Happy holidays from The Sports Law Playbook, as we close out 2025 with a look at the forces redefining how sports are built, financed and protected. This quarter, we examine the rapid rise of emerging sports leagues, unpacking the legal structures, ownership models and media strategies that can determine whether a new league scales (or stalls). We also dive into how athletes are using artificial intelligence (AI) to grow and protect their brands, and the evolving legal questions surrounding name, image and likeness (NIL) rights, digital misuse, and online reputation. 

New Game in Town: Key Legal Considerations for Emerging Sports Leagues

By Loeb & Loeb Corporate associate Ryan Kashfian

The sports landscape is experiencing an unprecedented wave of innovation. From recently launched reimagined formats like TGL, a tech-infused golf league, and Unrivaled, a women’s three-on-three basketball league, to explosive growth in emerging sports like pickleball and padel, new leagues are launching at an accelerated pace. Established athletes are leveraging their platforms to create alternative competitions, tech investors are betting big on nontraditional sports and fans are hungry for new forms of athletic entertainment. 

Whether bringing a fresh format to an established sport or building a league around the next big athletic trend, creators of new leagues should carefully consider the league’s legal foundation, as it will shape the league’s competitive position, financing options and long-term viability. The difference between leagues that scale successfully and those that fold after a season often correlates strongly with the legal infrastructure built at inception.

Below are the critical legal issues that league founders and investors should address from day one.

League Structure and Ownership Model

• Will the league operate as a single-entity structure (in which the league owns all of the teams, like Unrivaled) or a traditional franchise model (for example, an independent team ownership, such as the NBA or NFL)?

• Single-entity structures offer operational control and cost efficiency but may limit investor appeal and raise antitrust considerations in certain contexts (although MLS has successfully navigated these challenges while maintaining roster flexibility).

• Franchise models attract capital and entrepreneurial ownership but require complex governance frameworks and revenue-sharing formulas that can create tension as revenue grows or new investors join.

Intellectual Property Rights and Territory

• Who owns the league brand, team marks and media content—and how are these rights licensed?

• Territorial exclusivity provisions affect franchise values and investor returns, particularly in emerging sports where geographic markets remain undefined (for instance, Major League Pickleball's rapid expansion across metro areas).

• IP strategy directly impacts sponsorship negotiations, media deals and merchandise revenue: leagues that retain strong IP control have greater flexibility in partnership structures.

Media Rights and Distribution

• Traditional broadcast deals vs. streaming partnerships vs. owned-and-operated platforms: Premier Lacrosse League's initial NBC Sports deal vs. later streaming-first approach illustrates this evolution.

• Rights valuation in unproven leagues requires creative deal structures (e.g., revenue shares, equity stakes and performance escalators).

• Distribution strategy influences league visibility, growth trajectory and, ultimately, enterprise value in M&A scenarios.

Competition Rules and Governance

• Playing rules, competitive format and season structure are product differentiation that affects fan engagement and media appeal rather than merely operational decisions.

• TGL's tech-enhanced, prime-time format exemplifies how rule innovation can create distinct market positioning and a completely new viewing experience for fans.

• Governance frameworks (e.g., commissioner powers, voting structures and dispute resolution) prevent deadlock and protect investor interests as ownership groups expand.

Financing and Capital Structure

• Venture capital vs. private equity vs. strategic investors: each brings different expectations, timelines and value-add.

• League-level financing vs. team-level capitalization affects control, dilution and exit opportunities.

• Revenue models (e.g., gate receipts, media rights, sponsorships and betting partnerships) drive valuation multiples and investment thesis: new leagues must demonstrate a path to profitability that resonates with their specific investor base.

The emerging sports league market represents massive opportunity, but legal infrastructure must support ambitious growth plans. Early strategic decisions ripple through every subsequent financing round, partnership negotiation and exit scenario.

Game Changers: Leveraging AI to Protect and Grow Athlete Brands

By Melanie Howard, Co-Chair of Loeb’s Advanced Media & Technology department and Chair of the Luxury Brands and Intellectual Property Protection practices

Athletes today aren’t just stars on the field—they’re creators, influencers and entrepreneurs, building their brands with smart strategies, real fan connections and cutting-edge AI tools. The ones who embrace these tools are staying ahead of the game, creating long-term value for themselves, their teams and the brands that partner with them.

AI and social media have completely changed how athletes connect with fans. Every play, every moment—good or bad—can go viral in seconds. PR and marketing teams are capturing, editing and sharing highlights before a game is even over, delivering content that excites fans and creates buzz for sponsors. But while this ability to amplify moments creates plenty of opportunities, it also comes with significant challenges.

The same tools that help a game-winning touchdown reach millions in seconds can spread misinformation just as quickly. With generative AI now widely available and easy to use, anyone can create highly convincing videos or audio clips—such as deepfakes of an athlete appearing to say or do something they never did—presenting new challenges for reputation management. A single post can jeopardize years of dedication and a well-earned reputation. Generative AI also raises legal questions: Who is liable when an athlete's likeness is used without consent in a deepfake? How do defamation and right of publicity laws apply in the age of AI? These challenges highlight the growing need for stronger legal frameworks to protect athletes' digital identities.

To stay ahead, athletes are employing AI tools to protect their reputations. Real-time monitoring, sentiment analysis and digital audits help them catch fake content, squash rumors and manage resurfaced controversies before things get out of hand. These same tools let athletes respond quickly, preserve their sponsorship deals and stay marketable—especially when some partnerships depend on upholding strict morals clauses. Increasingly, sponsors are using AI to keep a close watch on sponsored athletes’ online presence and interactions, ensuring they align with the brand’s values. Whether it’s a genuine misstep or a fabricated controversy, athletes must be proactive to safeguard their partnerships.

But AI isn’t just about defense—it’s a growth tool. Athletes are using AI to create unforgettable moments that make fans feel closer than ever. During the Super Bowl in 2024, Patrick Mahomes teamed up with Adidas to "play catch" with a CGI version of his younger self on the massive Las Vegas Sphere. Powered by AI and CGI, the immersive activation captivated millions on Instagram and TikTok, proving that with the right tech, athletes can connect with fans in fresh, personal and game-changing ways. 

Campaigns like this raise important copyright and licensing questions. The rise of NIL rights has given athletes new power to monetize their brands. As they collaborate on AI-driven campaigns, defining ownership of these digital creations will be critical—not just to protect athlete’s revenue streams, but to safeguard their rights in a rapidly evolving digital landscape.

Here’s the play: technology might kick things off, but it’s the likes, shares and comments from fans that drive it down the field. What trends and what fades away often depends on how fans and the media engage with the content.

AI and social media are more than tools—they’re opportunities. Athletes who embrace innovation while staying authentic to their personal brands are positioning themselves as cultural icons, trendsetters and leaders in and beyond sports. The strategic deployment of AI is like Patrick Mahomes’ signature no-look pass—not just a dazzling highlight, but a calculated and well-practiced play that demands vision, precision and the ability to stay steps ahead of the competition to deliver game-changing results—one digital moment at a time.