Restraint of Trade & MMA: Legal Analysis and Case Studies

This report delves into the legal intricacies of Mixed Martial Arts (MMA) and the concept of Restraint of Trade. It begins by addressing the safety concerns in MMA, discussing the legal implications of injuries within the context of tort and contract law, including the principles of 'assumption of risk' and 'consent,' and the impact of cage fighting bans. The report then transitions to Restraint of Trade, particularly in the context of elite sports as a commercial industry. It examines the application of common law, the significance of contracts, and the legal implications of agreements that may unreasonably restrict a person's professional activities. The report uses the case of Proactive Sports Management Limited v Rooney to illustrate restraint of trade and its implications for athletes. It also discusses free agency, salary caps, and the role of courts in resolving disputes within the sports industry. The report concludes with a summary of the legal remedies available to athletes and the importance of protecting parties with weaker bargaining power, especially young sportsmen.

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Restraint Of Trade & Mixed Martial Arts
By; Student’s Name
Code + Course Name
Professor’s Name
University Name
City, State
Date

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Question One
Mixed Martial Arts
Safety in sports is now held with significant regard more than it has been before, especially in
combat sports. For many years, humans have been parties to athletic and recreational activities
involving violence which in turn results into physical risks to participants, spectators, officials
and bystanders (VerSteeg, 2016, p. 1). Most legal systems do not know how to deal with injuries
resulting from violence in sporting activities (Haegerich et al., 2014). It has been said that the
legal issues arising involve the law of tort and the law of contract. The law of tort gives special
meaning to the terms “assumption of risk” and “consent” in certain sports. Presence or absence
of consent, for example, is the determining factor on the distribution of legal rights. On the
assumption of risk, when one expressly allows assuming risks of injury, that is said to be by
means of contracts. Implied assumption of risk is determined by Tort law (VerSteeg, 2016, p.
10). Being involved in MMA and boxing sports is to be interpreted as consent should there be
injuries (Kemp, 2017). In the case of Murphy v. Steeplechase Amuse. Co., (1929) 166 N.E. 173,
the principle of “Volenti non fit injuria” was introduced to state that one who is involved in sport
agrees to the dangers in it.
With the recent lifting of the ban in the use of cages in MMA sports by the Victorian
Government, there has been controversies as to the outward conception of violence from the
general public (ABC News, 2015). The intention of the government to remove the ban was in the
interest of the safety of parties to these kinds of sports and not just the athletes. It was upon the
outcry of the fighters than indeed the octagon cage made the sport safer, that the ban was
dropped. The initial perspective regarding the justification of the ban was that it sent a negative
image to the young generation about violence.
Green (2015) states that the fighters involved in MMA are not the unprofessional and unqualified
personnel who are dropouts of college wrestling programs and only desperate for financial gains

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but trained world-class athletes with vast experience and training. This raises the implication that
the scope of violence will be so minimal. To add on that, the octagon fence is to ensure the safety
of the athletes that means all the other people (spectators, etc.) are less likely to face violence
from the sport. The fact that MMA introduces boxing, wrestling, jiu-jitsu, kickboxing, karate,
and judo or taekwondo is not for the extremity of violence but bring a taste of tactical complexity
that makes the whole experience, an interesting one (Green, 2015). Unlike boxing where ropes
are involved and a fighter might be kicked out and fall on the floor, the idea of the fence in
MMA is providing a stable surface for participants to contend against. This is by no chance
related to making the sport extreme as a marketing strategy.

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Bibliography
ABC News. (2015). MMA cage-fighting ban to be lifted in Victoria. [Online] Available at:
https://www.abc.net.au/news/2015-03-04/mma-cage-fighting-ban-lifted-in-victoria/6279836
[Accessed 25 Mar. 2019].
Green, P. (2015). The rules, regulations and appeal of cage fighting – aka Mixed Martial Arts or
UFC – explained. [Online] The Age. Available at:
https://www.theage.com.au/national/victoria/the-rules-regulations-and-appeal-of-cage-fighting--
aka-mixed-martial-arts-or-ufc--explained-20150312-1424yv.html [Accessed 25 Mar. 2019].
Haegerich, T.M., Dahlberg, L.L., Simon, T.R., Baldwin, G.T., Sleet, D.A., Greenspan, A.I. and
Degutis, L.C., 2014. Prevention of injury and violence in the USA. The Lancet, 384(9937),
pp.64-74.
Kemp, A.H., 2017. Mechanisms Underpinning the Link between Emotion, Physical Health, and
Longevity. Frontiers in psychology, 8, p.1338.
Murphy v. Steeplechase Amuse. Co., (1929) 166 N.E. 173
VerSteeg, R., 2016. Consent in Sports & Recreational Activities: Using Contract Law
Terminology to Clarify Tort Principles. DePaul J. Sports L. & Contemp. Probs., 12, p.1.

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Question Two
Restraint of Trade
Elite sport is a commercial industry. The business involves lucrative contracts and sponsorships
and it contributes to massive multibillions of dollars annually (Johnson, 2009). Elite sportsmen
are without doubt professionals in their field. For that reason, common law is applicable in sports
and not just in businesses as it has been in the past. The success of sporting activities is
dependent on contracts. These contracts lessen the possibilities of disputes between the privy
parties and are legally enforceable as a general rule. Nevertheless, if the provisions of a contract
go against public policy, they cannot be enforced.
As an example, when an agreement unreasonably restraints a person in their exercise of
professional trade, it cannot be legally binding and therefore cannot be executed (Johnson, 2009).
This is what is termed as the restraint of trade and can be seen from the case of Proactive Sports
Management Limited v Rooney [2011] EWCA Civ. 1444. In the case, Wayne Rooney was
involved in a tussle with the agency (plaintiff) on the exploitation of his image rights for an
unreasonable duration of time (8 years). The decision of the case shows the importance of the
restraint of trade in restraining agencies from introducing overly restrictive contracts (Cottrell,
2019). Moreover, lawyers and agents are guided on avoiding such outcomes.
The restriction of trade has been a significant provision to athletes who expect equal treatment
like other professionals of other disciplines. Athletes cannot accept practices that restrain their
professional activities. There are legal remedies should they be restrained from trading activities.
In this case, courts can engage restraint of trade resulting from free agency for athletes. This
means players whose contracts have expired have the right to sign a contract with any club of
their choice. Free- agency has been highly opposed by sporting leagues and clubs as it limits
their capacity to moderate their sport. To that effect, clubs and leagues have a tendency of using
supplementary rules that restrain sportsmen, for example, salary cap and player draft.

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The intervention of courts brings controversy in that sports have extra features that are not as
those of normal businesses. In Rooney’s case, the restraint of trade ensured that he was not
restrained to pay a 20 % commission for all gross fee received from promotions, endorsements,
and advertisements deal for the three years that remained after 2008 to Proactive agency since he
had signed to Stretford’s new agency- Triple S (O'Leary, 2017, p. 109). Rooney was only to be
entitled to a restitutional remedy of 90,000 pounds (The Guardian, 2010). Furthermore, the
restraint of trade prevented Rooney from exploitation over an exceedingly contractual duration.
The normal period that was considered was about 2 years. This shows that restraint of trade is
there to protect parties with weak bargaining power like young sportsmen.

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Bibliography
Cottrell, S. (2019). Restraint of trade and contracts in sport: lessons from the Rooney case.
[Online] LawInSport. Available at:
https://www.lawinsport.com/topics/sports/item/restraint-of-trade-and-contracts-in-sport-lessons-f
rom-the-rooney-case [Accessed 25 Mar. 2019].
Johnson, J., (2009). Restraint of Trade Law in Sport. Sports Law eJournal, 1(1), p.6393.
O'Leary, L., 2017. Employment and labour relations law in the Premier League, NBA and
International Rugby Union. Springer.
Proactive Sports Management Limited v Rooney [2011] EWCA Civ. 1444
The Guardian. (2010). Manchester United's Wayne Rooney wins court case brought by
Proactive. [Online] Available at:
https://www.theguardian.com/football/2010/jul/15/wayne-rooney-proactive-paul-stretford
[Accessed 25 Mar. 2019].