Sport has humble roots in the desire of people to play games. It has though grown in many places to become a fully fledged and highly lucrative area of economic as well as physical activity.
The extent and speed at which that transition can happen will be laid bare over coming weeks and months as the court cases between Rory McIlroy and Horizon Management come before the courts in Dublin and elsewhere.
McIlroy left his previous management firm ISM in 2011 to join Conor Ridge and his team at Horizon Management. Ridge had previously worked with Dublin based Platinum One and had built his new business around representing golfer Graeme McDowell.
The terms of the deal were that Horizon would take five per cent of McIlroy’s Golf earnings and 20% of the value of the commercial deals which they secured for him. The short period in which the relationship blossomed produced three major tournament wins, a rise to number one in the world and contracts estimated to be worth in the region of $50 million a year.
The biggest of those was with Nike who paired McIlroy alongside their prize asset of Tiger Woods. Spanish bank Santander, watch maker Omega and Bose sound systems were also added to the commercial roster and McIlroy fulfilled the ‘usual’ obligations of appearing in advertising and making himself available for sponsor days and activities.
He became the highest paid Irish sporting star in history through his prodigious ability to strike a golf ball as well as through his looks and personality. Creative Artists, the ‘Hollywood’ style personal management agency came on board to promote this side of his life alongside that of other sporting clients David Beckham and Christiano Ronaldo.
Horizon are now threatening to counter claim against McIlroy for damage done to their reputation and for loss of earnings through his termination of the contract he signed an extension to as recently as March of this year. At the same time in California, Oakley. a previous sponsor are looking to claim damages through their removal at the time the Nike deal was signed.
A Sport for Business Seminar on Sports Tourism in Ireland will take place on Thursday, November 7th at the Croke Park Museum in Dublin. Â Click here for details.
The world of sports management has plenty of glamour but a lot of late nights and detailed negotiation as well. We will soon hear stories, doubtless burnished by the passage of time and the imprecise nature of exact memory, of how business, sport and celebrity come together.
It will be a heady mix of ego, money and hard nosed business, with millions at stake.
It is likely to be quite a ride and will doubtless prompt the question from some sporting stars of their own agents as to ‘why can’t you get me deals like that?’
McIlroy himself has set off to play gold in Asia, getting back to the roots of what brought him to the attention of the world. When next he lands in Dublin, he can expect to be photographed once or twice as he makes his way to the courtroom.
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