Sport Legal Issues

Athlete, coach and participant rights Administrative law

Responsibilities of a meet manager

The Business of Sport

Intellectual property rights

Case - Stachiw v. Saskatoon Softball

Umpires Association

Stachiw - softball umpire + member of the Saskatoon Softball Umpires Association (SSUA). SSUA executive heard that Stachiw, while umpiring, was drinking beer, against SSUA’s rules. SSUA suspended Stachiw who was then notified of hearing to refute allegations.Stachiw did not attend hearing – SSUA extended suspension to one year.

Case - Stachiw v. Saskatoon Softball

Umpires Association

Stachiw appealed which was allowed under the SSUA constitution. He denied drinking beer. SSUA executive heard evidence from witnesses, some of whom changed their testimony and denied they saw Stachiw drinking beer. Executive also heard evidence of duress toward witnesses to recant original statements SSUA executive denied Stachiw’s appeal

Case - Stachiw v. Saskatoon Softball

Umpires Association

What is Stachiw’s next step?What is Stachiw’s grounds for appeal?How can SSU defend itself?

Administrative Law

Athlete – sport organization (SO) relationship is… A contract and is governed by the Rules of Natural

Justice, I.e., to be “fair”

Important issues of Eligibility, selection, conduct, discipline, harassment,

conflict of interest

SO can grant or withdraw privileges

SO are “regulatory boards”

Administrative law regulates the regulators?

Rules of Natural Justice

#1 - Right to a hearing Notice Know nature of decision and whether

appealable Be heard by the decision maker Defend one’s self Full disclosure of relevant information Cross examination

Rules of Natural Justice

# 2 – Absence of bias Actual bias (closed mind) or apprehended bias

personal relationship, informational, attitudinal (not “open”), institutional (made original decision) or operational (one party favoured)

Rules of Natural Justice

# 3 – No errors in jurisdiction Goes beyond board’s powers

# 4 – No errors of a technical or clerical nature

If natural justice lacking – seek a Judicial Review Only consider the process, not the merits of the

arguments All internal appeals first

SO’s managing internal appeal process (prior to a judicial review)

Clarify and limit grounds for appeal

Do not allow an appeal of the policy itself

Communicate criteria in advance

Use objective criteria

Avoid personal discretion or ‘judgement calls”

Athletes’ grounds for appeal (to the SO)

Lack of authority – cannot make up policyFailure to follow policy – breach of contract If no policy – follow the rules of nature justice

Abuse of discretion – have objective criteria with clearly defined areas of discretionUse irrelevant information or ignores relevant informationDecision is unreasonableSanctions greatly exceed the misconduct

Judicial Review

Courts sensitive to Charter and H.R. Code violationsExhaust internal appeal process firstOnly procedural errorsEnforcement powers of court to – Prevent or stop an action, Enforce a decision Declare (I.e, clarify) the law

SO dispute management

Plan - good policies, procedures, decision makers

Alternative dispute resolution

Clear policies – eligibility, selection, conduct, discipline, harassment, conflict of interest

Clear appeal policy

Privitive clauses – “limits the powers of the court, prohibiting it from deciding what is right or wrong”

You are the meet/tournament manager

Kids soccer tournament Triathlon (ages 16 +) Alpine ski race - teens

Why do you have legal obligations?

Who else is involved?

List the issues to be addressed and planned.

Responsibilities of a meet manager

Tort and contract law issues

Risk reduction – safety issue

Necessity of … Good supervision of practices, activities, Facility maintenance Scheduling – tight time frames Equipment in place

Who else could be responsible?

CoachesSponsoring organizationSchool, college, universityLeagueTeamProvincial or National Sporting Organization (PSO), (NSO)Municipality

Sporting meet issues

Mandatory pre and post meet/tournament activities

Pre-race meeting – athletes, coaches

Children, teens, inexperienced athletes

Officiating – timing, results

Sporting meet issues

Emergency services

Waiver forms – warnings

Protection from weather extremes – heat and cold – water Reserve the right to cancel the meet

Volunteers

Spectators

Sporting meet issues

Parents – helping kids, interfering with coaches, running on the field

Parking, traffic

Local approvals, I.e., special event permit from City (maybe)

PSO or NSO sanctioning and insurance

The Business of Sport

Market for commercial spectator sport - Active participants Passive spectators Sporting goods at retail, wholesale,

manufacturing Fitness business Sport as public entertainment - television

The Business of Sport

22nd largest industry in North America

$13.8 B in advertising in 2000

Who has the power? National sponsors and media outlet, less so the NSO

Business challenge – new markets, marketing reach

Mutual (symbiotic) promotion by teams, league, players, media, sponsors, advertisers

Economic Organization of Sports

Investment, Development, Revenues

Sports spectacle Public as audience

Taxpayer funded –

facilities, schools,

Lotteries, tax exemptions

Private financing -

customers and volunteers

business sector –owners, sponsors, sporting goods, media, merchandising, endorsements

individuals – athletes families, memberships, donations, ticket sales, TV

TV advertising market –

Advertisers, sponsors,

TV/media rights market –

networks, cable, special channels, pay-per-view

Sport organizations –

professional leagues and teams,

NSO, Int’l Federations, Games, Events,

Labour market –

professional players and athletes

Publicity, media, broadcasting, entertainment

Spectators, viewers, consumers

IOC’s entrepreneurial activity

The Olympic Program (TOP) – logos, sponsorships

TV rights sold for

1976 summer $25 M

1988 winter $309 M

1992 $450 M

Sports marketing

Both – “marketing of sports” and “marketing through sports” To reach audiences – e.g., beer Event sponsors buy promotional licenses –

attaches to a sport “proud sponsor” – exposure, exclusivity,

certainty in the association

Rights and Properties

Real property – land and buildings

Personal property – tangible goods (chattels) intangible rights

Intellectual property such as trademark, copyright, patent, industrial design, trade secret

Others such as goodwill, right to receive debt payments etc.)

Intellectual property rights

Statute law – Federal Trademark Act, Patent Act, Copyright Act, plus international law

SO rights v media’s rights to free commercial speech and news

Negotiate commercial sponsorship

“Ambush marketing”

Intellectual property

Trademarks – symbols, phrases, names, graphics, logo of a business or product

Copyright – wording, music, art Not the idea, can sell copyright but retains “moral

rights”

Patents – unique working of a device, drug, gene, etc

Industrial design – product design, look, manufacture

Trade secret – knowledge of commercial value, e.g.,

customer list

Case – NHL v Pepsi

NHL sold logo rights for $2.6 m to Coke

Also sold broadcast rights to Molson

Molson gave Pepsi rights to market drinks on “Hockey Night in Canada”

Pepsi developed “Pro Hockey Playoff Pool”

Why is NHL suing Pepsi?

What must it prove?

Trademark infringement

Holders must defend

Tort of “passing off” must prove - Misrepresentation, even innocent Commercial use Public mislead Injures goodwill of plaintiff

Must show damages

Case – Toyota Canada v Lexus Foods

Lexus Foods sold canned fruits and vegetables under the Lexus label in Quebec

Toyota sued for trademark infringement

At the time in Montreal, other businesses were Lexus Bath Mats, Lexus Cleaners, Lexus Realty, Lexus Computer Training.

What must Toyota prove?

Property rights agreement

Rights and responsibilities of each party

Level of media exposure

Fees, payment

Length of contract, renewal, termination

Assignment powers

Lead sponsor rights to approve minor sponsors or veto competitors

Licensing agreements

Who? Sports organization, a league, a team, a playerWhat? Name, development program, product, logo, trademarkWhere ? Publication, hospitality gathering, Trophy, reward Advertising rights – at a facility, on equipment, on

clothing

Conflicting endorsements by individual athletes

Protecting rights

Register under Trademark Act Ottawa Renegades, not the “Rough Riders” Canadian Olympic Association (COA) –

51 cases over words, numbers, logos, pictograms COA v Olympic Optical (1991) COA v Konica Canada (1992) – Konica could not

sell the Guiness Book of World Records, using COA logo on promotion campaign