Weekly Column: Could AI Transform Sports Ownership and Management?

In this week’s column, California Sports Lawyer® CEO, Founder, and Managing Attorney Jeremy M. Evans writes about the use of artificial intelligence in decision-making in sports ownership and management.

AI tools like analytics should be used as tools, not as crutches in decision-making.

You can read the full column below. (Past columns can be found, here).

As Hollywood is looking towards artificial intelligence (AI) to aid in its growth, cost reductions, and product offerings, the question must be asked. Can AI assist in the growth and understanding of sports in the United States and globally? The answer is yes.

The same technologies driving innovation in entertainment (like Runway AI) are being eyed for applications in global football—player scouting, fan engagement, match analysis, and club operations. Runway is looking to utilize its technology to help IMAX theaters provide a more engaging and personalized experience for movie goers. Sports executives should be considering the same technology to help grow and understand their businesses more thoroughly.

The truth is, everyone, at least those who love the world of sports, would dare to own a professional franchise. The idea of owning a team, building a championship roster and venue, and being an opportunity for fans to celebrate success is admirable and desirable. However, not every person with money and/or investors should own a team. On the other hand, AI can be used as a tool to guide the purchase and management of a sports franchise.

For one, AI can help with the intellectual property and data rights of the sports franchises, its trademarks, copyrights, wearable technology, video, and social media accounts in collecting, managing, and analyzing vast amounts of player and fan data. In the United States, many of the players unions have negotiated deals with the league officer/commissioner and franchise owners to share in the ownership of the data of the players. This allows all parties involved to control, learn, and profit from the data. Overseas leagues should take a similar collaborative approach.

Second, sports franchises should contract for AI services like Amazon Web Services and others with the goal of adopting AI-driven scouting or fitness tools. Policies and practices should be clear as to proprietary models and ensuring accuracy. Owners and players should know who owns what, controls what, and what happens if something goes wrong, like a leak or data breach. There should also be insurance and warranty and liability terms negotiated to ensure compliance, recovery, sustainability.

Third, with sponsorship and media synergy in mind, generative AI, driven by marketing, production, and entertainment professionals, could create media (films, promos) about and for sports franchises. Sports generative AI could become fun commercials and advertising of the past that cost less in time and money. It could become a new frontier for branding and rights licensing for the teams and players.

Lastly, with regard to rules governing AI use in sports leagues, for example, FIFA or UEFA could regulate and consistently review AI use in player decisions to avoid algorithmic bias and discrimination. In the law, bias might occur when a lawyer decides not to take a certain case because AI predicts a low level of success in the outcome. However, the case could be a big winner for the client and the lawyer and people and businesses need representation. Drafting, signing, and trading players works in the same manner. AI tools like analytics should be used as tools, not as crutches in decision-making. In other words, the computer can never replace the human, but it can aide the human and allow for decision-making, whether with investments in teams or players, can be done with more knowledge and hopefully wisdom with the use of generative AI tools.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.