As we move further in sports law, this article seeks to delve deeper into the various types of Disputes that might arise within this dynamic sports industry.
Sports law not only is not rapidly evolving, but also encompasses a wide array of stakeholders from athletes and sportspersons to broadcasters, league owners, sponsors, franchisees and other governing bodies. In an arena that is inherently multi-faceted, disputes are inevitable.
Sports Law covers a broad spectrum of such conflicts many of which intersect with other branches of laws such as contract law, constitutional law, intellectual property, and employment law.
Some of the prominent types of Disputes that arise in the sporting arena are as follows:
Commercial and Contractual Disputes
With the increasing commercialization of sports in India and globally, commercial disputes form a vital portion of sports litigation and arbitration. These disputes typically arise out of contractual arrangements involving –
- Franchise agreements
- Merchandise supply agreements
- Media and marketing rights
Sports in India are generally governed by autonomous bodies such as the National Sports Federation (NSF), Board of Control for Cricket in India (BCCI), All India Football Federation (AIFF), etc. These bodies regulate, sanction and oversee leagues and tournaments.
An autonomous body like the National Sports Federation plays a vital role in sanctioning leagues. Private stakeholders frequently collaborate with such federations to organize professional competitions. For instance, the Indian Super League is co-promoted by RIL and JioStar and operates under the support of the AIFF.
Franchise Disputes
League-based sports such as the Indian Premiere League(IPL) operates on a franchise model. Teams bid for the right to participate in the league and enter into franchise agreements with the governing body. A team or club participating in that specific league may it be IPL or FIFA; is on the one hand competing, but on the other hand gaining significantly from its own revenue streams.
A notable example is the dispute that arose in in 2010 involving ‘Sahara’ when it bought the Pune franchise with the highest bid during that season’s IPL expansion. The 2011 season was initially expected to feature 94 matches, but the number was later reduced to 74 by the BCCI, allegedly impacting projected revenues. As a result, Sahara sought a proportionate reduction in franchise fees. The dispute was then referred to arbitration; and the BCCI ultimately held Sahara to be clear violation of the franchise agreement, resulting in termination of the said agreement.
Broadcasting and Media Rights Disputes
Broadcasting constitutes one of the most significant revenue streams in modern sports. Disputes arise between leagues or clubs and broadcasters regarding:
- Media rights violation
- Alleged breach of exclusivity
- Digital streaming rights
Sponsorship and Endorsement Disputes
Sponsorship agreements between teams, leagues and corporate entities are another common source of disputes. The same may concern:
- Morality clauses
- Termination due to reputational harm
- Non-performance or breach
Doping and Disciplinary Disputes
Sports law disputes are not confined to commercial matters. Regulatory and disciplinary disputes form a critical component of sports governance.
One prominent category is Doping Disputes. Doping in simpler terms refers to use of prohibited substances to artificially enhance the performance of an athlete and/or a sportsman. Most countries, including India, are signatories to international anti-doping frameworks such as World Anti-Doping Agency, that establishes the World Anti-Doping Code.
The sports industry in India has evolved into a highly commercialized and regulated ecosystem. As financial stakes increase and governance become more complex, disputes are bound to arise across multiple domains.
In the next of the present article series, we shall examine in detail various judicial and quasi-judicial authorities empowered to adjudicate and resolve disputes within the sports industry.
~ADV. SANIKA LALIT