Sport’s Intangible Assets: How Sport Marketing Became Big Business (Part 1)

In this four-part series, Stephen Townley, a sports lawyer with nearly 50 years’ experience advising organisations including FIFA, the IOC, World Rugby, and the International Tennis Federation, examines how sport marketing became big business (Part 1); why 80% of sport’s value is now invisible (Part 2); how sport has moved from amateur clubs to investable asset classes (Part 3); and the key trends and challenges ahead (Part 4)

A recent request to read and review a new book on the sport industry “Fast Tracks and Dark Deal$” by Michael Payne, has triggered this article. We had both worked at what these days is often referenced as “The University of Sport Marketing” almost 50 years ago now. The “University” was the original joint venture between an English marketing innovator Patrick Nally and the late Horst Dassler Chairman of Adidas. I joined the “University” in 1979 as did Michael. I have referenced “University” as a business originally called West Nally Monaco. Michael’s book charts his lifelong career.

Sean Cottrell of LawInSport (LIS) has frequently encouraged me to offer my own views on how lawyers contributed to the evolution of today’s sport industry given my own long (perhaps some may argue too long) career in sport. This article is in part a response to that request. In my humble opinion, the legal industry has provided the backbone to allow the monetisation of sports’ “intangible assets” (IA), including intellectual property (IP). I wrote my first textbook on the subject (published by Sweet & Maxwell), with a barrister colleague Edward Grayson in 1984, some 40 years ago now.

Organising sports’ assets within a legal framework, or creating one, to generate income throughout their lifecycle has been my speciality for almost 50 years. I have always seen this as a positive contribution to sport and entertainment. I now have a growing concern about the focus on litigation in sport. Perhaps my concern is a myth that age bestows of imagining all summers of one’s youth were hot and sunny and all winters cold with snow. I doubt my concern however is a myth. Some partner rates of London legal firms are now reported to be £3,000 per hour.