Monday, 14 October 2013

Rory McIlroy's former management company claims breach of contract

• Former world No1 launches court action against Horizon
• McIlroy set up own company after terminating contract

Rory McIlroy's former management company has vowed to vigorously defend a court action against it by the former world No1, and the Horizon Sports Management is claiming breach of contract.

McIlroy was not present at Dublin's commercial court morning when his action, which relates mainly to the level of fees taken by Horizon, was launched. The Northern Irishman has set up his own management group after claiming he has terminated his Horizon deal.

McIlroy is understood to be trying to recover €7m (£6m) from Horizon in a belief that fees charged during an 18-month spell with the Dublin-based firm were excessive. While under Horizon's guidance, the 24-year-old signed an equipment deal with Nike worth US$100m over five years.

A full trial date for the case between McIlroy and Horizon has been set for next October. Court papers reveal McIlroy claims he was misled.

McIlroy maintains he was not furnished with any draft of the agreement with Horizon before it was presented to him for signature on 21 December, 2011, in a solicitor's office on the day of Horizon's Christmas party "in circumstances of great informality".

In his statement of claim, McIlroy alleges the Horizon agent Conor Ridge acted primarily in the interests of his company as opposed to, and to the detriment of, the interests of McIlroy.

"In particular Horizon and Mr Ridge were primarily concerned with maximising their own share of any commission," alleges the McIlroy statement.

McIlroy claims a first-class flight to Abu Dhabi he paid for in his name was changed for a member of Horizon's staff, and that Ridge did not tell him about a dispute with his head of strategy, Donal Casey, over the Nike contract.

The statement also alleged Horizon paid the children's charity Unicef $166,000 (£104,000) of his money in March without his knowledge or consent and was "in deliberate and knowing defiance of an instruction". This payment has since been reversed.

In a statement, the firm said: "Horizon Sports Management ("Horizon") notes with disappointment Rory McIlroy's decision to initiate legal action seeking to terminate his representation contract.

"Since October 2011, under Horizon's management, Rory McIlroy has signed some of the most lucrative endorsement contracts in sports history, in addition to achieving significant success on the golf course. Today, he is one of the world's most highly remunerated sports people.

"In March 2013, he signed an extension to his representation contract up to 2017. Rory McIlroy has now announced that his business interests will be managed by Rory McIlroy Incorporated. As a consequence, he is in breach of the representation contract into which he willingly entered.

"This legal action seeks to void his representation contract from its original date, recover fees already paid and avoid paying any further fees as stipulated by the agreement.

"Regrettably, this legal action has been taken despite Horizon's efforts to reach an orderly and fair resolution. The claim will be defended vigorously and comprehensively in legal process.

"Horizon has confidence in its position. This confidence is underpinned by a legally binding contract and the clear evidence of the exceptional job done for Rory McIlroy by Horizon.

"We will always be proud of what Rory McIlroy and Horizon achieved together and we wish him well in his future golf career."


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