How Sovereign Wealth Investment May Fail to Enter the United States Sports Market: Investigating the Governance Restricting Sportswashing

In recent years, the world of sports has been disrupted by foreign nations engaging in human rights violations, masking their wrongdoings through sport-related investments. This practice, referred to as “sportswashing,” has negative impacts on both the sports industry at large and the individual victims whose suffering is perpetuated. Currently, there is no direct legislation preventing foreign investors from taking over sports franchises in the United States. However, the Committee on Foreign Investment in the United States, the United Nations, and sports leagues’ private regulations, each provide means to resist sportswashing. This Note analyzes the problem of sportswashing, the existing framework attempting to prevent it, and finally, proposes legislative reform and league action in the United States to address this moral responsibility and maintain an ethical standard in sports.