In this issue:

Exclusionary Tech at Sports and Entertainment Venues:
A Ticket Gets You In, But Your Face Could Get You Thrown Out
By Cort T. Malone

In June 2022, Madison Square Garden, the New York City sports and entertainment venue dubbed “the world’s most famous arena,” enacted a policy precluding attorneys from firms engaged in litigation against the company from attending events at its venues until the litigation is resolved. However, the company’s method of enforcing the ban has become even more controversial.

The policy is enforced with facial recognition technology supported by computer software that can identify hundreds of lawyers through profile pictures on their firm’s websites and use an algorithm to sort through images and suggest a match instantaneously. Facial recognition technology is legal in New York State and typically used in retail stores to identify shoplifters, airports to check in travelers, and casinos to identify cheaters. But MSG appeared to be the first venue to utilize the technology to exclude those taking a public stance against a company. In other words, MSG’s use of the technology is punitive as opposed to protective, which questions such as who else may be precluded from entry and what, if anything, ticketholders can do in response.

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Sports Franchise Ownership Structures and Legal Considerations in an Era of Exploding Team Values
By Madilynne Lee and Jay L. Taylor

In 2019, North American sports leagues started amending their ownership regulations to permit private equity investments in professional sports franchises. This regulatory evolution signaled a decisive shift toward more inclusive and diversified investment structures. The National Football League (NFL) was the last holdout. It had traditionally maintained stringent limitations. Recent modifications to its rules now facilitate more flexible ownership. Empirical financial performance, which has notably outpaced traditional investment vehicles such as premier index funds, underscores the appeal of these sports franchises as investment opportunities for private equity, sovereign wealth funds, large institutional investors and high-net-worth individuals.

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