Advertisers are "trying to see whether they have the appropriate contractual rights to protect them now that they’ve lost key moments in their media plans" due to the "cancellation or postponement of nearly all sporting events," according to Seb Joseph of DIGIDAY. The "makeup of those contracts will go some way to deciding whether an advertiser should pull or pause those media dollars reserved for sporting events that may never happen." But "acting on those contracts isn’t straightforward," as some advertisers "have already discovered." One "common way for advertisers to try and ease the financial blow of no sports is through force majeure clauses in their contracts with media agencies." There is a "bit more wriggle room for advertisers when those media contracts are specifically for a sporting event because the ads cannot be shown during the intended event if it’s canceled." Attorney Ronald Camhi said, “Everyone is hitting the pause button where they can when it comes to media commitments. We’re seeing advertisers try and pause parts of their media plans and move their ads into direct-to-consumer channels.” Joseph notes until sporting events return, "some advertisers are trying to rejig media plans on the fly." At present, it "seems more likely that the commercial blow to media owners" will come from advertisers in the "entertainment, travel and luxury sector" (DIGIDAY.com, 3/23).
