Friday, December 14, 2007

The “right of first refusal” clause

Impact of Yuvraj case on sports talent market

Yuvraj Singh is having a ball these days, both on and off the field. However, with the litigation process still in progress, it looks like he may have to endure the suspense of what the remaining deliveries in the over have to offer.

As you may be aware, Yuvraj’s former sport marketing agency Percept dragged him to court in a bid to match a competitor’s offer for the budding cricketer as their association was coming to an end. The Mumbai High Court’s verdict was in the cricketer’s favour.

Basically, Percept wanted to enforce a ‘right of first refusal’ (RoFR) but was not allowed to do so. The Court held that the post-expiration RoFR clause of a talent management contract between Percept Talent Management and Yuvraj Singh was unenforceable.

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