December 14, 2023

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A deep passion for sports memorabilia isn’t just for the fans – it can take over star athletes, too. The Milwaukee Bucks’ Giannis Antetokounmpo stormed [[link removed]] toward the Indiana Pacers’ locker room after their game Wednesday night, seeking to recover the game ball after he scored a franchise-record 64 points in the Bucks’ 140-126 win. The Pacers, though, had already given the game ball to forward Oscar Tshiebwe, who scored his first NBA point. After a bit of confusion, Antetokounmpo was given a ball, but he isn’t sure it’s authentic. “The ball that I have — which I’ll take and I’ll give it to my mom, for sure — but I don’t know if it’s actually the game ball.”

That hallway scrum was also something of an outgrowth of the intensity seen during the NBA In-Season Tournament, as the two teams played against each other last week, too, in the semifinals.

— Eric Fisher [[link removed]]

Ohtani Deal Brings ‘Key Man Clause’ To Athlete Contracts [[link removed]]

Jayne Kamin-Oncea-USA TODAY Sports

An investment concept common to venture capital has made its way to athlete contracts.

Already unprecedented on multiple [[link removed]] levels [[link removed]], including overall size and amount of deferrals, the $700 million Shohei Ohtani deal with the Los Angeles Dodgers also contains a “key man clause,” according to multiple reports. The two-way phenom has the ability to opt out of the contract if lead owner and chair Mark Walter or president of baseball operations Andrew Friedman are no longer with the Dodgers.

The provision means that not only did Ohtani choose the Dodgers in pursuit of his first World Series title, but he has also made a specific decision to align his professional future with Walter and Friedman.

“Key man clauses” are frequently seen in startups in which investors can back out of a deal, or are prohibited from supplying additional funding, if a company founder or president departs or cannot perform their duties. They also have some precedent among team coaches: Former Tampa Bay Rays manager Joe Maddon had such a clause connected to Friedman when the latter also was with the Rays.

Ohtani will be formally introduced later Wednesday at a press conference at Dodger Stadium, with more than 300 reporters expected to attend including a large contingent of Japanese media.

Agent Rebuke

Since the Ohtani pact beat the prior MLB contract record — Mike Trout’s $426.5 million deal — by more than 60%, initial logic would suggest that agents would be thrilled at the dramatic upward push in player compensation. But arguably the sport’s most powerful player agent has a very different view.

Scott Boras is lamenting that the $680 million in deferrals in the Ohtani deal have the net result of leaving the top end of MLB’s annual player salary scale essentially unchanged. Ohtani’s $43.8 million in average annual present-day value in his deal barely beats the league’s prior record of $43.3 million held by Max Scherzer and Justin Verlander.

“The market remains status quo,” Boras told The Athletic [[link removed]]. “No average annual value at or above $44 million. Clear evidence of a strategic and managed effort.”

Trading Card Wars Unfold As Panini and Fanatics Clash in Legal Battles

Fanatics

The two biggest players in the sports trading card space continue to deliver blows as competition for business grows stiffer and a legal battle gets messier.

In a rare win for Panini, the company recently extended [[link removed]] its FIFA World Cup collectibles rights through 2030. Fanatics, though, has been taking other clients from Panini, and even got the NFLPA and WWE to end their Panini deals early in order to jump to Fanatics sooner. This week, Fanatics made its latest splash with a trading card release [[link removed]] featuring Tom Brady on the Montreal Expos, the MLB team he never played for but who drafted him in the 18th round with the 507th pick back in 1995.

The back-and-forth has been accompanied by an antitrust lawsuit filed in August in which Panini accused Fanatics of violating federal law with its dominant entry into the trading card business. Fanatics has since countersued, saying Panini’s case is “not only legally baseless, but also hypocritical.” Fanatics also claimed Panini is threatening some of its current and former employees with litigation if they were to join Fanatics.

In the latest court filing on Dec. 8, Panini called Fanatics’ legal action a “public relations ploy” intended to lessen the impact of Panini’s original lawsuit. “The complaint is a screed consisting mainly of inappropriate commentary, argument, and derogatory statements directly responsive to allegations in the antitrust action,” Panini said [[link removed]]. The company wants Fanatics’ suit dismissed.

A ruling in the case could come before the end of the year. For now, the trading card wars continue.

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‘Spring Breakout’ Will Bring Fans Closer to Future Stars. Will It Pay Off? [[link removed]]

Reinhold Matay-USA TODAY Sports

MLB has made another big move in its efforts to get fans invested in its stars before they become stars.

The league on Wednesday announced a new event called “Spring Breakout,” a four-day Spring Training showcase during which each MLB team will field a squad of its top prospects and play a series of exhibition games against each other. Twelve of those Spring Breakout games will be paired with MLB exhibitions to form doubleheaders.

The Spring Breakout games themselves will be combined with autograph sessions and other opportunities for fans to meet the minor-league players. Many of the games will also be broadcast on league platforms, including MLB.com and the MLB Network.

Baseball has long been challenged in this area, given the relatively low profile of college baseball and the several years of minor-league play typically required of most prospects. Those factors forge a very different dynamic than that seen in football or basketball, where top players enjoy prominent TV exposure in college and then immediately jump to the NFL or NBA.

A Domino Effect?

The new event is a continuation of related efforts, such as a recent elevation in the production value of the MLB Draft [[link removed]] and additional focus on the annual MLB All-Star Futures Game. In each instance, MLB is attempting to bridge the development time required of most prospects and build fan affinity at an earlier stage.

“Spring Breakout will provide a new opportunity to showcase the future stars of the game as they continue on their journey to the major leagues,” MLB commissioner Rob Manfred said.

Conversation Starters The NHL has announced a 12-player Skills Competition for All-Star Weekend with a $1 million, winner-take-all prize. Check out [[link removed]] the list of events. The NBA is suspending [[link removed]] Draymond Green indefinitely, taking into account his “repeated history of unsportsmanlike acts.” This season alone, Green has forfeited nearly $800,000 through fines and suspensions. Micah Hamilton was signed [[link removed]] by Manchester City when he was 9 years old, serving as a ball boy while playing for the club’s academy. On Wednesday, he scored in his Champions League debut with City’s first team. SPONSORED BY INVESCO QQQ Between unprecedented conference realignments, historic media rights deals, the wild world of NIL, and high-stakes competition, this space couldn’t be more exciting right now, but you need someone to help you make sense of it all. That’s where we come in. What to Make of the Court Ruling on College Athlete Transfers? Don’t Ask the NCAA [[link removed]]by Amanda Christovich [[link removed]]The situation has gotten even more complicated and muddled for athletes. Federal Judge Temporarily Strikes Down NCAA Transfer Restrictions [[link removed]]by Amanda Christovich [[link removed]]WVU basketball player RaeQuan Battle's eligibility waiver was denied by the NCAA after he transferred to the school. Pac-12 Schools Missing Out on $61M Revenue Distribution [[link removed]]by David Rumsey [[link removed]]Oregon State and Washington State are blocking some payments. Caitlin Clark NIL Deal Grows Pro-Like Portfolio: Nike, Buick … Now Gatorade [[link removed]]by Amanda Christovich [[link removed]]Clark has inked a multiyear partnership with Gatorade. ‘Tis the Season to Win!

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