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
What Founders Can Learn From Start-up Suits post image

What Founders Can Learn From Start-up Suits

High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]

Author: Dan Brecher

Link to post with title - "What Founders Can Learn From Start-up Suits"
Corporate Governance Reviews: A Practical Guide for New Jersey Companies post image

Corporate Governance Reviews: A Practical Guide for New Jersey Companies

Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]

Author: Ken Hollenbeck

Link to post with title - "Corporate Governance Reviews: A Practical Guide for New Jersey Companies"
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights post image

What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights

Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]

Author: Robert E. Levy

Link to post with title - "What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights"
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities post image

Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities

Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]

Author: Dan Brecher

Link to post with title - "Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities"
Why Compliance Monitoring Matters for NY and NJ Businesses post image

Why Compliance Monitoring Matters for NY and NJ Businesses

Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]

Author: Dan Brecher

Link to post with title - "Why Compliance Monitoring Matters for NY and NJ Businesses"
When Are New Jersey Business Owners Personally Liable for Corporate Debt? post image

When Are New Jersey Business Owners Personally Liable for Corporate Debt?

New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]

Author: Charles H. Friedrich

Link to post with title - "When Are New Jersey Business Owners Personally Liable for Corporate Debt?"

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.

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