Hi! For those that got to the
Reed Smith AC stage - can I please ask for a favour


??
Can I please have some comments on:
1) What’s bad about this answer
2) What, if anything, is there that I’ve done right about this answer?
3) How did it differ from your answers?
“
Focusing on one of Reed Smith`s five Industry Groups, what current issues, aside from the use of Artificial Intelligence (AI), do you think will impact this sector? What opportunities or challenges could this present Reed Smith or our clients?”
An issue impacting
Reed Smith’s Entertainment & Media industry is the rise of private equity ownership in football. More than 1/3 of clubs in Europe’s top five football leagues now have PE, venture capital, or private debt backing.
Reed Smith’s clients can invest in European football clubs. It is a huge economic opportunity, since European football clubs are valued at a cheaper rate than top US Sports Teams. Moreover, European football’s more relaxed rules on ownership (compared to US regulations) make it easier to buy stakes.
The challenge for clients is that revenues are unpredictable, since a club that is relegated, or loses a match, can lose a lot of its revenues overnight.
This presents the following opportunities for
Reed Smith:
• An increase in transactional work in sponsorship agreements, share purchases and team acquisitions.
• In England, the Independent Football Regulator has been established and will be implementing a new club licensing regime that may constrain investor autonomy. This increases
Reed Smith’s advisory work for investors who need to ensure compliance.
• Stadiums: An influx of new owners with experience in US sport are changing how football stadiums should look and operate. New stadiums are built with more recreational facilities to maximise matchday and non-matchday revenues. This means more work for
Reed Smith in respect of stadium development and operations.
• Media rights: Major leagues are increasingly bringing media production in-house. This creates more opportunities for transactional work at
Reed Smith, especially the acquisition of media rights.
Thank you very much, and congratulations for getting to the AC!!