Sports activities & Leisure Highlight – March 2021 #4 | Foster Garvey PC

Happy Spring! After a particularly long winter in several parts of the country, it’s a welcome sight to see many of the well-known hallmarks of this time of year (even if our daily lives are significantly different from what we were two years ago): MLB spring training, awards season, and broken brackets (thank you , Oral Roberts). Without further ado, below is a selection of the latest information to stash in your hood:

  • Despite the previous successes of the NCAA men’s and women’s basketball tournaments, the NCAA and its Commissioner Mark Emmert received a court press conference in the tournament spotlight. For decades, the relaxation or withdrawal of amateur rules in college sports has seemed to be a chimera at times, but given the prominent activism of athletes and more states taking action on social media to restrict athletes’ publicity rights, we seem close to a tipping point to be (if not on this one).
  • For some time now we’ve been reading about Special Purpose Acquisition Companies (SPACs) and how popular they have become with athletes and entertainers, as well as retail investors looking to tackle the wave of increasing democratization during the pandemic – but now we’re seeing the data and the trend is astronomical: Since that time last year, 2,000 percent more donations have been collected. While there are no signs of slowing down, athletes, entertainers, and investors are well advised not to lose sight of the investment risk involved.
  • Non-fungible tokens (NFTs), the other asset that has gotten red hot in the increasing digitization of the pandemic-caused world, resulted in another eyebrow raising – the sale of an NFT home for half a million dollars. At that price, I would get my digital guests to take off their NFT shoes at the front door.

Endorsement Deals, Sponsoring & Investments

Cristiano Ronaldo, Tiger Woods and Roger Federer compete for the first athlete to earn $ 1 billion
March 19, 2021 about 90min
Sports legends Cristiano Ronaldo, Roger Federer and Tiger Woods have made astounding sums of money over their careers to date, and now the trio is in the running to become the first athlete to be valued at $ 1 billion.

4x MVP LeBron James signs deal with Mtn Dew from PepsiCo and ends 17-year deal with Coca-Cola
March 19, 2021 via InsideSport
After LeBron James claimed a stake in the Boston Red Sox, he added another line of investments to his extensive portfolio. The King has signed a new contract with PepsiCo’s Mountain Dew Rise Energy Drink.

SPAC fundraising is up a crazy 2,000% in a year
March 17, 2021 via WRAL
The SPAC market is so hot that this year’s fundraiser has already topped all of the 2020s. And it’s not even April. Understandably, the world’s largest asset manager fears that the SPAC boom is exaggerated.

The celebrities From Serena Williams to Paul Ryan are fueling the SPAC boom
March 17, 2021 via the Wall Street Journal – General (subscription required)
A major driver of the boom in acquisition companies for special purposes is a shift in reputation. Blank check companies have been associated with fraud and poor investor returns for decades. Now SPACs are cool and the biggest names in sports, politics, business and entertainment are involved.

The SPAC market is booming, but there are a lot of bad buys. Eight experts say investors should look for something the next time they invest in SPAC
March 20, 2021 via Business Insider Policy
The SPAC market was on fire during the pandemic. In fact, 219 special-purpose acquisition companies raised a record $ 73 billion in 2020, up 462 percent year-over-year in blank check company revenue.

Music IP

According to Tech Firm, musicians are losing billions to illegal business streaming
March 17, 2021 via MENAFN – Global Top News
At a time when musicians are struggling to make a living from streaming, a Swedish tech entrepreneur says his app can increase license fees by curbing the illegal use of music by millions of companies. What many are unaware of is that songs on Spotify, Apple, Deezer, and other streaming platforms are not licensed for use in cafes, stores, restaurants, hair salons, and other businesses.

Spotify justifies its payouts with Loud & Clear
March 21, 2021 via Forbes – Business (subscription required)
This week Spotify released a rationale for paying its royalties, which it dubbed “Loud & Clear”. The idea behind this is to show that there are some artists who are making a lot of money with the platform, but there are also thousands of smaller artists who are making at least some money. No specific artist is cited, but the generality of the data is meaningful.

Not fungible tokens

Is a tweet the next Mona Lisa? Dorsey’s $ 2.9 million sale raises value questions
March 23, 2021 via Bloomberg – Top Stories (subscription required)
In the past, likes, comments, shares, and the like – rather than a price tag – represented the value of tweets, Facebook posts, TikTok videos, Instagram images, and other ephemera on social media. But now there is a new way of measuring their worth: by the millions of dollars they make at auctions. On Monday (March 22nd), Twitter co-founder Jack Dorsey sold his very first tweet for $ 2.9 million.

NFT buyers and sellers may be subject to “unknown” capital gains tax in the United States
March 18, 2021 via Cryptocurrency & Bitcoin News
As the U.S. tax season approaches rapidly, investors buying and selling NFTs using crypto could face a painful surprise over capital gains taxes, an expert told CNBC last Thursday. The taxable amount on proceeds from the booming NFT to the US Internal Revenue Service (IRS) could soar over 30 percent – detracting from the huge gains from the NFT frenzy.

The world’s first digital NFT home sells for $ 500,000
March 23, 2021 via CNN Edition
After spending so much time at home over the past year, many people long for a change in their surroundings. But if a coat of paint or some creative renovations isn’t enough, there is now a more extreme alternative: the digital home. Mars House, the world’s first digital non-fungible token (NFT) house, recently sold for more than $ 500,000.

Why the NFT art market is exploding
March 22, 2021 via Bloomberg – Top Stories (subscription required)
The digital artist Beeple sold a non-fungible mark of his play “Everydays: The First 5000 Days” for a staggering 69.3 million US dollars. And he’s not the only one benefiting from this exploding NFT market.

Non-fungible tokens: Asset Ownership via Blockchain Rockets Into Legal
March 22, 2021 via the Legal Executive Institute
In a two-part series, we will look at non-fungible tokens and explain what they are and how they will affect numerous industries. and the importance of decentralized finance (DeFi) in understanding the importance of NFT in the legal industry. Welcome to the early days when blockchain is becoming mainstream and the legal industry needs to take note.

Right to advertising

NCAA President Mark Emmert will meet college basketball players behind #NotNCAAProperty – After Men’s Tournament
March 22, 2021 via USA TODAY
NCAA President Mark Emmert said he will meet with the college basketball players behind the hashtag #NotNCAAProperty, but only after the men’s tournament is over. The athletes responsible for first posting and sharing the hashtag on social media asked to meet with Emmert this week to discuss issues related to the online protest, including the unequal facilities for use on men’s and women’s tournaments and the NCAA’s stance on name, image and likeness.

The NCAA is playing the ball in the wrong place
March 22, 2021 via Forbes (subscription required)
While the welcome return of March Madness reminds us of the popularity of college sports, the NCAA continues to spend hundreds of millions on bills and political lobbying, and fights to preserve its exploitative and broken system.

Why NCAA Hate Goes Viral
March 19, 2021 via Slate Magazine
The run-up to this spring’s NCAA men’s and women’s basketball tournaments was different than normal, and not just in the way directly attributed to pandemic sports: the state setups in Indiana and Texas, the near-empty venues, and the uncertainty about whether every team selected for the field could play at all. Remarkably, the biggest stories leading up to the tournament weren’t about any of this, or that Duke and Kentucky both missed the men’s tournament, or the games that were going to be played for the next three weeks. Rather, they focused on the organization that staged these games.

College basketball players urge social media reforms
March 18, 2021 via Honolulu Star Advisor
Several prominent players from the March Madness basketball tournament targeted the NCAA on social media today calling for changes to how they may be compensated by college athletes in the latest organized show of force.

Arizona lawmakers are voting for college athletes to make money
March 18, 2021 via Bloomberg Tax (subscription required)
Arizona would remove barriers to college athletes receiving compensation for using their names or pictures through a bill the state legislature passed Thursday. The measure (SB 1296) would prepare the state for possible changes to the NCAA rules to allow student athletes to enter into advertising contracts with third parties.

Reforms to the NCAA student-athlete model could take the glass slipper away from Cinderella
March 18, 2021 via The Hill – Congress Blog
Everyone in America is busy filling out brackets for the NCAA men’s basketball tournament, trying to identify this year’s Cinderella team, the lesser-known school that will bring a powerhouse to a halt. But proposals in Congress could take the slipper away from Cinderella – and so college fans should keep an eye on Washington while the other is at the tournament.

Will March Madness be the NCAA’s last dance to show amateurism as it knows it?
March 17, 2021 via Forbes (subscription required)
The NCAA men’s basketball championship kicked off a few weeks ago with the four warm-up games and there was immediate excitement – two games ended with a point and another went into overtime. March Madness starts with 16 games on Friday. As exciting as many of these are, there’s a good chance things off the field could be just as exciting. On the eve of the tournament, a handful of players posted their dissatisfaction with the NCAA on social media using the hashtag #NotNCAAproperty.