Originally written on Larry Brown Sports  |  Last updated 11/20/14

Oakley is suing golfer Rory McIlroy and apparel giant Nike for an alleged breach of contract. The suit, which was filed in a federal court in Santa Ana, Calif., on Dec. 10, names both McIlroy and Nike as defendants. Details of the filing are not available through the federal court’s online system, but ESPN’s Lester Munson says Oakley alleges that McIlroy violated his contract with their company by refusing to grant them the “right of first refusal” when the golfer signed a new endorsement deal with Nike. McIlroy reportedly signed a new deal with Nike recently that has been rumored to be for over $200 million. Oakley says its contract to provide eyewear and apparel for the top golfer runs through the end of the year, and that their counteroffer to Nike was ignored. The right of first refusal means Oakley would have a chance to match any offer that included payments to McIlroy for eyewear and/or apparel. Its offer to match Nike’s contract with McIlroy would cost them 30% of Nike’s total deal, which might be around $60 million. Oakley reportedly is seeking an injunction that would block the contract between McIlroy and Nike. They also claim they have spent over $300,000 on a photo shoot and promotional materials for McIlroy in 2013. Munson reports the defense will argue that an email sent from an Oakley executive to McIlroy’s agent saying, “We are out of the mix. No contract for 2013,” means Oakley forfeited its right of first refusal. We’re guessing the sides will eventually settle for some fee.

1 Comment:
  • That's what known as an "efficient breach of contract," i.e., the breaching party stands to make tons of bank even after -worst case scenario - a money judgment is entered against it.
MORE FROM YARDBARKER

Report: Robert Griffin III benched by Redskins for McCoy

Lovie Smith: 2-9 Bucs are still in playoff contention

UCLA QB Brett Hundley likely to enter NFL draft

Bills will return to Ralph Wilson Stadium for Sunday's game

Miller to Oregon transfer rumor originates on Reddit

Valencia FC ditches bat logo amidst DC Comics challenge

LIKE WHAT YOU SEE?
GET THE DAILY NEWSLETTER:

Paul Pierce: Celtics' Big Three was like 'Holy Trinity'

Cubs reportedly offer Jon Lester more than $135 million

Colin Kaepernick: Jim Harbaugh will be back in 2015

Jeremy Maclin not happy with Riley Cooper’s contract remark

Broncos reportedly waive kicker McManus, sign Connor Barth

Report: Browns not committed to Brian Hoyer long-term

Derrick Rose leaves game with hamstring tightness

Rockies pitcher takes shot at former Astros pitcher

WATCH: Paul Pierce signs autograph during game

Jeremy Hill asks great question about alma mater LSU

NBA rookie rankings after 1st month of 2014-15 season

Statistic about Derrick Rose, Jimmy Butler very revealing

Aaron Rodgers blasts those who accused him of trolling Vikings

The century's 10 most one-sided college football rivalries

WATCH: The Good, the Bad and the Ugly of NBA's first month

Sherman mocks NFL media policies in press conference

Why Packers' offense continues to evolve despite success

'Fire Idzik' billboard updated with suggestion for Jets owner

Golf News
Delivered to your inbox
You'll also receive Yardbarker's daily Top 10, featuring the best sports stories from around the web. Customize your newsletter to get articles on your favorite sports and teams. And the best part? It's free!

By clicking "Sign Me Up", you have read and agreed to the Fox Sports Digital Privacy Policy and Terms of Use. You can opt out at any time. For more information, please see our Privacy Policy.

Report: McCoy to start over RG3

Braxton Miller headed to Oregon?

10 most one-sided college football rivalries

Pierce: C's Big Three like 'Holy Trinity'

Maclin unhappy with Cooper comments

Post-Week 13 CFB Playoff projection

What has Masai Ujiri built in Toronto?

How L.A. should replace Hanley

Lester, Red Sox still talking contract

Why each NFL team should be thankful

Could Kentucky beat the 76ers?

Greatest college football rivalries

Today's Best Stuff
For Bloggers

Join the Yardbarker Network for more promotion, traffic, and money.

Company Info
Help
What is Yardbarker?

Yardbarker is the largest network of sports blogs and pro athlete blogs on the web. This site is the hub of the Yardbarker Network, where our editors and algorithms curate the best sports content from our network and beyond.