AFI to take disciplinary action if athletes flout sponsorship rule; lawyers question overreach

NEW DELHI: Dr Adille Sumariwalla, an ex officio member of the Athletics Federation of India (AFI), has defended the move requiring athletes to obtain approval from the governing body before signing an endorsement deal.

In a circular issued on April 2, AFI notified its state units, chief coach Radhakrishnan Nair, athlete management agencies, and potential sponsors that athletes will now require mandatory prior approval from the AFI "before entering into any agreement or contractual arrangement with any sponsor or third party."



The circular followed 6-8 months of consultation with athletes, coaches, and stakeholders, building consensus before its implementation.

"We need to protect our athletes because most of our athletes are not really educated. (They) cannot go through a 30-page contract, and they don't know what [they're] signing. They are told, 'We will give you so much money, sign here.' Then they don't get the money," Sumariwalla told TimesofIndia.com.

"There are certain clauses which are not conducive to the athlete. If the athlete is injured, they will not get paid during that period. There are so many such clauses. So we look at them and tell the athlete, please don't sign these contracts.

"It is our duty to protect our athletes. I don't see anything wrong," he continued.


The former AFI president opted against taking names where an athlete has been duped by a "sub-agent" or sponsor. He maintained that if the contract is okay, it will be approved in 2-3 days. If not, they will enter into mediation with the athlete and the sponsor, with the AFI bearing the costs of this legal process.

He clarified that an athlete can sign a contract even if AFI advises against it, but in the interest of ensuring transparency, they will make the errant clauses public.

Additionally, if an athlete chooses to sign a contract without bringing it to AFI's notice, they will be subject to disciplinary proceedings.

"We will send them to the disciplinary committee. Why would they not follow a rule that's been set up? If there is a rule and that rule is being flouted, there will be a consequence," Sumariwalla explained while referring to World Athletics' mandatory SRY testing for athletes as a benchmark.
'Federation not in position to govern personal contracts'

Adille Sumariwalla (Getty Images)

The move has been hailed by some and questioned by others, including the agencies that bring sponsors for these athletes, but one of the challenges will be in ensuring that it holds in court.

"A sportsperson’s career is short-lived - starts in the teens (Roger Federer signed by Nike at 13) and typically ends in the late 30s. Well-managed image rights can enable an athlete to earn money far beyond this period. Accordingly, certain basic principles have been built in sport, like the 3+ rule to bifurcate between endorsement (personal) and sponsorship (team) contracts (Virat Kohli endorsing Puma whereas the Indian cricket team having Nike as their sponsor back in the day), which is how typically sports federations have been operating and earning revenues all this while," explained sports lawyer Aahna Mehrotra.

"A sports federation is not in a position to govern personal contracts. Sure, there can be reasonable restrictions built into a participation agreement/terms and conditions of a federation, like not fulfilling personal commitments during an event or a championship or when called for national duty or that they must not endorse products that are against the law of the land, but that’s pretty much it.

"The fact that it is being projected as being in the best interest of the athlete is debatable, as negotiations between brands and athletes are pretty confidential. We have previously seen an issue between Mohammed Salah (football player) and the Egyptian FA, wherein there was an allegation against Egypt Air (airline company) for breach of privacy rules, so this may give rise to a lot more trouble, even though maybe intending to do good," she continued.

Sumariwalla conceded that an athlete is free to take the legal route against the AFI if they believe their interests are being hampered by the process.

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