Weekly Column: Major Sports Events—Call for Better Deals & Shared Risk

In this week’s column, California Sports Lawyer® CEO and Managing Attorney Jeremy M. Evans examines the growing scale of major sports events and makes the case for smarter deal structures between leagues and host cities.

Cities should move away from relying on projected economic impact and instead focus on actual costs and revenues.

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

In 2016, the author wrote a column entitled “Stadium Financing: American Taxpayers Should Throw the Red Flag”. The piece centered around cities being wise with taxpayer dollars when building sports venues. This column takes a similar approach, but focuses on major sporting events like the recent NFL Draft in Pittsburgh, Pennsylvania.

Major sports events continue to scale in measurable ways. The 2026 NFL Draft drew 805,000 fans across three days. While impressive, that figure reflects total entries rather than unique individuals, which can overstate actual economic reach. The 2024 NFL Draft drew 775,000 attendees, while Super Bowl LVIII in Las Vegas generated an estimated $1 billion in regional economic impact according to the Las Vegas Convention and Visitors Authority.

The economic impact appears significant given the volume of attendees ideally spending on food, beverages, merchandise, and hotels. However, the underlying structure of these events tells a different story. The traditional model places most operational costs on cities, while sports leagues retain the primary revenue streams. Host cities typically handle security, infrastructure, and logistics through taxpayer dollars, while leagues control media rights, sponsorships, and premium event revenue. Cities often accept these arrangements due to civic pride and the promise of economic impact.

Cities should move away from relying on projected economic impact and instead focus on actual costs and revenues. A more balanced model would require establishing a baseline where the city’s costs are fully covered through event-generated revenue, with a defined profit-sharing structure. Ideally, the city would recover its costs and receive a portion of the upside, while leagues would retain a majority share reflecting their control of the event’s commercial assets.

By way of example, a framework where a city recovers its costs and participates in a defined share of the upside—such as one-third of net profits, with the league retaining the balance—could better align incentives while recognizing each party’s role. If leagues attempt to leverage competing cities to secure more favorable terms, city leadership must be willing to walk away. Financial strain often results from accepting unfavorable deals or overspending relative to actual revenue. Discipline in negotiation is essential.

As a baseline, cities should not subsidize the costs of a privately operated commercial event without clear and measurable return. If city resources are used, they should be compensated. There are exceptions for charitable activities, but major sporting events are commercial enterprises designed to generate revenue. Partnerships can also incorporate performance-based metrics tied to hotel occupancy, sales tax revenue, and ticket sales. For example, if hotel occupancy exceeds 90 percent during the event, the city’s revenue share could adjust accordingly.

Cities also need to resist the urge to host major sporting events simply because they are popular, but fail to meet fiscally responsible standards. If cities are partners in sports events, they should be treated and compensated as such. Sports leagues depend on cities as essential partners, and cities should negotiate accordingly.

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. An award-winning attorney and industry leader, Evans is based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.