Data and insights: driving value in sports and entertainment
Sports and Event Management Focus
The collection and use of data in sports and entertainment continues to be a major developing industry, which provides important resources and opportunities for sporting organisations.
Law Update: Issue 362 - Sports and Event Management
Olaf BorutzSenior Counsel,Head of Sports & Events
Be it via the in-game statistics displayed during the broadcast of a match, the analysis of team and athlete performance or the use of data for future strategic planning (e.g., using attendance figures or sales data to determine what is being well received by the consumer and what is not), data is used in all aspects of the delivery of sports and events, and as a means of improving the consumer and fan experience.
Sports like Formula 1 have long used data and analytics in assisting performance and in driving their technology and vehicle designs, in the hope of finding any marginal point of difference that may give them the “edge” over their competitors. This leads to faster cars and greater action on the track, as well as increased engagement with fans and consumers by providing more insights into the race and a greater home spectator experience.
Data can also be used by sporting organisations to build commercial inventory and packages of rights for commercial partners. For example, data on audience viewership and social media impressions can help create media or marketing rights packages and values (e.g., media exposure values for a sponsorship package), and provide regular reporting opportunities to update commercial partners on the performance of their acquired rights (in turn providing commercial partners with justification for their investments).
Given the sheer volume of data that is now able to be collected, there are also now many service providers who provide unique data and research services. Similarly, third parties may request to access and use data collected by sporting organisations for their own business activities (e.g., a gaming company being licensed the right to use certain player data provided by a governing body or player union).
In this regard, any third-party will generally be engaged via a service provider or licence agreement.
Accordingly, any such agreement should consider including clear terms and conditions regarding:
the use and ownership of the data – for example, can the data be used for commercial purposes and/or sublicensed for use to related entities. Where possible, it may be best to be specific as to the proposed use so that both parties are clear on how the information can be used (to avoid any disputes on the services and deliverables and the fees paid), and any territorial limitations that may apply. In addition, confirmation as to whether or not the service provider has any rights to use the data for its own purposes should be provided;
warranties and indemnities – in particular, ensuring that the relevant parties have received the necessary permissions, approval and consents for the agreed use of data and collected the data in a legally complaint and professional manner;
service levels and deliverables – by specifying how exactly the relevant data will be collected and delivered for use; and
the term and any termination or suspension rights – by providing termination or suspension rights if the data has been collected in breach of the terms of the agreement or if the service provider is not performing to the service levels agreed. Further, it is important that any agreement is clear on what will happen on termination of the agreement (e.g., if the data is only accessible via a platform provided by a service provider).
Importantly, in the instance that any personal data will be processed by one party on behalf of the other, wording should be added that contemplates a data processing agreement potentially being entered into by the parties or otherwise confirms which data protection and privacy obligations will apply and how the parties will comply with any such obligations. For any organisations who collect data “in-house”, careful consideration should also be given to compliance with any local data collection laws, and to ensure that the appropriate consents and permissions are being obtained.
Additionally, robust confidentiality wording should be included, as well as determining the governing law and jurisdiction for the agreement (particularly if any service provider is based outside of the region).
Lastly, given many service providers may want to associate with the relevant sporting organisations and make it known that they are a commercial partner of the relevant body or brand, the parties should also agree as to whether the promotion of this association is permitted in any agreed terms.
We can assist you with reviewing any proposed data collection activities (across the Middle East and North African region), as well as in respect of the review of any commercial agreements agreed for the provisions of data collection or reporting services. Similarly, we can assist you with any personal data legal or compliance advice that you may need.
For further information,please contact Olaf Borutz.
Published in October 2023
