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Why Venue Owners Need to Consider the Importance of Flexibility in Sponsorship Agreements

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Why Venue Owners Need to Consider the Importance of Flexibility in Sponsorship Agreements March-April 2018 l Volume 2, Issue 6 Route To: ____/____/____/____ How the law affects the sports facilities industry and the The Lasting Legacy of Art Modell Felt As Columbus Crew Seeks To Set Sail for Austin By Scott Andresen, of Andresen & rience, the Ohio state legislature enacted Associates, P.C. Ohio Revised Code §9.6 a year later on THIS ISSUE June 20, 1996. Officially titled Restrictions The Lasting Legacy of Art he Move. on owner of professional sports team that Modell Felt As Columbus T While that phrase may have very uses a tax-supported facility, the law is Crew Seeks To Set Sail little import throughout the sporting world less-than-affectionately known as the “Art for Austin 1 generally, it has had a lasting impact in state Modell Law.” The law states as follows: NCAA Fallout from NC of Ohio that is still being felt 23 years later. No owner of a professional sports team Bathroom Bill Taints College The Move refers to the decision by team that uses a tax-supported facility for most Sports Landscape 1 owner Art Modell to move his Cleveland of its home games and receives financial Browns team to Baltimore during the 1995 assistance from the state or a political sub- Re-examining Steep Spectator Seating 2 NFL season. Subsequent litigation seeking division thereof shall cease playing most to prevent The Move (see City of Cleveland of its home games at the facility and begin Winning the Gold: Why v. Cleveland Browns, et al., Cuyahoga playing most of its home games elsewhere Venue Owners Need to County Court of Common Pleas Case No. unless the owner either: Consider the Importance of Flexibility in Sponsorship (A) Enters into an agreement with the CV-95-297833) was ultimately settled via Agreements 3 a compromise that kept the Browns name, political subdivision permitting the team colors, history, records and the like in to play most of its home games elsewhere; Trial Featuring Modern-Day Cleveland, while allowing Modell to take (B) Gives the political subdivision in David v. Goliath Looming 4 his talents to the city of Baltimore. which the facility is located not less than Concealed Carry Realities Not wishing to relive the Modell Expe- See The Lasting on Page 10 Test Event Managers’ Perceptions 5 NCAA Fallout from NC Bathroom Bill Summary Judgment Granted Taints College Sports Landscape in Bowling Alley Trip-and-Fall 6 On Appeal, Patch of By Tim Hipps better known as the “bathroom bill,” and Mud Deemed Open and presented “The Impact of ‘Bathroom Bills’ Obvious and Not Inherently exas was perhaps the biggest winner on Sport Events: Policy and Planning for Dangerous, Dismissing Tand North Carolina the biggest loser the Future” at SRLA’s annual meeting. Baseball Spectator’s Claim 7 in NCAA fallout from the Tar Heel State’s A bathroom bill is legislation that de- Organizer Wins Summary public facilities privacy and security act, fines access to public facilities, especially Judgment in Golf Cart Accident 7 according to a study presented in March at bathrooms, for transgender individuals. Professor: It Is Time to Access under this legislation is determined the 2018 Sport & Recreation Law Associa- Abolish ‘Baseball Rule’ tion Conference in San Antonio. by an individual’s assigned gender at birth, Protecting MLB From Liability Professor Lauren McCoy of Western the sex on a person’s birth certificate, or When Fans Are Injured 8 Kentucky University and associate professor sex determined by gender identity. School Current Issues 12 Kerri Cebula of Kutztown University stud- settings were the initial focus of these bills, ied North Carolina’s House Bill 2 (HB2), See NCAA Fallout on Page 9 COPYRIGHT © 2018 HACKNEY PUBLICATIONS (HACKNEYPUBLICATIONS.COM) 2 MARCH-APRIL 2018 Re-examining Steep Spectator Seating The article continued: “A stationary seat with a swing mechanism secures patrons in By Gil Fried last September, features clear Plexiglas barri- their seats, and instead of walking in front ers in the front row to keep fans secure, with of other fans to access a seat, individuals recent article by Matt Rossetti pub- waist-high drink rails performing the same walk safely behind the swivel chairs, keeping Alished in April 2018 of Athletic Busi- function for fans in the back row. passersby safely behind tall chair backs. This ness was entitled: Can Spectator Seating Be The article highlighted the growth in the is achieved by designing each row to be 25 Both Steep and Safe? inverted bowl design which has been devel- percent deeper than that of the typical up- The article examined The Bell Centre in oped and tested over the past seven years. per bowl, adding an additional 12 inches of Montreal mainly due to a large lower bowl “The inverted bowl design solves the steep- space for spectators to circulate comfortably. and steep upper-bowl seating. Some teams upper-deck dilemma by doing something There has never been a bowl designed where like such a venue as it might feel like all the unexpected: it doesn’t back away, it leans fans step behind the seats — a solution that in — with revolutionary balcony seating fans are “on top of you.” Such fan friendly keeps both seated viewers and passersby safe that catapults viewers closer to the action. facilities might have great sight lines, which and comfortable.” This article originally ap- The result is broadcast-quality views that is critical with attendance numbers declining peared in the April 2018 issue of Athletic are up to 50 percent closer. The inverted at some facilities. But the article focused on Business with the title “Do steep arena bowls bowl doesn’t just preserve fan safety — it compromise spectator safety?” the risk associated with steep seating areas. It prioritizes it. Larger landings and less crowd- highlighted the 19,000-seat Barclays Center ing minimizes the chances of accidents and TAKEAWAY: Tragic falls involving fans in Brooklyn, N.Y., where at least four lawsuits keeps fans away from edges — all without appear to be on the rise. Facility managers resulted from fans tripping and falling in compromising viewing positions.” should track the reason and location of falls the arena’s steep upper bowl. While falls can Typical inverted bowl design features and then implement strategies to prevent happen almost anywhere in an arena, other four tiers, with each tier seating roughly them. This might entail developing new fans have also complained of vertigo. To ad- 2,000 spectators in three rows of seating. strategies or changing codes to protect them. dress safety concerns some facilities, such as With only three rows, it greatly reduces the This concern is especially critical in balconies Detroit’s Little Caesars Arena, which opened vertigo experienced in a steep upper bowl. or upper decks. ADVISORY BOARD John M. Sadler Sadler & Company Prof. Paul Anderson (803) 254-6311 and the Director, National Sports Law Institute & [email protected] Sports Law program Marquette University Law School Todd Seidler, Ph.D. EDITOR IN CHIEF [email protected] Professor and Chair Health, Exercise and Sports Sciences Gil Fried, Esq. Dr. Herb Appenzeller University of New Mexico Chair and Professor From The Gym To The Jury, Inc. Email: [email protected] Sport Management Department [email protected] College of Business Russ Simons Denis C. Braham University of New Haven Chief Listening Officer Attorney at Law 300 Boston Post Road Managing Partner Winstead PC West Haven, CT 06516 Venue Solutions Group [email protected] (203) 932-7081 Email: russ.simons@ [email protected] Shane Beardsley venuesolutionsgroup.com Senior Director - Events & Operations Carla Varriale, Esq. MANAGING EDITOR Harbor Yard Sports & Entertainment - Havkins Rosenfeld Ritzert & Varriale, LLP Holt Hackney, Esq. Webster Bank Arena [email protected] Hackney Publications [email protected] P.O Box 684611 Sports Facilities and the Law is Helen Durkin, J.D. Austin, Texas 78768 published bimonthly by Hackney Executive Vice President of Public Policy [email protected] Publications, P.O. Box 684611, Austin, International Health, Racquet & TX 78768. Postmaster send changes to Please direct editorial or subscription Sportsclub Association Sports Facilities and the Law. Hackney inquiries to Hackney Publications at: [email protected] Publications, P.O. Box 684611, Austin, P.O. Box 684611, Austin, TX 78768, James H. Moss, Esq. TX 78768. [email protected] www.recreation-law.com [email protected] SPORTS FACILITIES AND THE LAW COPYRIGHT © 2018 HACKNEY PUBLICATIONS (HACKNEYPUBLICATIONS.COM) MARCH-APRIL 2018 3 Winning the Gold: Why Venue Owners Need to Consider the Importance of Flexibility in Sponsorship Agreements By Jon Freedman and David sive crowds – and significant business bargained, at least absent additional costly Sunkin, of Sheppard Mullin opportunities for venues big and small. consideration. This friction increases even Frequently, event organizers and their more when long-term sponsors will be ponsorship rights are a critical com- partners will seek to contract with venue replaced, albeit temporarily, by their own Sponent of the revenue stream for owners for the use of their facilities. These prime competitors. uses include not only the main events almost every major venue in the United So, then, the question is this: how does a States. Long-term sponsorship deals not themselves, but also related “spillover” venue put itself in play to take advantage of only provide much of the funding for new functions. However, these special oppor- the opportunities created by special events venues to be built, but they also support the tunities can conflict with a venue’s existing refurbishments that allow existing venues sponsor relationships. Sponsorship agree- without poisoning its relationships with to retain tenants and attract short-term ments are generally multi-year contracts long-term sponsors? The keys to negoti- residents, such as concerts, sporting events which often contain highly restrictive ating sponsorship agreements that allow and tournaments.
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