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 sub-sectors of the industry long-term. 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. The following article excerpts highlights from that commentary.
What do you consider to be the most challenging obstacles facing the industry in 2025?
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.
Todd B. Scherwin
Regional Managing Partner
Fisher Phillips LLP
What long-term impact will the recent devastating wildfires have on the entertainment and sports landscape in Los Angeles?
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 In Hollywood, major events and productions have been disrupted or canceled, filming permits withdrawn and budgets recalibrated.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.
Christina S. Chang
Partner
Nixon Peabody LLP
How are new venue developments, such as SoFi Stadium and Intuit Dome, shaping the sports and entertainment landscape in L.A.?
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, 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.
David Park
EVP, Head of Commercial Banking and Treasury Management
Axos Bank
How has the shift to NIL affected collegiate sports in the region?
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.
Todd B. Scherwin
Regional Managing Partner
Fisher Phillips LLP
What are your projections for the forthcoming Olympic Games in Los Angeles, and how will the event benefit and/or hinder the region?
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.
Christina S. Chang
Partner
Nixon Peabody LLP
How has the financial landscape of sports and entertainment in L.A. evolved postpandemic, and what sectors have seen the strongest recovery?
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.
David Park
EVP, Head of Commercial Banking and Treasury Management
Axos Bank
To view or share this content online, use this QR code.
