The National Olympic Committee intends to review kit sponsorship with manufacturer Nike, following the tug-of-war over the Rio Olympic Games allotment.
Vice president Ben Ekumbo told the parliamentary Committee on Labour and Social Welfare that they will review their engagement when their contract expires after Tokyo 2020.
Article 13 (right of first dealing and first refusal) of the contract says: Commencing one year prior to the expiration of this agreement, NOCK 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 cannot settle on mutually satisfactory terms,"
Read:
Nock and their agents have also been restricted from engaging in discussions or negotiations with any third party regarding post-contract supply rights.
This is with respect to any products or sponsorship of the national teams 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," the agreement says.
"If Nock receives any bona fide third-party offer at any time on or after the exclusive negotiating end date, with respect to any product supply/sponsorship rights, Nock shall submit to Nike in writing the specific terms of such bona fide 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 third-party offeror," the contract indicates.
"Nike shall have 15 business days from the date of its receipt of such true copy of the third-party offer to notify the Nock in writing if it will enter a new contract with Nock on terms no less favourable to Nock than the material, measurable and matchable terms of such third party offer," it adds.
"If Nike so notifies Nock 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 Nock,"
Prior to the exclusive negotiating end date, Nock 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.
Also read: