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The Legal Protection and Regulation of Sponsorship Rights in English Football

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The Legal Protection and Regulation of Sponsorship Rights in English Football View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by White Rose E-theses Online The Legal Protection and Regulation of Sponsorship Rights in English Football Sabah Qasim Khedir ‘Submitted in accordance with the requirements for the degree of Doctoral of Philosophy’ University of Leeds School of Law Centre for the Study of Business Law and Practice December 2018 Abstract Sponsorship is a form of promotional communication with the basic goal to persuade. Researchers have offered a series of benefits for the sponsor that can be achieved through selecting the ideal property, including, obtaining brand exposure, achieving brand recall, enhancing brand image, and communicating a brand theme in the hope of obtaining sales. However, differentiating the brand from competitors is a distinctive tactic essential for realising a competitive advantage. To assist with brand differentiating, corporate sponsors negotiate for exclusivity within a product or service category. Product category exclusivity acts to eliminate corporations within a sponsor’s product or service category from the sponsored subject. Therefore, sponsors pay a premium price to achieve such a restricted promotional position. However, instances of competing sponsorship interests within a football event or league have become common as broadcasters, footballers and stadiums owners all pursue corporate support. Where these separate actors in the same sports marketplace have not collaborate effectively to limit sponsor category conflicts, a sponsoring brand may find it difficult to establish unique image association within the football domain apart from category competitors. This questions the level of exclusivity football associations and related enterprises grant to their official sponsors. The purpose of the research is to raise the issue and debate the practice of selling multiple sponsorship rights within a particular product or service category in football competitions. Ambush marketing has emerged as an effective weapon in the arsenal of marketing department seeking to associate their brands with sporting events. The research analyses the most effective and common strategies of ambush marketing in English football, and examines the legal mechanisms available in the United Kingdom to prevent the likelihood of suffering damage to official sponsors by third party ambush tactics. The research concludes with the extent to which the legal system in the United Kingdom could help to protect the exclusive rights of the sponsor in English Football. i Copyright Declaration The copyright of this thesis rests with the author. No quotation from it should be published without their prior written consent. Information derived from this thesis must be acknowledged appropriately. ii Acknowledgements One of the joys of completion is to look over the journey past and remember all the friends and family who have helped and supported me along this long but fulfilling road. First, I would like to express my sincere gratitude to my supervisors, Professor Roger Halson and Professor Nick Taylor, for their intellectual inspiration and continuing support. They have read numerous drafts of this thesis, and have given me insightful and invaluable comments and suggestions during the researching and writing up of this thesis. I am also grateful to my friend Brahma Astagiri with whom I shared some significant moments and who spurred me on during tough times. I would also wish to acknowledge the valuable assistance received from Media Jalil and Yusuf Faraidon, who kindly agreed to read a draft of this work and offered many helpful comments and suggestions. I want also to thank my big family, specially my father and mother, who lent me their support throughout this journey. I am extremely grateful to my brother Amer for his endless support and all the sacrifices he has made for all of us. Final words of gratitude are reserved for my loving wife, Chra, to whom I dedicate this research. She had faith in my ability to complete this work even when graduation seemed countless months away. Her patience and support have made all the difference. Thank you all. Sabah iii Table of Contents Abstract------------------------------------------------------------------------------------------------ i Copyright Declaration ----------------------------------------------------------------------------- ii Acknowledgements --------------------------------------------------------------------------------- iii Table of Contents------------------------------------------------------------------------------------ iv List of Cases ------------------------------------------------------------------------------------------ viii List of Legislations ---------------------------------------------------------------------------------- x Introduction------------------------------------------------------------------------------------------ 1 1) Differentiation through sponsorship category exclusivity ---------------------------------- 3 2) The issue of sponsorship category exclusivity ------------------------------------------------ 5 3) Research aim and objectives --------------------------------------------------------------------- 7 3-1) Literature review -------------------------------------------------------------------------------- 8 3-2) Primary research -------------------------------------------------------------------------------- 9 3-3) Research structure ------------------------------------------------------------------------------ 12 Chapter One: The Nature of Exclusivity in Sports Sponsorship under English Law 16 1-1) Introduction---------------------------------------------------------------------------------------------- 16 1-2) A primer on property rights theory in professional sports ---------------------------------------- 16 1-3) The concept of sponsorship as a promotional tool ------------------------------------------------- 24 1-4) The importance of sports for corporate sponsors -------------------------------------------------- 26 1-5) Sponsorships and football ----------------------------------------------------------------------------- 29 1-5-1) Football governing body sponsorship---------------------------------------------------- 31 1-5-2) Football Club Sponsorship ---------------------------------------------------------------- 33 1-5-3) Football players’ endorsements ----------------------------------------------------------- 34 1-5-4) Broadcast and media sponsorship --------------------------------------------------------- 35 1-5-5) Football stadiums sponsorship ------------------------------------------------------------- 36 1-6) The value of exclusive rights in football sponsorship ------------------------------------- 37 1-7) The commercial exploitation of exclusive rights under English law--------------------- 40 1-7-1) No general exclusive rights in sporting events per se ----------------------------------- 41 1-7-2) Unauthorised exploitation of proprietary rights in modern days--------------------------------- 47 iv 1-8) the application of competition laws in football competitions ---------------------------------------- 49 1-9) Conclusion---------------------------------------------------------------------------------------- 53 Chapter Two: The Implication of Ambush Marketing on Exclusive Sponsorship Right 2-1) Introduction ------------------------------------------------------------------------------------- 55 2-2) What is Ambush Marketing? ----------------------------------------------------------------- 57 2-3) Ambush Marketing Strategies ---------------------------------------------------------------- 60 2-3-1) Direct Ambush Marketing ------------------------------------------------------------------ 64 2-3-1-A) Predatory ambushing --------------------------------------------------------------------- 64 2-3-1-B) Coattail ambushing ----------------------------------------------------------------------- 65 2-3-1-C) Property infringement -------------------------------------------------------------------- 65 2-3-2) Indirect Ambushes --------------------------------------------------------------------------- 66 2-3-2-A) Associative ambushing ------------------------------------------------------------------- 66 2-3-2-B) Distractive ambushing -------------------------------------------------------------------- 66 2-3-2-C) Values ambushing ------------------------------------------------------------------------- 67 2-3-2-D) Insurgent ambushing ---------------------------------------------------------------------- 67 2-3-2-E) Parallel Property Ambushing ------------------------------------------------------------- 67 2-3-3) Incidental ambushing ------------------------------------------------------------------------ 68 2-3-3-A) Unintentional ambushing ----------------------------------------------------------------- 68 2-3-3-B) Saturation ambushing --------------------------------------------------------------------- 68 2-4) The traditional legal bases for protection against unauthorised use of exclusive rights 70 2-4-1) Copyright -------------------------------------------------------------------------------------- 71 2-4-2) Trade mark ------------------------------------------------------------------------------------ 74 2-4-3) Passing off ------------------------------------------------------------------------------------- 81 2-5) Conclusion --------------------------------------------------------------------------------------- 86 Chapter Three: The Regulation
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