Arrangement sets tough conditions for Kenya’s Olympic body
National Olympic Committee have revealed their intention to review their kit sponsorship with manufacturer Nike, following the tug-of-war over the Rio Olympic Games allotment.
Appearing before a Parliamentary Committee on Labour and Social Welfare, Noc vice president Ben Ekumbo said they will review their engagement when their contract expires after the Tokyo 2020 Games.
However, this remains to be seen since the contract with Nike gives the American kit manufacturers a strong hand in any future Kenya negotiation with a third party.
Article 13 (right of first dealing and first refusal) of the contract says: “Commencing one year prior to the expiration of this agreement, Noc and Nike shall negotiate in good faith with respect to the terms of a renewal of this agreement. The parties shall not be obliged to enter into an agreement if they can’t settle on mutually satisfactory terms.”
In addition, Noc-k and their agents have also been restricted from engaging in discussions or negotiations with any third party regarding post-contract supply rights with respect to any products or sponsorships of the national teams with respect to any products prior to the expiration of the agreement (exclusive negotiating end date).
“During the year and for a period of one year thereafter, Nike shall have the right of first refusal for products supply/sponsorship rights, as follows. If Noc receives any bona fide thirdparty offer at any time on or after the exclusive negotiating end date, with respect to any product supply/ sponsorship rights, Noc shall submit to Nike in writing the specific terms of such bonafide third-party offer in its entirety, in the form of a true and complete copy which shall be on the offeror’s letterhead or other identifiable stationery or imprint readily authenticable by Nike as having originated from such thirdparty offeror.”
“Nike shall have 15 business days from the date of its receipt of such true copy of the third-party offer to notify the Noc in writing if it will enter a new contract with Noc on terms no less favourable to Noc than the material, measurable and matchable terms of such third party offer.”
“If Nike so notifies Noc within such 15-day period, Noc shall enter into a contract with Nike on the term of Nike’s offer. If Nike fails or declines to match or better the material, measurable and matchable terms of such third-party offer within such 15-day period, Noc may thereafter consummate an agreement with such third-party on the terms of the offer made to Noc.”
Prior to the exclusive negotiating end date, Noc shall not solicit, consider or present to Nike and Nike shall not be obliged to respond to any third-party offer for any product supply/sponsorship rights.”