Hey Sports Tech Fans,
So politics has dominated the news headlines for the week and sports is not immune to the implications of the US Presidential results.
The areas that could change under a new administration include:
Online Betting is a hot market since it has been made legal under federal law, with states implementing their own laws. People were expecting Trump to advance the case for legal online gambling given his history with owning casinos, but instead his administration tightened the Wire Act which governs interstate gaming. Biden has said he would reverse this tightening of the laws.
College Athletes Payments has long been a hot topic of conversation. The NCAA look to be taking the right steps to allow college athletes to make money off of their career. Biden is likely to be in favour of opening up the market to allow college athletes to make money from their college career.
Taxes for professional sports athletes, executives and owners will likely be higher under Biden as well as taxes on the sale of sports franchises which are well into the billions. The NFL is expecting a restructuring of ownership if Biden wins before he takes office in January 2021.
Healthcare is a major topic for everyone in the US. Active athletes largely have access to first class health care but for retired athletes it is a very different case. We have seen countless stories of the long term effects of playing physical sports like NFL and Biden is likely to extend healthcare to more people and protecting those with pre-existing conditions which some athletes might fall into.
China Trade War has been another hot topic in the last 12 months or so. This has had big impacts on sports apparel makers as their goods have been in the firing line. Rivals Nike and Adidas have been on the same page in opposing the trade wars as it has hurt the bottom line. Biden is likely to roll back some of these tariffs as he tries to normalise the trade situation with China.
Marijuana has been made legal in more states in ballots alongside the presidential election. The NFL has stopped banning players for positive drug tests of the substance while the MLB has removed it from its list of banned substances. The sports industry has seen a number of deals with CBD companies in recent years as a recovery substance that claims to reduce inflammation. CBD is a non-psychoactive element of cannabis so while not strictly illegal there are still issues around the substance given the nature of the product being a derivative of cannabis.
Antitrust issues were a big talking point during the Democratic primaries and it remains to be seen if Biden will take up the charge. There are a number of issues where this might become an issue. In another story below there is an antitrust case against the NFL and DirecTV for its Sunday Ticket offering which the Supreme Court has refused an appeal from NFL and DirecTV.
There are a number of others areas in which the sports business might be impacted as a result of the election.
Have a great sporting weekend,