After a promising start to 2020, deal activity in the sports, media, and entertainment sector was hit hard by the COVID-19 pandemic. Deal activity rebounded by the end of year, including through the creation of 40 new SPACs now seeking deals in and around the industry.
The sports industry in the United States experienced an influx of private equity interest, as leagues relaxed restrictions on minority ownership of teams. Streaming media and e-gaming realized new opportunities as COVID-19 accelerated long-term growth trends and viewers turned to over-the-top programming instead of cable. The lower- and mid-market remained vibrant, as the sector digitized, automated, and looked to buy and sell content.
Hogan Lovells activities
In 2020, our Sports, Media, & Entertainment industry sector issued thought leadership on several topics, including the rise of PE and SPACs investments in the sector, risks for brand owners exploring esports opportunities, new partnership models for stadium improvements, fan safety, and the utilization of the CARES Act loan program for COVID-19 financial relief.
We organized several events in the sector, including webinars on navigating fan health screening, new German gambling regulations, and esports. We also spoke at industry-leading conferences, including Digital Dragons 2020 in Europe and BSE Global’s Sports and the Law event.