The Entertainment and Sports Panel is produced by the LA Times B2B editorial team in association with Adeptus Partners LLC ; Citrine Cooperman; Greenberg Glusker LLP; and Nixon Peabody LLP.
Creativity and innovation—always hallmarks of the entertainment world—have been key to the continued success of many entertainment and sports companies in recent years, and have helped ignite positive trends that actually have long-term benefits for some subsectors. industry. .
While Southern California's sporting events and entertainment products have recovered from the challenges of the past three years, the industry continues to discover "new bests" where there are no longer "new standards," and the entertainment and professional sports entertainment industries continue to move forward. uncharted territory. However, many questions remain unanswered. Which protocol changes will last a long time? What legal and financial issues need to be addressed? What new roles can technology play in the future? What will the sector look like in a year?
The Los Angeles Times B2B asked four exceptionally knowledgeable experts for their thoughts and opinions on how Southern California's key business sectors can continue to forge creative new paths to success.
Q: As a trusted advisor to entertainment and/or sports companies, what do you think are the toughest obstacles facing the industry in 2023?
Gareth Jones, partner at Citrin Cooperman : The biggest obstacle facing entertainment and/or sports businesses in 2023 will be profitability. Manufacturers will continue to face shrinking budgets, agencies will struggle with an increasingly fragmented consumer base, and the workforce, buoyed by historically distorted employment expectations from the pandemic, will continue to push for anti-inflationary wage increases. The resulting squeeze ensures that double-digit margins, once considered minimum manufacturer expectations, will become increasingly difficult.
Pierce O'Donnell, Greenberg Glusker LLP , attorney : The NFL, NHL and NBA have common team salary caps that promote healthy competition. However, in baseball there is no cap on a team's total salary in any given year. One of the most difficult challenges MLB faces is creating and maintaining balanced and fair competition between big, middle and small market teams – so-called "parity". Although they have a luxury tax when a team's salary exceeds a certain threshold, major league teams have opposed the salary cap. Unfortunately, fan interest in professional baseball is declining. While this isn't a panacea for making MLB more competitive with the salary cap, it's worth it. Doing nothing is not an option. Meanwhile, I tell small market teams that the road to the playoffs and the World Series is through a lot of money spent on players.
Q: How has social media coverage and sports news changed with sports since events returned to stadiums?
Jennifer Coyne, director of business management, sports and entertainment at Adeptus Partners LLC : The social interaction with fans is greater. Teams must provide more than a game. They should have in-stadium or arena Wi-Fi, social media teams providing in-game content, and ways to engage fans at the game and at home.
Christina Chung, attorney at Nixon Peabody LLP : Consumers now have other ways to watch shows, including sports or franchise plans that can be added to a card or bundled with TV subscriptions or other plans. However, viewership can be expensive and subject to territorial restrictions and additional exclusivity (such as a local television network acquiring exclusive rights to broadcast certain NBA games). You also see increased promotion of OOO media such as billboards, digital banner ads, and paid listings to attend in-person events, including using influencers and podcasts to promote social media agendas. and contests of corporate sponsors or affiliates.
Q: How has the pandemic benefited the industry?
Jones: Quality production is no longer dependent on traditional locations in Los Angeles or New York. The industry has developed a reputation for adaptability as producers adopt new methods and technologies that enable successful and profitable shoots around the world. No problem is beyond the capabilities of the production talent. New production hotspots such as Eastern Europe are now on the map and offer more production opportunities.
Q: Are there any noticeable new trends in sports in terms of agency and management?
Coyne: From a financial management perspective, my clients are more aware of brand building and generational assets. They are also more concerned about returns. I've built more charities and partnerships in the last two years than in the rest of my career, and I think this is a generation that is more aware of their impact and resources.
“American sports, especially NBA basketball, have astronomical appeal internationally, largely due to the celebrity factor associated with our stars and the limited opportunities to see those stars. to play abroad.
– Christina Chang
Q: How does the sports business in Southern California differ from other parts of the country?
O'Donnell: In terms of critical mass, no other part of the country can match California in general or Southern California in particular when it comes to sports at any level. California is to professional sports as Paris is to gourmet restaurants. California has 18 major men's sports franchises, more than any other state in the United States. It's no surprise that California is number one in the nation when it comes to professional sports. For example, the Dodgers and Clippers were the first multi-billion dollar sales teams. The estimated value of all professional teams in the state is over $43 billion. In fact, only five Los Angeles teams are worth at least $20 billion. Simply put, I believe the sports business here is ubiquitous, intense and profitable. No region of the Americas has been defined in this way.
Coyne: There are many choices for the consumer. The market has two MLB teams, two NLH teams, two NBA teams and two NFL teams. The ocean and mountains are just a short drive away, and Southern California has great weather. There are other entertainment options as well. They are all competing for the same consumer insights and disposable income.
Q: What are the pros and cons of the social media era in terms of the impact of social media on sports and entertainment?
O'Donnell: Social media is both friend and foe of sports. Many benefits include facilitating fan engagement with ready-made original content that is free and immediately available to leagues, teams, players, coaches and analysts. Social media promotes opportunities and therefore increases profits. On the other hand, offensive messages on social media can affect the mental and emotional state of athletes. And the element of surprise for the fans is largely lost in the results of the match. Nick Dimengo's insightful article on Bleacher Report outlines ten ways social media is ruining sports, and I agree with his first observation: “Social media has done wonders for sports fans by bringing us the latest news and trends. so we can all have our say to make us all aware of what is happening.
Chang: Benefits include the fact that social media allows for virtually unlimited, low-cost ways to instantly connect consumers with their favorite athletes, brands and talents, as well as creative ways to monetize and promote them. For example, creators can supplement their revenue by subscribing to exclusive content or experiences like live streams, such as meet and greets. On the downside, broad coverage can be intrusive, lower the talent's expectation of privacy, and force the talent to be "on" all the time. Talent should be very careful about the content they post (including privately leaked or unwittingly pirated content): broadcasting derogatory statements or racist slurs live can have an immediate but lasting impact on image, brand and partnerships.
Coyne: Lack of privacy is a major concern in the age of social media. Everyone knows everything about a player or artist at the same time, including their location. Personal or family health issues now require extraordinary efforts to protect privacy. On the other side of the coin, social media has opened up opportunities for athletes and entertainers to connect with fans and monetize their brands that were previously out of reach.
"Hollywood will forever be a mecca for film and television production, but with rising prices and an industry more adaptable than ever, big changes have already begun outside the US."
– Garrett Jones
Q: What do sports and entertainment brands want to see in terms of renewed sponsorship or new business deals?
Chang: Brands want to sign up reliable, up-and-coming talent that has organic synergy with the brand, products and services they promote on favorable terms, including extensive exclusivity and unlimited media use of all service revenue, payment terms. success. , regulatory compliance (e.g. using relevant FTC information), pre-set opt-in terms that a brand can unilaterally enforce, continued product use/continued support after discontinuation, and for acts of moral turpitude (imprisonment, scandal), etc. .) a crime that could damage the brand).
Q: How has the sweeping elimination of NCAA restrictions affected the money paid for sponsorships to college athletes?
O'Donnell: In recent years, the NCAA's ban on paying college athletes for anything has been struck down by federal courts, and California legislation in 2021 allows players to be compensated for their names, likenesses and the like. Now, these rules allow colleges to endorse products, and that's just the beginning. According to an article published by NBC News, the average college athlete is estimated to earn between $10,000 and $30,000 a year with social media and brand endorsements. While not all players make money, players who are big names on social media have unique opportunities to make big bucks. At present, all NIL activities for colleges are in their infancy and under development. But one thing is for sure: everything from local car dealers, restaurants and cafes to big brands of sports shoes, apparel and soft drinks are looking for aspiring athletes to sponsor.
Q: What would you recommend as a first choice?
Coyne: Don't go broke to look rich. Have a great team of professionals working close to your money.
– Do you think that the transfer of film and television production to other cities will continue?
Jones: Hollywood will forever be a mecca for film and TV production, but with rising prices and an industry more adaptable than ever, big changes have already begun outside the US. London, for example, is in the midst of an entertainment boom, investing more than $5 billion in tax breaks and studio development to attract creative talent to the UK, and it's not alone. Until local governments work with unions to make Los Angeles financially competitive again, manufacturers will continue to seek affordable and talented labor. This is an exciting time for the industry. However, Los Angeles' status as a global manufacturing hub is under threat.
Coyne: I think the trend will continue. Many cities and states are now realizing how many jobs come from film and television production and are offering them tax and employment incentives. They also begin to own and maintain a talent pool. I also think that people have re-evaluated their priorities since the pandemic, and being in Los Angeles for a few hours every day is not at the top of the list.
"In terms of critical mass, no other part of the country can match California in general or Southern California in particular when it comes to sports at any level."
– Pierce O'Donnell
– What new ways do you see for the development of creative talent in the coming years?
Change: Monetization in the meta universe, including monetizing traditional and ancillary channels and tools such as product recommendations and offers across verticals, and selling NFTs that provide exclusive access to products and experiences. Other talents, including career-limiting or unexpected injuries, inevitable age, etc. engage in additional ventures, investments and partnerships to maintain and increase revenue, including joint ventures using name, likeness, image and services in exchange for capital.
Jones: In recent years, creative talent has been able to take advantage of an explosion of new media platforms, including social media, online streaming, non-fungible tokens (NFTs), and the meta-universe. 2023 heralds the arrival of artificial intelligence (AI) in mainstream media. Machine learning is already making headlines on social media, and major production and visual effects (VFX) companies are investing heavily in this technology, which allows them to create and adapt content in a variety of ways. Let's not ignore the ability to use the power of artificial intelligence to determine what content will work best and what path creative talent will take.
Q: Are there ESG trends in sports and entertainment companies?
Chang: Absolutely. Consumers are increasingly aware of the commitment and application of ESG standards, which are increasingly becoming the gold standard. For example, sports and entertainment companies are already increasingly working with environmentally conscious partners (such as companies that plant trees for 3-point shooting), go out of business to promote fast fashion products, and/or demonstrate a strong commitment to DEI initiatives. including various human resources led by women and government officials.
Q: How has the growing awareness of DE&I affected entertainment and sports?
Coyne: DE&I didn't come too soon and it was really too late. A diverse workforce brings great value to an organization. There are talented people in the labor market who have not had the opportunity to participate in the past. The industry should focus on hiring a diverse workforce and creating equal opportunities for women and minorities. Many years ago I was working in a sports agency and I wanted to be a sports agent. HR told me "there really aren't any female sports agents, even female athletes have male agents". Now no one will tell me. We need to do more.
Q: How do professional sports teams deal with international expansion and interest? is this a dying trend?
Chang: American sports, especially NBA basketball, have astronomical appeal internationally, largely due to the celebrity factor associated with our stars and the limited opportunity to see those stars abroad. Teams will continue to benefit from international supporters, making teams and athletes more accessible. For example, in 2022, the NBA offered Japanese basketball fans two warehouse Warriors preseason games. Professional athletes also gain individual advantages by starting or ending their careers on international teams. In addition, eSports continues to expand its international presence with teams of professional players competing in tournaments around the world. Turniry chasta translyuyutsya I примим ефетры and programs and products for financial korparatyvmi platforms and financial korparatyvmi patnertami, citay compandy and more popular programs and products.
Koin: I think this trend will continue. Make sure you get a good team chance. It is a category of European football that is mainly related to the language of the country. Buduchia pakalenni on the sim station, chimpyats.
Magazine: Is it a good platform to see the customer?
Johns: Платормы пересовый периасисайся асновы испаду сабав сапошняе десяцодзе. There is more than one journal and no more regular system exists. Црацебити уј ў wrote a transition to a larger fSTHIERNISTIERNO aanenentstu base, ½ often janione paserted Неабходнасток продукти большу колучаться content для струмевых сейчав опули други для месых, болс неображение страчальников, але это также затяннула existence грашовый ресурсы. Толькі час пакажа, one gaping executioner will deal with this new vrizazam.
“More information is needed… it's more than reality.
– Jennifer Coyne
Magazine: Are there many breathing and intellectual services and is it possible?
Chang: Авторскае права – this type intellectual provechnosti (IV), one and the right marki, advertising. Intelektualnaya provesty moje spadat (for example, photographic photography ot commandnay form causes avtorskia pravy na fotografi, provы правы провыстана на блицысытику в разный марки комадины), ale kochaniya zi mae ostavnuyu metu on elementtymii constructions, respectable constructions. Brown, two and no moves for others. Авторскае права продукты од несанциянаванана гравиванная, проху, праватации и публикации и деспреция отригинальных рарав автор, зафискованих у форме материальнага ражения (for example, on printed TV screens). Замацаванае вълтай права на публиковская противее ад несанциянаванага камера выказыйная свиказыйная Таварный знаки – эта симболы, лагатипы, дюйкумы образы, эта SYMBOLYS, lagatype, dyuykom or nickname, eta symbol. Kochnoi z ih mae rabochenie pharmalnitsi, у тым личу авторскае права, и задачи бытый гистравноми, перч чим павая у усд за парошени, что ти звезду запис ochestvo tsyed pravavoy professional.
Description: Don't want to see the time in 2023?
Coin: Кали гулцы животный виности коментарии. U тажей час пагаднение об размещение дошав з глядрами в марку их CBA, but nothing, что добавление interjdu сачок костю для мобильного комментарии. Soldiers helped a few months ago.
Description: Is it possible to have good coverage?
O'Donnell: N,BMN is only adbil to run the administration. The sale of the Dodgers in 2012 for $2 billion, followed by the $2 billion acquisition of the Clippers by Steve Ballmer in 2014 (my law firm and I represent the seller's interests) led to a financial increase in spending. The NBA offered Milwaukee Bucks 550 million months in 14 of 20 years. Send Clippers amal у чатеры разы, что было Ашаламлялна. For example, the price of "Denver Broncos" is 4.65 million dollars, and the price of "Fenix Sanz" is 4 million dollars. Is it possible to be a couple? Gavorka idea ne tsolyy very large yield crop ci zadavlanneni pravah xvalby billinyrav, kiya prodajayut cymi trafeynymi aktivami, ale and very large investments, kaya protistayatsy ekonomikim spadam, kaya rapid atresia gladi. It no longer exists, it is a team of a team of 10 million years in the country.
Citrin Cooperman – British company under the name Citrin Cooperman & Company, LLP, CPA and Citrin Cooperman Advisors LLC are not exempt. If you can use videos, this is a great tool. The President of Russia was no longer a member of Moore North America, Global Network Limited (NL) became a member of Moore North America (NL).