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Lithuanian Competition Council investigates alleged collusion over basketball players’ pay
The Covid-19 crisis has forced sport clubs around the world to consider unprecedented measures in order to try to protect their bottom line. However, despite uncertain futures and considerable financial pressure, there is no guarantee of a free pass from competition rules. On the contrary, regulators remain vigilant and continue to investigate alleged infringements. Both on and off the court, the message is that sports organisations and clubs still need to play by the rules.
In this context, this article considers the ongoing investigation by the Lithuanian Competition Council (LCC), announced on 24 April[1], into the alleged anticompetitive exchange of information and agreement between the national basketball league and the clubs regarding the terms of payment of basketball players’ salaries. Specifically, it examines:
- Background
- The law on anti-competitive agreements, in particular to fix salaries
- The continuing importance of competition law during Covid-19
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- Tags: Basketball | Competition Law | Lithuania | Lithuanian Basketball League | Lithuanian Competition Council | Treaty on the Functioning of the European Union
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About the Author
Anand Patel
Karolis Pocius
Associate, Linklaters
Karolis is a Brussels-based competition lawyer specialising in all areas of competition law, including anti-competitive agreements, abuse of dominance and merger control.
Jason Shardlow-Wrest
Managing Associate, Linklaters
Jason Shardlow-Wrest is an English law-qualified dispute resolution lawyer at Linklaters. He has a wide-ranging practice in litigation and arbitration matters, including advising domestic and international clients on complex commercial and competition litigation issues. His experience in sports includes advising on the application and interpretation of broadcasting contracts in the context of COVID-19.
Shubham Jain
Legal Advisor, Linklaters
Shubham Jain is an India-qualified lawyer at Linklaters. He has completed his Masters degree in law from the University of Cambridge. He has experience in advising on renewable energy and litigation and arbitration issues. His areas of interests and engagement include commercial and public law issues in sports.
Sînziana Ianc
Managing Associate, Linklaters
Sînziana is a Managing Associate in Linklaters’ Competition practice. She has advised on the Single Resolution Mechanism and has extensive litigation experience before the Courts of the European Union. Sînziana is one of the global co-heads of the Linklaters’ sports sector.
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Ajibola Omisakin
This was very educative. Thank you.
You don't want to pay you players and you don't want other employers to pay theirs too. Ordinarily, it is an Express breach of employment contract for an employer to fail to pay their employees. However, due to the circumstances (Covid-19 issues), it may appear justifiable for the clubs to call a meeting and strike an agreement with their employees (as to a possible reduction/cut in their remuneration). It is totally wrong to have a meeting with competitors (other clubs) to reduce players' salaries.
Thanks
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