Fanatics, Inc., is nearing its final form as a fully armed and operational battle station within the sports card hobby. It took the sports merchandising giant only two years to go from zero involvement to complete domination of the Hobby in areas of licensing, manufacturing, distribution, and, most recently, resale: Aug. 19, 2021: Fanatics strikes a deal with MLB and MLBPA to replace Topps as the league's official trading card partner in a deal set to begin in 2023. Aug. 23-25, 2021: Fanatics replaces Panini, the company’s main competitor, as the official trading card partner of NBA, NBAPA, and NFLPA in a deal set to start in 2026. Sept. 29, 2021: Fanatics Trading Cards are valued at $10.4 billion, over half of the company's overall valuation of $18 billion following a $350 million funding round from Silver Lake, Insight Partners, and Endeavor, the owner of the UFC. (Panini maintains licensing rights to the UFC) Jan. 3, 2022: Fanatics, not content with waiting for its MLB and MLBPA deals to go into effect, agrees to purchase historic trading card manufacturer Topps in an acquisition worth approximately $500 million. Feb. 2, 2023: Fanatics announces its plans to create a live streaming platform for shopping trading cards and collectibles to rival platforms like Whatnot, TikTok, and Instagram Live. June 21, 2023: Fanatics sends local card shop (LCS) owners a contract with terms and conditions outlining requirements and restrictions regarding the resale of Topps products. Over that same two-year period, Fanatics' memorabilia arm, Fanatics Authentic, penned exclusive licensing agreements with superstars across professional sports including Tom Brady, Jayson Tatum, Auston Matthews, Shohei Ohtani, and several others. Under the Sherman Antitrust Act, “an unlawful monopoly exists when one firm controls the market for a product or service, and it has obtained that market power, not because its product or service is superior to others, but by suppressing competition with anticompetitive conduct." [1] Recent lawsuits citing Sherman Act violations have been leveled against large corporations involving mergers and acquisitions in both the airline industry and social media space. [2] The allegations center around anti-competitive behaviors including price-fixing, artificial price inflation, and lopsided exclusivity agreements. In the case concerning domestic airline travel, the court focused on the roughly 80% controlling interest that the defendants would have over the entirety of the $513.5 billion airline industry should proposed mergers be allowed. [3] Make no mistake, the sports collectibles business (valued around $35 billion in 2023) is several tiers below the airline industry, but the principles combatting anticompetitive behavior in both should be recognized and acted upon by the Department of Justice and/or corporations in the space. Surprisingly, the Hobby’s reaction to Fanatics slowly gobbling up competitors has been generally positive. The sentiment is that Fanatics brings more investment and marketing dollars into the business, drawing more eyeballs and interest to the space, and in turn, growing the Hobby to the benefit of both dealers and collectors alike. However, that continued growth now comes with demands and stipulations for sellers of Fanatics products that, by 2026, will include exclusive rights to three of the four major U.S. sports. In the terms and conditions contract sent to LCS owners earlier this week, Fanatics included its ability to issue “suggested” minimum price policies for certain products sold in the future. Should a dealer fail to comply with the “suggested” price policies, Fanatics reserved the right to suspend individual accounts, likely halting all distribution to the offending dealer. In the same subsection, Fanatics qualifies the demand by claiming that the “retailer shall, at all times and in its sole discretion, determine and control the price at which Topps products are sold by the retailer to its customers.” Despite the qualification, these “suggestions” feel a lot like Fanatics strong arming LCS owners into submission for fear of losing access to football, baseball, and basketball product which likely makes up nearly 95% of total in-store sales. The merchandising mogul also requires certain signage posted in-store, resale/breaking restrictions, hours of operation parameters, and quarterly sales reporting metrics. If Fanatics cannot currently be considered a monopoly, by 2026 there will be no doubt. Other rising concerns amongst Hobbyists include several what-if’s. Specifically, concerns that further demands made by Fanatics could require live streaming sales done exclusively on their coming Fanatics Live platform. Where an LCS owner may not have the deep pockets to combat Fanatics regarding the above contract conditions or future harms, platforms like Whatnot and Twitch are better positioned to challenge Fanatics on Sherman Act antitrust grounds—citing an illegal restraint on trade—should this additional step towards the suppression of competition come to pass. There should also be forthcoming discussions about whether the above terms bring Fanatics into an agency relationship with LCS owners and/or whether resale restrictions are barred by something akin to patent exhaustion for sports card products. Nate Otto is a rising 3L at the University of Florida Levin College of Law and the Executive Articles Editor for the Florida Entertainment and Sports Law Review. Find his store on eBay @BlueWhippetSportsCards. Sources: [1]Antitrust Laws and You, The United States Department of Justice (visited June 23, 2023) https://www.justice.gov/atr/antitrust-laws-and-you#:~:text=The%20Sherman%20Antitrust%20Act,-This%20Act%20outlaws&text=An%20unlawful%20monopoly%20exists%20when,suppressing%20competition%20with%20anticompetitive%20conduct. [2]See Mulvey v. American Airlines Inc., 2019 U.S. Dist. LEXIS 35824 (D.D.C. 2019), In re Domestic Airline Travel Antitrust Litigation, 221 F. Supp. 3d 46 (D.D.C. 2016); See also FTC v. Meta Platforms, 2022 U.S. Dist. LEXIS 199854 (N.D. Cal. 2022). [3]Airline Industry Market to be Worth $635.8 Billion by 2030, Yahoo Finance (visited June 25, 2023) https://finance.yahoo.com/news/airline-industry-market-worth-635-143000729.html#:~:text=Through% 20primary%20research%2C%20it%20was,passenger%20aircraft%20and%20freight%20aircraft.

On June 27, 2023, Panini America—a subsidiary of The Panini Group, the world leader in licensed collectibles—inked an exclusive trading card deal with Tre Johnson, arguably the best basketball player in the 2024 high school class and a projected top NBA draft choice in 2025. The agreement between Panini and the high school prospect is the first of its kind and likely the catalyst for Johnson transferring from Lake Highlands High School in Dallas, Texas, to the basketball powerhouse, Link Academy, in Branson, Missouri. Worthy of note is the fact that Johnson announced his intent to transfer on June 16, less than two weeks before Panini published the press release that made the multi-year trading card deal public. Johnson is now the most recent example of a top-tier high school talent fleeing Texas for states with favorable Name, Image, and Likeness (NIL) laws regarding high schoolers’ ability to receive compensation. “Prospecting” is an investing method regularly employed by collectors and dealers in the sports card hobby. The idea is that the savvy dealer or collector can get in early on the unproven athlete’s career, providing an opportunity to buy low and, maybe, just maybe, sell high. Oftentimes, this means making investments in athletes’ sports cards and memorabilia while the “prospect” is still in the minor leagues or—following the release of new products like 2022 Bowman University—still in college. Unsurprisingly, prospecting is most common among baseball card dealers and investors due to both, the massive pool of potential talent that gets drafted every season, and the depth of MLB’s minor league system. The practice of prospecting is far less routine in a sport like basketball where (1) the NBA’s one-and-done rule creates a truncated window of amateurism (for those who observe) and (2) a smaller draft class presents relatively known commodities. As state NIL laws allow companies like Panini and Fanatics to dip into the high school talent pool, sports card investors may widen their apertures regarding which sports make for viable prospecting markets. State NIL legislation has trickled down to the high school ranks less than two years after its implementation on June 30, 2021. However, not all state-sponsored bills regarding high schoolers’ ability to profit from their publicity rights are created equal. In Texas, Senate Bill 1385 prohibits individuals, corporations, and other organizations from entering arrangements with prospective athletes, regarding the use of the prospect’s NIL, prior to the athlete’s enrollment in an institution of high education.[1] Conversely, under Section 16 of Missouri’s House Bill 417, high school athletes may “earn or attempt to earn compensation from the use of such athlete’s name, image, likeness rights, or athletic reputation” under two conditions: (1) the prospective athlete is in discussions about enrollment with an in-state postsecondary institution, or (2) the prospective athlete has signed a letter of intent to enroll in an in-state postsecondary institution.[2] Now, it’s not that St. Louis University or Mizzou couldn’t make a late recruiting push for Tre Johnson, it’s just that on May 15, On3 reported that Johnson’s top school choices were narrowed to six: Kansas, Texas, Baylor, Kentucky, Arkansas, and Alabama.[3] There are a few potential issues regarding Johnson’s deal with Panini including the timing of his transfer in relation to the announcement of the trading card deal, and Missouri state NIL law allowances for high schoolers. While the NCAA remains committed to the avoidance of pay-for-play models and improper inducements tied to choosing a particular school, it has no jurisdiction over a high school athlete. However, Johnson would likely have to report the deal—which looks a lot like an inducement based on the timing—to the NCAA Eligibility Center should he elect to participate in college athletics for a season. Alternatively, Johnson could choose to join a minor league system like the Overtime Elite League (OTE) following his senior season. Twin brothers Amen and Ausar Thompson—selected 4th and 5th overall in the 2023 NBA draft—both played for Overtime Elite after their high school careers and, earlier this year, signed a similar exclusive trading card deal with Panini.[4] The more pressing matter for Johnson is the Missouri law requirement regarding in-state institutions. This may be as simple as Johnson making a statement that he is “reconsidering” Mizzou or any other basketball program within the state as a possible suitor. The Missouri House Bill only requires that high school athletes are “having discussions about potential enrollment with a postsecondary educational institution,”[5] which is a low bar. If we had access to the contract signed by and between Panini and Johnson, the multi-year aspect of the deal would be interesting to analyze. Without it, we can only assume that the scope of the deal covers just those years that Johnson remains a student-athlete and is in connection with his participation in high school and/or college athletics. Ultimately, the more opportunities for young athletes to monetarily benefit from their athletic prowess the merrier. And as state NIL laws continue to skew basketball “prospecting” younger, sports card investors, dealers, and collectors would be wise to keep an eye on this emerging market. Nate Otto is a rising 3L at the University of Florida Levin College of Law and the Executive Articles Editor for the Florida Entertainment and Sports Law Review. Find his store on eBay @BlueWhippetSportsCards. Sources: [1] 2021 Tex. SB 1385(j)(1). [2] 2023 MO H.B. 417(16)(1)(A)-(B) (emphasis added). [3]No. 1 overall recruit Tre Johnson names top 6 schools, On3 (visited July 1, 2023) https://www.on3.com/news/tre-johnson-names-top-6-schools-alabama-arkansas-baylor-kansas-kentucky-texas/. [4]Panini America Signs NBA Draft Twins Amen And Ausar Thompson To Exclusive Multi-Year Autograph Trading Card and Memorabilia Agreements, Panini America (visited July 1, 2023) https://blog.paniniamerica.net/panini-america-signs-nba-draft-twins-amen-and-ausar-thompson-to-exclusive-multi-year-autograph-trading-card-and-memorabilia-agreements/. [5] 2023 MO H.B. 417(16)(1)(A).

On August 3, 2023, Panini America filed a lawsuit leveling allegations of monopolistic practices and anticompetitive conduct against their archnemesis, Fanatics.[1] Specifically, the suit charges Fanatics with separate counts of Attempted Monopolization, Monopolization, and Unreasonable Restraint of Trade under the Sherman Act; two additional counts under the Clayton Act for lessening competition within a market; several counts of Tortious Interference; and, finally, allegations of Business Defamation and Disparagement.[2] Many in and around the collectibles space have labeled this filing inevitable. Neither party has drawn a Go to Jail card just yet, but the 55-page complaint describes the collective actions of Fanatics over the past 18-24 months as damning. In a previous article, I characterize Fanatics as a coming sports card monopoly and provide a summary of the actions outlined in the recent pleading, minus details about the pillaging of Panini employees and disparaging remarks made by Fanatics to third parties. Here, we will analyze the strength of Panini’s argument regarding the length and exclusivity of Fanatics’ imminent rights deals and how the deals will harm competition “for” the market. By 2026, Fanatics will have secured exclusive rights deals with each of the three major American sports leagues—the National Football League (NFL), National Basketball Association (NBA), and Major League Baseball (MLB)—and their respective player associations. In the lawsuit at issue, Panini continually points to the fact that these exclusive deals will span a decade or more, chilling the competitive market for the licensing and production of sports trading cards in the U.S. market. Panini states that this competition “for” the market is the “competition to replace the prior holder of the exclusive contract” and that Fanatics’ twenty-year stranglehold on the exclusive rights is anticompetitive by nature.[3] The length and exclusivity of the deals are important to highlight for Panini because Panini has held the exclusive rights to produce licensed NFL and NBA trading cards for over a decade and they must distinguish their trade practice from the monopoly that Fanatics is currently creating. It is well established within the 11th Circuit that exclusive dealings in and of themselves are not per se illegal, but only when proof of “actual competitive injury” is present does liability attach to anticompetitive conduct.[4] An injury in fact is required for proving violations of both the Sherman Act and Clayton Act. Panini is likely familiar with this requirement based on the routine nature of exclusive deals within the sports trading card hobby. Of note, Panini continues to use exclusive rights deals to its advantage and avoids any antitrust violations by not owning a significant enough sector of the market to cause anticompetitive injury to companies like Fanatics (Topps), Upper Deck, and/or Leaf Trading Cards. Proving actual competitive injury in the present case should not be difficult for Panini’s legal team. In ZF Meritor, LLC v. Eaton Corp., the 3rd Circuit emphasized that the suspect nature of an exclusive contract’s duration was a function of both the number of such contracts and the market share covered.[5] The court went on to admonish the agreements in ZF Meritor which locked up over 85% of the relevant market for at least five years.[6] NFL, NBA, and MLB trading card sales make up greater than 90% of the several-hundred-million dollar U.S. market. Once Fanatics owns exclusive rights to each of the three largest gets in the business, the “monopolistic outcome is not just probable absent an antitrust remedy; it is locked down and assured by contract.”[7] In closing, the Panini complaint asks that the court order an injunction against Fanatics, preventing the company from engaging in any further anticompetitive conduct or enforcing any previously entered-into exclusivity agreements that deterred competition in the Hobby. They go on to request an order requiring Fanatics to divest itself of the assets associated with Topps and any control over GC Packing (GCP)—the critical, high-tech, custom trading card manufacturer for Panini—to “restore competition.” Any litigation is likely in the distant future, but Panini now has a three-year window to prove its case against Fanatics in a final effort to remain relevant in the sports card hobby. Nate Otto is a rising 3L at the University of Florida Levin College of Law and the Executive Articles Editor for the Florida Entertainment and Sports Law Review. Find his store on eBay @BlueWhippetSportsCards. Sources: [1] Sports Card Platform Panini Sues Rival Fanatics Over Antitrust Law. Reuters (accessed August 3, 2023), https://www.reuters.com/legal/litigation/sports-card-platform-panini-sues-rival-fanatics-over-antitrust-claims-2023-08-03/ [2] Panini America, Inc. v. Fanatics, Inc et al., 55, 30-51. Case 8:23-cv-01721. Filed August 3, 2023. [3] Id. at 20. [4] Construction Aggregate Transport, Inc. v. Florida Rock Industries, Inc., 710 F.2d 752, 773 (11th Cir. 1983). [5] ZF Meritor, LLC v. Eaton Corp., 696 F.3d 254, 287 (3rd Cir. 2012). [6] Id. [7] Panini America, Inc. v. Fanatics, Inc et al., 55, 37. Case 8:23-cv-01721. Filed August 3, 2023.

Lost in the NBA off-season hustle and bustle, a potentially significant resigning slipped under the radar. There were no real "grade the signing" stories or analysis about what he brings to the team. The silence was noticeable. That signing was Miles Bridges signing his Restricted Free Agent Qualifying offer to return to the Charlotte Hornets. Bridges did not play in the entire 2022-2023 season because of a domestic violence incident that occurred last summer. Bridges was coming off the best season of his career in 2022. He was looking at a contract well over $100 million. But on June 27th, 2022, he was arrested for assaulting his fiancé, changing the trajectory of his life and career. He was charged with multiple crimes and pleaded no contest to a felony domestic violence charge. He was sentenced to three years of probation with no jail time, one year of parenting classes, one year of domestic violence counseling, 100 hours of community service, and weekly drug testing. He also cannot own a gun or any weapon and will pay a $300 restitution fee and a $500 domestic violence fine. Bridges sat out this past season and was suspended by the NBA for 30 games. As a result, he received 20 games of "time served" because he was out of the league for the whole season. In essence, he is missing out on 10 game checks this upcoming season. The suspension of Bridges appears minor when compared to that of Ja Morant’s. Morant's issues involving the improper use of firearms have been well documented in the public sphere. However, he never broke a law, let alone physically hurt anyone. His suspension is for 25 games. The discrepancy between Bridges and Morant’s suspension length is noteworthy, especially if you are of the opinion that being suspended for games in which you are out of the league should not count. Moreover, is serious domestic violence only 5 games worse than a series of foolish Instagram live streams? Is that the message? The suspension feels arbitrary and insufficient to say the least. I also wonder that if the Hornets were a more relevant team, would people care more? Fortunately for Miles Bridges, people don't seem to care. But some people do, including myself. Wake Gardner is a rising 2L at the Brandeis School of Law at the University of Louisville. Someday he hopes to work for a sports team in Florida. He can be reached on Twitter @WakeGardner and by email at [email protected]. Links: https://sports.yahoo.com/nba-suspends-ex-hornets-f-miles-bridges-for-30-games-10-months-after-domestic-violence-arrest

Professional athletes must pay state taxes to each state where their games are played.[1] With marginal state income tax rates ranging from 0% to 13.3%,[2] game locations can make a significant difference on a player’s after-tax earnings.[3] This is sometimes referred to as the “jock tax.”[4] For example, a player for the San Antonio Spurs who plays a game in California could pay up to a 13.3% California tax rate for that game (and there is talk of this being increased to 16.8%). But that same player who plays a game in Texas or Florida would not pay any tax, as those states do not have state income taxes. For some players, this means they would be able to keep thousands of dollars more for a game played in Florida than one in California. And changes to the tax code under President Trump make this disparity even greater because now the player cannot deduct the state taxes paid to California from his federal taxes.[5] Extensive research has already been conducted regarding state tax rates and professional athletes. These studies conclusively show that athletes consider state tax rates when considering which team to join; that teams in high-tax states are therefore at a disadvantage in acquiring talent; and that because of this disadvantage, these high-tax teams underperform when compared to teams in low- and no-tax states.[6] These studies have analyzed European football, PGA golf, NBA basketball, MLB baseball, and NHL hockey.[7] However, no study has been conducted to measure how the various different tax rates experienced by professional athletes in their away games affect athletic performance. This first-of-its kind study fills this gap in the research. By using NBA free throws, a player’s performance can be considered in isolation without the interference of the opposing team, which would be present in every other NBA statistic. Therefore, this study also provides a valuable framework for analyzing mental states and athletic performance in athletes that can be applied in numerous applications in future research. Extensive research in sports psychology regarding how negative mental states produce diminished athletic performance infer that—if players are upset when a game results in a higher tax burden—then their athletic performance in those games would be diminished. The results of this study confirm this hypothesis. Players averaged higher free-throw percentages in away games at no-tax states than they did in away games at high-tax states. This finding was well within the 0.05 statistical significance threshold with a p-value of 0.028. This finding provides empirical support for a number of topics that were previously discussed only theoretically. This invites future research into areas such as the far-reaching implications of tax policy, significance of sports psychologists, the importance of addressing mental states in athletes beyond just their past athletic performance, and the importance of team cohesion. Furthermore, the effects of mental states are likely applicable to the corporate world as well.[8] Therefore, this study invites future research into how mental states in general and state tax rates specifically might affect workplace performance, including collegiality, risk adverseness, discriminatory behaviors, and ethical corporate conduct. These issues are of increased importance in modern corporate America, where the ability of workers to telecommute is rapidly increasing.[9] Future research could attempt to measure a similar effect in other sports that offer a frequent, uncontested circumstance during the competition. Potential examples include tennis serves, track and field performance, baseball pitches, PGA putting, WNBA free throws, and National Hot Rod Association drag racing reaction times. And there are other, related topics that could be researched. Because of how “duty days” are accrued,[10] are injured athletes more likely to come back into play at a low-taxed game? How are athletes in different states willing to trade off future salary for an upfront signing bonus—which could potentially be taxed at a lower rate?[11] How has the recent Supreme Court decision to allow collegiate athletes to profit from their name, image, and likeness affected their tax-avoidance behaviors and performance?[12] Has recent, record inflation affected the mental states of athletes who chose more money up front in the form of a signing bonus than at a later date in performance incentives? A qualitative survey of NBA players regarding their tax literacy would also provide valuable insight regarding this issue, as the notion that NBA players would surely be ignorant as to this relatively simple and highly significant concept of state taxes is perhaps rooted in latent racism. This is a summary of a new study available in its entirety on SSRN at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3810974. Michael Conklin is the Powell Endowed Professor of Business Law at Angelo State University. He has published in over 100 academic journals including journals at 33 of the top 50 law schools. His research focus is expansive, but often centers on bridging the gap between theory and practice, providing valuable insight for policy makers, practitioners, and legal scholars. This focus on practical application has led to his placement as a top 100 author on SSRN. Sources: [1] James Alm, William H. Kaempfer & Edward Batte Sennoga, Baseball Salaries and Income Taxes: The “Home Field Advantage” of Income Taxes on Free Agent Salaries, 13 J. Sports Econ. 619, 623 (2012). [2] Timothy Vermeer, State Individual Income Tax Rates and Brackets for 2023, Tax Found. (Feb. 21, 2023), https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/. [3] James Alm, William H. Kaempfer & Edward Batte Sennoga, Baseball Salaries and Income Taxes: The “Home Field Advantage” of Income Taxes on Free Agent Salaries, 13 J. Sports Econ. 619, 623 (2012). [4] Jared Walczak, Tyreek Hill Moved to Lower His States Taxes, and He’s Not Alone, Bloomberg Tax (Oct. 12, 2022, 3:45 AM), https://news.bloombergtax.com/tax-insights-and-commentary/tyreek-hill-moved-to-lower-his-state-taxes-and-hes-not-alone (explaining how some states allow workers to spend up to 30 days in the state before they have any income tax obligation there but that there are “jock tax” exceptions that preclude athletes from taking advantage of this). [5] Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97, 131 Stat. 2054. [6] See notes 9–22 of full document available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3810974. [7] Erik Hembre, State Income Taxes and Team Performance, 29 Int’l Tax & Pub. Fin. 704, 706 (2021). [8] See notes 43–46 of full document available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3810974. [9] The Number of People Primarily Working from Home Tripled Between 2019 and 2021, U.S. Census Bureau (Sept. 15, 2022), https://www.census.gov/newsroom/press-releases/2022/people-working-from-home.html. [10] See notes 28–29 of full document available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3810974. [11] Thomas Heath & Albert B. Crenshaw, In Professional Sports, States Often Claim Players, Wash. Post (Feb. 24, 2003), https://www.washingtonpost.com/archive/sports/2003/02/24/in-professional-sports-states-often-claim-players/200ba244-d18e-49c8-b90f-b40d1aabb2c0/. (“One way athletes can reduce their tax bill is to get as much money as possible up front in a signing bonus, and to receive that bonus as a resident of a tax-free state. If contracts are worded carefully, signing bonuses are not considered wages and an athlete can then avoid paying any state income tax, including the jock tax, on that money, agents say. The savings can reach hundreds of thousands of dollars for big-time players.”). [12] See Nat’l Collegiate Athletic Ass’n v. Alston, 141 S. Ct. 2141 (2021).

The new trend in terms of contract negotiations for players recently has been holding out of training camp in search of a new deal. This strategy, though it hasn’t seemed to work so well for players like Le’Veon Bell or more recently Saquon Barkley, has been employed throughout the history of sports. However, after the signing of the 2020 NFL Collective Bargaining Agreement, the new trend has now become “holding in.” This agreement has taken away from teams the right to waive fines for players that refuse to report to mandatory training camp before the season starts. In the past, teams had the ability to simply do away with fines that players accrued while waiting for a new contract to be negotiated. This deal takes this power away from them, leaving players to foot the bill for missed team practices. This turning point has led to players reporting to training camp, but merely sitting on the sidelines and watching team activities, but not participating in them. This allows them to dodge those pesky fines, but still make a statement to the team that they refuse to play under their current contract. This has been the strategy of current Colts running back Jonathan Taylor, who has been seen on video from the press reporting to training camp, but simply watching from afar wearing a t-shirt and bucket hat. This could have an effect on how long players are willing to wait before the season to negotiate new contracts, as they can wait longer while not having to pay any monetary penalties, and potentially train by themselves in order to get ready for the new season. This adds a completely separate layer to negotiations, as it was reported that both Joe Burrow and Justin Herbert were waiting for one another to sign long-term contract extensions before they signed their own, in hopes to outdo one another. For the running backs, as it has been widely reported in the media, this trend could potentially work in the future, though it has not been effective to this point. Saquon Barkley held out for a bit until he returned to sign a deal netting him slightly less than what the franchise tag would have, but he did make public the fact that the running back position has been underpaid and thrust the issue into the public spotlight. The tactics for NFL players in their search for new deals have expanded, and the CBA may have to be expanded to cover situations like this. It’s hard to gameplan for every possible negotiating angle that players can use, and this may be a trend that could exist for a while, given that the current CBA doesn’t expire until March of 2030 - the end of the league year. It is certainly an interesting development that allows players to have a bit of bargaining power while still making sure that the team doesn’t forget that they have an issue. Holdouts for some players like the aforementioned Le’Veon Bell (who sat out the entirety of the 2018 season) have been largely ineffective, but here’s to the players trying to give themselves a voice. Jon Trusz is a recent graduate of the University of Connecticut who achieved degrees in Political Science and Communications and can be reached on LinkedIn under his name, or via email at [email protected].

The relatively new soccer team New York City FC (“NYCFC”) just received approval to build a new stadium set to open in 2025, the first soccer-specific stadium in the New York City area. NYCFC has played in several different sites throughout their 11-year history including Red Bull Arena in New Jersey and Yankee Stadium in the Bronx where for several years the club has played on one of the smallest-sized professional soccer fields in the world. The new stadium is expected to seat 25,000 people and be located right next to Citi Field, home of the New York Mets, in Willets Point, Queens. This stadium project is one of the centerpieces in the Borough’s “Willet’s Point Revitalization Plan.” The total cost is expected to be $780 million and will be privately financed. The Willet’s Point Revitalization Plan has also planned to build the city’s largest 100% affordable housing development in 40 years estimated with 2,500 homes, 40,000 square feet of public open space, a 650-seat school, a 250-key hotel, and ground-floor retail shops. The stadium will serve as a draw for tourists and New Yorkers from the surrounding area with the hopes to develop and revitalize the community. The Willet’s Point Revitalization Plan’s Uniform Land Use Review Procedure was recently approved and the final steps prior to starting construction are nearing a conclusion. This procedure is the 4th of a 5-step process of conducting a large-scale project in Queens. The building application process in Queens is relatively simple, requiring the application to be 100% ready to start construction prior to being approved. When preparing the application, the building contractors must make sure the project meets the Borough’s zoning restrictions and have completed building blueprints for the entire project. Once the application is finished, they must submit it to the New York City Department of City Planning. If approved, they must also have it reviewed and approved by the New York City Public Design Committee. After completing all these steps, they are allowed to begin construction. The two City departments ensure that the interests of the community are protected if any major projects like this one are to be built. Mayor Eric Adams spoke to the media after the procedure was approved saying: “This continued investment in New York City will create a long-overdue home for our first team, and create a new neighborhood for Queens.” NYCFC playing in their own soccer-specific stadium is still a ways away, but they are taking steps in the right direction and making sure the community benefits from the growth of this soccer club. Evan Lautato, Rising 2L at St. John’s University School of Law, www.linkedin.com/in/evan-lautato-a4bb14178 Links: https://www.mlssoccer.com/news/nycfc-stadium-renderings-willets-point-plans-before-anticipated-2027-debut https://www.nyc.gov/site/planning/applicants/applicant-portal/step4-filing-application.page

Over the past few months, new NCAA President Charlie Baker has shown that getting a federal NIL bill passed is one of his top priorities. Representatives of universities and conferences have been outspoken about the need for a federal law to prevent competitive advantages for schools based on their state laws. Leading up to the August recess set to begin on July 28, numerous NIL bills have been introduced and reintroduced to Congress. Here is a summary of each: Unnamed Bill Drafted by Ted Cruz Dated July 3rd, 2023, Ted Cruz drafted an NIL bill that was observed on July 21. Perhaps the biggest takeaway from this drafted bill is that it sets out the standard that athletes are not employees. This is a topic that has been widely disputed yet has remained unaddressed in most of the federal legislation proposed for NIL. In addition, Ted Cruz’s bill includes a state law preemption, meaning if the bill goes into effect, it will supersede all state laws that have been enacted for NIL. The bill would give the NCAA the power to make recruiting rules and transfer rules for college athletics without worrying about what individual states have done prior to it. Although the bill would not explicitly grant the NCAA an antitrust exemption, it would provide many of the same effects. College Athletes Protection and Compensation Act of 2023- Drafted by Richard Blumenthal, Jerry Moran, and Cory Booker Introduced on July 20, 2023, the College Athletes Protection and Compensation Act of 2023 focuses on regulating the NIL sphere and players’ medical protections. The Act would provide lifetime scholarships for players in addition to long-term medical coverage from injuries resulting from sports. The Act would also create the College Athletics Corporation (“CAC”) to regulate NIL and administer the bill. The CAC would consist of a 15-member board with subpoena power. Similar to the bill drafted by Ted Cruz, this bill would also expressly preempt state law. Protecting Athletes, Schools, and Sports Act of 2023- Drafted by Joe Manchin and Tommy Tuberville Introduced on July 25, the Protecting Athletes, Schools, and Sports Act of 2023 was drafted to set out “common-sense guidelines” for NIL across the country. These guidelines include prohibiting athletes from entering the transfer portal during their first 3 years of eligibility, mandating financial literacy training, and prohibiting athletes from deals with certain industries such as drug paraphernalia, gambling, and dangerous weapons. In addition to the guidelines for athletes, the Act would provide medical coverage for sports-related injuries for eight years after a player graduates. The Act also sets out rules for collectives, stating they can assist in recruiting if they are associated with the university through an official contract. If violations occur, the NCAA would be given the power to revoke universities’ licenses to participate in NIL or send the violations to the Federal Trade Commission (“FTC”) to be investigated. College Athlete Economic Freedom Act- Drafted by Chris Murphy and Lori Trahan Originally introduced on February 4, 2021, the College Athlete Economic Freedom Act was reintroduced on July 26, 2023, amongst the introduction of the preceding proposed bills from this article. The main points of this Act differ a bit from the others, as it focuses on ensuring equality amongst all collegiate athletes. The Act would include an amendment to the Immigration and Nationality Act so that international college athletes that are attending college on F-1 visas can profit off their NIL without immigration consequences because they currently have separate restrictions. The Act would also require that media rights deals include group licenses on behalf of college athletes. The last major takeaway is that the Act would prohibit college and NIL collective practices that discriminate on the basis of gender, race, or sport. While each of these proposed bills have their own distinct goals, there is a great deal of overlap. Nonetheless, there is worry that the variety of proposed legislation will cause confusion and delay the summed-up goal of enacting a federal NIL law. Since the dawn of the NIL era in college athletics, no bill draft has made its way through a vote in the Senate. There is a looming confidence that one of these drafts may be the first, but only time will tell after Congress returns from August recess. https://www.on3.com/nil/news/u-s-senators-joe-manchin-tommy-tuberville-alabama-west-virginia-ncaa-charlie-baker-bipartisan-nil-bill/ https://www.on3.com/nil/news/ted-cruz-senator-texas-nil-ncaa-legislation-bill-draft-employees-athletes-antitrust-charlie-baker/ https://www.moran.senate.gov/public/index.cfm/news-releases?id=A2244F4C-D01C-4F23-A6F2-6BDF56D7AB90 https://www.sportico.com/law/analysis/2023/trahan-murphy-college-athletes-rights-nil-bill-1234732227/ David Schulte is a lawyer in Michigan focused on sports and NIL. He can be found on Twitter at @DavidSchulteNIL

For many attorneys and law students aspiring to utilize their legal degrees to work in the sports industry, an in-house position with a professional organization is considered the peak of an arduous climb to the top of the sports law world. Oftentimes, legal positions in some of the mainstream sports in America, namely football, basketball, and baseball, are typically those that are sought after by the sports enthusiasts in the legal world. Nevertheless, due to the exponential growth of its popularity and the constant expansion of its professional leagues, the path toward in-house positions in American soccer has never appeared more open for those aspiring to work within the beautiful game. As a law student who ultimately hopes to attain an in-house counsel position within professional soccer, I wanted to learn from those who are currently in positions toward which I and several others passionate about the intersection of soccer and the law aspire. Accordingly, I decided to start a process that I wanted to document by way of Conduct Detrimental to share with all who are interested – an interview with a member of the legal counsel at every MLS club. From these interviews, I hope to be able to provide insight into the nature of legal counsel positions in professional soccer. And at the end of this process, I hope that we will all be more knowledgeable on what it requires to successfully convert our greatest passions into a dream occupation. For this interview, I was fortunate to speak with Patrick Murphy – Senior Legal Counsel of New York City FC. A graduate of the Wake Forest University School of Law, Patrick interned for both MLB and IMG during his time in law school, before serving as a Legal Coordinator within MLB for the first three years following his graduation. In 2017, he made the switch to New York City FC and just recently earned a promotion to Senior Legal Counsel in April of this year. The conversation I had with Patrick was informative, entertaining, and honest. It was an absolute honor to speak with him for this collaboration, as it felt like I was getting genuine advice from a friend who wanted me to succeed. The conversation represents Patrick’s individual views and opinions and does not purport to reflect the views or opinions of New York City FC or Major League Soccer. With that said, here is the interview with New York City FC Senior Legal Counsel, Patrick Murphy: 1. BG: Tell us a bit about your story – what led your interest in working in-house within soccer to develop and the career steps you took that eventually placed you in your current position. PM: Starting out, I went to Wake Forest School of Law for three years. While in law school, my first internship was with MLB and my second was with IMG, so I was lucky to get into the sports industry early. After graduation, MLB decided to bring me back to work in their properties department, and I was there for about 3 years. I had an unbelievable chance to get early experience working on things like licensing, sponsorship, event contracts, venue contracts, etc. After those 3 years, I saw the opening for a Junior Associate at NYCFC and applied. If I am being completely honest, I didn’t really have that big of a connection to soccer. I knew about the team having lived in the Tri-State area, but my initial exposure to the sport was with one of my best law school friends. He was a massive Arsenal fan and he’d appear at my apartment on Sunday mornings to pull me out of bed so he had someone to watch Arsenal matches with. Luckily, that exposure to the sport, along with the research I did concerning the club and City Football Group, was enough to allow me to speak intelligently about the organization during my interview. Nevertheless, as is true with the majority of these positions, my knowledge about soccer was secondary to my knowledge about the sports industry and my expected role within the company. As I have grown into the role, I have learned more about the sport and have loved every minute of it. 2. BG: What does a typical workday look like for you as Legal Counsel at New York City FC? Is your position more of a consultancy role, or do you primarily serve as the club’s representative in all pertinent legal matters? PM: As I am sure you’ve heard from lawyers at other clubs, there really isn’t a typical day. And that’s what makes it great. With respect to the work I do, though, it’s predominantly contracts - service, partnership, and employment contracts filling the majority of the time. However, the part I love the most is the advisory aspect of my job. This position sits at the intersection of law and business, and depending on who you’re dealing with, you are either giving strict legal advice or using your education and unique perspective to improve the quality of a certain deal for your team. Using my experience and creativity to guide the team to better outcomes or accomplish something we’ve never done before is really what gets me excited to come to work in the morning. 3. BG: If you could list 3 of the most important skills necessary to work as in-house counsel for an MLS club and provide a brief explanation for their importance, which skills would you choose? PM: I’ll start with the boring one first before getting into the more interesting ones: communication. I’m not just talking about speaking with people, engagements, emails, etc. It’s also your contract drafting – being able to communicate yourself properly in a document and making sure you are concise and clear. This skill is absolutely critical to achieving success in this job. The next is being able to form meaningful relationships. You can be the best lawyer in the world, or the most precise, creative contract drafter, but without being able to form those relationships, it won’t matter. There is a minimum requisite level of competence that you need to be an in-house lawyer, with the level of that bar varying depending on the role you’re in. As soon as you are above the bar, your success as a lawyer will come from the relationships you form and, in turn, getting people to work with you. For instance, if no one includes me in developmental meetings, or if no one comes to me with questions about what departments are doing day-to-day, I can’t do my job. Without cultivating those business relationships, I won’t have the opportunity to use my legal skills – no matter how good of a lawyer I am. Additionally, your external relationships play an important role in your legal career. As you work in the sports industry longer, you realize that the world is very small – whether you’re talking about firms with sports practices or in-house counsel. One of the best things about MLS is that the lawyers at the other clubs are unbelievably collaborative. They helped me get through a hectic period in 2019 after my boss left, where I was responsible for running the legal department at 31 years old. The relationships I formed provided me with a resource that was invaluable during this time. The last skill would be problem-solving. This role as in-house counsel is both legal and business, and you kind of serve two masters at the same time. Everyone in the building has their own agenda to facilitate their department. Whether it’s ticketing, marketing, or partnerships, they want to further their departmental agendas, and they want to do it within the bounds of the law. You have to figure out a way to help them grow their departments and push things forward while also protecting the company. Understanding this intersection and how to navigate law and business at the same time to problem-solve is hugely important. In law school, a lot of times, the analysis stops once you arrive at the right answer. In our work, the right answer is usually only the first step. Once you have the right answer – especially if that answer is "no’"– you have to come up with a way to implement it. There still might be a way of reaching the desired outcome, but it may require going down an alternative path. It’s your job to find those paths for your departments. Creative problem solving gets easier as you become more seasoned on the job, as you develop a better understanding of league guidelines and applicable law and learn how to use them in unique and beneficial ways. There’s not always one way to solve a problem, and in this role, the more creative you can be, the more valuable you’ll become and the more the company will benefit. 4. BG: As a law student, did you know that you wanted to work in the sports industry? If so, how did you prepare yourself to accomplish this goal whilst in school? If not, what led you to decide to work in sports and, more specifically, for an MLS club? PM: I knew by the middle of my first year of law school that I wanted to work in the sports industry. I grew up playing sports and have been a huge sports fan my entire life. I saw some internships with professional sports teams and leagues and realized that, if I am going to be a lawyer, that is the only path I see my career taking. I started applying to every sports-related internship I could find. I was also lucky enough to go to Wake Forest School of Law, where I was mentored by Timothy Davis, who co-authored one of the leading books on Sports Law. As well as learning valuable information from Tim, I tried to network myself and gain valuable connections in the industry while I was still in school. Basically, I tried to do whatever I could to get my foot in the door and take advantage of whatever opportunities came out of it. 5. BG: What is the one critical piece of advice that you could offer from your experience to law students aspiring to work in-house not only in soccer but in sports as a whole? Additionally, what is one piece of advice that you could offer about the industry to law students that you wish you were given when you were in law school? PM: To the first question, start building your network now. Talk to anyone who will listen. Most people can’t offer you a job, but they can give you thirty minutes. They can tell you about their role or department, and maybe you can turn that into another call. After some time doing this, perhaps the connections you build could lead to a concrete job opportunity. Just starting a dialogue with your future colleagues to create some conversation is crucial to establish the relationships that you will need to succeed in the industry. Also, don’t let your ego get in the way of being a good lawyer. There’s a tangible difference between being confident in your abilities and being arrogant. A critical part of being confident in your abilities is knowing what you don’t know. As an in-house counsel, you’re a generalist – you’ll know a little about a lot of things – but you probably won’t be an expert in any of them. As you progress in your career, you become more confident in handling more issues on your own, but it’s incredibly important to know when you can rely on your experience and when you need to consult outside counsel and resources to help solve a problem. If you have contacts who you can call for guidance or advice, use them. You’re wasting an opportunity to do the best work possible if you let your ego get in the way of asking for help when it’s needed. To the second question, figure out what your passion is and pursue that above anything else. When I realized I wanted to work in sports, I only applied for sports positions, and I didn’t let initial rejections or speedbumps discourage me. Ultimately, no matter how many times you hear '"no," it only takes one "yes" to end up in the place you want to be. I knew all I needed was one opportunity to break into the industry and I would rather have spent my time chasing something I genuinely wanted than settling for something safe. The bottom line is this: you will do your best work and be the best version of yourself if you are passionate about what you’re doing, so don’t let anything stop you in your pursuit of that passion. A special thank you to Patrick Murphy for his contributions to this article. He can be found on LinkedIn at Patrick Murphy. Bryce Goodwyn is a rising 2L at Regent University School of Law and assistant editor of the Legal Analysis section at Conduct Detrimental. He is a member of the Regent University Law Review and ADR Board, and he also serves as the East Region Chair of the recently-formed National Sports Legal and Business Society. He can be found on Twitter @BryceGoodwyn and on LinkedIn as Bryce Goodwyn.

This week, the Arizona Diamondbacks became the second team to have their broadcast rights acquired by Major League Baseball. Diamond Sports Group, the parent company of 19 Bally Sports channels including Bally Sports Arizona, failed to reach an agreement to continue paying the team as it is undergoing significant restructuring after filing for Chapter 11 bankruptcy protection in March. As soon as a bankruptcy court judge approved Diamond’s rejection of the Diamondbacks contract, the broadcast rights were immediately transferred to MLB. Last month, Diamond Sports lost its bankruptcy court case against MLB in which it argued that the rights fees it owes clubs should be reduced due to changes in market dynamics in the era of cord-cutting and the decline of cable television. It had already missed payments to the Diamondbacks, Guardians, Rangers, and Twins earlier in the year, so the company was quickly put in a position to decide whether to keep or cut certain teams' broadcast rights. The Diamondbacks join the Padres as the teams who’ve had their broadcasts shift from Bally Sports to MLB. Early returns from the Padres broadcasts have been mostly good as the audio/visual quality has been excellent and more importantly, more fans are able to watch their favorite team play. MLB commissioner Rob Manfred has long stated that one of his top priorities is making games more accessible for all its fans to watch. The league has long dealt with issues pertaining to local blackouts, frustrating cord-cutters and others without access to cable television. However, the decline of regional sports networks like Bally Sports and AT&T Sports Net could serve as an opportunity for MLB to take more control of broadcasts across the league. Over the offseason, Manfred hired an EVP of local media presumably to get ahead of the issues that have surfaced this year and beyond. MLB has reported that since taking over San Diego’s broadcasts, an additional 2 million people have access to Padres games. Furthermore, according to the league’s press release following acquiring Arizona’s rights, the availability of D-Backs games will jump from 930,000 households to 5.6 million households in the team’s home broadcast territory. While the expanded reach is a big positive for the league and its teams, there is a downside. The rights fee regional sports networks pony up to their respective team is a major source of revenue that if lost, could have a significant effect on the bottom lines for MLB franchises. Yes, MLB does have a lucrative national TV deal and small market clubs do benefit from revenue sharing, but the decline of RSNs must at least pose some cause for concern moving forward. MLB has promised at least 80% of the money Diamond originally owed to the Padres and D-Backs. But 80% isn’t 100% and budgets that have been crafted years in advance will need to be adjusted. It's worth noting that after opting against paying the Diamondbacks, it was reported by Front Office Sports that Diamond Sports Group “anticipates” continuing its relationship with the other 12 teams under its umbrella for the remainder of the 2023 season. What happens beyond 2023 is certainly up in the air at this moment, but if the reports are true, these 12 owners will at least rake in the money they originally expected from Diamond this year. As the trade deadline approaches, this source of revenue is obviously welcoming, especially for owners taking on additional salaries. This will certainly not be the last story pertaining to MLB broadcasts. With the exception of big market clubs like the Yankees, Mets, Red Sox, Cubs, Dodgers, and Giants, who either own or receive massive payments from their respective regional sports networks, the overall decline of RSNs is something every other club is monitoring. Ideally, MLB would love to take control of all its teams' broadcast rights and offer in-market streaming to all fans. But that’s a lot easier said than done and there are many barriers standing in the way of Manfred and the league office at the moment. Brendan Bell can be found on Twitter @_bbell5.

In Springfield, Illinois, sixteen-year-old swimmer Abbigail Wheeler, a swimmer on the Springfield YMCA SPY swim team, entered the girls' locker room to change when she noticed a couple of transgender individuals sitting there, as reported by Fox News. Abbigail Wheeler says she was kicked off the YMCA SPY swim team after she and a teammate put up signs reading "Women’s Rights," "Biological Women Only," and "SafeSport" to alert other girls that biological males were in the area. "I went to my coach and gladly told him that I was a part of this, and he said that it was probably not the best option for me to swim with the swim team that night and that the YMCA staff would follow up with my family." However, the local YMCA chapter communications director says that Wheeler left the team on her own, writing, "There have been a variety of false statements around the same issues circulated by the same individuals since the past May. In this version of the story, the statements that the swimmer was removed from the Y and prevented from participating in the swim team is false. She left the swim team and the YMCA on her own." This is the latest example of females voicing concerns about males transitioning to transgender females taking over biological females and their sports. Riley Gaines, a former swimmer for the University of Kentucky, has been outspoken on this issue and believes transgender females should not be allowed to participate in female sports due to biological unfairness. She believes transgender females are ruining opportunities for biological females to earn scholarships, podium finishes, and championships in their respective sports. Ms. Gaines competed against University of Penn swimmer Lia Thomas, a transgender swimmer who transitioned from male to female. Ms. Gaines praised Ms. Wheeler and her actions, stating "To be only 16 years old and being in the position that you're in, faced with what you were faced with and standing up for yourself and ultimately standing up for others. You are a megaphone for your teammates." The local YMCA stated that Ms. Wheeler left the swim team and facility on her own accord. Her coach, Mr. Totura, told her no action could be taken against the transgender athletes using the female locker rooms. Alex Patterson is a Thomas M. Cooley Law School graduate and works for the City of Springfield as a paralegal. He played football for seventeen years as an offensive and defensive lineman. He graduated from Lindenwood University-Belleville in 2018 with a Bachelor’s in Sports Management. He can be followed on Twitter @alpatt71.

Content warning: This article contains mention of hazing and sexual assault Nicole Markus, Alyce Brown, Cole Reynolds, and Divya Bhardwaj reported that a former Northwestern football player described the hazing process that went on during former head coach Pat Fitzgerald’s tenure. These acts included coerced sexual acts, and Coach Fitzgerald had an idea these actions were taking place. One player said they saw it with their own eyes and called it vile and inhumane behavior. The player alleged the hazing practice was dubbed as “running.” This practice was used to punish team members for mistakes they made on the field and in practice. Players selected for running would be restrained by eight to ten teammates dressed in masks, and then they would “dry-hump” the victim in a dark locker room. Other teammates were bystanders in the locker room, and the player said the practice has permeated throughout the program for years. There were whiteboards in the locker room labeled “Runsgiving” and “Shrek’s List,” containing a list of names indicating players that the player said needed to be “ran.” The players said this activity was team bonding, so the university never caught onto these incidents as hazing until now. In addition to “running,” the whistleblower alleged that he witnessed the team participate in other hazing traditions in which freshmen were forced to strip naked and perform various acts, including bear crawling and slingshotting themselves across the floor with exercise bands. In a once-a-year tradition dubbed “the carwash,” the first player said that some players would stand naked at the entrance to the showers and spin around, forcing those entering the showers to “basically (rub) up against a bare-naked man.” Upon entering the showers, the player alleged that players set up a hose they connected to the shower to spray people. After receiving the hazing reports, NU hired an independent law firm, ArentFox Schiff, to investigate the claims. Lead investigator Maggie Hickey, former inspector general of Illinois, interviewed coaches, staff, and current and former players, and reviewed thousands of documents, according to a news release by the University. She found the player’s comments were largely supported by evidence, and the knowledge of these practices was widespread across Northwestern football players. Originally, Northwestern president Michael Schill suspended Coach Fitzgerald for two weeks. After taking time over the weekend to look further into these allegations, the president decided to terminate Coach Fitzgerald. President Schill wrote his reasoning for terminating Coach Fitzgerald: “Coach Fitzgerald is not only responsible for what happens within the program but also must take great care to uphold our institutional commitment to the student experience and our priority to ensure all students — undergraduate and graduate — can thrive.” “Clearly, he failed to uphold that commitment, and I failed to sufficiently consider that failure in levying a sanction.” Alex Patterson is a Thomas M. Cooley Law School graduate and works for the City of Springfield as a paralegal. He played football for seventeen years as an offensive and defensive lineman. He graduated from Lindenwood University-Belleville in 2018 with a Bachelor’s in Sports Management. He can be followed on Twitter @alpatt71.