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	<title>Employment Law Archives - Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</title>
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		<title>Morality Clauses in Employment Contracts &#124; Considerations for Sporting Organisations</title>
		<link>https://www.sportslawyer.com.au/morality-clauses-in-employment-contracts-for-athletes/</link>
					<comments>https://www.sportslawyer.com.au/morality-clauses-in-employment-contracts-for-athletes/#respond</comments>
		
		<dc:creator><![CDATA[Jen]]></dc:creator>
		<pubDate>Sun, 06 Feb 2022 20:00:21 +0000</pubDate>
				<category><![CDATA[Employment Law]]></category>
		<guid isPermaLink="false">https://www.sportslawyer.com.au/?p=1402</guid>

					<description><![CDATA[<p>For as long as there has been competitive sport, athletes have found themselves as public role models. With this comes the opportunity for some to leverage their profile and earn income from the many brands and companies that like to align their brands with fit, successful, prominent and up-and-coming athletes. Combine that with the explosion [&#8230;]</p>
<p>The post <a href="https://www.sportslawyer.com.au/morality-clauses-in-employment-contracts-for-athletes/">Morality Clauses in Employment Contracts | Considerations for Sporting Organisations</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><span style="font-weight: 400;">For as long as there has been competitive sport, athletes have found themselves as public role models. With this comes the opportunity for some to leverage their profile and earn income from the many brands and companies that like to align their brands with fit, successful, prominent and up-and-coming athletes. Combine that with the explosion of social media in recent years, and the lives of our athletes have become more accessible than ever before. </span></p>
<p><span style="font-weight: 400;">Whether through joining a new platform or an increase of public awareness, athletes can grow a considerable online following. Sometimes strategic, but often inadvertently, up-and-coming semi-pro and professional athletes can quickly become some of the most followed social media influencers on these platforms. This puts them in the perfect position to advertise the lifestyles and behaviours that their clubs and sponsors stand for, and wish to have portrayed to the public.</span></p>
<p>&nbsp;</p>
<h2><span style="font-weight: 400;">Morality Clauses in Employment Contracts </span></h2>
<p>&nbsp;</p>
<p><span style="font-weight: 400;">Due to the ever-increasing public nature of the ‘private’ lives of athletes, disrepute, morals or </span><span style="font-weight: 400;">morality clauses in employment contracts</span><span style="font-weight: 400;"> which allow sporting clubs, associations or sponsors to suspend athletes or terminate contracts for off-field or out-of-hours misconduct are more important than ever. For this reason, pro and semi-pro sporting clubs or organisations need to be up-to-date about best practices when including morality clauses in any athlete contracts. </span></p>
<p><span style="font-weight: 400;">Offers and negotiations can fall through if the clauses are too constrictive. Generally speaking, the aim is typically to strike a balance between upholding the values and expectations of your club or organisation (and sponsors), while also giving your athletes some flexibility and freedoms.</span></p>
<p>&nbsp;</p>
<h2><span style="font-weight: 400;">What is a morality clause?</span></h2>
<p>&nbsp;</p>
<p><span style="font-weight: 400;">A morality clause is a provision in an employment contract which gives an organisation the right to suspend or terminate a contract if the employee commits specific prohibited behaviour. They may also be known as disrepute clauses or morals clauses.</span></p>
<p><span style="font-weight: 400;">Morality clauses can be drafted more or less broadly to encompass a wide-range of misconduct or misbehaviour by athletes and employees. Broadly speaking, a morality clause in an athlete’s employment or sponsorship contract provides that if the athlete is found to partake in actions that bring themselves, the club, organisation, and their sponsors into disrepute, the club, organisation or sponsor has the right to suspend or terminate the contract.</span></p>
<p>&nbsp;</p>
<h2><span style="font-weight: 400;">Athlete Conduct and the relevance of contractual drafting</span></h2>
<p>&nbsp;</p>
<p><span style="font-weight: 400;">In 2018, three Australian cricketers, including the Australian captain Steve Smith, were suspended for their on-field conduct in bringing the game into disrepute. However, it is not only on-field conduct that can cause concern for sporting associations, teams and sponsors. In late 2021, Test captain Tim Paine resigned as captain and stood down from the team following the revelation in the media that he had previously been involved in a sexting scandal. <a href="https://www.cricket.com.au/news/tim-paine-full-statement-australia-test-cricket-captain-resigns-on-eve-of-ashes-against-england/2021-11-19" target="_blank" rel="noopener">While Paine made his own decision to step-down to prevent further harm to his family</a>, Cricket Australia came under significant scrutiny for its earlier decision to not punish Paine and to appoint him as captain given its earlier knowledge of the incident. Notably, the Cricket Australia Code of Conduct refers to sexual misconduct as conduct that may fall within the Code of Conduct offence 2.23, which is a catch-all provision for conduct, including conduct that brings the game of cricket into disrepute. It therefore may have been arguable that his conduct was in breach of the Code of Conduct. </span></p>
<p><span style="font-weight: 400;">You will remember when, back in 2019, rugby player Israel Folau publicly posted a series of anti-same-sex marriage and homophobic statements to his social media profiles. This led to Qantas (who have a very strong public promotion of LGBTQI+ rights), threatening to pull their sponsorship to Rugby Australia if they failed to terminate his contract. He was found to have breached Rugby Australia’s code of conduct, which contained a disrepute clause. Ultimately, Rugby Australia terminated his contract early, consequently ending his career with the Waratahs and the Wallabies. He lost his sponsorship deal with ASICS later that month. </span></p>
<p><span style="font-weight: 400;">In </span><i><span style="font-weight: 400;">Zubkov v FINA </span></i><span style="font-weight: 400;">the Court of Arbitration for Sport (</span><b>CAS</b><span style="font-weight: 400;">) found that under the relevant FINA (governing body for world swimming) contract in that case, for Zubkov to have breached the relevant morality clause, it was necessary to show that his conduct had caused actual (not just potential) damage to the reputation of the sport of swimming (not just to himself). As this could not be shown, his six-year suspension was subsequently dramatically reduced to an eight-month suspension. </span></p>
<p><span style="font-weight: 400;">This can be contrasted with the case of Australian Swimmer Nick D’Arcy under a different contract. In 2008, D’Arcy set an Australian 200 m butterfly record and gained a spot on the Australian Swimming Olympic team. He was then charged with assault following a brawl with fellow swimmer, Simon Cowley. Importantly, the wording in the contract between Nick D’Arcy and the Australian Olympic Committee (</span><b>AOC</b><span style="font-weight: 400;">) stated that any action he took to bring himself, the team, the AOC or Swimming Australia into disrepute would be sufficient for the AOC to suspend or terminate his contract. Consequently, despite charges not yet being finalised, the Australian Olympic Committee dropped D’Arcy from the 2008 Beijing Olympic squad on the basis that he had brought himself into disrepute. On appeal, CAS</span> <span style="font-weight: 400;">upheld the decision, finding that in the contract, “bringing a person into disrepute is to lower the reputation of a person in the eyes of ordinary members of the public to a significant extent”. It found that his actions were sufficient to affect his reputation amongst ordinary members of the public. </span></p>
<p><span style="font-weight: 400;">In the NRL, players can also be stood down for serious criminal conduct while awaiting trial. A controversial No-Fault Stand Down clause was first introduced by the Australian Rugby League Commission and the NRL in March 2019. The policy has been repeatedly subjected to legal challenge. However, on each occasion it was found to be fair. The policy meant that Dragons player Jack de Belin, who was charged with sexual assault, spent over two seasons on the sidelines until charges were ultimately dropped and he was allowed to return to playing. </span></p>
<p><span style="font-weight: 400;">More recently, in October 2021, an AFL club took a similar approach to that adopted by the NRL in relation to AFL football player Jordan De Goey. De Goey, a star forward at the Collingwood Football Club, with a checkered history of incidents, was arrested in New York and charged with assault. Although De Goey was not due to stand trial until 8 December 2021 (and this was later adjourned to January 2022), his club suspended him following the incident. The suspension meant that he was prevented from using club facilities and resources, and was banned from playing and training with the club. On 20 January 2022 he was allowed to return to the club after accepting a plea deal for harassment in the second degree (a downgraded charge) offered by the prosecution. </span></p>
<p><span style="font-weight: 400;">In the event any athlete’s conduct is under investigation, or in the event they are required to go to Court, your club or organisation wants to ensure that it has avenues available to manage issues like these, effectively.</span></p>
<p>&nbsp;</p>
<h2><span style="font-weight: 400;">Sports Contract Negotiations</span></h2>
<p>&nbsp;</p>
<p><span style="font-weight: 400;">When entering into </span><span style="font-weight: 400;">sports contract negotiations,</span><span style="font-weight: 400;"> the obvious mindset to have is to protect the interests of your club or organisation, and your sponsors. Being able to stand down an athlete in the event their behaviour is under investigation or due to go to trial or a tribunal, is important for both pro and semi-pro clubs and organisations.</span></p>
<p><span style="font-weight: 400;">The public knowledge of any behaviour that is under investigation, can challenge the perceived integrity of a club, organisation, and its sponsors, so adequate provisions must be made to ensure you have an enforceable morality clause.</span><span style="font-weight: 400;"><br />
</span></p>
<p><span style="font-weight: 400;">However, these clauses should do more than minimise the risks or protect the public image of your organisation. It is equally essential to show that you are caring and considerate of your athletes, their lives, and their futures.</span></p>
<p><span style="font-weight: 400;">If your club or organisation includes clauses that are too harsh on the players, it will find that it is scrutinised in the public domain for being unjust. Conversely, if it words the clauses too softly, it could find itself under fire for not caring about potential victims or the consequences that the players&#8217; disreputable actions have caused for others. You may even find the organisation subjected to legal challenge where it has taken steps such as suspension or termination if the contract does not provide a sufficient basis for doing so. This may result in costly litigation or legal settlements. </span></p>
<p><span style="font-weight: 400;">It is for all of these reasons that your club or organisation should have athletes’ contracts prepared by experienced employment lawyers who understand the nuances of </span><span style="font-weight: 400;">sports contract negotiations</span><span style="font-weight: 400;"> and the considerations unique to sporting clubs and organisations. </span></p>
<p>&nbsp;</p>
<h2><span style="font-weight: 400;">Considerations for Organisations with Pro or Semi-pro Athletes</span></h2>
<p>&nbsp;</p>
<p><span style="font-weight: 400;">Some of the questions we ask here as sports and employment lawyers include:</span></p>
<p>&nbsp;</p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Are they a high-profile professionally paid athlete? </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Are they a semi-professional athlete? </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Are they likely to be a leader of the club/organisation in future? </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What does your club or organisation consider disreputable conduct?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What might be considered disreputable conduct in the future (during the term of their contract)?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Should players be punished for conduct that remains confidential, but that has the potential to cause disrepute should it later become public knowledge?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Could their position within the club or team change during the course of the contract, and therefore their position of responsibility change whilst bound under this contract?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Will you include a No-Fault Stand Down clause?</span></li>
</ul>
<h2></h2>
<h2><span style="font-weight: 400;">Morality Clauses in Employment Contracts</span></h2>
<p>&nbsp;</p>
<p><span style="font-weight: 400;">There is no one-size-fits-all approach to morality clauses in employment contracts for athletes. The considerations for any employment contract with a morality clause varies greatly, depending on the level your athletes are at, the level of public scrutiny and any sponsorship obligations you have. Be too specific with your wording, and you might narrow it down too much and find yourself in a position with no ground to stand on. Too broad and you might be too restrictive on the athlete in question based on what level of their career they are at, or in extreme cases the clause may even be unenforceable.</span></p>
<p><span style="font-weight: 400;">Could your club or organisation have tighter morality clauses in athletes’ contracts? When it’s time to review or renew your athlete contracts or sign-on new talent, the best chance of striking the right balance is to seek professional advice from lawyers who specialise in sports and employment law.</span></p>
<p>&nbsp;</p>
<p style="text-align: center;"><strong>Article by <a href="https://www.sportslawyer.com.au/about-us/alexandria-anthony/" target="_blank" rel="noopener">Alexandria Anthony</a></strong></p>
<p>&nbsp;</p>
<p><i><span style="font-weight: 400;">Related articles: </span></i><a href="https://www.sportslawyer.com.au/sports-club-constitution/" target="_blank" rel="noopener"><i><span style="font-weight: 400;">Sports Clubs &amp; Organisations | What to know to make 2022 your best year yet</span></i></a></p>
<p><i><span style="font-weight: 400;"><a href="https://www.sportslawyer.com.au/what-to-do-when-an-athlete-is-charged-with-doping-offences/" target="_blank" rel="noopener">Sport Leadership and Management | What to do when an athlete is charged with doping offences</a></span></i></p>
<p>&nbsp;</p>
<p><i><span style="font-weight: 400;">Our team of sports lawyers work with clubs and organisations across all states and territories of Australia. To discuss morality clauses in employment contracts, call </span></i><a href="tel:0396420435" target="_blank" rel="noopener"><i><span style="font-weight: 400;">our Sports Lawyer team</span></i></a><i><span style="font-weight: 400;"> on 03 9642 0435 or fill in our contact form </span></i><a href="https://www.sportslawyer.com.au/contact-us/" target="_blank" rel="noopener"><i><span style="font-weight: 400;">here</span></i></a><i><span style="font-weight: 400;">.</span></i></p>
<p>The post <a href="https://www.sportslawyer.com.au/morality-clauses-in-employment-contracts-for-athletes/">Morality Clauses in Employment Contracts | Considerations for Sporting Organisations</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
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		<title>A Family Affair? Athletes’ Responsibilities for the Actions of Loved Ones</title>
		<link>https://www.sportslawyer.com.au/a-family-affair-athletes-responsibilities-for-the-actions-of-loved-ones/</link>
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		<dc:creator><![CDATA[Jen]]></dc:creator>
		<pubDate>Thu, 15 Apr 2021 08:38:21 +0000</pubDate>
				<category><![CDATA[Employment Law]]></category>
		<category><![CDATA[employment law]]></category>
		<guid isPermaLink="false">https://www.sportslawyer.com.au/?p=1205</guid>

					<description><![CDATA[<p>On 5 June 2020, Major League Soccer player Aleksandar Katai was released by his club, the LA Galaxy, after posts made by his wife about the Black Lives Matter movement on Instagram. Mr Katai’s wife had made racist and violent posts disparaging Black Lives Matter protesters. Mr Katai then released a statement apologising for his [&#8230;]</p>
<p>The post <a href="https://www.sportslawyer.com.au/a-family-affair-athletes-responsibilities-for-the-actions-of-loved-ones/">A Family Affair? Athletes’ Responsibilities for the Actions of Loved Ones</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>On 5 June 2020, Major League Soccer player Aleksandar Katai was released by his club, the LA Galaxy, after posts made by his wife about the Black Lives Matter movement on Instagram. Mr Katai’s wife had made racist and violent posts disparaging Black Lives Matter protesters. Mr Katai then released a statement apologising for his wife’s actions and declaring that he did not share her views.</p>
<p>Whilst there appeared to be a decision to “mutually part ways”, this case brings into contention the extent to which an athlete could be held responsible for the actions of a spouse or loved one.</p>
<p>Broadly speaking, whether an athlete can be dismissed for the actions of a spouse or loved one will depend on whether the dismissal is considered “<em>harsh, unjust or unreasonable</em>”.</p>
<p><strong> </strong><strong>Unfair Dismissal Law</strong></p>
<p>A person who believes they have been unfairly dismissed by their employer may file for a remedy for unfair dismissal under the Fair Work Act 2009 (Cth).</p>
<p>Section 385 states that a<em> person has been unfairly dismissed if the FWC is satisfied that:</em></p>
<ul>
<li><em>the person has been dismissed; and</em></li>
<li><em>the dismissal was harsh, unjust or unreasonable; and</em></li>
<li><em>the dismissal was not consistent with the Small Business Fair Dismissal Code; and</em></li>
<li><em>the dismissal was not a case of genuine redundancy.</em></li>
</ul>
<p><strong> </strong>What is considered to be “<strong>harsh, unjust or unreasonable</strong>” is dependent on the circumstances.</p>
<p>In 2016, a UK teacher was sacked for deciding to stay with her husband, who was a convicted child sex offender, after the school requested that she leave him. Nothing suggested that the teacher knew of, or condoned her husband’s actions. The teacher explained that she had stayed with her husband due to her devout Christian belief in the sanctity of marriage. She filed for unfair dismissal and won in part because the decision to dismiss was too deemed as <em>harsh.</em></p>
<p><a href="https://www.vwv.co.uk/news-and-events/blog/employment-law-brief/employment-law-teacher-sex-offender-husband-indirect-religious-discrimination">https://www.vwv.co.uk/news-and-events/blog/employment-law-brief/employment-law-teacher-sex-offender-husband-indirect-religious-discrimination</a></p>
<p><a href="http://www.bpslaw.co.uk/wife-of-sex-offender-wins-unfair-dismissal-claim-against-school/">http://www.bpslaw.co.uk/wife-of-sex-offender-wins-unfair-dismissal-claim-against-school/</a></p>
<p>A similar case occurred in <em>Coughlin v Greyhound Australia Pty Ltd</em>. There, Ms Coughlin and her husband worked as bus drivers for the company. As part of the code of conduct, employee bus drivers were required to breathalyse themselves in front of a supervisor. A fellow employee reminded her husband to breathalyse himself, but was met with verbal aggression from the husband. Another employer attempted to intervene, but was confronted with more verbal and physical aggression from Ms Coughlin’s husband. Ms Coughlin verbally encouraged her husband’s behaviour and was dismissed by the company.</p>
<p>The Fair Work Commissioner found that while Ms Coughlin’s actions were “unsatisfactory” and “uncalled for”, it did not warrant her dismissal. It further stated that:</p>
<p><em>“Misconduct justifying dismissal is conduct that is so serious that it goes to the heart of the contract of employment.”</em></p>
<p><a href="https://www.gregreiffelconsulting.com.au/unfair-dismissal-zsa-zsa-gabor-quoted-by-fwc-finding-that-wife-sticking-up-for-husband-not-valid-excuse-for-terminating-employment/">https://www.gregreiffelconsulting.com.au/unfair-dismissal-zsa-zsa-gabor-quoted-by-fwc-finding-that-wife-sticking-up-for-husband-not-valid-excuse-for-terminating-employment/</a></p>
<p>The cases covered in this article provide persuasive precedents where a spouse’s actions were not enough to warrant a dismissal. Defending or standing by a spouse would did not automatically provide grounds for the employee’s dismissal either. <em>Coughlin’s</em> case further demonstrates that the possible violation of an Employer’s Code of Conduct would not necessarily validate a dismissal.</p>
<p><strong>How About Sporting Organisations and Athletes?</strong></p>
<p>In the case of Katai, it is arguable that his wife’s actions would not warrant his dismissal by the LA Galaxy from his employment if the same circumstances occurred in Australia. Furthermore, Katai publicly denounced his wife’s views and conduct.</p>
<p>But what if the circumstances were different and Katai had actively encouraged his wife’s actions? It would then become more arguable that Katai had used his high profile to bring discriminatory views to light. This may amount to a gross violation of the Players’ Code of Conduct and dismissal would be justified in those circumstances.</p>
<p>It is advised that athletes should carefully monitor how they and their loved ones use social media to avoid a contentious dismissal. Conversely, sporting organisations should consider whether the seriousness of an athlete’s misconduct and alternatives to dismissal before deciding that it is the most appropriate course of action.</p>
<p>If you need assistance, please contact Paul Horvath  at SportsLawyer on 9642 0435 or reach out to us at info@sportslawyer.com.au.  Nothing in this article should be relied on as legal advice.   The contents of this article should be regarded as information only, and for specific legal matters, independent advice should always be sought.</p>
<p>The post <a href="https://www.sportslawyer.com.au/a-family-affair-athletes-responsibilities-for-the-actions-of-loved-ones/">A Family Affair? Athletes’ Responsibilities for the Actions of Loved Ones</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
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		<title>Negotiating the Sporting Contract</title>
		<link>https://www.sportslawyer.com.au/negotiating-the-sporting-contract/</link>
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		<dc:creator><![CDATA[admin]]></dc:creator>
		<pubDate>Sun, 27 May 2018 11:11:44 +0000</pubDate>
				<category><![CDATA[Employment Law]]></category>
		<category><![CDATA[Sports Law]]></category>
		<guid isPermaLink="false">https://www.sportslawyer.com.au/?p=1097</guid>

					<description><![CDATA[<p>NEGOTIATING THE SPORTING CONTRACT Fundamental issues arise such as the bargaining position of each party.  Generally, the employer, the sports team, will be in the stronger bargaining position in negotiating the contract.  This is particularly the case with the less professional sports, the amateur Olympic athletes.  However, the elite level of each sport, which is [&#8230;]</p>
<p>The post <a href="https://www.sportslawyer.com.au/negotiating-the-sporting-contract/">Negotiating the Sporting Contract</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p style="font-weight: 400;"><b><strong style="font-style: inherit;">NEGOTIATING THE SPORTING CONTRACT</strong></b></p>
<p style="font-weight: 400;">Fundamental issues arise such as the bargaining position of each party.  Generally, the employer, the sports team, will be in the stronger bargaining position in negotiating the contract.  This is particularly the case with the less professional sports, the amateur Olympic athletes.  However, the elite level of each sport, which is by far a minority, will always be in a strong bargaining position, eg Ian Thorpe in swimming; Chris Judd in AFL; Liz Ellis in netball; Archie Thompson in the A-League; Greg Inglis in Rugby League.</p>
<p style="font-weight: 400;">For these reasons, the interests of the majority of players is best represented by a players’ association in a collective bargaining arrangement.  This occurs in the AFL, rugby union, football/soccer, cricket, netball, all of whom have some level of collective bargaining and most of whom have Collective Bargaining Agreements which form the basis or backbone of player contractual terms and minimum conditions.</p>
<p style="font-weight: 400;">Some sports differ markedly.  Golf and tennis, for example, seem to work on the basis of fees per tournament played.  The higher the finishing position in the tournament, the better the pay cheque.  Fixed income will depend on sponsorships that can be negotiated.</p>
<p style="font-weight: 400;"><b><strong style="font-style: inherit;">(i) Standard or Fixed Contracts</strong></b></p>
<ul style="font-weight: 400;">
<li>A number of team sports utilize standard contracts, especially the major sports such as AFL, NRL, Rugby Union, the A-League, and soon Netball Australia.</li>
<li>There is little for the lawyer to involve him or her self in with the contract.  It is often better to leave the contract negotiations to the experts, player managers, who know player worth and market values of players.</li>
<li>In less professionalized sports, such as netball, there are being developed standard contracts (Kate Palmer).</li>
<li>In other sports, such as the V8 Supercars, each driver negotiates his/her individual contract with the team.</li>
</ul>
<p style="font-weight: 400;"><b><strong style="font-style: inherit;">Common Terms</strong></b></p>
<ul style="font-weight: 400;">
<li>Prohibition on dangerous activities clause – unless written permission</li>
<li>No other contracts/sponsors without prior approval</li>
<li>Acknowledge a club’s and the league’s major sponsors and will not contract with a conflicting sponsor</li>
<li>Contract contains restraints which athlete accepts are fair and reasonable and necessary in the legitimate commercial interests of the league</li>
<li>Maintain highest level health cover</li>
<li>Limitations to use of Intellectual Property and use of image.</li>
<li>Dispute resolution clauses</li>
</ul>
<p style="font-weight: 400;"><b><strong style="font-style: inherit;">Interesting Terms</strong></b></p>
<ul style="font-weight: 400;">
<li>Olympic participation – confirms terms of the Olympic Insignia Protection Act 1987 (C’th), doping codes/rules.</li>
<li>Medal payment scheme: $15k gold, $7500 silver and $5000 bronze plus $3000 games preparation costs on acceptance to team.</li>
<li>Media guidelines – limited media communication for non-commercial purposes only &amp; name, picture or image not to be used for any advertising purpose during the games.</li>
</ul>
<p style="font-weight: 400;"><b><strong style="font-style: inherit;">(ii) Sponsorship Agreements</strong></b></p>
<ul style="font-weight: 400;">
<li>Generally not part of the players initial/main contract for playing.  Is a reward for being a known or recognizable player, for high skills, or for being a pin up boy or girl eg. Anna Kournikova, Greg Norman.</li>
<li>Can be far more lucrative than the pay an athlete receives for participation in sport.</li>
<li>Standard commercial contract.</li>
<li>Athlete must be careful about use of the league’s intellectual property, eg AFL logo or AFL club jumper.  Extensive Licensing Operational Guidelines in the AFL.</li>
</ul>
<p style="font-weight: 400;"><b><strong style="font-style: inherit;">(iii) Terms Incorporated into the contract: </strong></b>CBA’s, Codes of Conduct, Submitting to Tribunal processes (Weightman/Williams), anti doping policies and IDP’s.</p>
<ul style="font-weight: 400;">
<li>A number of clauses may be incorporated expressly or may be implied into the athlete’s contract.  In the AFL, all of the terms of the Collective Bargaining Agreement are expressly incorporated into the Standard Playing Contract.  In addition, all Rules, Regulations, By-Laws, Code of Conduct and the Memorandum and Articles of Association of the AFL are incorporated into the player’s contract.</li>
<li>Greg Williams case – abiding by the tribunal decision is a matter of contract law.  Tribunal rules are part of the players’ contract.  Problem then was no appeal process then available.  Importantly, however, the Court of Appeal (and urgent stay in the High Court denied) held that the court should not interfere with the affairs of a private organization unless some rule had been breached eg. natural justice, a decision that no reasonable tribunal could reach had been made.</li>
<li><b><strong style="font-style: inherit;">Did the parties intend to create contractual relations: WA case, Ermogenous</strong></b></li>
</ul>
<p style="font-weight: 400;">The Common Law position is stated by the Court of Appeal in the Williams Appeal case [1] .  The Court there referred to all of the leading cases as to how natural justice is to be accorded by tribunals.  Tadgell JA observed that ‘there are some kinds of dispute that are much better decided by non-lawyers or people who have a special knowledge or expertise in the matters giving rise to the dispute than a lawyer is likely to have’ [2] .  Later, his Honour noted ‘that the courts will not discourage private organisations from ordering their own affairs within acceptable limits’[3].</p>
<p style="font-weight: 400;">The reason for this reluctance to intervene is that private organisations create rules by which their members agree to be bound.  Each member understands those rules, it is said.  In the case of disciplinary hearings, a procedure is laid down for members to be disciplined should a breach of those rules occur.</p>
<p style="font-weight: 400;">Under the AFL regulatory framework, for example, the Player Rules, which provide for disciplinary procedures, are contractually binding on the parties.  When a player signs a contract to play AFL football, he contracts with the AFL, and his club is a third party to that contract.  ‘The Player and the AFL Club agree with the AFL to comply with and observe the AFL Regulations, the AFL Player Rules, the Code of Conduct, the Memorandum and Articles of Association of the AFL…’ [4].  The Disciplinary code is thus expressly incorporated into each player’s contract.</p>
<p style="font-weight: 400;">The general position is that courts have declined to interfere with the decision of a domestic tribunal by whose decision the parties have agreed to abide except on a strictly limited basis [5].   This includes where parties have come to an agreement or contract for the regulation of their affairs.</p>
<p style="font-weight: 400;">However, in the recent case of Minardi v Federation Internationale de Automobile the Victorian Supreme Court was prepared to grant an interim injunction permitting a formula one team to participate in a qualifying session following an urgent ex parte application. [6]</p>
<p style="font-weight: 400;">To further clarify the AFL’s desire to keep any resort to the Courts as a last option, the AFL Player Rules provide that persons must exercise their appeal rights before ‘commencing any proceedings or becoming a party to any proceedings in a Court of law’.[7]   In motor sport, the case of Webb v Confederation of Australian Motorsport Limited [8]   was concerned with precisely that issue.   Mr Webb’s application to the Court was dismissed as he had failed to exhaust all of the remedies and appeals available to him from within the sport, as was required by the rules of the sport, motor racing in the Porsche cup class.</p>
<p style="font-weight: 400;">Earlier this year, the case of Team Dynamik v Confederation of Australian Motor Sport (CAMS) [9]  has highlighted the Courts’ reluctance to intervene in domestic tribunal matters.  Team Dynamik was charged on 2nd September, 2004, with offences carrying maximum fines of over $250,000.00 for testing their race car at an unapproved time and location which gave them a potentially unfair advantage over other teams.  At first instance they were fined a total of $104,000.00.  On appeal by both parties, the fines were increased to $132,000.00, and costs were awarded against Team Dynamik. [10]</p>
<p style="font-weight: 400;">At the hearings before both the Stewards and the V8 Supercar National Court of Appeal (“V8 Appeal Court”), Team Dynamik were not permitted legal representation.[11]   Team Dynamik sought an injunction in the Victorian Supreme Court preventing the Stewards hearing from going ahead for a number of reasons, including that the disciplinary rules denied Team Dynamik natural justice by the refusal of legal representation[12]  .  The injunction was refused.</p>
<p style="font-weight: 400;">Cummins J was of the view that it was ‘premature for this Court to intervene’[13]  , as the inquiry had not commenced, and the technical issues were better dealt with by experts in the field of motor racing, which included the plaintiff. [14]  The parties had submitted voluntarily to the sports’ rules, and they should be exhausted.</p>
<p style="font-weight: 400;">In the cases of Dale Weightman &amp; Anor v Tasmanian Football League and Craig Carter &amp; Anor v Tasmanian Football League, [15] the articles of association of the league did not properly confer authority on persons to act as a Tribunal, and the suspensions imposed on the plaintiffs were declared void, and therefore the disciplinary tribunal which had imposed suspensions had acted without power.  The court also criticized the articles of association because they lacked meaning in some parts, and were obscure meaning in others.</p>
<ul style="font-weight: 400;">
<li><b><strong style="font-style: inherit;">Anti Doping Policies and IDP’s:</strong></b></li>
</ul>
<ol style="font-weight: 400;">
<li><b><strong style="font-style: inherit;">World Anti Doping Code:</strong></b> All major professional and Olympic Sports have been forced to adopt WADA compliant anti doping codes.  This means that if an athlete in that sport tests positive to certain drugs, he or she will automatically be disqualified from all WADA compliant sports for the period of the ban.  This creates anomalies, eg Wendell Sailor – restraint of trade; Lazaridis – not a “drug cheat” but has been branded as such.<br />
<b><strong style="font-style: inherit;">What is the WADA Code?  What are its main provisions and how do they affect athletes?  Is that a major change from previous anti-doping policies?  Who bears the onus of proof?  How widely does the ban apply?</strong></b></li>
<li><b><strong style="font-style: inherit;">Sports’ Illicit Drugs Policies: </strong></b>Some sports have developed their own testing regimes essentially to regulate the use by athletes of illicit or recreational drugs.  These are designed to discourage use of such drugs and attempt to educate athletes on the risks involved in such behaviour.</li>
<li><b><strong style="font-style: inherit;">Government IDP’s: </strong></b>It is expected that a number of sports may adopt any Government IDP expressly, although each may have an obligation to follow it as it is expected to be legislatively enforced.  Civil liberties issues will arise.</li>
<li><b><strong style="font-style: inherit;">Restraint of Trade issues:</strong></b></li>
<li><b><strong style="font-style: inherit;">ASADA may participate in any hearings</strong></b> involving breaches of an anti doping policy in any sport, and will almost certainly monitor the implementation of the WADA compliant drugs Code.  Eg. FINA forced the review of the Ian Thorpe elevated lutenising findings, which led to Thorpe recently being cleared, even though ASADA had already found nothing supicious in the elevated testosterone/lutenising.  ASADA do not generally clear a person without good reason.</li>
<li><b><strong style="font-style: inherit;">Contracts in Amateur Sport: </strong></b>affiliation agreements; will the courts interfere?All leagues under the control of AFL Victoria agree to and sign an affiliation agreement with AFL Victoria, which agrees to certain operating high standards, sound financial practices, and not bringing AFL Victoria into disrepute.A league will have to have made a fairly serious mistake before a court will interfere because of eg. Williams case, Cameron v Hogan, Team Dynamik injunction appl’n, most amateur sports do not attract the doctrine of restraint of trade as the athlete is not carrying on a trade.  TPA doesn’t apply.  Athletes have agreed to the rules.  Courts will generally wait until all internal appeal avenues have been exhausted before intervening.
<p>Minardi v FIA, Vic SC urgent application.</li>
<li><b><strong style="font-style: inherit;">Event Specific Athlete Contracts</strong></b></li>
</ol>
<ul style="font-weight: 400;">
<li>At the Commonwealth Games in Melbourne, 2006, and at the FINA World Swimming Championships in Melbourne, 2007, athletes were required to sign an event entry form/declaration.  That document contained the terms and conditions of entry to each event, and included submitting to certain intellectual property restrictions, anti-doping policies, etc.  eg FINA: “I agree to be bound by and fully comply with all FINA Rules set out in the FINA handbook”.</li>
<li>Athletes must sign an agreement with their national Olympic Committee prior to participating in the Olympic Games.  In Australia this is an agreement with the Australian Olympic Committee.  That agreement has wide ranging disclaimers by the athlete agreeing not to hold the IOC or AOC liable for anything in any circumstance, and agreeing to surrender all commercial arrangements during the Games.  Logos on clothing are limited to certain sizes.</li>
<li>Contracts such as the Comm Games agreement which adopts the CGF Constitution and Regulations requires that CGF own all IP rights and revenue and that any disputes are resolved exclusively by CAS (Art 28).  (Ad hoc division of CAS set up in Melbourne, with rep’s from o/s and oz and registry from Switzerland able to settle disputes).  Olympics is same, and Courts are expressly excluded from the process (Raguz v Sullivan).  Some 60 disputes resolved by CAS before the Sydney Olympics.</li>
<li>Issue: although athletes are agreeing to these contracts, how many read them?  They agree to be bound by the “Commonwealth Games Federation Constitution” – how many would have seen it or know what it says?</li>
<li>Schroeder publishing case.</li>
</ul>
<p style="font-weight: 400;">Whilst it is difficult to challenge restrictions in player agreements which apply during the period of the contract only, the House of Lords in a case relating to a music publishing agreement alluded to the need to take into account the relative bargaining position of each party to a contract[16] .  The Court there acknowledged that where a person enters a contract to provide his or her services exclusively to another for a specified period, this will necessarily include restrictions during the period of contract upon the rights to enter into any lawful activity he or she chooses.  The restraint of trade doctrine will not normally apply to these restrictions as they do not require justification.  “But if contractual provisions appear to be unnecessary or to be reasonably capable enforcement in an oppressive manner, then they must be justified before they can be enforced”.[17]</p>
<p style="font-weight: 400;">Lord Diplock in Schroeder made reference to the public policy considerations surrounding equality of bargaining between parties in commerce:</p>
<p style="font-weight: 400;"><i><em style="font-weight: inherit;">“The public policy which the Court is implementing [in restraint of trade cases] is not some 19th century economic theory about the benefit to the general public of freedom of trade, but the protection of those whose bargaining power is weak against being forced by those whose bargaining power is stronger to enter into bargains that are unconscionable”.</em></i></p>
<p style="font-weight: 400;">Humphries agrees that the bargaining position of each party is a matter that can be applied in cases such as Adamson where a player signs a contract with a club agreeing to submit to the rules of the league.  Without signing such a standard form player contract, the player would not be able to enter the NSWRL competition.  Humphries submits that in this instance “there was a real inequality of bargaining power between the league and its players”.[19]</p>
<p style="font-weight: 400;">These principles have been approved in the case of Barnard v. Australian Soccer Federation and have the effect that Australian Courts have indicated that they are prepared to apply the doctrine of restraint of trade to provisions which only operate during the life of the agreement.</p>
<p style="font-weight: 400;">The bargaining position of each party is an important factor in determining whether or not the restraint was reasonable or in fact entered into freely and with full knowledge of its consequences.  In assessing whether a restraint is reasonable you must consider the degree of choice the athlete or individual had at the time the contract or arrangement was entered into.</p>
<p style="font-weight: 400;"><i><em style="font-weight: inherit;"><b><strong style="font-style: inherit;">Footnotes</strong></b></em></i></p>
<p>[1] Above n 12; see also <i><em style="font-weight: inherit;">Micklethwaite v Essendon District Football League</em></i>, [2003] VSC, 363, Unreported decision of Kellam, J, 5<sup style="font-style: inherit; font-weight: inherit;">th</sup> September, 2003, for an example involving district football in Victoria where Kellam, J, was reluctant to interfere with the tribunal decision on an injunction application by the suspended player.</p>
<p>[2] Ibid, 549.</p>
<p>[3] Ibid.</p>
<p>[4] Clause 10.1, AFL Standard Playing Contract.</p>
<p>[5] Tadgell JA, above n.12, 549; see also <i><em style="font-weight: inherit;">Hann v Swain &amp; Ors</em></i>, unreported Victorian Supreme Court decision of Gobbo, J, No. 5012 of 1993, 5.</p>
<p>[6] Decision of Habersberger J, 4<sup style="font-style: inherit; font-weight: inherit;">th</sup> &amp; 5<sup style="font-style: inherit; font-weight: inherit;">th</sup> March, 2005, T80104; it is suggested that this decision will be confined to its facts as (i) the application was ex parte, (ii) the application was withdrawn before documents were filed with the court even by the plaintiff, and (iii) very little law was canvassed at the hearing.</p>
<p>[7] Rule 24.23.</p>
<p>[8] Unreported Supreme Court of New South Wales, Common Law Division, 14 November, 2002, Dunford, J [2002] NSWSC 1075.</p>
<p>[9] <i><em style="font-weight: inherit;">Team Dynamik Pty Ltd v Confederation of Australian Motor Sports and Ors</em></i> [2004] VSC 363.</p>
<p>[10] As well the team’s cars will now start the final round of racing in 2004 and the first round of 2005 one full lap behind the rest of the field.</p>
<p>[11] On Friday 26 November 2004, Team Dynamik Pty Ltd lodged an appeal through CAMS, as the recognised national motor sport controlling body, to the Federation Internationale l’Automobile International Court of Appeal against the decision of the V8 Supercar National Court of Appeal, CAMS press release, 29th November, 2004, at http://www.cams.com.au/content.asp?PageID=Article&amp;ObjectID;=480.</p>
<p>[12] <i><em style="font-weight: inherit;">Team Dynamik Pty Ltd v Confederation of Australian Motor Sports and Ors</em></i> [2004] VSC 363.</p>
<p>[13] Ibid, para 32.</p>
<p>[14] Ibid, para 33.</p>
<p>[15] (1995) 4 Tas R 342.</p>
<p>[16] A <i><em style="font-weight: inherit;">Schroeder Music Publishing Co. Ltd v Macaulay</em></i> [1974] 1 WLR 1308.</p>
<p>[17] Ibid, 1314.</p>
<p>[18] Ibid, 1315.</p>
<p><i><em style="font-weight: inherit;">[19] Humphries, above n 39, 97.</em></i></p>
<p>The post <a href="https://www.sportslawyer.com.au/negotiating-the-sporting-contract/">Negotiating the Sporting Contract</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
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		<title>Sports Marketing Law</title>
		<link>https://www.sportslawyer.com.au/sports-marketing-law/</link>
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		<pubDate>Sat, 26 May 2018 11:14:17 +0000</pubDate>
				<category><![CDATA[Employment Law]]></category>
		<category><![CDATA[Sports Law]]></category>
		<guid isPermaLink="false">https://www.sportslawyer.com.au/?p=1106</guid>

					<description><![CDATA[<p>Readers are directed to read this summary together with the Collective Bargaining Agreement (CBA) to ensure that all references to clauses in the CBA are current Collective Bargaining and The Australian Football League: Has it taken away too many image rights from the player? In Australia, the television rights for the Australian Football League (“AFL”) [&#8230;]</p>
<p>The post <a href="https://www.sportslawyer.com.au/sports-marketing-law/">Sports Marketing Law</a> appeared first on <a href="https://www.sportslawyer.com.au">Sportslawyer - Experts in Sports Law Melbourne &amp; Australia-wide</a>.</p>
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										<content:encoded><![CDATA[<div><em>Readers are directed to read this summary together with the Collective Bargaining Agreement (CBA) to ensure that all references to clauses in the CBA are current Collective Bargaining and The Australian Football League: Has it taken away too many image rights from the player?</em></div>
<div></div>
<div>In Australia, the television rights for the Australian Football League (“AFL”) football were sold in 2017 for $A2.508 billion for 6 years. The National Football League (“NFL”) television rights in America were sold for $US27billion in 2013 under an eight year contract. This equates to $US3.4billion per year (almost $A4.5billion). On any view, football is big business.</div>
<div>Given that a player in the AFL will have a limited lifespan in the sport, it is essential that he maximise his income during that time. Contracts are negotiated between clubs and players with the help of agents,  managers or parents. The income under the contract is but one aspect of the earnings a player can reap from being a football player. Other sponsorship and endorsements can be a very lucrative area for the player.</div>
<div></div>
<div>Upon signing the Standard Playing Contract (“the contract”) which is prepared in agreement between the AFL and the Australian Football League Players Association (“AFLPA”) all AFL players are then bound by that contract which adopts and incorporates all of the terms of the Collective Bargaining Agreement (CBA) which currently exists. The CBA came into operation in 1992, the first for any sport in Australia. The document provides a number of basic salary conditions for all players, and governs and regulates other aspects of the player’s engagement as a player in the AFL.</div>
<div>
<p><a href="https://www.sportslawyer.com.au/wp-content/uploads/2021/02/AFL1v2.jpg"><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-1107" src="https://www.sportslawyer.com.au/wp-content/uploads/2021/02/AFL1v2.jpg" alt="" width="750" height="500" srcset="https://www.sportslawyer.com.au/wp-content/uploads/2021/02/AFL1v2.jpg 750w, https://www.sportslawyer.com.au/wp-content/uploads/2021/02/AFL1v2-300x200.jpg 300w" sizes="(max-width: 750px) 100vw, 750px" /></a></p>
<p>A player can use his image for promotional or marketing purposes provided that this use does not conflict with an AFL protected sponsor or his AFL club protected sponsors. AFL property, such as uniform or intellectual property may only be used with the permission of the AFL. The use of the image must not be “prejudicial to Australian Football”. Players are obliged to make themselves available for up to fifteen events per year for their AFL club and up to six events per year for the AFL. An automatic license for the use of the player’s image is given to the AFL or the club for these promotional purposes. These promotional activities are directed to the promotion of Australian football, the AFL or the player’s club, and may include promotion of the game, an AFL or AFL club protected sponsor. Copyright or other rights in relation to the promotional activity is assigned to the AFL.</p>
<p>The AFL may also use a player’s image for AFL licensing activities if it has first obtained the consent of the player. Once again, copyright or other rights relating to such licensing activities are automatically assigned to the AFL and the consent of the player “shall not be unreasonably withheld”. A player can object to being involved in an AFL licensing activity where it conflicts with a personal sponsor of that player, or if the “activity relates to tobacco, drugs, alcohol, race or religious purposes”. These are deemed to be instances of reasonable withholding of consent.</p>
</div>
<div></div>
<div>What is reasonable and what is unreasonable has been very limited by the definition contained in the CBA. These clauses are often contained in contracts for sports and media personnel, but the reasonable withholding of consent has elsewhere been more broadly defined.</div>
<div></div>
<div>For example, consent could be reasonably withheld if the proposed use of the image would seriously hurt the player’s reputation.</div>
<div></div>
<div>Automatic consent is deemed to be given to the AFL for the use of the player’s image in relation to trading cards, stickers, posters, greeting cards, badges, mugs, videos and computer games. Otherwise, the AFL requests consent of a player and the consent is deemed as being given to the AFL unless an objection to the request is received by the AFL within seven days.</div>
<div></div>
<div>
<p>It appears that the CBA is weighted in favour of the AFL’s use of a player’s image given that consent is automatic in respect of some uses of the player image, and is presumed unless the player objects within a given timeframe.</p>
<p>A particular problem area seems to be in relation to the many sponsors who a player must not offend or compete against. This may significantly limit the sponsors who a player may promote on an individual basis and therefore the marketing ability they have for their image outside what is required for the AFL and the AFL club.</p>
</div>
<div></div>
<div>Players are permitted to use their own image for personal promotional activities so long as there is no “conflict” with AFL protected sponsors or AFL club protected sponsors or certain AFL licensees if AFL property is being used.</div>
<div></div>
<div>AFL consent is not required for personal promotional activities where AFL property or AFL intellectual property is not used.  Where a player does seek the consent of the AFL to use either AFL property or intellectual property for personal promotional activities, a written request must be forwarded to the AFL. Fees are then negotiated between the player and the AFL, but most importantly the AFL reserves the right to reject the request and the right to reject materials submitted. This provides the AFL with very broad and unfettered power to refuse consent to the player for the use of AFL property or intellectual property.</div>
<div></div>
<div>There is also a clause in the CBA relating to player footwear. Provided that a club does not have an existing contract or agreement for a player to wear particular footwear, the player may use the footwear of his choice. Future contracts entered in to by the AFL or the AFL club cannot restrict the player’s ability to wear footwear of his own choice. This change was implemented as a number of players were unable to wear the boots that emanated from his club footwear sponsor. Some players needed customised boots to suit their feet. Others had clashes with personal sponsorships. Whilst a number of players have sponsorships which include clothing and footwear, a number of less recognizable players still have to pay for their own boots.</div>
<div></div>
<div>It is promotional or marketing activities that can enhance the income that can be generated by any AFL player, let alone any sports person. Endorsement revenue may provide an athlete with income greater than the income received directly through a sport. Andre Agassi and Shane Warne are reported to earn most of their money in this way.  Greg Norman earned $A13.1 million in 1992 and it could be safely assumed that a great proportion was not for his participation in the game of golf.</div>
<div></div>
<div>Under Victorian and Australian law, an AFL player does not own any rights to his personality, name, image or likeness. Those things are usually protected under the law of intellectual property, rather than things that can be protected by themselves. AFL players and other athletes can obtain legal protection under the Trade Practices Act. Players have a right to take action against any corporation which misleads or deceives (or engages in conduct which is likely to mislead or deceive) the public into believing that they have an affiliation with, or that their goods or services are endorsed or approved by a player when this is in fact not the case.</div>
<div></div>
<div>The tort of passing off can also be used. To succeed in a passing off action it must be shown that the athlete or player was used without permission to promote a product or service. However one limitation to the use of this action is that the athlete or player must show that they carry on a business and that they therefore have a business reputation. This will limit the action to more high profile players or athletes as they can be shown to have a sporting personality which operates as a separate business to their sporting prowess on the field. Less well known players would have difficulty showing they are in the business of marketing their personality. The second difficulty is that there must be a misrepresentation to the public and the athlete would need to show that they are “well known and recognisable in the broader community” rather than simply being “well known within their own sporting community”.</div>
<div></div>
<div>A player may also seek to protect his personality via the law of defamation. If a publication causes people to think less of the player, and they are put in a bad light, then an action may lie for defamation.</div>
<div>Copyright law is available to a player in relation to regulating the reproductions of his name and image and written works, for example, articles, books, drawings, photographs or biographies.</div>
<div></div>
<div>The Trademarks Act can also be used to protect aspects of a player’s image and personality.  The difference between copyright and trademark laws is the need for registration of a trademark.  Copyright protection is automatic and need not be registered. Trademark protection is not contingent upon registration but, once registered, a trademark becomes personal property and is capable of being assigned, for example, to a company to exploit the marketing opportunities relating to the trademark.</div>
<div></div>
<div>In terms of a player’s common law rights, a common law action for breach of contract could be commenced if the terms of the contract (and by extension the CBA) were breached. If, for example, the AFL breached any of the conditions that relate to the player’s intellectual property rights, an action for a breach of contract might be successful.</div>
<div></div>
<div>Restraint of Trade issues are important. An example of a restraint at common law could be the prevention of a player from maximizing his income by preventing him from commenting on or criticizing a sporting league or association to magazines or newspapers during their membership or for a time after ceasing membership. Large transfer fees or the prevention of a player from playing for another club for a period after leaving the first club could also be a restraint of trade. The test applied in the courts is whether the restraint acts to the benefit of the league or association without having too wide an effect or disadvantaging too many people. An example of a reasonable restraint of trade provision is banning a player for using performance enhancing drugs.</div>
<div></div>
<div>In conclusion, there are a number of areas in which the player image and marketing rights need<br />
clarification. The CBA for the AFL appears to be weighted in favour of the AFL and needs to be more balanced. There are clearly competing interests for the marketing and image rights of players. The AFL interest is in the preservation and promotion of the game, whilst at the same time it is a not for profit organisation. If it achieves its objectives, ever increasing revenues are generated which are returned to the clubs and to the players. The players and the AFL Players Association seek to maximise the financial returns for the player in the limited lifespan he enjoys at the elite level. In reality it is the elite players whose sponsorship opportunities are most curtailed under the CBA.</div>
<div></div>
<div>We have recently seen a very good illustration of sponsorship impact in the AFL arena. Royce Vardy drove his car with a blood alcohol level of 0.14. The Transport Accident Commission paid an estimated $750,000 to the Richmond Football Club per year and were badly embarrassed by the incident. They considered terminating the sponsorship, but ultimately settled for a $50,000.00 “fine” for Richmond. The player came close to being sacked, but instead was fined $5,000.00 (the maximum), suspended from training with his team, prohibited from taking part in the pre-season competition, and placed on community service for the season.</div>
<div>A clear contrast can be drawn between the treatment of Vardy and Ronnie Burns of Geelong who was caught drink driving a few weeks later. The latter was not punished at all by his club for a similar indiscretion to Vardy. That is the nature of sports sponsorship. When a sponsor’s interests are at stake, the sponsorship beneficiaries – in this case the club – must act to protect its revenue source. If sponsorship interests are too protected, we may see players bringing actions based on restraint of trade, as may be argued in relation to AFL and AFL club protected sponsors.</div>
<div></div>
<div>SportsLawyer offers expert advise for anyone within the sports industry.  Our services range from commercial contracts and arrangements through to advise on event and venue management including leases, club facilities and property development.</div>
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<div>Contact us today and see how we can help you.</div>
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