Case: Nullification of an Illegal Sports Contract

Date: 01-Jan-2024

Overview: We represented a professional athlete in a high-profile case involving an unlawful termination and breach of a sponsorship contract with a major sportswear brand.

Legal Focus: Sports Law | Contract Law

Details: Our client, a prominent marathon runner, had entered into a sponsorship agreement worth millions in endorsements and royalties. However, the sponsor terminated the contract citing moral clause violations, which were neither specific nor legally enforceable. The termination came shortly before a major international event, affecting not only our client’s financial standing but also their public image and competitive preparedness.

Actions Taken: We filed for urgent injunctive relief to prevent further damage to our client’s reputation and secured a court order for status quo. Our legal team demonstrated that the moral clause lacked clarity and was inconsistently enforced across similar contracts. We relied on precedent from the Court of Arbitration for Sport and local High Court rulings on unfair contract terms.

Outcome: The court ruled in favor of our client, declaring the termination unlawful and awarding damages. The contract was reinstated temporarily, allowing our client to compete, after which a favorable settlement was negotiated that included revised terms, back pay, and public apology from the sponsor.

Impact: This case set an important precedent in Kenya’s sports law arena on the enforcement of morality clauses and the contractual rights of athletes. It reaffirmed the need for fairness and clarity in sponsorship agreements and boosted confidence among sports professionals to assert their legal rights.

Handled by: Galmur Advocates LLP - Sports Law Department