Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

For Athletes, Sponsorship Disputes can Kill the Competition

Author: Scarinci Hollenbeck, LLC

Date: August 21, 2015

Key Contacts

Back

Sometimes it’s neither drugs, rule violations nor performance that complicate an athlete’s ability to compete, but rather, sponsorship disputes with corporations.

U.S. runner Nick Symmonds will soon be calling a sports lawyer, if his prior comments were any indication, to deal with his own sponsorship dilemma. The runner is involved in an ongoing dispute with American track officials over sponsors, due to the fact that his endorsing organization is different than that of U.S.A. Track & Field. The six-time outdoor national champion was asked to sign a contract promising that he would only wear Nike-branded gear at “official” events in Beijing for the world track and field championships, a request at odds with his endorsement by apparel company Brooks.

Runner refused to sign vague contract, removed from track and field championships

He explained that the vague nature of the contract the federation asked him to sign implied that he would be forced to wear Nike throughout his time in Beijing. He added that this would make him a bad investment for Brooks, Deadspin reported. USATF would not clarify to Symmonds which events, specifically, were considered “official.”

Symmonds told The New York Times prior to the deadline for signing the contract that if the federation walked back on his entry into the championships, scheduled to start Aug. 22, then he would have to speak with a lawyer.

Sunday night, the federation sent an email to Symmonds explaining that the organization had decided to replace him following his failure to sign the contract, according to ESPN. The runner seems disappointed in the federation’s decision, but asserted that he does not regret his choice to stand against what many track and field athletes deem to be unfair sponsorship rules. However, not every athlete believes he went about his act of rebellion in the right way.

“Nick is trying to stand up for what he believes in, but he has to do it sensibly in a business-like capacity,” Dee Dee Trotter, the bronze-winner in the 400 meters event in London in 2012, told ESPN. “We’re not going to change things overnight, and it makes better sense to wait to address the issue at the proper time. LeBron James didn’t get things done for the players by banging on the door himself.”

​Sponsorship disputes are present in all sports

Symmonds isn’t the first athlete to deal with sponsorship disputes with corporations. For example, a dust-ups arose between players and the NFL due the league’s association with audio equipment provider Bose, according to Sporting News. After the league made the company its official headphone sponsor, it banned the appearance of Beats products on official broadcasts. Soon after the ban, San Francisco 49ers quarterback Colin Kaepernick was fined $10,000 for wearing Beats headphones after a game.

Then, as the most recent draft closed in, Beats made it past the league and with a sneaky marketing tactic. Draftees Amari Cooper, Marcus Mariota and Jameis Winston each answered their draft-day phone calls from their eventual respective teams while wearing Beats earbuds.

All sorts of athletes end up with endorsement deals, and some of these agreements may conflict with the sponsorships of the organizations they’re competing under. From football to track and field and everywhere in-between, sponsorship disputes and deals exist. Athletes, their agents and their lawyers must negotiate the sometimes complex situations that develop out of endorsement agreements at odds with each other.

“USATF is a strong advocate for athletes to have as many sources of revenue as possible,” Jill Geer, spokesperson for the USTAF, explained. “But the standard for when our team uniform and our team products must be worn is well-known, and it’s consistent with the rest of the industry within track and field, internationally and also in other sports.”

Greer added that the federation holds plenty of events and press conferences that allow athletes to wear their own gear, and that their apparel is only limited when they are officially representing the U.S.

Symmonds has stated that he hopes his actions will help stop the alleged exploitation of athletes by professional organizations, and has also asserted that he will sue to recover travel and visa costs, according to Sports Business Daily. Athletes who find themselves in similar sponsorship disputes, or who are concerned about conflicting sponsorships, should contact an attorney experienced in sports law to learn more.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand post image

Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand

Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]

Author: Donald M. Pepe

Link to post with title - "Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand"
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them post image

Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them

The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]

Author: Paul Grossman

Link to post with title - "Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them"
When a Child Turns 18: The Gap in Your Family’s Estate Plan post image

When a Child Turns 18: The Gap in Your Family’s Estate Plan

Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]

Author: George McGowan

Link to post with title - "When a Child Turns 18: The Gap in Your Family’s Estate Plan"
Business Mediation: An Overview and Practical Tips post image

Business Mediation: An Overview and Practical Tips

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]

Author: Paul Grossman

Link to post with title - "Business Mediation: An Overview and Practical Tips"
Top 5 Causes Leading to Construction Defect Litigation post image

Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]

Author: Paul Grossman

Link to post with title - "Top 5 Causes Leading to Construction Defect Litigation"
How to Protect Your New Jersey Business When Going through a Divorce post image

How to Protect Your New Jersey Business When Going through a Divorce

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]

Author: Jay McDaniel

Link to post with title - "How to Protect Your New Jersey Business When Going through a Divorce"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!