Com­plex deal

Ar­range­ment sets tough con­di­tions for Kenya’s Olympic body

The Star (Kenya) - - Sports - BY MUIGAI KIGURU @muigaikig­uru

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.”

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