Does the buyout market reflect a competitive imbalance in the NBA?

Last Thursday marked the NBA trade deadline, meaning teams can no longer trade players on their rosters. However, after the deadline, there remain no restrictions on teams signing free agents. Coincidentally, after the trade deadline, some players and teams enter into buyouts whereby that player is bought out of his current contract and becomes a free agent. This happens where a team is usually unsuccessful in trading a player on a high salary or a player refuses to play for the team for the rest of the season.

The buyout market can make or break a team’s season. This year, the Brooklyn Nets fortified an already stacked roster by signing two all-star free agents whilst the reigning champions, the LA Lakers, signed the league’s leading rebounder. These signings come somewhat at the expense of small market franchises who lose a star player and get nothing in return. One general manager reportedly described the buyout market as “helping the rich get richer.”Basketball Money and Finance Concept

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Another COVID-19 By-Product: A Reduction in the NFL Salary Cap

Owing to a 92% drop in attendance during the COVID-19 pandemic, the National Football League (NFL) salary cap will be 8% lower this season, going from $198.2 million in 2020 to $182.5 million in 2021. The NFL has had a salary cap since 1994.  The cap regulates the amount that teams can spend on players in a given year.  This amount typically changes every year, and, in fact, cap limits had been going up every year since 2011 when the cap was at $120 million. The final number for 2021 was the result of negotiations between owners and the players union based on projected revenues and other factors. Continue Reading

The Future of Sports – Cryptocurrencies and Blockchain Technology

Sports as an industry has realised the potential that cryptocurrencies and blockchain technologies can bring to further monetise fan engagement, attract sponsors and engage a global market in ways that were unimaginable decades ago. Passionate fans, each a citizen of digital technology, consume sports and related content beyond the actual duration of a match. Teams, clubs and sporting bodies are innovating to survive in the new digital age and meet fan expectations.

With the limitations brought upon the industry due to the COVID-19 pandemic, the sports industry has responded and devised new strategies to ensure clubs and fans remain connected in a socially distanced world. The industry has recognised that blockchain is capable of revolutionising revenue streams and the fan experience through increased crypto-sponsorships, fan tokens, non-fungible tokens (“NFTs”) or even by entrance of blockchain providers into the market.

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Private Equity Investment in Sport

Private equity firm CVC Capital Partners has purchased a 14.3% stake in the Six Nations rugby tournament, putting pen to paper on a deal, which will see CVC pay approximately £365 million over five-years.

The deal, subject to regulatory approval, sees CVC target the tournament’s commercial rights. In return, the governing bodies of England, Scotland, Wales, Ireland, France and Italy are set to receive an important financial boost, which is hoped will ensure growth to the game for years to come. Rugby country flags

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HANDBALL!!! I think… (Part 2)

Football’s handball law has been under scrutiny from pundits, players and fans alike for some years now. Last year, Sports Shorts assessed the controversy of the new handball law, which has continued to depend on interpretation with little uniformity in its application across world football.

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A new post-Brexit system for the transfer of EU players

In a joint statement released last week, the Football Association (“FA”), the Premier League and the Football League (together, the “Stakeholders”) confirmed the Home Office approved points-based system that will apply to all overseas players, including EU nationals, hoping to join an English club from January 2021 onwards.

Following the end of the Brexit transition period, players from the EU will be subject to the requirement to earn Governing Body Endorsement (“GBE”) for the first time.  The FA has published updated GBE criteria for men’s players for the 2020/21 season (“New Criteria”) in time for the January transfer window.

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FIFA takes decisive action in strengthening women’s employment rights

In November, FIFA announced that its Stakeholders Committee (the “FSC”) had approved reforms aimed at strengthening employment rights for female players. These reforms offer necessary protections, such as guaranteed maternity leave, to all female football players playing for a club that is regulated by FIFA. At this stage the changes are only ‘proposed’, but they are expected to be approved by the FIFA Council this month.

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Concussion in football

mri scanOn Sunday evening, a clash of heads between David Luiz and Raul Jimenez in the Premier League match between Arsenal and Wolverhampton Wanderers gave public attention (again) to the issue around concussion protocols in football. Alan Shearer considers it a matter of “life and death” as he urged the sport to change the rules on head injuries.

Raul Jimenez underwent successful surgery on a fractured skull whilst David Luiz continued to play (albeit with a bleeding and bandaged head) but did not reappear after the half time break.

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CAS Dismisses Double Amputee’s Appeal in Fight to Compete at the Olympics

A recent award handed down by the Court of Arbitration for Sport has found in favour of World Athletics in its dispute with the US Paralympian 400m sprinter, Blake Leeper, concerning the athlete’s eligibility to run against able-bodied athletes in World Athletics Series competitions as well as next year’s Tokyo Olympics.

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The NBA is back! (It wasn’t gone for long)

Basketball and money on lawnAfter a very short off-season (71 days to be exact), the NBA is gearing up to commence the new 2020/21 season on 22 December with a 72-game regular season schedule. In the interim, fans can enjoy the NBA Draft and an unusually short free agency period.

In order to facilitate plans to begin a new season, the NBA’s Board of Governors (made up of the 30 NBA team owners) and the players approved the plans by majority, including changes to the collective bargaining agreement (CBA).

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