Nike Drops Lawsuit Against Olympic Hopeful Boris Berian
24 June 2016 - 1:26PM
Dow Jones News
By Sara Germano
Nike Inc. said Thursday it was dropping its breach of contract
lawsuit against Olympic running prospect Boris Berian, a case which
has sparked tensions within the running world.
The sportswear maker said it wanted to "eliminate [the]
distraction" of the lawsuit on the eve of the Olympic Trials, where
Mr. Berian is a favorite to earn a berth to the Summer Games in Rio
de Janeiro.
A Nike spokesman confirmed that Mr. Berian is no longer a Nike
athlete.
Merhawi Keflezighi, an agent for Mr. Berian, said he and his
client were "cautiously optimistic" the dispute is over.
Last month, the sportswear giant sued Mr. Berian, the world
indoor 800-meter champion, alleging the 23-year-old violated his
Nike endorsement deal when he agreed to a sponsorship with New
Balance Athletics Inc. and declined what Nike described as a
matching offer.
Nike had brought the lawsuit just weeks ahead of the trials to
determine the U.S. squad for the Summer Games. A judge was expected
to rule next week on Nike's request to bar Mr. Berian from
competing in any non-Nike gear at the trials, which begin July
1.
"Nike legitimately exercised its right to match the New Balance
offer and believe we would prove this at trial," the company said.
"As a running company, we also recognize that this is a significant
time for Boris and in light of the judge's decision to delay the
ruling until June 28th, the eve of the Olympic Trials, we decided
to eliminate this distraction for Boris."
The Berian case had become a point of tension within the
sportswear industry. In particular dispute was the issue of
so-called reduction clauses in endorsement contracts. These clauses
give sponsors the option to reduce what they pay elite track and
field athletes if a runner doesn't meet certain competitive
standards.
A three-year $405,000 contract offered to Mr. Berian by New
Balance in January didn't include reduction clauses; an offer from
Nike matched the base pay but included several reductions,
according to copies of the contracts filed in U.S. District Court
in Portland, Ore.
Several Nike rivals, including Brooks Running Co., Oiselle
Running Inc., and New Balance -- which wasn't a party to the
lawsuit -- filed depositions in support of Mr. Berian, saying
reduction clauses aren't standard in the industry.
One irony in the dispute is that if Mr. Berian makes the Olympic
squad, he will be wearing Nike's swoosh. Nike is the official
sponsor of the U.S. Track & Field team and is supplying the
apparel that U.S. runners will wear in Rio.
Write to Sara Germano at sara.germano@wsj.com
(END) Dow Jones Newswires
June 23, 2016 23:11 ET (03:11 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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