Governance and Sports Law: MMA, Agency, and Restraint of Trade

This report delves into the realm of governance and sports law, examining the rules and regulations governing cage fighting, also known as Mixed Martial Arts (MMA). It explores the evolution of MMA, the importance of safety measures like the Octagon, and the legal implications of the sport. Furthermore, the report analyzes the significance of agency and restraint of trade for sports professionals, using the Wayne Rooney case as a key example. The case highlights the legal battle between Rooney and his former sports management firm, Proactive, concerning commission fees and contract validity. The report discusses the judge's interpretation of the contract as a restraint of trade, and the implications for both parties involved. The provided references offer further insight into the legal and regulatory frameworks affecting sports, providing a comprehensive overview of the subject matter.

Governance and Sports Law 1
GOVERNANCE AND SPORTS LAW
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Governance and Sports Law 2
Governance and Sports Law
The Rules and Regulations of Cage Fighting and Its Appeal
Cage fighting can also be referred to as Mixed Martial Arts (MMA) which is a world
class sport growing at a very fast rate. It enjoys maximum promotion through the Ultimate
Fighting Championship (UFC) where world champions and Olympians of martial arts
participate in the same. These are professionals who have spent most of their adult lives
participating in different disciplines. The modern MMA practitioners participate in a variety
of martial arts which includes wrestling, boxing Muay Thai and Brazilian jiu-jitsu or
kickboxing, taekwondo, karate and judo. The approaches and styles of the various combat
sports introduce a different tactical complexity level only unique to the specific sport (Green,
2015).
The fence is a critical measure of ensuring safety for the competitors and avoidance of
unnecessary wounds and injuries. It is for this reason that legislative changes have been made
to the effect that most MMA bouts are conducted in a fenced ring as a boxing ring without a
fence exposes the competitors to significant danger. A fighter may be pushed or thrown
through the boxing ring ropes where they may fall outside the ring and on the outside floor,
thus getting injured. The fence comes in to prevent such problems by providing a surface that
ensures the fighters’ stability. Unlike in the 1990s and early 2000s, the UFC has shied away
from the underground image to embrace the fence (the Octagon) as a utility matter and a
trademark for intellectual property.
Since the official sanctioning of the MMA in 2001, 4 competitors have succumbed in
America as a result of the bouts. One of the competitors had fought merely two months after
he was knocked out in a previous bout. This is contravention of the concussion policy of the
UFC which provides a minimum recovery time of 60 days. Since the 2001 sanction, the new
owners of UFC have instituted regulations to provide for the legitimacy of the sport. The
sport has been legalised by the current government and the UFC has taken strict actions of
terminating fighters’ contracts that face domestic violence and ensures a clean record of new
fighters.
The Victorian government made a move of lifting a ban for the use of the octagon
around the ring which cleared way for a major tournament of MMA in Melbourne. This was
actualised by John Eren, the Sports Minister after fighters made appeals that it was safer to
have a cage to surround the ring. Mr. Eren stated that even though Mixed Martial Arts is a
legal sport in Victoria, it was necessary to surround the ring with a cage to facilitate the safety
of the fighters. He continued to say how most stakeholders he had spoken to had expressed
how it was unfair for the previous government’s failure to look after the sport. The octagon is
a high mesh fence meant for the fighters’ safety and not any tactical advantage (Savage,
2015).
The Importance of Agency and Restraint of Trade for Sports Professionals

Governance and Sports Law 3
Wayne Rooney, a football striker for England and Manchester United, won a court
case which was brought by Proactive, a firm specialising in sports management, in 2010.
Proactive had been Rooney’s representative and had sued him for # 4.3 m for an accusation
that he withheld commission on deals of multi-million pound that Proactive had brokered.
The payments were not made as Rooney left together with Paul Stretford, the football agent
as well as founder and director of Proactive in October 2008.
Wayne Rooney had gone for a holiday in Barbados after World Cup. He had been
signed for Proactive by Stretford in 2002. Since then, the young player elevated from an
Everton trainee of #80 per week and living with his parents in Croxteth in Liverpool to later
being a multi-millionaire playing for Manchester United and England, enjoying deals of
sponsorship with Coca-Cola, Nike, among others. Proactive held the argument that it is
Stretford who brokered the deals for Rooney and Coleen, his wife on behalf of the firm which
added up to #4.3m, the 20% commission.
The judge, Brendan Hegarty QC, read his judgment on the matter, having postponed
the ruling at the court of Manchester Mercantile until the World Cup had come to an end. The
judge interpreted that the original contract signed between Rooney and Proactive added up to
a restraint of trade as this was up to a period of 8 years, yet a two year maximum had been
recommended by the Football Association. This therefore meant that that Proactive only
remedy from Rooney and his wife would be a “restitutional remedy” which would amount to
around #90,000. An appeal application from the lawyers of Proactive was rejected by Judge
Hegarty. Ian Mill QC,a representative of Proactive, addressed the court and stated that
Proactive would consider the option of filing an appeal with the Court of Appeal.
Rooney later made a statement on his delight on having won the case. He added that
he, together with his wife, did not have a problem in paying all the commissions they owed
people as long as they were fair and reasonable and not aimed at any sort of exploitation and
acknowledged the judge’s fair and just interpretation of the law aimed at preventing the
mischief of exploitation (The Guardian, 2010).

Governance and Sports Law 4
Reference List
Green, P 2015, The Rules, regulations and appeal of cage fighting- aka Mixed Martial arts or
UFC-explained <http://www.theage.com.au/victoria/the-rules-regulations-and-appeal-
of-cage-fighting.html>
Guardian app 2010, Press Association
<https://www.theguardian.com/football/2010/jul/15/wayne-rooney-proactive-paul-
stretford>
Savage, A 2015, MMA cage fighting: Victorian Government to lift ban on octagon
<http://www.abc.net.au/news/2015-03-04/mma-cage-fighting-ban-lifted-in-
victoria/6279836>