Who Collects the Royalties for a Song Used in a Sporting Event?

Songs are an essential part of the experience at sporting events, adding excitement and energy to the atmosphere. But have you ever wondered who collects the royalties when a song is used at a sporting event? From the Olympics to football matches and basketball games, the use of music involves a complex system of rights and royalties that involves several players in the music industry.

In this blog, we’ll explore who the beneficiaries of royalties are when a song is used at a sporting event and how this process works.

What Are Music Royalties?

Music royalties are divided into several categories, depending on the use of the song. The main categories include:

1. Public Performance Royalties: Generated every time a song is played in public, whether on the radio, television, at a live event, or in a public space like a stadium.
2. Mechanical Royalties: Paid each time a song is reproduced in a physical or digital format.
3. Synchronization Royalties: Paid when a song is used in combination with moving images, such as in movies, TV shows, or advertisements.

Who Are the Beneficiaries?

‍Royalties are distributed among several beneficiaries, including composers, lyricists, music publishers, and, in some cases, performers and producers. The exact distribution depends on the specific contracts and agreements between the parties involved.

Royalty Collection Process in Sporting Events

Performance Rights Organizations

Performance Rights Organizations (PROs) play a crucial role in managing public performance royalties. These organizations, such as ASCAP, BMI, and SESAC in the United States, and SGAE in Spain, are responsible for licensing music and collecting royalties when it is used in sporting events.

Licenses and Permissions

To use a song at a sporting event, organizers must obtain the appropriate licenses from the PROs. These licenses allow the music to be played during the event and ensure that the rights holders receive their compensation.

Royalty Distribution

Once the money is collected for the use of the song, the PROs distribute the royalties to the beneficiaries. This process can involve several intermediaries, including music publishers and rights management agencies, to ensure that each party receives their corresponding share.

Example: The Olympics

During the Olympic Games, music is an integral part of ceremonies and competitions. Songs used in gymnastics routines, figure skating, and other sports generate significant royalties. According to an article by Billboard, the PROs negotiate special licenses for these events and manage the distribution of royalties on a global level. The composers and music publishers are the primary beneficiaries of these royalties, and the sums can be substantial due to the event's global audience.

The Importance of Rights Management

Income Protection

For composers and other rights holders, controlling and managing their rights is crucial to ensuring they receive all the royalties they are entitled to. Music used in sporting events can generate significant income, and proper rights management ensures that these earnings are not lost.

Avoiding Legal Disputes

Unauthorized use of music at sporting events can lead to costly legal disputes. Obtaining the proper licenses and ensuring that all parties receive their compensation is essential to avoid legal conflicts.

NBA Case Example

Recently, 14 NBA teams faced lawsuits for the unauthorized use of music at their events. These lawsuits, filed by various copyright organizations and rights holders, underscore the importance of obtaining the correct licenses and following copyright laws to avoid legal and financial penalties. The lack of proper licenses not only exposes teams to significant fines but can also result in reputational damage. These lawsuits highlight the seriousness with which copyright should be treated at large-scale events and the need for rigorous music license management.

Maximizing Income

Efficient rights management allows rights holders to maximize their income. PROs and other specialized entities can help ensure that all royalties are collected and distributed correctly.

The use of music at sporting events generates significant royalties that must be collected and distributed properly. PROs play a crucial role in this process, ensuring that composers, publishers, and other rights holders receive their compensation. Controlling and properly managing music rights is essential for protecting income and avoiding legal disputes.