When entering in to a commercial contract, it must be remembered that if a disagreement arises you may find yourself as party to a claim for breach of contract.
That is the position that Liverpool Football Club found themselves in recently, when they were pursued by New Balance in the High Court for breach of contract.
Liverpool Football Club and New Balance
The dispute arose out of the ‘matching right’ clause set out in the technical partner agreement they had entered in to some years earlier.
The matching right clause allowed New Balance as the incumbent ‘technical partner’ the opportunity to match any offers made by any of their competitors.
Liverpool Football Club had been offered a £30 million-a-year, five-year deal by Nike. New Balance pursued a claim, seeking to enforce their matching right clause; and arguing that they could match Nike’s offer.
It was Liverpool, however, that were ultimately successful when the matter came before the Court.
They were able to successfully establish that New Balance could not match Nike’s offer in relation to the marketing and distribution of Liverpool products, as New Balance’s infrastructure was not comparable with Nike’s or capable of reaching the market to the extent that Nike can.
How can Nelsons help?
It is always important to take advice on the terms of any commercial arrangement before it is concluded.
In the event that you do find yourself embroiled in a contractual dispute, our Business Disputes team are able to effectively guide you through the Court process.