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Sports and Sponsorship eBulletin | Sports and Sponsorship eBulletin - Spring 2010
HMRC investigates legitimacy of Image Rights structures

Her Majesty's Revenue & Customs is currently investigating whether a number of professional football, rugby union and rugby league clubs and players owe the Revenue unpaid tax relating to image rights payments made by clubs to their players in addition to the remuneration which players receive under their playing contracts.

Chelsea's settlement with Lens over Kakuta leaves questions marks over lawfulness of FIFA ruling

On 4 February the Court of Arbitration for Sport (CAS) issued an award ratifying the settlement agreement reached by Chelsea FC, Racing Club de Lens and the French footballer Gaël Kakuta. The settlement brought to an end the arbitration proceedings initiated by Chelsea FC at CAS following FIFA's decision to impose sanctions against the west London club for allegedly inducing Kakuta to breach his contract with the French club by joining Chelsea.

European Sponsorship Association opposes tighter controls on alcohol sponsorship

The European Sponsorship Association (ESA) has opposed a proposal by the UK parliament's cross-party health committee to limit alcohol sponsorship of sporting events to those events where fewer than ten per cent of those in attendance are under the age of 18.

Etihad considers appeal against High Court's decision to award damages to Force India Formula One

It is understood that Etihad Airways, the Middle-Eastern air operator, may appeal against the High Court's decision requiring it to pay damages to Force India Formula One Team Limited despite Force India being in breach of a number of terms of the parties' sponsorship agreement.

Listed Events Row is Over... For Now

The UK Government has announced that a decision on listed events will be postponed until after the general election on 6 May. This will be welcome news to the England and Wales Cricket Board (ECB), which has been at the forefront of a last-ditch attempt by sports governing bodies to persuade the Government to reject the recommendations submitted by its advisory panel in November 2009.

Sports Bodies Troubled by New Ofcom Ruling on Sky Sports Pricing

On 31 March 2010, the UK media regulator, Ofcom, issued a ruling which stated that BSkyB must reduce the wholesale prices it currently charges to rivals, such as Virgin Media and BT, for its Sky Sports channels. The decision, which follows a review that was triggered by a submission to Ofcom by Top Up TV, Virgin Media, BT and Setanta in 2007, reflects Ofcom's concern that BSkyB's dominant position in the pay-television market has led to higher prices and has reduced choice and innovation.

Recent Work

In March, Bob Mitchell and Paul Groves advised npower on becoming the new sponsor of The Football League. The deal, reported as being worth circa £21 million, will see the utility provider replace Coca-Cola at the end of this season. The League's three divisions will be known as the npower Championship, npower League 1 and npower League 2.

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Sports and Sponsorship contacts
Bob Mitchell
Tel: +44 (0)20 7667 5157
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Paul Cairns
Tel: +44 (0)20 7667 5076
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Ben Bye
Tel: +44 (0)20 7667 5061
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Paul Groves
Tel: +44 (0)20 7667 5140
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Anil Matharu
Tel: +44 (0)20 7667 5132
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Michael Lister
Tel: +44 (0)20 7667 5155
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Louis Castellani
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