Christina S. Chang, David Park and Todd B. Scherwin Share Insights and Updates on the Business of Entertainment & Sports

The Entertainment & Sports Roundtable is produced by the LA Times Studios team in conjunction with Axos Bank, Fisher Phillips LLP, and Nixon Peabody LLP.

With a seemingly endless series of challenges and obstacles over the last few years, including devastating wildfires, protocol resets, health and safety concerns, supply chain shortages and industry-wide labor disputes, the entertainment and sports industries somehow manage to succeed, with creativity and innovation – always hallmarks of show business – sparking silver linings and trends that may actually benefit some subsectors of the industry long-term.

Many unanswered questions remain, however. What shifts are here to stay for the long term? What legal, labor and financial issues need to be addressed? What new roles can technology play moving forward? What will the industry look like a year...or five years...from now?

The LA Times Studios team turned to three uniquely knowledgeable experts for their thoughts and insights about how Southern California’s powerhouse entertainment and sports business sectors can continue to blaze new and creative paths to success.

Q: As a trusted advisor to entertainment and/or sports businesses, what do you consider to be the most challenging obstacles facing the industry in 2025?

Todd B. Scherwin, Regional Managing Partner, Fisher Phillips LLP: In 2025, the entertainment and sports industries face several complex challenges from an employment law perspective. These obstacles are multifaceted and impact both the operational and legal frameworks within which businesses operate. Some of the challenges we anticipate our clients facing are issues with worker classification and employment status, unionization and collective bargaining, technological disruption and the impact of artificial intelligence, and as the American sports industry continues to go international, we anticipate more complex compliance issues surrounding employment laws in various countries.

David Park EVP, Head of Commercial Banking and Treasury Management, Axos Bank: The biggest challenge is the rapidly changing landscape. Streaming platforms have disrupted traditional entertainment and helped created multiple revenue sources. However, the revenue streams are still new and unproven. The lack of history and consistency makes planning and financing difficult. In sports, the rising cost of franchise ownership, athlete compensation and venue investments have made financial sustainability a top concern. Businesses will need to rethink capital structuring – whether through private equity, new lending models or strategic partnerships – to maintain growth while mitigating financial volatility.

Q: What long-term impact will the recent devastating wildfires have on the entertainment and sports landscape in Los Angeles?

Christina S. Chang, Partner, Nixon Peabody LLP: The L.A. wildfires have resulted in the unprecedented destruction of approximately 16,000 homes, businesses and structures, displaced many more and indefinitely disrupted the ecosystem of employment, operations and consumer spending across entertainment and sports. Many have lost their homes, businesses or jobs, and hazardous cleanup and toxic air quality from the fires continue to affect operations in these industries. In Hollywood, major events and productions have been disrupted or canceled, filming permits withdrawn and budgets recalibrated. In sports, the region’s recovery and infrastructure rebuilding will change preparations for major events such as the 2028 Olympics. Consumers will reduce spending in both sectors and may cut down or cut out luxuries like dining out or attending games or movies during a time of critical rebuild. Combined effects could lead to delays, reduced economic activity and long-term shifts in how these events are managed and executed in Los Angeles.

Park: The wildfires have been a heartbreaking tragedy, with lives lost, families displaced and entire communities needing to rebuild. It will take years, if not decades, to rebuild these neighborhoods to what they were before the fires. Many will have to consider relocation due to the costs and in some cases lack of insurance to rebuild. Beyond the loss, these disasters are also reshaping the financial realities of entertainment and sports in Los Angeles. Production facilities are facing higher insurance premiums, location challenges and increased costs tied to environmental risk management. While the priority remains on supporting affected communities, these industries will need to rethink long-term planning to ensure financial and operational stability in a changing climate.

Q: What are your projections for the forthcoming Olympic Games in Los Angeles and how will the event benefit and/or hinder the region?

Scherwin: Viewing this from the sports and employment law perspective, we see the forthcoming Olympic Games as an incredible opportunity for job and business growth in Los Angeles. However, with this growth comes the need for businesses to stay compliant with the complex employment laws in California, and more specifically, within Los Angeles. We are advising our clients to exercise caution around employee classification, wage and hour laws, scheduling regulations and other related employment law issues in the region as they grow their employee ranks to gear up for the Olympic Games.

Chang: Hosting the 2028 Summer Olympics in Los Angeles will offer significant benefits, particularly in terms of infrastructure improvements, economic growth and job creation, while showcasing the great weather, prestige, rebuild and resilience of the city following the recent fires. By leveraging existing venues, upgrading transportation systems and repairing local infrastructures and road conditions, the city aims to enhance long-term mobility, alleviate congestion and improve air quality. Investments in hotels will bolster the local hospitality sector, generating new jobs and stimulating business growth. This regional boom is expected to result in increased tourism with an economic impact of $11 billion. However, potential cost overruns, delays, congestion and the risk of displacing local communities remain challenges. The city will need to carefully plan, execute, and manage these issues to ensure that the Olympic Games leave lasting positive changes for Los Angeles beyond 2028.

Q: What new avenues to financial success do you anticipate for creative talent over the next few years?

Park: Creative talent will have numerous opportunities to monetize their brand in multiple avenues. Ownership and key partnerships are becoming the priority - whether through equity stakes in startups, fractional investment in entertainment properties or leveraging royalty streams. Expect more direct-to-fan models, where artists and athletes cut out middlemen by launching their own brands, media ventures or digital monetization platforms. Banking institutions are adapting by offering tailored financial solutions, from revenue-based lending to specialized advisory services for those managing non-traditional income structures.

Q: How are new venue developments, such as SoFi Stadium and Intuit Dome, shaping the sports and entertainment landscape in L.A.?

Chang: SoFi Stadium and the Intuit Dome are transforming L.A. into a global sports and entertainment hub. SoFi’s high-tech design, powered by solar energy and featuring a carbon-free operation, has quickly become a prime location for major events like the Super Bowl, concerts and the 2028 Olympics. The Intuit Dome brings next-level fan experiences with innovations like automated concession systems, customizable entertainment options, a 40,000-square-foot, double-sided Halo Board with over a quarter billion LED lights, and premium seating. These venues drive economic growth in Inglewood by attracting new businesses, residents and visitors. By offering state-of-the-art technology and sustainability, they’re reshaping L.A.’s entertainment landscape and positioning the city as a leader in modern sports venues. Additionally, the ongoing development is enhancing the area’s appeal, fostering community engagement and creating long-lasting jobs, further cementing the region’s position as a prime destination for both fans and tourists.

Park: Venues like SoFi Stadium and the Intuit Dome are no longer just sports arenas; they’re financial powerhouses. These venues are designed to generate year-round revenue through multi-use facilities, entertainment partnerships and tech-driven fan experiences. The unique and diverse landscape of L.A. sports venues will allow L.A. to continue to take advantage of major events, such as the Olympics, the World Cup, the Super Bowl and numerous other world-class events for decades. Financing of these projects has also evolved, with more private investment, long-term sponsorship-backed lending and digital payment integration driving profitability. From a banking standpoint, these venues represent a shift toward infrastructure-backed financial models, where diversified revenue streams ensure sustained capital growth beyond traditional ticket and event sales.

Q: What new considerations do professional athletes and coaches need to consider in 2025?

Scherwin: Teams and professional athletes are under more scrutiny than ever, thanks to the pervasive influence of social media in today’s society. As a labor and employment firm, we’ve seen an unprecedented rise in harassment and unfair treatment allegations. Given this, it’s more crucial than ever for employers to have robust procedures and protocols in place for training, prevention and conducting investigations. Being prepared to act swiftly when issues or complaints arise within your workforce is essential to maintaining a healthy and compliant workplace.

Q: How has the shift to NIL affected collegiate sports in the region?

Park: NIL deals have turned college athletes into financial brands, fundamentally changing the economics of collegiate sports. Student-athletes are now managing multi-million-dollar endorsement portfolios before they’ve signed their first professional contract – some before they’ve even entered college. This shift has created a greater demand for wealth management, tax planning and structured banking solutions tailored to young athletes navigating a newfound need to be well educated in finances. They will need well-qualified and well-vetted advisors who can help guide these young athletes with short-term and long-term financial decisions. Schools and athletic programs are also adjusting their financial strategies, as sponsorship dollars that once flowed to institutions are now being directed toward individual players, reshaping how collegiate programs sustain themselves financially.

Chang: My colleague Nic Mayne has been closely monitoring the NIL rule changes, which have cleared the way for new entrants into the creator market. Student-athletes are now able to monetize their rights, which presents new ways for brands and schools to utilize athlete influence. That represents a drastic power shift toward talent, which has already fundamentally changed the way college athletics programs recruit, build programs and raise funds. While much of the conversation has centered on men’s football and basketball, pay-for-play allegations and transfer portal activity, the creator economy is a real and very significant market that benefits collegiate athletes of all calibers and kinds. Notably, NIL licensing provides an avenue to get more eyes on women’s sports and supplemental income. The biggest changes may be to come, with a monumental settlement, potential direct payments and investor-backed restructuring proposals on the horizon.

Scherwin: The shift to NIL rights in collegiate sports has had significant implications from an employment law perspective, fundamentally altering the relationship between athletes, schools and third-party businesses. While this change has been celebrated by many, it has introduced various challenges and legal considerations, including employment status and classification issues: One of the most significant questions arising from the NIL shift is whether student-athletes should be classified as employees. If athletes are viewed as employees, this could have substantial legal consequences in terms of labor protections (e.g., workers’ compensation, collective bargaining, wage laws) and the scope of responsibilities colleges have toward their athletes. For example, this could affect benefits, health insurance and even taxes.

Q: What do sports and entertainment brands want to see in terms of sponsorship renewal or new business pitches?

Chang: Successful sponsorships must align with business objectives and create mutual value for both the brand and the endorser. Parties want organic, synergistic partnerships that increase awareness and create a real impact in their industry and among consumers. Notably, sports and entertainment brands are looking for: A) Year-Round Engagement: With sports seasons extending beyond game days (e.g., training camps, drafts and fan experiences), brands seek continuous engagement opportunities to maximize exposure and audience connection. B) Strategic Brand Alignment: Sponsors want partnerships that resonate with their core values and business goals. C) Solving Business Challenges: The most effective sponsorships provide value beyond visibility. Brands that leverage their strengths – such as logistics, technology or financial services – help teams and leagues operate more efficiently while also enhancing their own market positioning. D) Innovative Fan Experiences: Brands are constantly seeking ways to maintain and increase engagement. Experiential fan experiences, pop-ups, giveaways and other promotions are great tools to connect. E) Category Exclusivity & Visibility: Brands obviously prefer to have category exclusivity with their high-profile partnerships with elite athletes and influencers to ensure maximum visibility and promotional opportunities without competing interests.

Q: What are some of the pros and cons of the social media age in terms of how social media affects sports and entertainment?

Park: Social media has transformed entertainment and sports into direct-to-consumer businesses, allowing talent to monetize their brands independently. This has given rise to influencer-driven sponsorships, digital subscription models and even creator-led investment funds. However, the volatility of social media-based income means artists and athletes need to be more financially savvy than ever. Banking partners are increasingly structuring income-stabilization plans, investment strategies and liquidity management tools to help talent sustain long-term financial health despite fluctuating revenue streams driven by digital trends.

Chang: Social media remains an essential tool for engagement, sponsorship and personal branding in sports and entertainment. Social media provides more platforms to consume content and the ability to instantly connect and reach new demographics, which changes how we define and commercialize fandom. Collaborations with influencers help brands reach a wider audience, including women, which can lead to increased brand visibility, sales and conversions. Leagues, teams and athletes can show more diverse content beyond the professional sport, including documentaries, podcasts and BTS featuring player storylines, nonprofit/charitable work and other content, which leads to additional opportunities to monetize or promote such endeavors. However, the rapid spread of misinformation, AI-manipulated content or the virality of documented bad behavior can immediately damage reputations and even ruin careers. Similarly, perfectly curated or edited content can mislead consumers and result in body image issues or unrealistic expectations and resulting behaviors.

Q: How is the business of sports different in Southern California than other parts of the country?

Scherwin: From an employment law perspective, the business of sports in Southern California presents unique challenges and opportunities compared to other regions in the U.S. This is driven by a combination of factors including regional labor and employment laws, the concentration of professional sports teams, entertainment industry influence, demographic considerations and the broader socio-economic environment. California has some of the most employee-friendly employment laws in the country, which creates a distinct environment for the business of sports. Laws around wage and hour regulations, overtime pay, anti-discrimination and paid leave are much stricter than in many other states. For instance, California has more robust protections for workers in terms of worker classification, which is particularly relevant for athletes who might be classified as independent contractors under certain circumstances.

Q: How has the financial landscape of sports and entertainment in L.A. evolved post-pandemic, and what sectors have seen the strongest recovery?

Park: The financial model for entertainment and sports has evolved from reliance on single revenue streams to multi-pronged monetization strategies. Sports teams are diversifying beyond ticket sales into real estate, media rights and venture capital investments. Entertainment companies are leveraging hybrid content distribution – balancing traditional box office with streaming and direct-to-consumer models. The strongest recoveries have been in live entertainment, experiential activations and high-end sponsorships, all fueled by a return to in-person engagement. Financial institutions are seeing increased demand for structured credit and advisory services as businesses recalibrate their financial strategies to this new reality.

Q: How are AI and blockchain technology influencing contracts, ticketing and fan engagement strategies?

Chang: AI and blockchain technology are revolutionizing the sports and entertainment industries, bringing greater efficiency, security and personalization across contracts, ticketing and fan engagement. Blockchain-based smart contracts are streamlining operations by automating agreements, which allows parties to code in specific terms that must be satisfied – e.g., payment is released once a certain condition is satisfied. This automation reduces fraud and enhances transparency among all stakeholders, from sponsors and vendors to teams and event organizers. The music industry is already leveraging this technology to distribute royalties instantly and accurately, ensuring that all rights holders receive their fair share each time a song is streamed or used commercially. AI is also being used to combat scalping and ticket fraud. Dynamic pricing algorithms powered by AI help venues and artists maximize revenue by adjusting ticket prices based on real-time demand (which is often met with consumer criticism). Blockchain and decentralized data storage are already changing the way major events are ticketed and resold and also offer a way to streamline entry to events. AI and blockchain are also reshaping fan experiences by creating new engagement and loyalty opportunities. Digital collectibles, such as NFT trading cards, allow fans to buy and trade unique sports highlights, while blockchain technology is also being explored for tokenized investments in athletes’ future earnings. Some teams and organizations are integrating tokenized tickets into loyalty programs, rewarding fans with discounts and exclusive experiences. Others are experimenting with blockchain-based voting, giving fans a direct say in programming decisions, jersey designs and other team-related choices. Additionally, cryptocurrency-based tokens provide seamless digital transactions without currency exchange fees while offering perks such as VIP access and priority seating. With growing government and public support for AI and blockchain innovation, these technologies will continue to shape the future of sports and entertainment at all levels.