COVID-19 - issues facing Sports Law in the current lock down

The impact of the Coronavirus was on full display when New Zealand and Australia played cricket in front of an empty stadium.

Since then there has been a ban on all gatherings over 500 people. As a result, most sporting events, leagues and unions have suspended their seasons. The net effect of those cancellations is yet to be seen.

What will be the impact on sponsors, existing broadcast agreements and the financial viability of clubs and leagues? What about those competitions who have paused midseason. What about the team facing relegation or close to securing a title? Will the broadcast partners still be viable if they lose their sports offerings? Spark Sport, which hosts the F1, has done away with subscription fees until May. With new distribution models being explored by sporting organisations will sport on TV survive this crisis? On the personal level what happens to the individual players, coaches and support staff?

For the individual sportspeople, what effect will this have on player endorsements, player remuneration, match day bonuses, contractual negotiations and overall financial security? NBA star Lebron James is said to be losing US$400,000 per game that is not being played due to the NBA season suspension. What about those living week to week on prize money and game day payments?

What legal ramifications are there for alternative competitions focusing on domestic rather than international teams? What are the players’ existing contractual requirements? What effect do the players’ restraint of trade provisions have when they cannot play for their team?

It is hard to remember a time where professional sport faced such complex issues.

Tim Gunn