INTRODUCTION Contributed by: Jamie Singer and Flora Peel, Onside Law
and ownership of the sports rights creating this extraordinary value. In the UK and the USA, there is no standalone right in a sporting event or spectacle. Hence, the rights are exploited by a combination of commercial contracts, rights of access and a variety of intellectual property rights. Conversely, in France, event organisers enjoy automatic rights in the sporting spectacle itself, owning and controlling the commercial rights flowing from the events they organise. However, regardless of how sporting rights accrue, their exploitation is very much an international business. The contracts granting broadcasting, sponsorship, merchandising and licensing rights are now carefully tailored indus - try-specific documents ensuring the vagaries of national regulatory systems do not devalue the international nature of their exploitation. Termination of commercial agreements contin - ues to be the subject of significant debate. The war in Ukraine has led many right-holders to consider whether contracts can be terminated where brands are simply based in or linked to Russia. There are also a few examples of spon - sors attempting termination of contracts with clubs due to player behaviour. For example, Kurt Zouma’s mistreatment of a cat led to sponsors arguing they were entitled to terminate contracts with Zouma’s employer, West Ham. Anti-doping offences often lead to similar contract termina - tions, such as Maria Sharapova’s relationship with Nike following a positive drug test and ban. Disputes will invariably follow as the interpreta - tion of “reputation-based” termination rights is scrutinised. Broadcast Rights Traditionally, broadcast rights have been the most valuable of these commercial rights. The
IOC generates over USD4 billion in its four-year cycles capturing summer and winter versions of the Olympics. FIFA has a similar aggregation model, with one men’s World Cup every four years generating nearly USD3 billion, and the women’s World Cup now generating more than USD570 million, for example. In these cases, such figures constitute well over half of their income. The contractual framework and legal system underpinning their exploitation have had to withstand the constant evolution of the means of production and distribution as well as, latterly, the viewing platforms available for consumption. Broadcasting now encompasses multiple tech - niques for delivering a feed to a consumer and requires a suite of specific contracts to paper those transactions. Due to the hardships suffered in the primary COVID-19 years as well as the uncertainty caused by global wars and disputes, the industry continues to adapt to ensure any future uncer - tainties come at a smaller cost. Commercial contracts and particularly force majeure clauses have been scrutinised, with the future of some of these organisations resting on how a “boil - erplate” clause was drafted. The force majeure clause will now be a key element of commer - cial negotiation rather than an afterthought, as was often the case before. The consequences of COVID-19 and global unrest, and the inter - pretation of affected contracts, will fuel litigation and disputes for years to come. The Question of Insurance Insurance is another area coming under scrutiny and development as a result of the pandemic. The All England Lawn Tennis Club (AELTC), owners of the Wimbledon Championships, were praised for their foresight as one of the very few organisations to have taken out event cancel - lation insurance which specifically included
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