California Sports Lawyer® Founder and Managing Attorney Jeremy M. Evans has written a column about the reasons behind the extraordinary growth of new sports leagues.
You can read the full column below. (Past columns can be found, here).
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The growth of new sports leagues has coincided with the increased availability of distribution avenues. In other words, new sports leagues are directly correlated to how many streaming opportunities are available to them. YouTube, social media, and streaming have all increased the probability of success and audience reach.
The business principle as outlined above is capitalism and availability of resources. Meaning, capitalism provides the open market where competition exudes innovation. Innovation creates opportunity to expand resources, create new resources, and to rethink how existing resources are utilized.
For example, prior to social media, athletes and actors or anyone endorsing a product were limited to the major broadcast channels to promote a service or product. Social media provides every athlete and actor with a personalized distribution channel that can reach millions without the need for a broadcast distributor. Social media became the medium upon which name, image, and likeness (“NIL”) could exist and prosper.
Prior to YouTube and TikTok, creatives were limited to using expensive, exclusive, and controlled studio and network resources and tools. Platforms like YouTube and TikTok and the technology supporting those platforms through artificial intelligence, mobile phones, the internet, affordable software, and Wi-Fi are all responsible for creating an environment for ideas to become reality and creatives to be king.
Prior to social media, three industries, sports, news, and entertainment, controlled how and what content got made. Those industries along with the banks supporting them also decided what funds got invested. The direct-to-consumer model through streaming and social media platform distribution and technology has upended the creative system.
Consider that news consumption mainly comes from social media not the networks. Entertainment consumption is rarely live, but for awards shows, specials, and sports. Even when major events are live, people still tend to watch highlights on social media. However, the key business principle here is that the news networks, leagues, and networks that changed with the times and created and maintain active social media accounts and streaming platforms (or utilize other’s resources to do the same) have survived and thrived.
Since 2022, Grand Slam Track, Unrivaled, Pro Volleyball Federation, Overtime Elite, Drone Racing League, Premier Lacrosse League, and leagues involving electric boats, fishing, cornhole, older horses, and much more have been created and some are thriving.
A friendly business environment has allowed new sports leagues to thrive. These leagues have clearly been aided by a pent-up desire to do business post-Covid, a push to electrify and digitize everything post-Covid in a work-from-home world (or at least showing people that business can be done from anywhere and with anyone, including international growth), and the availability of sports betting. Social media has also given more people a voice and opportunity to create, seek, and do business together. Lastly, the availability of streaming distribution has provided the platform to reach audiences that could not be reached.
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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.
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