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Spring 2021 Issue 2 ARIZONA STATE SPORTS & ENTERTAINMENT LAW JOURNAL VOLUME 10 SPRING 2021 ISSUE 2 SANDRA DAY O’CONNOR COLLEGE OF LAW ARIZONA STATE UNIVERSITY 111 EAST TAYLOR STREET PHOENIX, ARIZONA 85004 ABOUT THE JOURNAL The Arizona State Sports and Entertainment Law Journal is edited by law students of the Sandra Day O’Connor College of Law at Arizona State University. As one of the leading sports and entertainment law journals in the United States, the Journal infuses legal scholarship and practice with new ideas to address today’s most complex sports and entertainment legal challenges. The Journal is dedicated to providing the academic community, the sports and entertainment industries, and the legal profession with scholarly analysis, research, and debate concerning the developing fields of sports and entertainment law. The Journal also seeks to strengthen the legal writing skills and expertise of its members. The Journal is supported by the Sandra Day O’Connor College of Law. WEBSITE: www.asuselj.org. SUBSCRIPTIONS: To order print copies of the current issue or previous issues, please visit Amazon.com. SUBMISSIONS: Please visit the Journal’s website for submissions guidance. SPONSORSHIP: Individuals and organizations interested in sponsoring the Arizona State Sports and Entertainment Law Journal should contact the current Editor-in-Chief at the Journal’s website. COPYRIGHT ©: 2020–2021 by Arizona State Sports and Entertainment Law Journal. All rights reserved except as otherwise provided. CITATION: ARIZ. ST. SPORTS & ENT. L.J. The Arizona State Sports & Entertainment Law Journal would like to thank its sponsors, Jackson Lewis, P.C. and William J. Maledon, for their financial contributions. The Journal also thanks Marina Carpenter of the Arizona Coyotes, Caleb Jay of the Arizona Diamondbacks, and Gregg E. Clifton of Jackson Lewis P.C. for their support. The Journal would also like to thank the following guests who appeared on the Arizona State Sports & Entertainment Law Journal’s podcast series: John Storms (Netflix), Aaron Hernandez (Director, Arizona State Master of Sports Law and Business Program at the Sandra Day O’Connor College of Law), Michael LeRoy (Professor, University of Illinois, Urbana-Champagne), and Oliver Butler (Director, Broadway’s “What the Constitution Means to Me”). To listen to the Journal’s podcast, please visit www.asuselj.org. Lastly, the Journal would like to thank Willie Mays Aikens, Mat Hostetler, Doug Passon, and the creators of Sometimes it Rains: The Story of Willie Mays Aikens and Mandatory Minimums for appearing in a live panel discussion at the Sandra Day O’Connor College of Law at Arizona State University in March 2021. For more information, please visit www.sometimesitrains.net. SPORTS & ENTERTAINMENT LAW JOURNAL ARIZONA STATE UNIVERSITY VOLUME 10 SPRING 2021 ISSUE 2 EDITORIAL BOARD EDITOR-IN-CHIEF BRANDON DREA MANAGING EDITOR EXECUTIVE ARTICLE EDITOR JILLIAN BAUMAN RACHEL MOSS NOTES & COMMENTS EDITOR TECHNOLOGY EDITOR KELSEY MISSELDINE MCKENZIE CZABAJ SUBMISSIONS CHAIR DIRECTOR OF EXTERNAL AFFAIRS BRANDON WURL ANDREW JAMISON ASSOCIATE MANAGING EDITORS PHILIP LIEB DANIEL SAYLOR JASON KACZALA SENIOR ARTICLE EDITORS SARAH ERICKSEN JENNIFER MARTIN TATIANNA DUNN ARTICLE EDITORS SEEMA PATEL MADISON STARK KENDRA PENNINGROTH PETER STAZZONE CHRISTIAN POWELL ANTHONY STUDNICKA GRANT WELBORN ASSOCIATE EDITORS BOBBY NISKA OWEN SANDSTROM ANTHONY JULIAN COLLIN GIULIANI KRISTEN MORRILL RILEY WILLIAMS ALEXANDRA GLOVER BRYAN TODD SAVANNA WRIGHT ILEEN YOUNAN EMILY PARKER LUCAS MINNICK KATIE WARREN SAMUEL WU EVAN STELE MADISON BUDINICH NOAH SHANHOLTZER KENNETH MOODY ERIC MORMON VICTOR PINERA DANIEL KEISER JACOB BROUSSARD FACULTY ADVISORS PROFESSOR DON GIBSON & PROFESSOR JON KAPPES SPORTS & ENTERTAINMENT LAW JOURNAL ARIZONA STATE UNIVERSITY VOLUME 10 SPRING 2021 ISSUE 2 INDEX SACRIFICE FLY: ADVANCING MLB OWNERSHIP POLICIES INTO THE POST-COVID ERA AT THE EXPENSE OF THE ANTITRUST EXEMPTION CHASE BROWNDORF ....................................................................... 1 CAN'T NOBODY TELL HIM NOTHIN': "OLD TOWN ROAD" AND THE REAPPROPRIATION OF COUNTRY MUSIC BY THE YEEHAW AGENDA SOPHIE THACKRAY ....................................................................... 30 BUILDING A BASKETBALL ARENA ON TRIBAL LAND: A COLLABORATIVE APPROACH FOR THE NATIONAL BASKETBALL ASSOCIATION AND AMERICAN INDIAN TRIBES LEIGH HAWLEY ............................................................................ 57 HOOPS, GRIDIRON, AND MEDICAL MARIJUANA: A BLUNT ANALYSIS OF HOW A HALF-BAKED NCAA REGULATION MAY SOON GO UP IN SMOKE KELSEY MISSELDINE .................................................................. 106 SPORTS & ENTERTAINMENT LAW JOURNAL ARIZONA STATE UNIVERSITY VOLUME 10 SPRING 2021 ISSUE 2 SACRIFICE FLY: ADVANCING MLB OWNERSHIP POLICIES INTO THE POST-COVID ERA AT THE EXPENSE OF THE ANTITRUST EXEMPTION CHASE BROWNDORF¥ ABSTRACT In Fall 2019, Major League Baseball (MLB) announced it would begin to allow private equity funds to acquire minority ownership stakes in its franchises. This announcement was met with reserved optimism by proponents of more public ownership opportunities in American sports. In the year since, a once-in-a- century pandemic has upended the United States economy, sparing none, including the sports community. As other segments of the economy have seen publicly-traded special purpose acquisition companies (or SPACs) explode in prevalence, the COVID-19 pandemic has caused SPACs to wade into the waters of professional sports. The SPAC model will undoubtedly be appealing to those seeking to invest in MLB franchises under the league’s new policy but could also have serious repercussions on MLB’s continued exemption under federal antitrust laws. An assault could, in theory, come via a federal courts system already skeptical of the exemption or via Congress. This Note explores implications these changes may have to existing ownership policies. INTRODUCTION Amid a once-in-a-century pandemic spreading across the globe, news in October 2020 that Boston Red Sox owner John Henry was in talks to sell a substantial stake in his team to the public represented the latest twist in what had already become one ¥ J.D., Harvard Law School 2020. B.A., Government, The University of Texas at Austin 2017. The views and opinions expressed herein are solely those of the author. 2021] SACRIFICE FLY 2 of the most turbulent years for professional sports on record.1 The rumored deal would merge Henry’s Fenway Sports Group with Redball Acquisition Corporation (“Redball”), a special purpose acquisition company (SPAC) led by private equity professionals and Oakland Athletics executive Billy Beane.2 Redball shareholders would benefit by claiming an ownership stake in one of the most storied franchises in Major League Baseball (MLB), and Fenway Sports Group would receive an infusion of capital to finance the Red Sox and the purchase of another major North American sports franchise.3 A Fenway-Redball deal would represent the intersection of two key trends in the sports world spurred on by the COVID- 19 pandemic: (1) the re-energization of decades-old calls for public ownership options in United States sports franchises;4 and (2) a “boom” in the use of SPACs as an investment vehicle, rather than traditional initial public offerings (IPOs), to achieve more access to capital to fuel company growth across numerous economic sectors.5 Federal antitrust laws lurk in the background of this changing sports franchise ownership landscape. Significant changes to the ownership policies within a given sports league will likely alter the way courts view professional sports leagues in 1 Cara Lombardo & Miriam Gottfried, Red Sox Owner in Talks to Take Sports Holding Public, WALL ST. J. (Oct. 9, 2020, 7:55 PM), https://www.wsj.com/articles/red-sox-owner-in-talks-for-deal-with- redball-acquisition-11602286661. 2 Id. 3 See id.; Chris Cotillo, Boston Red Sox Owners ‘Looking Into’ Buying Another Major North American Sports Franchise (Report), MASSLIVE (Nov. 19, 2020), https://www.masslive.com/redsox/2020/ 11/boston-red-sox-owners-looking-into-buying-another-major-north- american-sports-franchise-report.html. 4 See e.g., Doug Vazquez, Is Your Favorite Sports Team Publicly Traded?, THESTREET (Feb. 26, 2020), https:// www.thestreet.com/video/publicly-traded-sports-teams; Zachary A. Greenberg, Tossing the Red Flag: Official (Judicial) Review and Shareholder-Fan Activism in the Context of Publicly Traded Sports Teams, 90 WASH. U. L. REV. 1255, 1256–57 (2013) (calling for professional leagues to reconsider public ownership options in the aftermath of the Great Recession). 5 Mike Bellin, Why Companies Are Joining the SPAC Boom, PRICEWATERHOUSECOOPER (Sept. 22, 2020), https://www.pwc.com/ us/en/services/deals/blog/spac-boom.html. 2021] SACRIFICE FLY 3 terms of antitrust. Given the Fall 2019 announcement that MLB will allow private equity funds to begin acquiring minority stakes in teams, MLB’s longstanding “antitrust exemption” may face heightened scrutiny by either the courts or Congress. This Note examines such a policy change’s repercussions within MLB with a heavy focus on the SPAC model being the preferred vehicle for acquiring ownership stakes and its consequences. This Note will proceed in four parts. Part I explores trends over the last several months that have increased the appetite for public ownership in sports franchises. Part II briefly delves into MLB’s antitrust exemption and the impact sports league ownership policies have historically had on courts’
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