Nike, golfer Rory McIlroy sued by Oakley
Nike Inc. has yet to acknowledge signing superstar golfer Rory McIlroy yet it's already being sued over the deal.
ESPN.com reports that apparel and sunglasses brand Oakley Inc. claims McIlroy -- the world's top-ranked golfer -- breached an existing contract by signing a new deal with Nike.
Oakley, in a federal lawsuit filed Monday in Santa Ana, Calif., claims it attempted to use its "right of first refusal" to match Nike's offer, but McIlroy and agent Conor Ridge ignored the counteroffer, ESPN reports.
Nike hasn't publicly announced signing McIlroy, but reports in October suggest the deal is valued at between $200 million and $250 million.
Oakley is seeking an injunction that would halt the Nike deal.
In its lawsuit, Oakley claims its contractual rights for McIlroy endorsing its eyewear and apparel would equal 30 percent of the Nike package, ESPN reports. That means the brand would have likely offered the golfer around $60 million to stick with Oakley.
McIlroy's management team told ESPN in a statement that he has fulfilled his obligations to Oakley.
The Portland Business Journal is a KATU.com news partner.
"...equal 30 percent of the Nike package..."
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Unless that's part of their contract, why would McIlroy take a 30% contract? Sounds stupid.
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it seems Oakley is just ticked they could not offer the money Nike throws around and wanted some publicity before heading into the cold-dark.
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Someone should show Oakleyâs management the definition of "first offer". Even at the 30% mark all Nike has to do is offer $1 more than that and he can escape the clause.
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This is why lawyers make so much money.
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Sounds complicated to calculate how much of the Nike contract is related to apparel/eyewear. If Oakley can match that portion of the Nike contract, it sure seems that Nike will need to re-write so as McIlroy does not endorse Nike products that compete with Oakley. It may be that Rory simply endorses Nike clubs and shoes.