PREDICTIONS FOR 2026
SPORTS
2025 IN REVIEW
Private Equity Could Become a Major Player in College Sports While the financial infusion offered by private equity groups could provide a boost to certain conferences, will schools be willing to hand over decision-making power to outside entities? Some schools are reportedly already considering partnering with equity groups given the newfound financial pressure created by the House settlement. Sports businesses consultancy company Elevate also announced a $500 million “Collegiate Investment Initiative” in June to help support the growth of college-level sports programs. Expect Continued Battle Over Student-Athlete “Employee” Issue Trump’s July EO directed both the DOL and NLRB to clarify the status of student-athletes. While it’s unlikely the Trump administration will be willing to upend the current college sports model by deeming college athletes as employees who have collective bargaining rights and overtime protections, guidance from these agencies on the issue has yet to materialize. AI Will Proliferate in the Industry, Especially in Management and Recruitment AI is already being used to help formulate game tactics: professional soccer coach Laura Harvey of the Seattle
Landmark House v. NCAA Settlement Broke New Ground A federal judge in June approved a landmark $2.8 billion antitrust settlement involving former college athletes who claimed they should receive compensation for the commercial use of their name, image, and likeness (NIL). The deal included back pay damages to former student-athletes, established a revenue- sharing framework for participating Division 1 schools, and created roster limits, among other provisions. An appeal challenging the settlement filed by eight female athletes is still pending before the 9th Circuit Court of Appeals. New NLRB GC Rolls Back Policy That Declared Student-Athletes “Employees” The Acting General Counsel of the National Labor Relations Board William Cowen issued a memo in February cancelling several policies issued by his predecessor, including a 2021 memo that said student- athletes at private universities could qualify as employees with unionization rights. The memo is not binding law, and it will take time for the NLRB to potentially reverse precedent that was set during the Biden administration, especially having been without a quorum for most of 2025. Trump Issued NIL Executive Order President Trump signed an Executive Order in July seeking to ban “third-party, pay-for-play payments to collegiate athletes,” while still allowing athletes to enter into NIL deals. The “Saving College Athletics” Executive Order delegates authority to several federal agencies to help establish a uniform regulatory framework. The order directed various federal agencies and officials to rein in pay-for-play payments, clarify student-athletes’ employment status, protect and expand women’s and non-revenue-generating sports, and set consistent rules governing NIL compensation.
Reign FC (NWSL) admitted in an October interview she used AI to help strategize plays and saw an improvement in game outcomes. The technology also has huge potential to expand the reach and filtering of talent recruitment, offering a leg up in scouting – especially for clubs with tighter budgets.
Todd B. Scherwin Los Angeles/Woodland Hills Regional Managing Partner, Co-Chair
Adam F. Sloustcher Dallas/San Diego Regional Managing Partner, Co-Chair
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