Weekly Column: Advertising and Mergers in Hollywood and Sports

In his capacity as a Columnist for California Sports Lawyer®, Founder and Managing Attorney Jeremy Evans has written a column about the potential for growth in Hollywood, sports, and advertising.

You can read the full column below.

With the election in the rear view mirror, appointments upon us, and a four-year economic boom hopefully in front of us, Hollywood and sports companies and advertisers are counting on money being spent. They may also be banking on a potential for de-regulation with mergers and acquisitions to follow. However, the de-regulation is unlikely to come in the form of antitrust, but more likely in the form of less red-tape, tax incentives and breaks.

During the first Trump Administration, the Paramount Decrees were terminated because the distribution of content had completely changed in the seventy plus years when the decision was implemented. Streaming had become and still is the dominant player that gave more options and less reliance on potential for antitrust issues between theaters and studios. Moreover, the Disney-Fox merger and many others have already occurred, with the Department of Justice tightening its grip on later mergers and acquisitions consistently through the first Trump and current Biden Administrations.

Advertisers and consumers can help create a boom in the economy and industry by (1) spending more dollars through tax cuts (or a flat tax, or no income taxes, and increased tariffs), while (2) simultaneously lowering the costs of goods and entertainment through domestic production, less regulation, foreign investment, and budget program reductions, and (3) not having to run advertisements in an election year that always seem to scare companies away. Imagine also the opportunities to run advertisements around major events like the Olympics, World Cup, a return of world fairs showcasing human innovation, and America’s 250th Birthday. People and companies will also want to attend and spend money.

A caveat to a boom could be industry work stoppages. The SAG-AFTRA contract is set to expire in July 2026 as is the Major League Baseball collectively bargained agreement (CBA). While sports leagues have mainly seen peace in the last twenty years, with COVID being the biggest disruption, entertainment unions have been more prone to strike. Work stoppages between labor and management could cause concerns assuming deals are not made well in advance.

It is possible that more mergers in the television and network business could occur and there is data showing that ABC, CNN, and MSNBC have suffered in the ratings, while the latter has been discussed as being for sale. With social media, podcasts, and independent media on the rise, it is just as likely that those avenues become more powerful especially with more money to spend. Maybe both occur. However, it would be unwise to think that just because de-regulation is coming to government operations and spending, it would automatically extend to billion dollar corporations looking at buying the competition to survive. Hollywood, sports, and advertisers would be wise to bet on the American consumer to spend if given the opportunity.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.