Legal Issues in Sports

Sports Law in India is nascent, yet its implications are multifarious. While participation is key to sports, it is imperative to not get locked down in a legal tangle. Legal Compliance as a Sportsman or business in sports is a challenge, and requires deliberate and persistent monitoring.

CONTRACTING FOR SPORTS

• Can a Minor enter into a a Contract for Appearance in Sports? Will the same be allowed to be enforced in the Courts?
• Restrictive Covenants in Sports Contracts: Right of First Offer or Refusal and other pre-emptive rights in Sports Management Contracts may not be held to be valid in India.
• Can a Sports person be bound by the Association for maintenance of secrecy and confidentiality. The effect of Non-Disparagement Agreements in Sports.

SPORTS AND CRIMINAL LAW

• In case of a sporting event, injuries are common. But can the same be used as an excuse where injury to person or property is committed in the game. Law creates a distinction, and provides for criminal liability based on the classification of On the Ball v. Off the Ball Offences [Duncan Ferguson’s Head Butt], thereby distinguishing between Physical Contact vis a vis Assault.

MATCHES, ENDORSEMENTS, INCOME & TAX?

• Income earned by Sportsmen are subject to Income Tax, GST, Capital Gains Tax, etc. Plan your transactions accordingly to prevent prosecution for non-payment of taxes.
• Branding, Franchising for accessories such as T-Shirts

COMPETITION ACT, 2002

• While competitive spirit is key to good sportsmanship, the same is the norm for Sports Associations. Restrictive clauses in reference to match appearances and other aspects may amount to an Abuse of Dominance and anti-competitive practice under the Competition Act, 2002