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How procurement of digital services shows the critical role of legal expertise in Sports

Football teams aren't just about what they do on the pitch. They have become global businesses that depend on strategic procurement to stay on top and in order to create a global brand.

Take for example Manchester United. For many years, Manchester United were by a distance the most commercially successful English football club, leading the way in opening new revenue streams that built momentum that has seen them remain commercial juggernauts.

One standout example of a long term project which will likely have involved a significant quasi procurement of services process is their partnership with Indian company HCLTech, which began in or around 2015.

When the deal was announced it was reported as being to create: “….a state of the art technology hub within the team’s Old Trafford stadium to establish a unified supporter experience and set a benchmark for digital interaction in the sporting world.”

This move was emblematic of Manchester United’s commercial dominance at the time. Their revenue for the 2014/15 season totalled £395.2 million – the highest of all Premier League teams, and more than £40m ahead of Manchester City with the second-highest. Globally, United were third, behind only Real Madrid and Barcelona.

For sports clubs, this kind of procurement will involve more than just buying services; it will require carefully structured contracts covering consultancy, technology integration and supply chain improvements. A wide range of different legal expertise will have been essential to ensure compliance with data privacy regulations, intellectual property rights, and clearly defined service levels.

Such is the competitive nature of elite sport, where clubs are constantly looking for ways to gain the edge over their rivals and others look to catch up, similar technology partnerships are now widespread in English football’s top flight – Arsenal’s partnership with Acronis, Liverpool with Wasabi Technologies, Manchester City with Cisco, to name a few.

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Why does this matter?

In sports, as in business, procurement of complex services carries risks in the form of: delays, data breaches, IP disputes, and non-performance which can all impact operations. Lawyers working alongside procurement teams help draft contracts that assist with risk management, protect sensitive information, and create mechanisms for dispute resolution.

The unique position that elite sporting names have as pillars of their communities, with fanaticism on a huge global scale and intense media attention and scrutiny, means that all these risks are amplified. The potential implications for the reputations of clubs and their suppliers are significant, as is the pressure to ensure that any such partnerships are mutually beneficial.

Manchester United’s example highlights how specialist legal support is needed to ensure a quality process when a sports club wishes to pursue innovation and operational excellence behind the scenes. By safeguarding interests through well-negotiated agreements, legal teams enable sports organisations to confidently invest in innovative technologies and long term partnerships — which, if executed right, will help fuel growth on and off the pitch.

Ward Hadaway is a leading law firm with offices in Birmingham, Leeds, Manchester, Newcastle and Teesside. As a full-service firm, we have leading expertise across the full spectrum of law – including in respect of sports law and procurement. If we can help you, please get in touch.

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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