NKE Nike Inc

By Sara Germano 

A federal judge granted Nike Inc.'s request to temporarily prevent Olympic running hopeful Boris Berian from competing in non-Nike gear, even as three rival sportswear makers filed affidavits in support of Mr. Berian.

Judge Marco Hernandez of the U.S. District Court in Portland, Ore., granted a temporary restraining order that prevents Mr. Berian from endorsing or competing while wearing any products from Nike's rivals until a hearing scheduled for June 21.

Nike has sued Mr. Berian, the world indoor 800-meter champion, saying he has violated the company's sponsorship agreement by accepting an endorsement deal from New Balance Athletics Inc. and running in New Balance sneakers in recent races. Mr. Berian's agent said the athlete has withdrawn from two upcoming races.

Last June, Nike signed Mr. Berian to a short-term contract that expired Dec. 31 but kept rights to match any competing offer for 180 days. Mr. Berian accepted an offer from New Balance in January and has run in New Balance gear, even though Nike argues in its lawsuit that its sponsorship remains in effect.

At issue in the case is the inclusion of so-called reduction clauses, provisions in an endorsement contract that can reduce base pay for poor performance. Nike claims in its lawsuit they are industry standard. New Balance and Mr. Berian's agent say the New Balance contract had no such reductions. New Balance isn't a defendant in the lawsuit.

"New Balance does not, as a standard business practice, demand reduction provisions in its contracts with runners," John Evans, New Balance's general manager of running sports marketing, said in a sworn statement.

Several smaller sportswear firms filed affidavits this week in support of Mr. Berian. Jesse Williams, director of sports marketing at Brooks Running Co., wrote that "in the twelve years that I have been at Brooks, we have not signed any athletes to a contract with reductions." Sally Bergesen, chief executive of Oiselle Running Inc., wrote that reduction clauses "are not uncommon in the industry, but nor are they standard."

In addition, the Brooks runner Nick Symmonds filed a declaration saying he was formerly sponsored by Nike but left for Brooks "because Nike demanded reductions and Brooks did not." Mr. Symmonds competes against Mr. Berian primarily in the 800-meter discipline.

The U.S. Olympic Trials in track and field, which determines the American delegation to the Rio Games, are scheduled to begin July 1 in Eugene, Ore. Mr. Berian's agent said this week that the runner would reconsider running in the event if he were forced to compete in Nike gear.

Nike had no immediate comment but said Monday it "values its relationships with athletes and we expect them to honor their contractual commitments."

Write to Sara Germano at sara.germano@wsj.com

(END) Dow Jones Newswires

June 09, 2016 02:49 ET (06:49 GMT)

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