Three Things: The new force majeure - Hospitality at the Olympics - Performance based sponsorships

1. Companies have found a way to get a form of force majure into their contracts - and it is genius. Knowing a pandemic clause is too ambiguous, they are adding tiers of spend based on the allowed attendance. Fall below 25% allowed in the event, pay nothing. Over 50%? Pay the rate. We believe it will become the norm, as it already is in most tech contracts 

2. Have heard from multiple sources Endeavor is the winner of the Paris '24, Milan '26, LA '28 hospitality provider shoot-out, which included CAA, Comcast, Legends and Quint. With Tokyo fan-less and Beijing a recent history repeat (2008) mired in political controversy, big upfronts needed for three marquee games in destination cities

3. Performance based sponsorship contracts are the rage but be very careful. They go both ways. One of the biggest benefits of live events deals is the uncapped upside. Buy into a crummy team, they turn it around, and the loyal buyer reaps rewards for years. One of my biggest mistakes: in 2013 we sponsored three teams. The fourth and last one out: the Golden State Warriors. Yes, the team who went on to win the title the next year and play in five straight finals. It was a three year deal at only $70k annually. That deal would be $400k today. Swing and a miss.