Sports under Commercial Law

Sports have always been part of the entertainment culture in our society. The industry has undeniably grown throughout the years and with it, a real need to ensure the management of the legal aspects of sports. This is why the unique area of law that is sports law has emerged.

Sports law operates under commercial law and areas such as contract law or intellectual property feed into it. More specifically, broadcasting rights, sponsorship agreements, and even player contracts will fall under it.

1. Player contracts

Contracts are fundamental and are the main component of sports law as they will regulate and govern the relationship between the players and the different clubs.

The terms of the contracts will include salary, transfer rights, terms of employment and how to deal with breaches of contracts and dispute resolution.

2. Broadcasting rights

Broadcasting rights are effectively the rights to show the sporting event on television. It is undeniable that organisations heavily rely on broadcasting. Sports law will govern allocation of those rights, sublicensing and potential infringement.

3. Sponsorship and Licensing

Sponsorship and Licensing agreements are complex legal documents. These will protect intellectual property to ensure exclusivity and govern the use of a team’s logo or name, or even a player’s likeness when it comes to merchandising or development of a video game.

Moreover, commercial law will generally uphold an athlete’s rights in protecting their rights from exploitation, facilitating transfers and ensuring timely salary payments.

By way of example, football player James Maddison won the Player of the Match award as the Tottenham team beat Fulham 2-0. He is considered as one of the most influential players in the Premier League. Maddison joined Tottenham this summer for a fee of £40million. His transfer from Leicester and contract of employment with Tottenham are governed by commercial law. Furthermore, this victory is bringing the club back to the top of the Premier League. It is therefore likely that the club’s sales in terms of merchandise will go up.

In view of the above, it is crucial for clubs and sports organisations to have watertight contracts in place to govern all aspects of the law.

For further advice and assistance please contact our Commercial Solicitors on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk