Nike drops lawsuit against American Berian

Nike has dropped its controversial lawsuit against Boris Berian, freeing the runner to wear any apparel brand he chooses during next week’s U.S. Olympic trials.

Nike sued Berian for breach of contract over the runner’s insistence on wearing gear from New Balance, the company that sponsors his track club and that offered him a contract in January.

Nike obtained a court order last month prohibiting Berian, an Olympic medal contender in the 800 metres, from wearing another brand while the suit was ongoing. Berian, whose Nike deal ended last December, opted to sit out rather than return to Nike.

Thursday’s decision allows Berian to resume his relationship with New Balance, the brand he wore when he won the world indoor championship title in March.

“It’s a very big relief,” said Merhawi Keflezighi, Berian’s agent. “I give a lot of credit to Boris for being willing to fight this battle.”

The decision closes a court case that carried major implications for how industry titans like Nike interact with upstarts like New Balance and independent contractor athletes.

Berian’s first Nike deal allowed the company to retain him if it matched an offer from a competing brand.

In January, New Balance offered Berian a contract guaranteeing him $375,000 over three years and added performance bonuses.

Nike’s counter matched New Balance’s base salary and bonuses but contained a litany of clauses reducing Berian’s pay if he missed performance goals.

Berian opted for New Balance and Nike opted to sue, arguing that reduction clauses are standard and that New Balance’s contract offer simply neglected to mention them. New Balance filed a court document declaring it never intended to cut Berian’s salary.

In a statement released Thursday, Nike reasserted its right to retain Berian based on its contract offer, but said it dropped the suit to allow Berian to focus on racing. Morgan Campbell