Three Current Issues In Entertainment Law

The first article I read in the Huffington Post about a class action suit against EA Sports, a video game company. Many former and current athletes are suing the company because they claim that EA is violating Publicity rights by using the likeness of college players without permission.  The NCAA doesn’t allow the player to profit from their athletic ability and accomplishment, but they are allowing the school, EA, and other 3^rd parties to do so.

Being a former NCAA athlete, who was “in” the EA college basketball game, I think it is completely unfair and overtly illegal. The article states a case where a racecar driver won a similar suit. I will be very interested to see in where this case goes, but I believe some how the company will win out, and the NCAA players will continue to get unfairly exploited.

The second case is a criminal case in where charges were brought against 18 people for various types of fraud. The alleged criminals duped investors for over $25million with promises of high returns, movie credits, and other falsehoods. In reality, the money collected barely went to producing the films, and some films were actually never even made.

I am glad to see that there are protections for movie investors. I hope those investors understand that this is not common practice and that they can trust their money in ethical companies. As far as the case, I hope if these criminals are found guilty, they are punished to the fullest extent of the law. Fraudulent manipulation of investors, in my opinion, is one of the most unethical white-collar crimes.  

Lastly, I read a short article on how the state of Texas is deregulating talent agencies. Texas apparently required a special registration for talent agencies, but as of September 1^st no longer do so. Proponents for the deregulation state “It is inefficient and unnecessary to continue the state licensing of talent agencies ….. The number of licensees … is so small that there is no benefit to the consumer to continue regulation”

Apparently, many people were operating talent agencies without the registration, and it was too easy to circumvent, and inefficient to keep requiring the registration. I am interested in this case because I plan to own a talent agency one day and I will have to look into state law and see what is required of me and where it would be best to set up my business. 

Basketball players will do what they love: play basketball.

This summer, Kevin Durant scored 60+ points on the legendary court at Rucker Park in NYC. Kobe Bryant hit a game winner in a high school gym over another NBA star. Carmelo Anthony rented out a college and hosted a pseudo All-Star game for charity. All of this while NBA players are supposed to be resting.

NBA players are not only supposed to be resting, but they should be resting a bit uneasily. It is no secret that the NBA team owners and NBA Players Union are locked in a bitter battle over the future collective bargaining agreement. This fight has in turn, left the players locked out.

Whenever the players are allowed to return to work, they will slide back into the contracts that they had previously. This is where the problem lies.

The players are investments and assets to many people. They have team owners, team employees, agents, sponsors, and dependents all relying on them. The upper echelon players are worth over 8 figures annually. Most of the commentators on the lock out are weary about the players being so active during the work stoppage. You hear things like “they need rest”, “risk of injury”, and “wearing themselves down”.  All of these things are a major business hazard and are legitimate concerns for their future earning potential. While the league is down, players should be doing all they can to remain in top shape but protect themselves for when they start to play professionally again.

But the simple fact is: basketball players love to lay basketball. Most players have made it to the NBA because of hard work and God given talents. But at the core of their success is just a flat out, love for the game. They should be home, working out safely and relaxing. But lucky for some fans, they rather compete for free in small gyms all over the country. If the league doesn’t start on time, many top players have already decided to take their talents overseas and play for team in foreign lands, for less money.

As a former scholarship player ,and a person with relationships with some NBA players, I completely understand how they feel. They want to play. They want to compete. They want to showcase the skills that they have worked hard to acquire. As an aspiring agent, I also understand the worry and concern about these high priced assets. But fans are getting treated to great basketball, and the players are doing what they do best. I think we should hope that the players remain free from injury or other issues, but allow them to do what they do best. Play the game they love. 

Interview With Music Video Producer, Dapo Fagbenle

When I was originally assigned this interview project, I intended on seeking out a current sports agent. But then I realized that one of my best friends is on the rise in the entertainment industry, and on his way to doing big things.

Quick background, Dapo and myself went to high school for a year together, and 2 years in college together. He is currently back in his hometown, London, England, working with his brother at Luti Media as a music video producer.

Andrew: How did you get your start in the music industry?

Dapo: Well, my brother started a company called Luti Media about 5 years ago, and they produce videos, mostly music videos. While I was here in America, he let me do some freelance producing for the company. I realized that this was something I could get into, so I came home in March and officially joined the company.

A: What's the average day of a music video producer like?

D: There is no structure, or daily routine. You are either doing administrative work, you're on set, or you're doing post production stuff. Administrative stuff is like dealing with invoices, tracking accounts, writing the treatments, meeting with clients, artist or labels, and everything pre-production. It's hard work because you are responsible for everything. On set, you're just making sure everything is running smoothly, dealing with equipment things, and making sure that the clients and directors have everything they need. Post-production is when you're meeting with the client and editors to make sure the client is happy and everything matches the treatment. 

A: So what are your favorite and least favorite parts of the job?

D: The best part is that I can go to work in jeans and a t-shirt. I also like working with my family, but that can be one of the worst parts, too. I like traveling, meeting people, celebrities, the perks, and the networking opportunities can lead to bigger things. The worst part is that there is never a set finishing time. So many days I have to work 5 am- 5 am. You basically have to do whatever you need to, in order to get the job done.

A: This is for a negotiation class so I have to ask what types of negotiations do you get involved in and with whom?

 D: There are three types of negotiation. Two deal with monetary issues and one doesn't. The first type of negotiation is between us and the record label or management company. We sometimes try to get them to raise the budget by saying "Look, your video can be better if you spend X amount of dollars more." But thats less of a negotiation, and more of a suggestion, because you don't really want to offend people by telling them how to spend their money.


Secondly, we negotiate with suppliers. Every shoot we need lights, cameras, dollies, tracks, catering, location and all types of equipment. All of these things can be negotiated. We do a lot of business with the same companies, so we have a pretty low rate because we've negotiated down. They are willing to work with us because we continue to bring them steady business.


The last type of negotiation happens between us and the client about the finished product. During editing, we try to work with the client to find middle ground on the final presentation. Sometimes, they want to make changes and we try to work with them or help them understand, like "Look, we understand, but this is the best the video can be because of...." for whatever reason. 

A: How do you and your company find ways to use leverage in order to get extra benefits during these negotiations?

D: Well, we really use leverage when we are casting our videos. Its not really difficult to find a cast because we can use our showreel or the big names we have worked with like the directors. We have worked with Director X, Benny Boom, Rage. These people have shot videos for DMX, 50 Cent, Akon, Diddy, and a bunch of top artist. When you use that credibility, everybody wants to be in the video.

Also, like I said earlier, our suppliers know that we are consistently bringing them business and they rely on us. So if we say "this week we need a lower price because of such and such" then they are inclined to do it in order to maintain that business.

A: How do work with the people you negotiate with in order to create mutual benefit?

D: Just don't F anybody over, really. We all understand that we are in it to make a profit. We understand the truths about the bottom line. Say we're tight on the budget we just let them know "look this week we're tight, we got you next time". Once you build a relationship on honesty then its easier to work together.

A: What do you see yourself doing in the entertainment industry in the future?

D: In the short term, just keep doing what im doing and learning. In the medium future, I am planning on running a subsidiary of this company. Eventually, I want to produce things outside of music videos like websites, and TV shows, because there's a lot of money in TV.

A: Anything you want to  finish with or plug?

D: Stay in school kids, and don't do drugs. Check us out on our website Lutimedia.com and hit me up on twitter, @ItsDapsYo. 

Inspirational Speech By Jeff Bezos

I think its common knowledge that the best way to learn something, is from first hand experience. The second best way is by listening to someone with first hand experience. Because my goal is to become a serial CEO, I always look for opportunities to learn from people of that ilk. They don't have to lead many companies, like I want to do eventually, but if they have built a company their own way, become a leader in their sector, and are seemingly upstanding, then I relish the chances to hear from them.

Jeff Bezos is the founder of Amazon.com, the leading online retailer in the world. For this assignment, I was lucky enough to stumble upon his speech in the TED.com section "Best of the Web. Mr. Bezos addressed his Alma Mater, Princeton, during a commencement and spoke on the difference between gifts, and choices. 

Jeff started out with a childhood story about his beloved trips with his grandparents, specifically his grandmother's smoking habit. He said he was able to calculate how many years she had shaved off of her life by experts' estimation. Sharing the news with his grandmother that smoking had cost her 9 years of her life saddened her, and he did not quite understand why. I was confused as to where this was headed at first, but the story ended with his grandfather saying "being clever is a gift, being kind is a choice."

He then explained the circumstances that led him to create Amazon, and how his life was fine, but he had to make that CHOICE because he did not want to regret not every following his dreams. He discussed how gifts are great, but that everyone has gifts. What separates people from one another is the choices we make, and those choices make us great or the status quo.

I think his speech was impactful because of the setting and audience. If he gave this speech to a room full of peers, I'm sure it would have some impact, but not as much. To give this message to young college students on the edge of their adult lives, worked. Myself being a young adult, was able to see value in his words and use them as motivation. My choices today, tomorrow, and forever are ultimately what shape my destiny and determine what type of legacy I will leave. They must be thought out, positive, and uphold the values and morals that I believe in.

Pitch Man: Lebron James

A few months before the 2010-2011, LeBron Jame made a very controversial "Desicion". On national T.V. he announced that he would be "taking his talents to south beach" and leaving his hometown team to join the Miami Heat. What ensued was an apparently harsh push back by most of the NBA fans,  and even his previous boss.

But what was lost in all the hoopla surrounding "The Decision" was that, in the one hour of television, LeBron James actually made $3 million dollars. He made true on his promise and donated the proceeds to the Boys and Girls Club Foundation, but this event underlines and prominent theme of LeBron's career. He can make money. A lot of it.

Fresh out of high school, LeBron signed a $90 million deal with Nike to have his own signature shoe. To date, he has endorsement deals with many companies including McDonald's, Upper Deck, State Farm, and Coca-Cola. Last year, LeBron was ranked 4th on the list of highest grossing American Athletes.


Earlier this month, Lebron agreed to his newest endorsement deal with Audemars Piguet. The company makes luxury watches and has brought LeBron in to be the brand ambassador.

From the official site:

In addition to representing the brand on the international stage, LeBron will collaborate with Audemars Piguet to create a special limited-edition watch. LeBron has decided to donate the proceeds from any future auctions of his timepieces to his namesake charity, the LeBron James Family Foundation and its children’s related activities. This partnership is another chapter in Audemars Piguet’s long-standing tradition of philanthropy.

“Audemars Piguet and I strive for excellence in all our endeavors,” said LeBron. “I am honored to be the next global brand ambassador and join the ranks of industry greats who have previously represented the brand. “I am also excited to collaborate with AP on an exclusive timepiece that will be the ultimate symbol of our partnership,” adds LeBron.

LeBron's popularity may have taken a slight hit this summer, but the fact remains the same. He will continue to be one of the most famous faces in sports and continue to cash in, off of the court.

Independent Filmmakers Alliance

For this assignment, I decided to step out of my sports agent shoes and put on my movie production shoes. I was assigned to search for and discuss a trade association and the one that stood out to me was the Independent Filmmakers Alliance.

The IFA website describes the association as:

a world wide organization dedicated to encouraging indie filmmaking around the globe. We are the one-stop shop for your independent filmmaker needs

 The alliance is based in California, but boost members from all around the world. They focus on creating networks and providing resources for independent filmmakers of all experience levels. Some of the basic resources they offer are sample budgets and schedules, techniques on approaching investors, and talent agency contact information.

Some of the more extensive programs include a huge script library, where you can study great scripts of the past. They host screenplay contest where members can enter scripts and compete for prizes, funding, and recognition. One of the most valuable events that they host are the various film festivals. This allows producers to screen movies for potential distributors and customers. This is one of the most important steps of the film production process.

The IFA would be important for a person like me for a variety of reasons. First the simple resources are practical things that I will always be able to use as references and templates.I will also be able to take advantage of the contest and film shows also. But what my actually benefit someone like me will e the connections, contacts and networking being apart of the alliance allows me to do.

Endorsing the Troubled and Unknown

About a week ago, Cam Newton signed his first endorsement contract of his career, when he accepted an offer from Under Armor. The deal is reportedly worth over $1million a year. Just a few weeks before that, Mike Vick signed his first to his first endorsement deal after being released from prison. These two deals got me thinking, and I have realized this; there is no exact science to endorsements.

Let's look at Cam Newton. He had an amazing season, which ended in him winning the Heisman Trophy and the National Championship. But it is no secret that he had issues that some say reflect poorly on his character. He is now entering the league (which has it's upcoming season in jeopardy because of the longstanding labor dispute) as a anomaly. Due to his massive athletic potential mixed with his unproven fundamentals, there is no consensus on whether he will be a star, or a bust.

Contrast that with a guy like, pre-violation, Reggie Bush. The consensus was that this guy was going to be a bonafide star and a fan favorite right away. So when Adidas gave him the biggest rookie endorsement deal to that point, it really wasn't a shock. Or Tim Tebow. He was America's wonder boy in college, did what Cam Newton did for three years, and had very comparable potential and skills. Yet he did not receive a substantial sporting goods endorsement deal.

Yet Cam Newton, with a rocky past, and questionable future, receives the biggest rookie deal ever. Now I am a Cam newton supporter all the way, but I just don't get it.

Then, Mike Vick. We all know his story by now. It looked like 2 years ago this guy would never get an NFL contract again, let alone endorsement contract. But after a great year on the field, he gets one, and is in line for even more.

Now neither of these two men are the most likable, due to their past mistakes (I won't even discuss the race issue). But here they are getting millions more dollars than I ever hope to have, to be the FACES of these two companies. The only thing that I can gather from this is: winning matters, period.

These two men have won and performed on the field, no question. Despite their past off the field issues, and questionable futures, they have recently played extraordinarily well. Are these endorsement contracts a symbol of the American "prisoner of the moment" attitude? I think so. But I think its more indicative of the fact that when you are dealing with sports business, winning trumps all.

I am happy for these two because I am a big fan I just don't understand the logic behind these two endorsement deals.

Bringing the Brutes Back to the City of Angels

After the L.A. Rams departure to St. Louis in 1994, it is no secret that there has been a football void in Los Angeles. Some argue that the NFL is not reaching its maximum potential by leaving the second biggest media market in the country bare. Others say that with 3 other teams in the state and USC football being what it is, L.A.'s football plate is full enough, and the NFL has been doing mighty fine with out it.

Recently there has been a push to bring a professional team back to the city. The effort is being spear headed by two competing investment and development teams, vying for the rights to build a new football stadium in the area. One group, headed by AEG, is garnering some attention lately because of its partnership with Los Angeles icon, Magic Johnson, as well as the naming rights deal it just secured for the, so far imaginary, stadium.

I think it will eventually happen. There is too much money involved and too many influential people that want to make it happen. And my personal opinion is that if it is done right, it can benefit both the league and the city. I think three things need to happen to make it a success:

1) The stadium needs to get done. This is an obvious no brainer, but it is the biggest road block. Who will pay for it? What group will win the rights? Will it be downtown or outside of the main urban area? Will the stadium be built before a team is guaranteed to come? All these questions are being hashed out as we speak and there will be no team in LA until they are answered.

2) A big time name or names should be attached to ownership. I think it will take a popular and savvy owner to make a team work in LA. Magic Johnson might have the initial popularity and he is a proven, successful business person, so he might work. It has to be someone in the Mark Cuban mold, I believe. The owner will have to be innovative and passionate, and must understand how to continuously make his team interesting and keep them winning.

3) There must be fan support. If the people there don't want to watch football, the why have a team there? LA has never been a super fanatical sports city, i.e. Philidelphia. Its much too posh for that (besides for the "Showtime" Lakers). It had a chance to enjoy the LA Rams and the LA Raiders and neither team decided it was best to stay. If the fans aren't into going to the game, it wont happen.

Again, I believe a team will eventually move back to LA. But without these three things happening, I believe it may reach the same destiny as the previous franchises.

Site Review: 'The Business of Sports'

Today I will be reviewing the site, The Businss of Sports blog This is one of the blogs I follow via Google Reader.

The first site, 'The Business of Sports' is run by Russel Scibetti who graduated with a Sports Business MBA from Arizona State. He is now an employee of the New York Jets. He seems to have a very well- rounded knowledge of sports and of business, and his blog reflects that.

The site itself is very well written and full of valuable content. The site covers topics ranging for, sales, marketing efforts, agent news, game projections, and other news. I really like that they also seem to have a focus on the up and coming sports professional, highlight by their post about networking event all across the country. The also have a weekly post called "Free agent of the week" which puts a spotlight on a young business professional. They are allowed to post a profile of themselves, answer some questions, and hopefully find the job of their dreams.


In all, I think everyone serious about become a sports business professional should follow this blog or at least check in frequently. The content is relevant and updated often, the owner and other writers are knowledgeable, and the have special post for young professionals. This site is definitely a go to site for me and should be for others.