Rory McIlroy’s yet-to-be confirmed mega bucks deal with Nike is off to a bumpy beginning with McIlroy’s former sponsor, Oakey filing a law suit against the World No. 1.
According to a report on ESPN.com, apparel-maker Oakley, with whom McIlroy has an eyewear and performance apparel contract through to December 31st of this year, has sued McIlroy and Nike, declaring both breached existing contract with Oakley when McIlroy recently signed a new deal with Nike.
Rory McIlroy and Nike being sued by Oakley.
McIlroy’s deal with Oakley includes what is known as a “right of first refusal”, a contract clause that allowed Oakley to match any offer that included payments to McIlroy for eyewear and apparel.
If Oakley wanted to match what Nike offered, its deal would continue into 2013 instead of expiring at the end of the year.
Reports estimate McIlroy’s head-to-toe deal with Nike worth an excess of $200 million across 10 years. If that’s the case, Oakley’s contractual rights to McIlroy’s endorsements of eyewear and performance apparel would be 30 percent of the total Nike package, or roughly $60 million.
Oakley says its attempts at a counteroffer were ignored by McIlroy and his Horizon Sports manager, Conor Ridge.
Currently in dispute is a string of emails between a sports marketing executive at Oakley named Pat McIlvain and Ridge that began in September. It is reported that McIlvain sent Ridge an email late on Saturday, Sept. 29 that said: “Understood. We are out of the mix. No contract for 2013. Pat Mac.”
McIlroy’s management company released a statement asserting: “McIlroy has fulfilled all of his obligations to Oakley, and the claims in the lawsuit are entirely baseless.”
Oakley filed a lawsuit last Monday in the US Federal Court in Saint Ana, California.
The company says the damage that has resulted from McIlroy’s refusal to renew with Oakley is “irreparable” and entitles Oakley to an injunction that would stop Nike and McIlroy from concluding or implementing their contract.
Oakley is also claiming money damages and asserts that it has spent $300,000 on a photo shoot for the products McIlroy would have endorsed in 2013.
McIlroy and Acushnet Co. (Titleist/FootJoy) released a statement in late October announcing they would not renew their contract for 2013.
FOOTNOTE –
Last year Oakley took out a full page advertisement in USA Today to congratulate the young star for winning his first major – the US Open at Congressional.
The advertisement has a picture of McIlroy smiling after clinching the tournament victory, and contains the caption, “Own your defeats and you will be defined by your victories.”
Of course, the passage references McIlroy’s devastating loss in the Masters earlier this spring, in which he let a large lead slip away on the final day of the tournament.
Oakley earned $14.7 million in equivalent television advertising time during the U.S. Open for their sponsorship of McIlroy, according to CNBC’s Darren Rovell.
The company’s logos were reportedly seen on television for 36 minutes and 50 seconds.
