Courtside Counsel - September 2025

COLLEGE ATHLETICS & NIL

What: The College Sports Commission (CSC) was established following the approval of the landmark $2.8 billion House v. NCAA settlement on June 6, 2025. This settlement resolved three federal class action lawsuits against the NCAA and the ACC, Big Ten, Big 12, Pac-12, and the SEC, and ended the NCAA’s prohibition on direct athlete compensation. The CSC oversees revenue sharing between institutions and student-athletes, third-party NIL compliance, and oversight, and uses an online clearinghouse platform called “NIL Go” to gather information on third-party NIL deals with a total value of $600 or more in the aggregate. According to the NIL Deal Flow Report published by the CSC on September 5, 2025, since the launch of the NIL Go platform on June 11, 2025 and through August 31, 2025: (i) 28,342 student-athletes and 1,227 institutional users have registered and are approved to use the NIL Go platform, (ii) 3,160 designated representatives/agents have been added by student-athletes, (iii) 1,658 student-athletes, 507 institutional users, and 97 representatives and agents have logged into NIL Go during an average week, and (iv) 6,090 deals have been cleared, with values ranging up to $1.6 million and totaling $35.42 million. As of August 31, 2025, there were a total of 8,359 total deals in the NIL Go system, with a total value of $79.8 million, though the CSC noted that these figures do not include deals canceled by athletes before review or following being “not cleared.” The CSC reported that the “most common clearance issues” include: (i) delays in attesting to or providing required information, (ii) contradictory deal terms, misreporting of deal terms, and/or mistakes made in entering deal terms, and (iii) the deal does not satisfy the valid business purpose requirement outlined in the House settlement.

Why It Matters:  The NIL Deal Flow Report is the first report of what will be a series of recurring updates from the CSC. The report provides valuable insight on the level of scrutiny that NIL deals are likely to face going forward, along with potential challenges to deal clearance. The average value of cleared deals is $5,816 ($35.42M/6,090). As of the time of the report, 2,269 deals (8,359-6,090)—over a quarter of the 8,359 deals submitted—were waiting to be reviewed or had not been cleared. The average value of these 2,269 deals is $19,559 ($44.38M/2,269), nearly four times greater than the value of deals that have been cleared. The current data indicated that the approvals of NIL deals outweigh the rejections, with 332 deals being “not cleared” to date and 75 deals being re-submitted subsequent consideration by the CSC. On3 Media reported that officials from at least 25 NIL collectives told On3 on September 4, 2025 that 120 of their submitted NIL deals have been denied by the CSC (comprising over 36.14% of the “not cleared” deals) while another 192 remain under review. The CSC had previously announced in late July that it would treat NIL collectives as typical businesses, however the organizations must conform to the “valid business purpose” requirement. Institutions, athletes, and their representatives and agents can increase the likelihood of expeditious clearance by the CSC by ensuring that their deal submissions include complete and accurate information and data in their submission materials and ensure that the proposed deal is being made with a valid business purpose, defined as the use of the student-athlete’s NIL for the promotion or endorsement of goods or services being provided to the general public for profit. Additional guidance on the valid business purpose requirement can be accessed here.

Trend Alert:  The NIL Deal Flow Reports are expected to be produced and distributed periodically by the CSC, and we will continue to review and track the data as published.

PRIVATE EQUITY

Trail Blazers Sale and Ownership Group Finalized, Now Awaiting NBA Approval

What: The estate of Paul Allen, the late Microsoft co-founder who purchased the Portland Trail Blazers in 1988 for $70 million, has agreed to sell the Trail Blazers for $4 billion to a private equity group, including Tom Dundon, owner of the NHL’s Carolina Hurricanes; Sheel Tyle, co-founder of investment firm Collective Global; Marc Zahr, co-president of Blue Owl Capital; and the investment firm of the Panda Express co-founders. This marks the third NBA team to be sold in 2025, following the Boston Celtics and Los Angeles Lakers. The sale is currently pending final approval from the NBA Board of Governors, with closing expected by year-end.

Why It Matters: The acquisition of a major sports franchise brings excitement not only for fans, but also for the local economy and the private equity investors behind the deal, who often bring bold strategies aimed at transforming the organization. A new ownership group may pursue innovations such as: integrating AI into the live fan experience, creating interactive models that allow fans to engage more directly with players, embracing sports betting to deepen fan engagement, or partnering with cultural icons (e.g., Taylor Swift) to enhance the entertainment value of the brand. Once private equity enters an industry, it often signals a shift from traditional models to more dynamic, tech-driven operations. That change can ripple through the organization from the CEO to the popcorn vendor.

Trend Alert:  Private equity’s growing involvement in professional sports signals a broader shift toward tech-enabled, entertainment-driven business models. Ownership groups backed by private capital are increasingly focused on maximizing franchise value through digital innovation, global brand expansion, and diversified revenue streams. As valuations for sports teams continue to rise, we expect sustained interest from private equity firms, particularly those with experience in media, technology, and consumer engagement.

DATA

Chelsea FC Accused of Illegally Using Tracking Pixels on Website

What: Earlier this month, Chelsea FC was named in a class action complaint alleging violations of the Video Privacy Protection Act (VPPA). The suit claims that Chelsea FC disclosed users’ video-watching history to third parties via tracking pixels from social media platforms that were embedded on its website. Plaintiffs argue that this unauthorized sharing of personally identifiable information (PII) tied to video content violates the VPPA, a Reagan-era statute originally enacted to protect consumers from the disclosure of their video rental history.

Why It Matters: The VPPA has become a frequently-used tool for plaintiffs’ attorneys targeting sports entities and media platforms that use tracking technologies. Although the law was passed during Blockbuster Video’s heyday in 1988, its language has proven surprisingly adaptable to modern digital contexts. The statute prohibits “video tape service providers” from knowingly disclosing PII about a “consumer” without informed written consent.

The statute’s private right of action and statutory damages (up to $2,500 per violation) have made it a magnet for class actions. In 2024 alone, over 250 VPPA suits were filed nationwide—nearly double the previous year. Sports entities have been a particular focus of VPPA lawsuits, partly because of the hundred of millions of fans who interact with digital platforms – watching highlights, signing up for newsletters, or buying merchandise.

Courts are still assessing the VPPA’s applicability in this online context. Appellate courts have split regarding how to define “consumer” and whether data that requires technical expertise to decipher is covered under the law. It would not surprise us at Courtside Counsel if the statute’s parameters ended up before the Supreme Court.

Trend Alert: Sports entities are increasingly subject to VPPA lawsuits. The wave of class action lawsuits has included claims against the PGA Tour, the NFL, Learfield, Paramount Global (247 Sports), NBC Sports, and Baseball America. Recent VPPA settlements include the following:

• FloSports: Settled for $2.625 million over allegations it shared subscriber video data with Facebook via tracking pixels.
• Formula 1: Settled for $5.5 million to end litigation over allegations of nonconsensual sharing of PII and video viewing history with third parties.
• Bleacher Report: Settled for $4.8 million over allegations of sharing consumer’s personal information with Facebook without their consent.
• New England Patriots: Settled for $2.16 million to resolve claims that the team violated the VPPA by sharing information about fans who watched videos on the Patriots app.

As plaintiffs continue to test the boundaries of the VPPA, sports organizations should evaluate their use of tracking technologies and ensure compliance with evolving interpretations of the statute.

ARTIFICIAL INTELLIGENCE

Literate AI helping sports organizations prepare for AI-driven internet

What: Sports organizations are increasingly partnering with AI firms like Literate AI to prepare for the next evolution of the internet—one that is AI-native. These partnerships focus on building infrastructure that supports AI-driven fan engagement, personalized content delivery, and operational efficiencies across ticketing, merchandising, and media.

Why It Matters: As AI becomes more embedded in consumer experiences, sports organizations must adapt to remain competitive. AI tools can help teams and leagues better understand fan behavior, reduce fan friction, automate content creation, and deliver tailored experiences that drive loyalty and revenue. Early adopters may gain a strategic edge in monetizing digital engagement.

Trend Alert:  Expect to see more sports entities investing in AI capabilities, including:

• AI-powered chatbots for fan support
• Predictive analytics for ticket pricing and inventory
• Personalized video highlights and merchandise recommendations

Organizations should evaluate their readiness for AI integration and consider strategic partnerships to accelerate adoption.

Sports Betting and Fantasy

Allwyn buys $1.6-billion stake in fantasy sports operator PrizePicks to expand in US

What: Allwyn, a global lottery operator, has acquired a $1.6 billion stake in PrizePicks, a leading US-based fantasy sports platform. The investment is part of Allwyn’s strategy to expand its footprint in the US gaming market and diversify its offerings beyond traditional lottery products.

Why It Matters: The deal underscores the growing convergence between fantasy sports, sports betting, and digital entertainment. PrizePicks has gained traction by offering simplified, player-focused fantasy contests that appeal to casual fans. Allwyn’s investment signals confidence in the long-term growth of the US fantasy and betting market, particularly as regulatory environments evolve.

Trend Alert: Strategic investments in fantasy platforms are on the rise. Sports organizations and investors are increasingly targeting companies that blend gaming, data, and fan engagement. We anticipate continued M&A activity in this space, especially as state-level regulations become more favorable.

 

If you have any questions about this Legal Briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.