Karnataka High Court verdict favours Virat Kohli in Nike lawsuit
The court's verdict allows the Delhi batsman to sign endorsement deals with other brands as per his convenience.
In what appears to be a major blow to the sports giant Nike, the Karnataka High Court ruled in favour of the Indian cricketer Virat Kohli on Tuesday. The court's verdict allows the Arjuna Award winner to sign endorsement deals with other brands as per his convenience.
According to the CEO of Cornerstone Sport and Entertainment which manages Kohli's brand endorsements, the judge reportedly vacated the order, saying that Kohli and co. had terminated(the Nike contract) correctly and therefore no case is made out.
The ruling comes to be a big relief for the Indian cricket sensation after the court had earlier ordered Kohli to maintain status quo with regard to an endorsement deal signed with Nike.
The sports giant had accused the Delhi batsman of breaching their endorsement contract. In its suit, Nike claimed Kohli had breached the contract by disagreeing to continue as its brand ambassador till 2014. The five-year contract from 2008 was extendable by one year.
Nike had entered into a contract with Virat Kohli from January 1, 2007 to December 31, 2007. Later, a fresh contract was signed for the period between August 1, 2008 and July 31, 2013 for exclusive endorsement rights. Kohli was reportedly paid Rs 1.42 crore for this contract - with a clause for extension for another year.
While planning to extend the contract and also sign Kohli beyond 2014, Nike was shocked to receive a letter from Kohli on June 6, 2013. The sports giant had claimed that Kohli "made certain self-serving and baseless allegations with respect to implementation of the contract" and rejected its extension through the letter.
The firm had alleged that Kohli's action was a result of non-acceptance of his unilateral and unreasonable terms suggested by him earlier.
Nike's plea to the court to restrain Kohli from entering into or negotiating any endorsement deal with other brands until the expiry of their deal has been shunned by the High Court.