Gary Hughes, of Wilson Harle in New Zealand, reflects on what lessons the FIFA World Cup and IRB Rugby World Cup may hold for the London Olympics

Three quadrennials, the Olympic Games, and the FIFA football and IRB rugby world cups, stand on the podium of global sporting tournaments, with lucrative cashflows from sales of commercial and broadcast rights that are the envy of other event promoters.

Those revenues derive from very large sponsorship deals, organised into complex layers of contracts, property or licence rights, as well as other income streams including media and publishing rights, merchandising, accommodation, catering and hospitality packages.

Increasing numbers of sports clubs and bodies are using the expertise of third party specialists, be it for websites, apps, social networks or gaming platforms to interact with their fans domestically and internationally.  However, there appears to be a disconnect in terms of understanding the legal requirements and obligations the clubs are under when outsourcing (by way of a licence) or selling a database to a third party.  While data protection is not the most exciting topic to many it is particularly important with the Information Commissioner Officer (“ICO”) having the power to levy significant fines of up to £500,000 for breaches of the Data Protection Act 1998 (“Act”). 

A recent ECJ ruling has the potential to spark fundamental changes in the way TV rights are sold in the EU, although for the short term at least the status quo is likely to remain.

Prior to an EU Court of Justice (“ECJ”) ruling on 4 October 2011 few people were likely to have heard of Karen Murphy. However, the same could have been said about Belgian league football player Jean-Marc Bosman prior to another ECJ ruling on 15 December 1995.

Professional football today is a business and clubs are looking to maximise their revenue streams particularly in the light of the introduction of UEFA Financial Fair Play Regulations (“FFPRs”). One way in which clubs have sought, and indeed are increasingly seeking to, additional revenue is from the sale of stadia naming rights.