Runner Barred From Using Non-Nike Gear -- WSJ
June 09 2016 - 2:04AM
Dow Jones News
By Sara Germano
A federal judge granted Nike Inc.'s request to temporarily
prevent Olympic running hopeful Boris Berian from competing in
non-Nike gear, even as three rival sportswear makers filed
affidavits in support of Mr. Berian.
Judge Marco Hernandez of the U.S. District Court in Portland,
Ore., granted a temporary restraining order that prevents Mr.
Berian from endorsing or competing while wearing any products from
Nike's rivals until a hearing scheduled for June 21.
Nike has sued Mr. Berian, the world indoor 800-meter champion,
saying he has violated the company's sponsorship agreement by
accepting an endorsement deal from New Balance Athletics Inc. and
running in New Balance sneakers in recent races. Mr. Berian's agent
said the athlete has withdrawn from two upcoming races.
Last June, Nike signed Mr. Berian to a short-term contract that
expired Dec. 31 but kept rights to match any competing offer for
180 days. Mr. Berian accepted an offer from New Balance in January
and has run in New Balance gear, even though Nike argues in its
lawsuit that its sponsorship remains in effect.
At issue in the case is the inclusion of so-called reduction
clauses, provisions in an endorsement contract that can reduce base
pay for poor performance. Nike claims in its lawsuit they are
industry standard. New Balance and Mr. Berian's agent say the New
Balance contract had no such reductions. New Balance isn't a
defendant in the lawsuit.
"New Balance does not, as a standard business practice, demand
reduction provisions in its contracts with runners," John Evans,
New Balance's general manager of running sports marketing, said in
a sworn statement.
Several smaller sportswear firms filed affidavits this week in
support of Mr. Berian. Jesse Williams, director of sports marketing
at Brooks Running Co., wrote that "in the twelve years that I have
been at Brooks, we have not signed any athletes to a contract with
reductions." Sally Bergesen, chief executive of Oiselle Running
Inc., wrote that reduction clauses "are not uncommon in the
industry, but nor are they standard."
In addition, the Brooks runner Nick Symmonds filed a declaration
saying he was formerly sponsored by Nike but left for Brooks
"because Nike demanded reductions and Brooks did not." Mr. Symmonds
competes against Mr. Berian primarily in the 800-meter
discipline.
The U.S. Olympic Trials in track and field, which determines the
American delegation to the Rio Games, are scheduled to begin July 1
in Eugene, Ore. Mr. Berian's agent said this week that the runner
would reconsider running in the event if he were forced to compete
in Nike gear.
Nike had no immediate comment but said Monday it "values its
relationships with athletes and we expect them to honor their
contractual commitments."
Write to Sara Germano at sara.germano@wsj.com
(END) Dow Jones Newswires
June 09, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Nike (NYSE:NKE)
Historical Stock Chart
From Apr 2024 to May 2024
Nike (NYSE:NKE)
Historical Stock Chart
From May 2023 to May 2024