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COUCHMAN | HARRINGTON ASSOCIATES European Sports Law & Business 2010 Dogfighting, Homophobia, Adultery and more – Problems with Endorsement Contracts Nick White, Partner Email: [email protected] 20-22 Bedford Row London WC1R 4EB Tel: +44 (0) 20 7611 9660 Fax: +44 (0) 20 7611 9661 www.couchmansllp.com Couchmans LLP The Sports Business Lawyers

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COUCHMAN | HARRINGTON ASSOCIATES

European Sports Law & Business 2010

Dogfighting, Homophobia, Adultery and more – Problems with Endorsement Contracts

Nick White, PartnerEmail: [email protected]

20-22 Bedford RowLondonWC1R 4EBTel: +44 (0) 20 7611 9660Fax: +44 (0) 20 7611 9661www.couchmansllp.com

Couchmans LLP

The Sports Business Lawyers

COUCHMAN | HARRINGTON ASSOCIATES

Orchestrating dogfights

Sex with person other than wife

Racial slur on Twitter

Carrying a pistol without a licence

Performance enhancing drugs

Recreational drugs

Real examples of problems under

endorsement contracts

COUCHMAN | HARRINGTON ASSOCIATES

Some Examples

COUCHMAN | HARRINGTON ASSOCIATES

Coke Zero: “…not appropriate to run an on-pack promotion featuring Wayne Rooney.” But Coke Zero Street Striker relationship maintained.

EA Sports: "This is a personal matter and we respect Wayne and his family's privacy… "

Nike: "This is a private matter for Wayne and his family…"

Case Study: Wayne Rooney

COUCHMAN | HARRINGTON ASSOCIATES

Case Study: Tiger Woods

Nike: Maintained

EA Sports: Maintained

Gatorade: Dropped Tiger Focus drink but relationship maintained

Tag Heuer: Dropped from US ads but relationship maintained

AT&T: Terminated

Accenture: Terminated

COUCHMAN | HARRINGTON ASSOCIATES

To terminate or not to terminate

Is brand looking to associate with the person or the athlete? Is campaign built around the individual?

COUCHMAN | HARRINGTON ASSOCIATES

Morality Clauses

What is the trigger for remedy? - Criminal matters (Arrest? Charge? Conviction? Conviction and all rights of appeal exhausted?)- Non-criminal matters

Contractual mechanism for athlete to make representations to the brand

COUCHMAN | HARRINGTON ASSOCIATES

Remedies for Sponsors

Termination

Suspension

Reduction in compensation

Cancellation of bonuses

Sue for damages

COUCHMAN | HARRINGTON ASSOCIATES

Privacy is enforced via breach of confidence

Contrast 1st Amendment in US

Balancing test

UK Legal Recourse - Privacy

Article 8 (respect for private life)

Article 10 (freedom of expression)

COUCHMAN | HARRINGTON ASSOCIATES

“Superinjunctions”

Publication restrained of the fact of the order (as well as of the identity of claimant and of the allegations)

Example

Jan 2010: John Terry superinjunction lifted. Claimant’s real concern was his sponsorship deals.

UK Legal Recourse – Privacy contd.

COUCHMAN | HARRINGTON ASSOCIATES

The Test- Would the allegation tend to lower the claimant in the eyes of right thinking members of society?- Is the allegation false? Beckham and libel tourism

UK Legal Recourse - Defamation

COUCHMAN | HARRINGTON ASSOCIATES

Benefits of social media for brands

@Cristiano: My friend Jorge Monteiro caught me napping. Gotta rest sometime......

@Cristiano: This just went up on Sunset Boulevard in Los Angeles. What do you think?...

COUCHMAN | HARRINGTON ASSOCIATES

Dangers of social media

COUCHMAN | HARRINGTON ASSOCIATES

European Sports Law & Business 2010

Dogfighting, Homophobia, Adultery and more – Problems with Endorsement Contracts

Nick White, PartnerEmail: [email protected]

20-22 Bedford RowLondonWC1R 4EBTel: +44 (0) 20 7611 9660Fax: +44 (0) 20 7611 9661www.couchmansllp.com

Couchmans LLP

The Sports Business Lawyers