USA Law and Practice Contributed by: Irwin A. Kishner, Daniel A. Etna, Joel Wagman and Barry Werbin, Herrick, Feinstein LLP
myriad of sports-related uses, such as athletes’ health and nutrition, athletes’ performance, train - ing regiments, scouting reports, player-trading decisions, statistics for game broadcasts, fanta - sy sports, sports betting, video gaming, e-sports competitions, and predictive modelling. 5.6 Data Protection In the USA, there are no specific data protec - tion laws at the federal level regarding sports. However, various states have enacted data pro - tection and security laws that protect personally identifiable information. The 2023 California Pri - vacy Rights Act which amended the pre-existing California Consumer Privacy Act, is currently the most extensive consumer data privacy law in the US and is modelled in part on concepts includ - ed in the GDPR. Many other states have since enacted or are in the process of enacting their own data privacy and security laws. In addition, all 50 states have data breach-reporting laws, which require formal notice to be given to per - sons impacted by data breaches that compro - mise their personal data. There have been multiple cyber-attacks on sports leagues and teams, which remain vulner - able. For example, in 2021, Major League Base - ball’s computer system was hacked. In 2022, a major ransomware attack hit the San Francisco 49ers’ NFL football franchise, targeting financial information. If personal health-related information of individ - ual athletes is collected, maintained or provided by medical practitioners, healthcare institutions or their business associates, such data is pro - tected under the federal Health Information Port - ability and Accountability Act (HIPAA). In one notable example, in 2015–16, the FBI investigated MLB allegations that the St Louis
Cardinals hacked into the internal networks of the Houston Astros, including the baseball club’s proprietary competitive databases of scouting reports, trades and proprietary statistics. A Car - dinals’ scouting director ultimately pleaded guilty to unauthorised access to an Astros computer.
6. Dispute Resolution 6.1 National Court System Internal Regulation and Arbitration
US sports leagues are typically governed accord - ing to rules and internal regulatory procedures set forth in league constitutions and by-laws. In many cases, a league commissioner serves as a chief executive officer and is responsible for overseeing the day-to-day operation of the league. Although the organisational structure of each league differs, the commissioner generally has plenary authority to enforce league rules. Jurisdiction over sports-related disputes depends on the nature of the dispute. In pro - fessional sports, an arbitration clause is often found in a CBA between a players’ association and the league or team. Under most CBAs, it is common for grievance, salary, and contract disputes to be resolved through binding arbi - tration. League constitutions and by-laws often require that disputes between the league, play - ers, member teams, officials, or shareholders be resolved through arbitration, with the league commissioner serving as arbitrator. Dispute Resolution Before the Courts It is a common requirement under most gov - erning documents that the internal arbitration process be exhausted before a dispute can be heard in court. While it is unusual for a player to appeal their suspension, this can occur.
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