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3 December 2024

An Introduction To Sports Law: Key Legal Areas And Issues In Sports

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Fairbridges Wertheim Becker

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Fairbridges Wertheim Becker was formed by the coming together of two longstanding, respected law firms, the first being Fairbridges established in 1812 in Cape Town, the second Wertheim Becker founded in 1904 in Johannesburg. This merger makes Fairbridges Wertheim Becker the oldest law firm in Africa, with its strong values and vision, it also makes them the perfect legal partner to assist you in achieving your business objectives.
In a world where sports continues to evolve and shape the fabric of society, the importance of sports law has never been more evident.
South Africa Media, Telecoms, IT, Entertainment

Introduction

In a world where sports continues to evolve and shape the fabric of society, the importance of sports law has never been more evident. From ensuring fair competition to protectingthe rights of athletes and organisations, sports law is the invisible force that underpins theintegrity and growth of the global sports industry. As we delve into the complexities ofsports law, it is clear that it is not just a set of rules, but a critical tool in maintaining fairness,justice, and the very spirit of sports itself.

1. Sports law and its importance in the Sports sector

Over the years, the sports sector has seen transformation and a surge in commercialinvestment from a wide array of stakeholders, each driven by their own motives. Thisgrowing financial interest has, in turn, created capacity for the active participation ofother key players, all working together to ensure the integrity of the sports sector's coreprinciples. It's a game of rands and values where profit and principle are both at play.Sports attorneys (and sports law firms) are some of the key players whose role hasbecome extremely important in upholding the said core principles. Sports law in today'ssports sector encompasses a broad range of legal fields that apply to the world ofprofessional and amateur sports, athletes, teams, governing bodies, and otherstakeholders. It integrates multiple legal fields, including contract law, labour law,intellectual property law, competition law, governance, risk and compliance, and more,all tailored to the unique nature of each sporting code.

2. Key legal areas in sports law

2.1.Contract Law in sports law

Player Contracts: Legal agreements between athletes and teams, outlining terms ofemployment, compensation, performance expectations, and other conditions whichare necessary." Endorsement Deals: Athletes often enter into contracts with brands and sponsors forendorsements, which are subject to negotiation and legal regulation.

Transfer Agreements: In team sports, transfers of players between teams are oftengoverned by complex contracts and negotiations, subject to regulations by governingbodies like the Premier Soccer League (PSL) and South African Rugby Union (SARU).

2.2. Labour and Employment Law in sports law

Workplace Safety: Legal frameworks protect athletes from unsafe working conditionsand ensure that health standards are met and that every stakeholder exercises its dutyof care to avoid negligence and injuries. Concussions and long-term health concerns,such as CTE (chronic traumatic encephalopathy), are growing concerns in the sportssector.

2.3. Competition Law in sports law

Prevents unfair competition: Competition laws in sports seek to prevent unfair sportspractices that may give athletes and/or sports clubs an unfair advantage over the other.Upholding competition laws is necessary for competition, fairness and the integrity ofsports.

Player Movement Restrictions: The regulations governing player transfers, bothwithin and outside of established transfer windows, are increasingly being viewed asrestrictions on athletes' fundamental right to freedom of movement, inadvertentlyfostering anti-competitive practices. This issue was highlighted in the Lassana Diarrav FIFA case, where Diarra was unable to register with a new club unless that club paidtransfer fees to his previous team and obtained a clearance certificate. This system,designed to regulate the transfer of players, ultimately places barriers on the athlete'sability to freely pursue his career. The case exemplifies how such rules, intended toregulate transfers, may instead create an environment of unjust restrictions andinequality in the world of football.

2.4. Intellectual Property (IP) in Sports Law

Trademarks and Branding: Sports teams, leagues, and athletes protect their brandsthrough trademark law. This includes team logos, player names, and event branding.For the registration of the said trademark to pass, it requires sports attorneys to ensurethat all legal requirements are met. Moreover, when intellectual property is infringedupon, it is these sports law experts who step in to protect the interests of stakeholders,defending the very identity that fuels the multi-billion rands sports industry. Without thislegal shield, the value of these brands could be left vulnerable to exploitation andunauthorised use.

Broadcasting Rights: Media companies frequently secure high-value deals forbroadcasting rights, sometimes gaining exclusive rights that they can then sell to otherstakeholders. However, this becomes problematic when digital streaming platformsand piracy emerge as alternatives to these subscription-based offerings. Theseplatforms often infringe upon the intellectual property rights of legitimate broadcasters,undermining the value of their exclusive content and disrupting the industry'sestablished business models.

2.5. Drug Testing and Doping Regulations in sports law

Anti-Doping Laws: International sports bodies like the World Anti-Doping Agency(WADA) enforce anti-doping regulations to ensure fair competition. Athletes are subjectto drug testing, and violations can lead to suspensions, fines, or lifetime bans.

Legal Defence Against Doping Allegations: Athletes who test positive for bannedsubstances have the right to challenge the results in court or arbitration, oftenpresenting complex legal and scientific defences. During these times, sports attorneysplay a crucial role, working to refute the allegations or negotiate for reduced sanctionson behalf of the athlete.

2.6. Sports Governance and Compliance in sports law

Governing Bodies: National and international sports organisations (e.g., FIFA, SAFA,CSA, SARU) play a major role in shaping the rules and policies that govern sportswithin their sporting codes. These bodies enforce the rules of competition, fairness,eligibility, and safety.

Compliance with Regulations: Teams, athletes, and organisations must comply withregulations set by the governing bodies. This includes compliance with transferregulations, drug testing standards, and player eligibility rules.2.7. E-Sports and Technology law

E-Sports Regulation: The rise of e-sports has led to the development of a new branchof sports law. Issues include intellectual property, player contracts, and tournamentgovernance.

Technological Advancements: The use of technology in sports, such as videoassistant referees (VAR) in soccer, wearable tech for performance tracking, andArtificial Intelligence in team strategy, has legal implications, particularly in terms ofdata privacy and intellectual property rights.

3. Dispute Resolution in sports law: Arbitration and litigation

Arbitration and Mediation: Sports law often emphasises alternative disputeresolution methods such as arbitration and mediation as methods to resolve conflictsefficiently and cost effectively. The Court of Arbitration for Sport (CAS) is one suchinternational body that handles disputes between athletes, teams, and sportsfederations are in dispute.

Player and Team Disputes: Disputes between players and teams over contractbreaches, disciplinary actions, and/or contract negotiations are common. Sportsattorneys (and sports law firms) often represent athletes in these cases. FairbridgesWertheim Becker Attorneys is one such law firm with specialised skills and resourcesand the necessary capacity to effectively represent athletes.

A complete disregard of alternative dispute resolution processes is discouraged. In RiaLedwaba v SAFA, the court dismissed the the matter due to, amongst other, Ledwaba'sfailure to observe the internal dispute resolution mechanisms available at SAFA ascodified in the SAFA constitution. In Royal AM v Samir Nurkovic, the matter only sawthe corridors of CAS after the matter had been fully ventilated by both the PSL DisputeResolution Chamber and FIFA's Football Tribunal respectively. This gives credence tothe alternative dispute resolution processes in sports, and further highlights theimportant role that they play in resolving disputes expeditiously and cost effectively.

4. Doping an Integrity issues in sports

Sports attorneys play a crucial role in handling doping and integrity issues in sports,representing athletes, teams, governing bodies, and other stakeholders in legalmatters related to performance-enhancing drugs (PEDs), ethical breaches, andmaintaining fair competition. Sports attorneys play a role in the following ways:

4.1. Representation of Athletes in Doping Cases

  • Challenging Doping Allegations: When an athlete tests positive for a bannedsubstance, sports attorneys are essential in defending their client's rights andreputation. They may challenge the results of drug tests, question the proceduresfollowed, or argue that the athlete's actions were unintentional or the result ofcontamination.
  • Appeals and Arbitration: Sports attorneys often handle appeals against sanctions orsuspensions imposed by sports' governing bodies (e.g., World Anti-Doping Agency[WADA], South African Institute for Drug-Free Sport [SAIDS], National Federations,and the International Olympic Committee). Many doping cases are heard beforespecialised tribunals like the Court of Arbitration for Sport (CAS), where sportsattorneys represent the athlete in an effort to reduce or overturn penalties.

4.2. Advising on Anti-Doping Compliance

  • Education and Prevention: Sports attorneys help educate athletes and teams aboutthe rules and regulations of anti-doping policies, such as the substances banned byWADA and the procedures for drug testing. This advice is crucial in preventingunintentional violations, such as taking supplements that may contain bannedsubstances.
  • Legal Compliance: Sports attorneys advise athletes, coaches, and organisations onhow to comply with anti-doping laws and regulations. This includes ensuring thatathletes know how to properly declare substances they use, how to handle medicationexemptions, and how to avoid inadvertent violations." Therapeutic Use Exemptions (TUEs): If an athlete needs to use a banned substancefor a legitimate medical reason, sports attorneys may assist in applying for aTherapeutic Use Exemption (TUE) to avoid violating anti-doping rules. This involvesproviding medical documentation and supporting evidence to governing bodies likeWADA.

4.3. Integrity in Sports and Ethics

  • Match-Fixing and Corruption: Sports attorneys are involved in cases concerningmatch-fixing, bribery, or other forms of corruption that undermine the integrity of thesport. They may represent athletes, coaches, or officials accused of being involved insuch activities, and/or they might represent governing bodies investigating the saidallegations.
  • Legal Action Against Fraudulent Practices: When match-fixing or corruption issuspected, sports attorneys help their clients navigate legal proceedings. This couldinvolve criminal charges, civil lawsuits for damages, or disciplinary action from sportingorganisations.
  • Integrity and Governance Advice: Sports attorneys help sports organisationsdevelop and enforce integrity policies to combat corruption and other unethicalpractices. This could involve advising on internal investigations, creating reportingmechanisms for whistleblowers, and implementing educational programs for playersand officials.
  • Promoting Integrity: As part of the advocacy for clean sport, it becomes important forsports attorneys to be involved in the promotion of integrity of sports because beyonddefending athletes and clients' interests, sports attorneys have a role to play inadvocating for clean sport. This includes working with anti-doping organisations,educational institutions, and athletes to foster a culture of integrity, fairness, andtransparency in sports.

5. Player Safety and Liability: The legal duty of care in sports law

Whilst injuries are unfortunate and at the same time [to some degree] inevitable incontact sports, there are parties whose duty it is to exercise the reasonable duty ofcare and thereby mitigate the risk of injuries to participants.

The legal duty of care through the lense of sports law refers to the responsibility owedby different stakeholders to take reasonable steps to prevent harm to all participants.This duty is underpinned by principles of negligence and aims to protect, in the main,athletes from unnecessary risks and injuries. The stakeholders whose duty it is tomitigate the risk of injuries in sports include, but are not limited to, the athletes,coaches, team doctors and event organisers.

The single most important test for negligence is whether the injury was foreseeable,and whether it could have been avoided by those whose duty it was to avoid it.

Duty of care owed by athletes:

In Roux v Hattingh, the Supreme Court of Appeal (SCA) made significant findingsabout the duty of care owed by players to each other, and how this duty impacts theliability for injuries sustained during a match.

The court acknowledged that players participating in contact sports like rugbyinherently accept the risks associated with the game. However, players still owe a dutyof care to one another. This duty requires players to act reasonably and not engage inactions that are excessively reckless or that fall outside the accepted norms of thesport. The court emphasised that whilst players accept the inherent risks of rugby, theydo not accept all risks, especially those arising from reckless or illegal actions (e.g.,dangerous tackles, dangerous play, or intentionally causing injury). The SCAdistinguished between normal rugby-related risks (which players accept) and grosslynegligent behaviour (which is not acceptable). In this case, Hattingh's actions werewithin the ordinary course of the game and did not meet the threshold for recklessnessor gross negligence.

Duty of care owed by sports clubs:

Sports clubs equally have a duty of care towards athletes. It is a widely acceptedpractice that athletes act on instructions of their coaches and advice of the club'smedical team. Therefore, if an athlete gets injured or injures another after having takenformal instructions from a coach and/or a club doctor, the club can be held vicariouslyliable for having exposed the athlete(s) to one such unnecessary risk.

In Morne Mellett v Blue Bulls Rugby Union (Pty) Ltd, a former professional rugbyplayer, Morne Mellett, sued Blue Bulls and its team doctor for damages amounting toR45 Million for negligence and failure to exercise reasonable duty of care after havingsuffered a career-ending injury in 2015 in a Super Rugby match. Mellet injured his neckduring the match and the team doctor examined him on the field and cleared him tokeep playing the match. The hit to his neck caused a rupture to his vertebral vein whichcaused Mellet to suffer a stroke minutes after the game. In Cillian Willis v Sale Sharks,Willis sustained two head injuries during an LV Cup rugby match against Saracens on10 March 2013. The team doctor allowed him to continue to play despite him beingconcussed. As a result of the concussions, Willis was forced to retire. He later institutedmedical negligence claim against the club and the medical staff.

Duty of care owed by event organisers:

Event organisers and/or stadium management equally has a duty to ensure that theycomply with the safety measures encompassed in the Safety At Sports AndRecreational Events Act Of 2010.

In the Ellis Park Stadium disaster of 2001 where 43 attendees died and 158 wereinjured, the Ngoepe Commission found that the event organisers breached their dutyof care by selling more tickets than the capacity of the stadium allows. The stadiumhad a 60 000 capacity, yet 90 000 people were admitted into the stadium. Thisinevitably caused a stampede. The commission further found that big screentelevisions outside of the stadium to accommodate the large crowd they anticipated,the security personnels did not exercise their duty of care in terms of managing thecrowd, more ticket booths were not added to manage the speed of ticket sales andaccess to the stadium, and there was general inadequate traffic control. The stadiummanagement was accordingly held liable for the disaster.6. In light of this, beyond rendering legal services in the context of instituting negligence claims on behalf of athletes and/or defending same on behalf of clubs, sports attorneyshave a continued duty to educate all stakeholders on their duties of care in order to mitigate risks of injuries.

6. The future of sports law and the evolving needs of the sports sector

The future of sports law is shaped by the evolving needs of the sports sector, drivenby technological advancements, globalisation, shifting societal expectations, andaccurate positioning to deal with emerging ethical challenges. As sports continues togrow in complexity and global reach, sports law must adapt to address new issues,trends, and challenges.

With technology and digital sports, new challenges emerge in respect of data privacyand cyber security. As sports organisations collect more personal and performancedata from athletes (e.g., through wearables, apps, or social media), issues around dataprivacy, security, and ownership will become increasingly important. Sports attorneyswill need to navigate evolving data protection laws such as the Protection of PersonalInformation Act (POPIA), and protect athletes' personal information from breaches.One of the key aspects of POPIA is that organisations must obtain explicit consentfrom individuals before collecting or processing their personal data, unless the dataprocessing is required by law. Collection of personal data and commercialising samethrough e-gaming is not required by law. Therefore, athletes need to have an option toexercise their right to withhold consent from having their personal data broadcasted onan e-game.

A further challenge presented by technological advancements is in respect ofintellectual property and content ownership. Certain stakeholders such as Multichoicehold exclusive broadcasting rights to the exclusion of others. This exclusion presentsopportunities for live streaming platforms to broadcast the match, which broadcastershave little control over. The protection of broadcasting rights, digital content, and onlineexclusivity will therefore need to be updated to address the increasing importance ofonline and interactive sports experiences.

Whilst on the future of sports and the evolving needs of the sports sector, cognisancemust be taken in respect of the mental well-being of athletes. With growing recognition7. of mental health issues among athletes, including stress, anxiety, and depression, sports attorneys will need to expand their participation in the sports sector advocate for policies that support mental health care for athletes. Legal frameworks may evolveto ensure that athletes have access to proper psychological support, insurance formental health treatment, and protections against mental health-related discrimination.Similarly, further cognisance must be taken in respect of the growing litigious casesthat stem from player safety, particularly regarding head injuries, such as concussions,and long-term health issues (e.g., chronic traumatic encephalopathy or CTE). Legalchallenges will involve the responsibility of sports organisations and/or clubs to protectplayers, provide proper medical care, and ensure that long-term risks are addressedin order to cub the scourge of claim for damages that arise from long-term risks.

7. Navigating sports law with legal services from specialised sports law firms

Sports lawyers (sports law firms) are essential in navigating the complex legallandscape surrounding athletes' contracts of work, allegations of doping and managingintegrity issues in sports. Fairbridges Wertheim Becker Attorneys sports practice groupdoes not only represent athletes and organisations in legal disputes but also helpshape the policies and regulatory frameworks that govern sports. Through the sportslaw practice group's work, we contribute to the preservation of fairness and ethics insports, ensuring that athletes and stakeholders are treated fairly, and that the integrityof competitions is maintained. Whether defending against doping charges, advising onregulatory compliance, negotiating, drafting and reviewing athletes' contracts, orhelping prevent unethical practices, FWB sports law practice group is indispensable inupholding the legal and ethical standards of modern sports.

Conclusion

Given the above, Fairbridges Wertheim Becker Attorneys sports law practice standsout as the premier sports law partner. In the midst of uncertainty and insurmountablelegal challenges, our experienced team of sports law attorneys consistently deliverseffective and efficient legal solutions to our clients in the sports industry. Both law andsports share one thing in common – unpredictability. Yet, with Fairbridges WertheimBecker Attorneys by your side, clients, whether new or existing, can focus on enjoying the game, free from anxiety borne from prevailing legal challenges. At FairbridgesWertheim Becker Attorneys, we turn the legal field into a winning arena for you.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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