Some Legal Issues Associated with International Sports Marketing

Abstract

Sports rights outside the USA have for years been undervalued by television. In consequence sports-governing bodies, such as FIFA or the International Olympic Committee and their consultants, have reacted by developing sophisticated and expensive marketing programmes around sports events to generate revenue.

Now the income from these marketing programmes, particularly in Europe, may be under threat by the deregulation of the television market. Deregulation has meant increased competitition among the television broadcasters resulting in, for example, the Premier League's deal at £304 million or the Bundesliga deal at DM900 million. These deals have to be funded, and many broadcasters see programme sponsorship as the way to achieve this. This will inevitably lead to conflicts with sports and their event sponsors.

At the same time earnings for individuals in many sports have rocketed. Because of international circuits stimulated by television, most jurisdictions have introduced complex legislation to tax the players’ earnings. Knowledge and use of tax regimes operating in different legal jurisdictions can make a significant difference to actual earnings. Players’ associations in some sports, such as football, have grown in power and influence in their dealings with governing bodies.

This article aims at providing an historical background for the U.S. professional to the development of sports marketing in Europe and internationally. Material differences between this and other laws are highlighted, and some important legal issues that may affect U.S. companies doing business in these territories are discussed.