow that.” Instead, she said, she is required to “paraphrase” what she hears in very general terms. Andrews wouldn’t elaborate on potential consequences of such reporting, saying only that “it’s just a rule, as a sideline reporter, I cannot repeat verbatim what I hear on the sideline.”
No sports entity is more interested in image control than the NFL (although execution sometimes is a different question), so it’s not shocking that Roger Goodell would have a gag order in place to keep what he undoubtedly sees as his reporters from relating to the public the actual comments of what he undoubtedly sees as his players.
In the professional football world, the NFL Network is state-run media, obviously, but little leaks like the NBC Al Michaels/Mike Tirico story and Andrews’ revelation last night serve as gentle reminders that, for the NFL, there is no such thing as an independent press.
I used to write the sports technology roundup at TechGraphs, an internet website that died, and now I am writing the sports law roundup at ALDLAND, an internet website.
Here are the top sports-related legal stories from the past week:
NBA CBA: Like baseball, the NBA has a new collective-bargaining agreement. Full details are not yet public, but it appears there will be salary cap and luxury tax changes, as well as an increase– from thirteen to fourteen– in the number of guaranteed roster spots for each team. The league also has agreed to shorten the preseason and expand the calendar length of the regular season without increasing the number of regular season games. One aspect that will not change is the manner in which the players and owners divide basketball-related income. The players conceded roughly seven percent (approximately from 57% to 50%) during the last lockout in 2011.
NFL concussion settlement: Earlier this year, the NFL settled a class-action lawsuit brought by former players seeking compensation for ongoing problems related to head injuries suffered during their professional football careers by agreeing to provide a fund to compensate former players for the next sixty-five years. The U.S. Court of Appeals for the Third Circuit affirmed the settlement, but a small subset of the class members– approximately thirty of 22,000– were dissatisfied with the settlement, believing it was underinclusive because it did not provide relief for former players who develop CTE, the disease found in people who suffer from repeated brain trauma that, at this time, is not detectable while the player is alive. Seeking further review of the settlement, these plaintiffs petitioned the Supreme Court. On Monday, the Court declined to grant their petition, leaving in place the Third Circuit’s ruling. It is unclear whether these objecting plaintiffs have any further recourse, though they likely are watching the new lawsuit highlighted in this space last month that specifically addresses CTE.
Student-athlete classification: As discussed here last week, the United States Court of Appeals for the Seventh Circuit rejected claims by a group of former Penn student-athletes that they are employees entitled to minimum-wage compensation under the Fair Labor Standards Act. Now, those students plan to requesten banc review, meaning that they will ask the full panel of Seventh Circuit judges to reconsider the decision. (Federal circuit courts typically hear cases in three-judge panels, even though more than three judges make up each of the federal circuit courts. Aside from an appeal to the Supreme Court, which may not even be accepted, the only way to reverse a circuit court ruling is to ask the full court to do so.) The plaintiffs contend that the amateur aspect of collegiate athletics the ruling noted is not pertinent to an FLSA analysis, and that the Seventh Circuit’s decision “conflicts with decisions in this and other circuits on employee status.”
Raiders stadium: In an apparent attempt to keep the Raiders from moving to Los Angeles or Las Vegas, the Alameda County Board of Supervisors voted to support the building of a new football stadium in Oakland that– unlike the new basketball arena being built for the NBA’s Warriors that will relocate them from Oakland to San Francisco– would be funded, in significant part, with public money. The Board’s vote does not guarantee that the Raiders will stay in Oakland.
Rams fans: St. Louis-area holders of Rams personal seat licenses suing the team after its move to Los Angeles now have requested class-action status. The plaintiffs are seeking a variety of forms of relief, including reimbursement for tickets and concessions. A judge already has ruled that some of the plaintiffs who want the team to continue to honor the licenses by allowing the St. Louis fans to purchase season tickets at the team’s new home in L.A. are entitled to do so.
NFL broadcasting: The plaintiffs in an antitrust lawsuit targeting NFL Sunday Ticket, the product of the exclusive agreement between the NFL and DirecTV for the television broadcasting of out-of-market NFL games, won an apparently significant victory when Fox and CBS agreed to produce documents evidencing their own Sunday-Ticket-related agreements with the league and DirecTV in connection with a judge’s discovery order. The NFL contends that the plaintiffs have failed to allege an antitrust violation because the NFL can decide how to broadcast its games, and the Sunday Ticket package represents an addition to viewers’ existing options (i.e., the one or two games available each Sunday afternoon on Fox and CBS, plus the national Thursday/Sunday night/Monday night broadcasts) rather than a restriction.
Formula One acquisition: Liberty Media, the company that owns the Atlanta Braves, will acquire auto-racing series Formula One for $4.4 billion. According to a reputable source, F1 cars are the fastest in the world among road-course racing cars.
MLB CBA: I wrote about the new CBA in this space after the league and players union reached their agreement on November 30. Now we have more information about the particularities of the agreement, and this analysis provides a helpful overview. We also learned that the Tampa Bay Rays were the only team to vote against approving the agreement. In a public statement, the Rays’ general managing partner made reference to an “opportunity [that] was missed” to “address the extraordinary and widening competitive gap that exists on-field between higher and lower revenue clubs.”
As you can see from the above graphic, this year’s Super Bowl, already dubbed the Snow & States’ Marketing Rights Bowl, pits New York against New Jersey in a battle for subpar beach superiority. You do not have subpar taste, however, because you’re reading ALDLAND’s Super Bowl preview, the only one you’ll need to prepare yourself for the game on Sunday. What follows is a compilation of the most interesting, entertaining, and essential Super Bowl XLVIII content, concluding with the least interesting, entertaining, and essential Super Bowl XLVIII content, my game prediction:
First and most important: the game begins at 6:30 Eastern on Fox.