Sports representation by Big Law firms is by no means a novel concept: Traditional Big Law giants and American sports league staples have long partnered on sports deals ranging from contract negotiations to dispute resolution. But the deeply established partnership of the two traditional powerhouses is being confronted by both a transformative investment and athletic landscape: private equity and emerging non-traditional sports leagues. Amid the recent sports deal boom, a question unique to these recent trends remains: Which Big Law players will represent which sports leagues?
The explosion of sports transactions this past year—despite general M&A down-trending—is a testament to the growing legal sports sphere. However, this deal increase has been less dominated by the established sports Big Law firms—Latham & Watkins, Hogan Lovells, Covington & Burling, to name a few—than in years past. Deeply traditional firms such as Cravath, Swaine & Moore and Wachtell, Lipton, Rosen & Katz have entered the sports deal world, existing as competitors to the cemented sports deal firms and reflecting the sports transaction growth. In late 2023, Cravath represented the Snyder family, billionaire heirs of the In-N-Out fast food restaurant chain, in its sale of the Washington Commanders. Wachtell, along with Hogan Lovells, advised on a complex deal investing $3 billion into the Professional Golf Association this past June. The sports industry newcomers have expressed little hesitation in dealing with sports transactions despite ostensible hurdles: Marke Greene, head of the corporate department at Cravath, shared that the firm “did not have an expert and . . . figured [the NFL league rules] out just fine.” But although new entrants into the industry appear to have quickly gained deal traction, traditional firms have touted their “competitive advantage” in expertise of sports teams sales while also recognizing the growing competition for sports-related deals.
Today’s sports transactions are less crowded with the traditional sports powerhouses of the Major League Baseball, National Basketball Association, and National Football League. Less established leagues have gained a foothold in sports representation, reflecting the public’s, and consequently the legal field’s, embracement of the newfound popularity of non-traditional sports. Since June, Latham & Watkins has represented the private equity firm Carlyle in its investment in the National Women’s Soccer League club Seattle Reign FC as well as a deal concerning UpShow, a digital software that assists in selling companies the rights to stream NFL Sunday. Hogan Lovells has similarly embraced the modern sports landscape, being involved in a deal concerning a virtual golf circuit founded by Tiger Woods.
But what is the source of all this newfound sports transaction business? The true origin of the uptick in “riskier” sports investments is the growing portfolios of large private equity firms. The firms have had huge financial incentive to tackle the sports industry—with many sports teams outperforming the S&P 500—and have embraced the industry’s modernization. With investment in the traditional sports leagues exhaustive, private equity firms have set sights on new, modern sports transactions, often focusing on both the sports and technology industries. Silver Lake, a prominent sports private equity investor, acquired global entertainment and media company Endeavor Group Holdings for $13 billion last April, which owns the Unted Fighting Championship, World Wrestling Entertainment, Pro Bull Riding circuit, and Euroleague Basketball. With deal representation needed, several major law firms were also given a bite of the non-traditional Bull Riding apple. Private equity shows no signs of stopping their sports investment takeover, and major law firms have expressed little hesitation in getting involved. CVC Capital Partners, represented by Freshfields, invested $150 million in the Women’s Tennis Association, with dealmakers citing a goal to grow the size of women’s tennis in the nation. Investment firms’ interest in sports deals carries an inherent diversification of law firm sports representation, as major law firms have deep ties to private equity partnerships.
With private equity maintaining its reputation for high-risk, high-reward deals, the sports industry is the investment strategy’s likely new target. As a growing number of major law firms desire a chunk of the hotbed of sports transactions, it appears that private equity’s sports deal moves will reflect a larger trend towards a diverse, robust sports representation portfolio of Big Law firms.