The US Tennis Association (USTA) is reportedly planning to file legal action against the Olympus Corporation, an American camera company, over claims that a sponsorship contract was breached.
According to the USTA, the Olympus Corporation attempted to renege on a sponsorship deal planned for 2011, a contract signed by both parties.
The two organisations have worked alongside each other as contractual period of seven years, and they reportedly signed an agreement in 2007 which stated that the partnership would be extended until 2013. A huge part of this deal was that the Olympus Corporation would be the chief sponsor for the US Open Series, an extremely high-profile event.
The contract included a clause allowing Olympus to leave the partnership two years early, but the USTA objected to the camera firm trying to leave before 2011. According to the lawsuit – filed in New York recently – the USTA believes that by trying to prematurely end the contract, Olympus is attempting to avoid making payments totalling $11.6 million, which is the amount owed to the USTA by Olympus in 2011.
The lawsuit looks to be extremely expensive for both parties, but it is presumed that such large organisations will have taken the essential precautionary step of taking out professional indemnity insurance for such issues.
Commenting briefly on the case, Olympus Corporation Vice-President Elizabeth Sullivan said:
“It is unfortunate that the USTA has chosen to file a lawsuit against Olympus. Olympus will file a detailed response to the complaint in due course.”