Athlete’s Marketing Rights: Part 1 - The Amendment of Rule 40 of the Olympic Charter

 


 

Athletes have value. They are obviously hard-working, determined and incredibly talented individuals, but that’s not what I’m referring to here. Many Canadian National Athletes also possess immense value in marketing themselves. It is no secret that Athletes, even those fortunate enough to be carded, rely on sponsorship and advertising agreements to pay the bills. For our top-level Athletes, their value in leveraging these agreements is at its peak during the Olympic Games. However, there has historically been what is referred to as a “blackout period” of approximately five weeks where the Athletes were not allowed to take advantage of the spotlight they earned by way of promoting personal sponsors.[1]

 

The home of the rules surrounding Athlete’s marketing rights is the Olympic Charter.[2] Bye-law 3 to Rule 40 (the Rule that prohibited personal advertising during the blackout period) was amended in June of 2019. Olympic Athletes may now market their own name and image for profit[3], so long as they adhere to the guiding principles of the relevant Games. The International Olympic Committee (IOC) published these guiding principles for the Tokyo Games, which listed restrictions to personal marketing that Athletes should be aware of.[4] For instance, if a non-Olympic Partner is promoting an Athlete, it must avoid the use of any Olympic Properties.[5] Furthermore, sponsors can now publicly congratulate its Athletes, and likewise, Athletes can publicly thank their sponsors. There are more rules surrounding personal marketing at play, but all in all, this is a positive step forward for Olympic Athletes around the world.

 

The battle for Athlete’s marketing rights, and more broadly, Athlete’s rights in general, is not a new phenomenon. Athlete associations worldwide, such as AthletesCAN, have been fighting for the rights of Athletes for decades. A turning point on the issues surrounding Rule 40 was a push made by the German Olympic Sports Confederation (DOSB). The German Athletes Commission sent an open letter to IOC President, Thomas Bach in 2015, which outlined their position and dissatisfaction with Rule 40. The DOSB negotiated with the IOC prior to Rio and PyeongChang regarding its Athlete’s marketing rights. While progress was made before each Games, the precedent setting case came in 2019 before Germany’s competition bureau.[6] It was found that several of the practices performed under the guise of Rule 40 restrained trade and were unfair competition practices. This decision was then leveraged into the amendments that were ultimately made to the Olympic Charter. However, one thing remains clear: the marketing restrictions following this decision, although they are better, are still quite restrictive.[7]

 

So, what does this mean for Canada’s Olympic Athletes? They now have an opportunity to get a piece of the Olympic pie. By marketing their image and performance, Athletes may finally be able earn enough to cover all of the necessities of being a high-level Athlete, which will hopefully lead to higher performance, and in turn, greater marketing value. It’s a cycle that has now been given a strong spin. And in the age of social media, Athletes are in a greater position than ever to create their own platform and market themselves. It is definitely not the end of reform for freedom on the personal marketing of Athletes, but the changes to Rule 40 are a step in the right direction.

 

By: Tyler Matthews

Program Manager, Sport Solution

 

 



[3] Ibid at s.40(3).

[4] Ibid. Note that the COC has published guidelines that adhere to these principles.

[5] These includes properties such as Olympic symbols or logos, Team names, the name of the host city and the word “Olympic.”

[6] Decision Pursuant to Section 32b GWB, 2019 B 2 – 26/17

[7] See a future edition to this series for more details on the state of the marketing restriction post-Tokyo Games.

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