Liverpool's High Court victory over marketing firm signals contractual certainty is key to prevent flee from payment obligations amid financial uncertainty

21 November 2020

LFC
Photo: PA Images Liverpool earlier this year won a contractual dispute against a marketing firm who introduced them to BetVictor and therefore argued it was entitled to commission when a sponsorship was agreed.

Liverpool earlier this year won a contractual dispute against a marketing firm who introduced them to BetVictor and therefore argued it was entitled to commission when a sponsorship was agreed.

The High Court determined the firm – Winlink - was ultimately not the "effective cause" in a ruling with wide implications for commission-based contracts in the industry.

Many are trying to escape their payment obligations in light of the current uncertainty, making contractual certainty all the more important, according to lawyers at CYK Law.

Emil Gjerding Nielson nielson@offthepitch.com

Contractual certainty is hard to argue against, but its importance has been particularly emphasised this year in light of the unprecedented nature of the coronavirus pandemic.

One specific matter to look at is in terms of commission-based contracts which in football tends to rely on a certain amount of implicitness. That has proved to be problematic, according to lawyers at Cooke Young & Keidan (CYK), with reference to a recent High Court verdict between Liverpool and a sports marketing firm.

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