Saturday, September 16, 2023

Live with Jim Kloss!!



The Rapid Rise and Complex Challenges of Professional Pickleball
Legal Issues, Funding Questions, and Influx of Elite Talent Reshape the Competitive World of the Fastest Growing Sport
“In five years nobody who’s a top five player today will be a top five player,” predicts attorney Jim Kloss, an experienced pickleball player. Kloss, who spoke exclusively on The Golden Boy Podcast, knows the legal complexities shaping professional pickleball as well as anyone. With decades of experience as an equity partner at two national law firms defending major corporations in lawsuits and civil claims, he understands the contractual issues threatening to undermine the sport's meteoric growth. Yet as a high-level player himself and pickleball devotee since 2012, he can also assess the play on the court and likely trajectory of the game. “It’s a really interesting time for pickleball,” Kloss says, adeptly synthesizing his legal and on-court perspectives. “What’s pickleball going to look like five to ten years from now?” At the recreational level, pickleball’s explosion in popularity shows no signs of slowing down. But in the competitive sphere, tensions roil beneath the surface. With two rival leagues – the Professional Pickleball Association (PPA) and Major League Pickleball (MLP) – recently agreeing to a merger after previous failed negotiations, complex legal questions swirl. “It is a huge legal hairball,” warns Kloss. “These are really complicated legal issues." Chief among those issues are anti-trust and monopoly concerns. By combining two of professional pickleball’s major entities, legal experts say the proposed merged league could potentially run afoul of anti-trust laws if it gains too much market control and reduces players’ contract negotiating leverage. “Does it have anti-trust implications?” asks Kloss. “Are they creating monopoly power?” The unclear legal status of current player contracts poses another obstacle. If the merger proceeds, existing contracts may need to be renegotiated or could potentially even be void, creating messy complications. Moreover, the new unified structure will have to determine whether players are categorized as independent contractors or employees – a crucial designation carrying major real-world consequences. “It affects the freedom of the employee but also affects what duties and obligations the employer has,” explains Kloss, highlighting the nuances of employment law. Despite these legal headaches, Kloss believes the merger makes sense for fans and the growth of the sport. “From a fan perspective, it is good to have a unified structure where the best players face off,” he says. Previously, top stars were fractured across the two leagues. The key question now becomes: where will the money come from to fund it all? Kloss estimates the MLP will need approximately $25 million next year just to meet its player contract obligations. With significant TV and sponsorship deals still elusive for pickleball, experts are skeptical about future revenue streams. “I’m just pointing out that this is all very fascinating to watch unfold in front of us,” says popular pickleball commentator Scott Golden, who interviewed Kloss for this article. “But nobody seems to be saying where the money is coming from.” Of course, the other looming issue is whether competitive pickleball can evolve into a viable spectator sport with millions of viewers. That outcome would unleash crucial TV dollars, but is far from assured. “Can it be big at both?” asks Kloss, questioning if the booming recreational participation will ever translate to mass appeal for watching professionals. He notes the nuanced mastery of top players like Ben Johns and Anna Leigh Waters may fascinate dedicated pickleball aficionados. But for average sports fans, the chess-like matches emphasizing strategy over flashy rallies could prove boring compared to other athletic offerings. Ultimately, pickleball may need to attract legions of new fans beyond those who actually play to drive the viewership numbers major sponsors demand. Some suggest singles matches showcasing individual athleticism could hold more appeal to the casual observer than the current doubles focus. Yet there is reason for optimism that the influx of elite talent from other professional sports – drawn by increasingly lucrative pickleball purses and endorsement deals – could revolutionize the game’s competitive future. Former top tennis pros like Jack Sock bring power and athleticism rivaled by few current pickleball players. As even younger tennis standouts make the jump to pickleball, attracted by the option to extend their pro careers, the level of play could take a dramatic leap. Meanwhile, the first generation of players who grow up focusing on pickleball from childhood will also raise the game’s caliber. “That player is coming,” says Kloss, “and they’re going to be really good.” What will the professional pickleball landscape look like when today’s top players have surrendered their thrones? Whether solved through mergers or exacerbated by legal disputes, the current growing pains appear part of an inevitable transition. Both on and off the court, pickleball’s development from niche hobby to major competitive sport promises twists and turns ahead. For attorney Jim Kloss and other keen observers, the coming evolution will certainly be fascinating to watch. As Kloss says, “It’s really an interesting time for pickleball.” Summary: This article covers the rapid changes in professional pickleball and key issues shaping its future trajectory. It examines concerns around the proposed PPA/MLP merger, including anti-trust and contractual complications. Funding player contracts and achieving viability as a televised spectator sport present additional challenges. However, an influx of talent from other sports and younger players focused solely on pickleball seem likely to transform competitive play. Legal expert Jim Kloss provides insightful perspective on these topics as pickleball transitions from recreational pastime to major league sport facing growing pains. The next decade promises to dramatically reshape pickleball’s professional competitive landscape in the courts and beyond.



Key Insights from a Legal Perspective on the Professional Pickleball Landscape Questions from a Conversation with Attorney and Pickleball Player Jim Kloss This podcast features Scott Golden discussing the professional pickleball landscape with guest Jim Kloss, an attorney and experienced pickleball player. They cover a range of topics related to the current state of professional organizations like the PPA, APP, and MLP, as well as player contracts, the potential for TV coverage, and predictions for the future of the sport. 0:29 What is Jim Kloss' background in law and pickleball? Recap: Jim Kloss worked as an equity partner at two different law firms, specializing in defending civil lawsuits like contract claims and personal injury cases, often representing corporations. He retired about 5 years ago but keeps his law license active to help friends and people in need. He was a high level tennis player who transitioned to pickleball around 2012. He has played hundreds of tournaments and earned a medal at nationals. He now focuses more on recreational play at his home courts. 15:21 What are some key legal issues with the potential PPA/MLP merger? Recap: One legal issue is anti-trust and monopoly concerns, since the merger would combine two of the major entities in professional pickleball. This could potentially reduce players' abilities to negotiate contracts between multiple leagues. Another issue is the legal status of player contracts, whether they will carry over or need to be renegotiated. There are also questions around whether players will be independent contractors or employees under the new organization. In addition, there are complex choice of law issues regarding which state's laws apply to contracts and disputes. 30:17 Does the potential merger make sense for the overall sport? Recap: Jim believes the merger does make sense for having all the top players compete against each other, rather than having divisions where some top players are in the PPA and others in the MLP. While there may be legal or other issues with the deal, from a fan perspective it is good for the sport to have a unified structure where the best players face off. 46:01 Where will the money come from to fund player contracts? Recap: Jim discusses how the MLP will need a significant amount of money to fund player contracts, with his estimate being at least $25 million just for 2024 contracts. It's unclear where this money will come from. Initial franchise sales provide some revenue but can't sustain long-term costs. The goal seems to be attracting sponsors and TV deals, but pickleball is still a long way from viewership numbers needed to support major TV contracts. Jim is skeptical about current sources being sufficient. 56:53 Will pickleball be viable long-term as a recreational and spectator sport? Recap: Jim thinks pickleball will continue growing exponentially as a recreational sport, but questions if it can become a top spectator sport with millions of viewers. The skill level of top pros creates matches that are fascinating to dedicated players, but average viewers may find them boring compared to other spectator sports. Pickleball may need to attract non-players to build a large TV audience. Jim discusses whether singles or doubles is more entertaining for spectators. 1:05:49 How will the caliber of players from other sports affect pickleball? Recap: As higher caliber tennis converts like Jack Sock come to pickleball, they could bring elite athleticism that takes the game to a new level. If younger tennis pros in their 20s start transitioning, it will provide even more talent infusion. Eventually some young players may choose to dedicate themselves to pickleball from a young age and achieve greatness having focused on it full-time. The combination of skills from other sports and players who grow up training in pickleball will lead to dramatic changes. Recap Summary: This podcast covers a wide range of pickleball topics from the perspective of attorney Jim Kloss. Key issues discussed include legal complexities with the potential PPA/MLP merger, questions around funding for player contracts, whether pickleball can become a top spectator sport, and predictions for how an influx of talent from other sports along with younger players focused on pickleball will reshape the competitive landscape in coming years. Kloss provides thoughtful analysis stemming from his legal expertise and passion for pickleball.

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