JAPAN Trends and Developments Contributed by: Shiro Kato and Chihiro Shimaoka, Nagashima Ohno & Tsunematsu
Nagashima Ohno & Tsunematsu JP Tower, 2-7-2 Marunouchi Chiyoda-ku Tokyo 100-7036 Japan Tel: +81 368 897 694 Fax: +81 368 898 694 Email: shiro_kato@noandt.com Web: www.noandt.com/en/lawyers/shiro_kato/
Contracts Between Companies and Athletes The Japanese government has placed increas - ing emphasis on the growth of the sports busi - ness as one of its key policies. Recently, more and more private companies that were not traditionally involved in sports have become involved in the sports business. In recent years, new leagues have been established in various sports in Japan, and some existing leagues have been restructured to make the sports ecosystem more sustainable. Companies that are not professional sports organisations themselves have played an impor - tant role in the sports business in Japan. Many Japanese sports teams have been managed by Japanese companies that want to use these teams as their advertising vehicles. In recent years, sports teams have moved away from this model and more of them have become professional teams but the proper support of sports teams by companies and the employ - ment of athletes for this purpose continue to be of significant importance for the growth of the sports business. This has also provided more benefits to companies than ever before, as there are increasing opportunities for companies to leverage their relationships with athletes to
achieve their business objectives. In addition to the growing value of harnessing the social influ - ence of athletes, benefits include the develop - ment of employee pride and a sense of unity within each company that is achieved through the support of its athletes, the development of local communities and the value of supporting athletes’ second careers, particularly where companies employ athletes. When a company enters into a contract with an athlete, there are several types of contracts available. However, in Japanese practice, it is particularly important to distinguish whether the contract is an “employment contract” . If the con - tract is an “employment contract” , ie, the athlete is an “employee” , the relationship is governed by Japanese labour laws, which are generally very employee-friendly and provide strong protection for employees’ rights. Second Careers for Athletes The increase in employment and other forms of support for athletes by companies that were not traditionally involved in the sports business is significant in terms of supporting the career transition of retired athletes, which has been a long-standing issue in the Japanese sports industry. There is widespread recognition of the
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