Growing Up Big and Strong: FanDuel Raises $275M in Financing

On Tuesday, July 14, daily fantasy sports website FanDuel Inc. announced that it brought in $275 million after closing a round of financing, bringing its total venture capital funding to $363 million.  The funding is led by private equity firm KKR, Google, and Time Warner, and the company stated that it plans to use the financing to boost customer acquisition efforts, introduce new products, and build its management team. Additionally, the company noted that several NFL and NBA team owners participated in the funding round…
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Swoosh: Nike Scores $1 Billion NBA Jersey Deal

The NBA has recently announced an eight-year global merchandising and marketing partnership with Nike, Inc. that will begin with the 2017-18 NBA season. Pursuant to the agreement, Nike will become the official oncourt apparel provider for the NBA. The deal will make Nike the first ever apparel provider to have its logo appear on NBA uniforms. This comes after German apparel manufacturer Adidas, the NBA’s previous official outfitter, bowed out of the running for the uniform contract. In securing the contract, Nike reportedly beat out…
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Christie and the Horsemen Ask the Third Circuit to Vacate Injunction & Open the Door to Sports Betting in NJ

On Wednesday, January 14, New Jersey Governor Chris Christie filed a brief with the Third Circuit US Court of Appeals, seeking to overturn the district court decision enjoining recent legislation that would open the door to some sports gambling in New Jersey. The 2014 law in question was passed to effectuate a partial repeal of prior New Jersey law that prohibits betting on sports within the state.  The partial repeal would allow casinos and racetracks within the State of New Jersey to facilitate sports betting. …
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The Problem of Earning Too Much Too Fast

It is not uncommon to hear about sports stars and entertainers going broke.  Often, with the influx of large sums of money, they are clueless how to handle and preserve it wisely.  This is especially true with younger athletes. Many athletes land multimillion dollar contracts at a young age, sometimes right out of high school.  At such a young age, these athletes have little to no financial experience.  Yet, suddenly they find themselves thrust into a situation requiring a significant amount of knowhow.  They have…
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Bill Ending Antitrust Exemptions for Pro Sports Leagues Introduced

A bill to end the current permanent antitrust exemptions of the four major professional sports leagues was introduced by Sen. Richard Blumenthal, D-Conn. on December 2. Titled the Sustained Promotion of Responsibility in Team Sports Act (SPORTS), the bill would remove permanent antitrust exemptions for NFL, MLB, NHL, and NBA one year from the bill’s enactment and replace it with a reauthorization process every five years.  According to the SPORTS Act, ninety-five days before ending the exemption, Congress would have an up-down vote on a…
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NBA Leads in Gender Equity

On the National Basketball Association’s (NBA’s) opening night this past Tuesday, the defending champions, the San Antonio Spurs, made a historical win with the help of their new assistant coach, Becky Hammon. When Hammon was hired to the Spurs in early August, she became the first paid female assistant coach in the NBA, or any major American professional sport. Just weeks prior to Hammon’s hiring, Michele Roberts became the first woman elected as the executive director of the NBA Players Union. This occasion also marked…
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LA Lakers Seek Punitive Damages From Insurer in Bad Faith Claim Denial

On Tuesday, September 2nd, the Los Angeles Lakers filed suit against its insurer, Federal Insurance Co., for bad faith denial of coverage for a Telephone Consumer Protection Act violation suit, that settled earlier this year. David Emanuel brought the TCPA class-action lawsuit in 2012, claiming the Lakers were sending unwanted text message to his mobile device in violation of the Act.  The Lakers sought defense and indemnity under its Corporate Liability Coverage policy from Federal, however, the insurer denied coverage claiming the suit…
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Appeals Court Agrees Cuban Is Not Mismanaging Mavericks.

On Thursday August 21, judgment was entered in the Court of Appeals for the Fifth District of Texas affirming the trial court’s November 2011 decision that the Dallas Mavericks were not being mismanaged and did not require court-appointed receivership. The lawsuit, filed in 2011 by previous majority owners, Hillwood Investment Properties III Ltd., claims that Mark Cuban’s ownership of the Mavericks has been “careless and reckless” resulting in a loss of substantial investment value to the now minority owners.  Hillwood is seeking court-appointed receivership due…
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Sterling to Oppose Forced Sale in Court

L.A. Clippers owner Donald Sterling released a statement on Monday titled, “The Team is not for Sale.”  In his statement, Sterling claims he will not assent to the forced sale of his team and will fight it in court.  Sterling intends to move forward with a $1 Billion lawsuit against the NBA and commissioner Adam Silver for the forced sale of the Clippers.  Sterling argues that the NBA breached their contract by fining him and that it breached antitrust law by forcing a sale of…
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Donald Sterling Throws in the Towel: the Clippers to Steve Ballmer

Donald Sterling decided to withdraw a $1 billion lawsuit against the NBA and agreed to sell the Clippers to former Microsoft CEO Steve Ballmer for $2 billion.  According to an official release, Shelly Sterling in her deal with Ballmer agreed to “indemnify the NBA against lawsuits from others, including Donald Sterling.”  On the other hand, Donald Sterling’s lawyer Max Blecher stated that the decision to withdraw came as a result of the NBA’s agreement not to sue Sterling in return. Sterling’s $1 billion lawsuit against…
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