Group Created with Sketch.
Volume 26 No. 59
  • Created with Sketch.
  • Created with Sketch.
  • Created with Sketch.

PUMA AWARDED $13.5M IN DAMAGES, AS CARTER LOSES SHOE SUIT

          A Boston arbitrator awarded Puma NA about $13.5M in
     damages for Raptors F Vince Carter's breach of his
     endorsement contract with the company.  Carter terminated
     his Puma deal in December '99 (see THE DAILY, 12/1/99).  The
     arbitrator issued an injunction against Carter, ordering him
     not to wear or endorse apparel or footwear of Puma
     competitors for three years, and also ordered Carter to pay
     Puma's attorney fees and costs (Puma).  In Toronto, Norman
     Da Costa notes that Carter's deal with Puma was signed in
     '98 and was for an estimated $25M over five-years.  Da Costa
     adds it is "not clear whether" Carter will "have to foot"
     the $13.5M award "personally, but it is safe to assume any
     manufacturer will now pay well in excess" of $25M to sign
     Carter.  But if a new deal is reached, there is "every
     likelihood the new manufacturer would ... be willing to
     cover the costs handed down by the arbitrator."  The
     arbitrator was Michael Greco of the law firm Hill & Barlow
     (TORONTO STAR, 7/17).  Also in Toronto, Michael Grange notes
     that "unless some kind of agreement is reached, Carter will
     have to forgo any endorsement income from sports apparel
     manufacturers for three years" (Toronto GLOBE & MAIL, 7/17). 
     Carter's attorney, Stephen Sacks, said of the ruling, "We're
     still digesting everything.  We have not yet decided what
     our next course of action will be" (BLOOMBERG NEWS, 7/17).