According to a leading sports lawyer, Simon Leaf, who is a specialist in the commercial contract for Mishcon de Reya, Ronaldo could face multi-million pounds claims from sponsors if the rape allegation is proven.
In case you are not aware, Kathryn Mayorga has accused the Juventus forward of raping her back in 2009 in a Las Vegas hotel. She was also reportedly paid a sum of $375,000 and signed a non-disclosure agreement to never speak of this again.
Ronaldo took to Twitter to deny any such accusations:
I firmly deny the accusations being issued against me. Rape is an abominable crime that goes against everything that I am and believe in. Keen as I may be to clear my name, I refuse to feed the media spectacle created by people seeking to promote themselves at my expense.
— Cristiano Ronaldo (@Cristiano) October 3, 2018
My clear conscious will thereby allow me to await with tranquillity the results of any and all investigations.
— Cristiano Ronaldo (@Cristiano) October 3, 2018
However, this alleged report was enough to shake the footballing industry and the sponsors related to the Portuguese star.
He is one of the 3 athletes to have a lifetime contract with Nike, valued at around $1 billion. Nike said that it was “deeply concerned” with these allegations and that it was “disturbing” and would “continue to monitor the situation closely.”
Nike says it is “deeply concerned by the disturbing allegations” facing soccer star Cristiano Ronaldo. https://t.co/pBxw0VCa8R
— The Associated Press (@AP) October 4, 2018
The same goes for EA sports, who also have a contract with the superstar, made similar comments.
NEW from Ronaldo sponsor @EA Sports. “We have seen the concerning report that details allegations against Cristiano Ronaldo. We are closely monitoring the situation, as we expect cover athletes and ambassadors to conduct themselves in a manner that is consistent with EA’s values”
— Rob Harris (@RobHarris) October 3, 2018
DAZN, an internet sports streaming platform, signed Ronaldo as an ambassador in August have taken the allegations “extremely seriously.” Herbalife and American Tourister, other sponsors are yet to comment.
According to Forbes, Ronaldo’s social media presence generates around $176m. He also has ‘CR7’ brands, including the Pestano hotels, his own museum (the Museu CR7) and is rated by Forbes in the top 10 celebrity earners in the world.
Leaf is certain that all his major sponsors will be now checking the detail of their contracts.
“This is likely to include not only their rights to terminate or suspend the relationship if the allegations prove to be accurate, but also whether they may be able to recover past fees paid to him,” said Leaf. “I’d be surprised if in a chunk sponsorship agreement, that we regularly advice on, there wasn’t some kind of representation that Ronaldo provided confirming that there were no issues that he was aware of that may cause the relevant brand harm, such as reputations damage, later down the line. This is one of the most heavily negotiated issues when it comes to a deal of this nature.
“At this stage, it is just an allegation. I’ve seen some contracts where, if there is even the hint of an allegation, brands will suspend the relationship and possibly terminate. A lot of it comes down to the power of the parties. You would think someone like Ronaldo would be in quite a strong bargaining position when approaching a negotiation with major brands.”
Las Vegas police release statement on how a case from June 2009 has been re-opened pic.twitter.com/lq8Kulsi18
— Miguel Delaney (@MiguelDelaney) October 1, 2018
The Portuguese captain has also not been selected for the upcoming international games. He will miss the game against Poland in the UEFA Nations League and a friendly against Scotland.
“We agreed the player wouldn’t be available, wouldn’t be an option for selection,” Mr Santos said. “For the next two squad selections, this one and the one next month, Ronaldo won’t be with us.”
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