What’s next with CarlosTevez

This week has seen the return of Carlos Tevez from his extended period of leave in his home of Argentina.

It remains to be seen how relations are between Tevez and his club Manchester City. It looks like the only way the parties can avoid a long and protracted legal dispute is for a complete and utter reconciliation whereby both the player and the club put behind them the traumas of the last few months. This is not going to be easy for either party and will test the managerial skills of Roberto Mancini.

So what is the legal position?

Already, from a legal point of view there was a spat in the autumn of 2011 when Manchester City tried to impose a fine of £1 million-constituting almost 6 weeks wages. Tevez unsurprisingly challenged that fine and engaged the services of Gordon Taylor from the Professional Footballers Association (PFA).

That resulted in Tevez successfully challenging that initial punishment and a two-week fine (the maximum in accordance with the player’s contract) was substituted thereby saving Tevez in excess of half a £1 million.

However, with Tevez absenting himself from his duties over the last few months the club have been able to impose a fresh two-week fine and clearly this has cost Tevez an awful lot of money.
It has been well documented that Tevez sought during the January window a move from Manchester City. He was courted by AC Milan and Inter-Milan with talk of a move to Paris St Germain. Only time will reveal how close he was to successfully making a move but right now he remains a Manchester City player and under contract until June 2014.

A fit, healthy and motivated Carlos Tevez is worth £50 million and that is where Manchester City have this dilemma. If they wish to recover a successful transfer fee then clearly they’re going to have to play him and place him in the shop window. That becomes a challenge for the manager who has publicly stated that Tevez would never play for Manchester City again.

The legal implications of all of this very interesting. Both Tevez and the club will have engaged the services of lawyers and it is almost inevitable that there would have been an analysis of Article 15 of FIFA’s regulations on the status and transfer of players.

Article 15 states “an established professional who has, in the course of the season, appeared in fewer than 10% of the official matches in which his club has been involved may terminate his contract prematurely on the grounds of sporting just cause. Due consideration shall be given to the players circumstances in the appraisal of such cases. The existence of a sporting just cause shall be established on a case-by case basis”

No doubt Tevez will argue that his manager’s comments have effectively prevented him from playing his trade and he may have a powerful argument that he should be entitled to terminate his contract.

Manchester City of course will argue that Tevez absenting himself and thereby preventing him being picked for the team is a way of circumventing and invoking Article 15.

It will be fascinating to see what develops in the next few days and weeks.

If this was a genuine commercial dispute, one would imagine a commercial judge almost ordering the parties to try and negotiate a resolution via alternative dispute resolution (ADR).
There is no doubt that Manchester City are in a difficult position. They will have to analyse and consider all of their options. Similarly, Tevez himself will need to reappraise his position. He may have to swallow his pride, apologise to his manager and keep his head down with a view to the manager regaining confidence in his playing ability. In the end, both parties may end up winners.

If Tevez can get himself fit and in the right frame of mind he may just be the ’X Factor’ which is needed to drive Manchester City towards premiership success. From Tevez’s point of view he can regain credibility as a world-class player and that in itself may encourage other top European clubs to acquire his services for next season and beyond.

This is a typical case where specialist sports lawyers are needed in order to assess the situation on a day by day basis.

Posted in Players, Coaches & Managers, Regulatory & Disciplinary | Leave a comment

The on-going rift between Professional Soccer and HMRC

For those of us who follow the politics of football, will have found the last few days and weeks very interesting.

The rift between professional football both here and in Scotland with HMR is glaringly obvious.
Messrs Redknapp, Storey and Mandaric have all been exonerated from criminal prosecution of tax fraud from events going back several years during their period together at Portsmouth. It does beggar belief that over £8 million has allegedly been spent on prosecuting a case which on the face of it had all the appearances of a genuine “civil dispute”.

However, the Redknapp case became very much a show trial and demonstrated that HMRC clearly do not like the way football at the highest level runs itself. Clearly lessons need to be learned and there can be no doubt that all chief executives and finance directors at professional football clubs will want to ensure they have all of their tackle in order.

In the last couple of days we have seen two well-known clubs be forced into administration. Portsmouth entered into administration for the second time in two years. It looks like they have had problems paying the tax man.

More glaringly however is the potential demise of Glasgow Rangers-a powerhouse not only in Scottish football but in Europe given their annual participation in the Champions League.

Different messages are coming out but it looks like HMRC have flexed their muscles. There is talk of a potential liability of £75 million to HMRC in relation to liabilities arising from Employment Benefit Trusts (EPT’s) with another £9 million of outstanding PAYE accumulated in the last 12 months and during the period of Craig Whyte’s ownership. Yesterday, was high drama in the Scottish courts with HMRC threatening to appoint their own Administrators if the club themselves had chosen not to enter into administration. The true level of debt will no doubt surface in the next few weeks but it looks as if “the bubble is starting to burst” and the worry is that many other clubs in the Britain could be teetering on financial survival.

In the past HMRC took a fairly relaxed approach towards football clubs. They may have come under pressure from MP’s ‘to go easy’ and to ensure that the fabric of the community was not destroyed. However, given the economic climate and times of austerity the Treasury are under pressure to collect as much tax as possible.

This is not the end of the on-going battle because we are shortly to receive a decision from Mr Justice David Richards on the status of the “football creditor rule” which has irked HMRC for several years.

The one lesson that all football clubs can learn is that HMRC will do no favours. Winding up petitions will be issued like confetti if the trend of using HMRC as a ‘second bank’ continues. It looks like a reality check is coming the way of professional soccer in this country. The likely outcome is that there will be a suppression of wages (some may say long overdue) and with the UEFA financial Fair Play Rules starting to bite we are in for a new dawn of financial prudence.

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Recent Employment Law Changes

Are you wondering how the 1 February change in award limits and amounts payable under employment law may affect your business? FrontRow Legal sets out five things that employers need to know about the new award limits coming into force. The new limits are applicable where the event that gives rise to the award or payment occurs on or after 1 February 2012.

1. Statutory redundancy payment increases
The cap on a week’s pay for calculating statutory redundancy increases from £400 to £430 on 1 February. The new maximum statutory redundancy pay is £12,900.
• Award limits and amounts payable under employment legislation from 1 February 2012.
• Calculators on XpertHR – including a statutory and enhanced redundancy pay calculator.
• Statutory redundancy payments ready reckoner.
• How is redundancy pay calculated under the Employment Rights Act 1996?
• Should regular overtime be taken into account when calculating weekly earnings for redundancy pay purposes?
• Where an employee has recently changed from full-time to part-time hours how should their redundancy payment be calculated?
• Redundancy workflow – guides employers through the redundancy process.

2. Unfair dismissal basic award increases
An award of compensation for unfair dismissal is made up of a basic award as well as a compensatory award. The limit on a week’s pay for calculating the basic award for unfair dismissal increases from £400 to £430 on 1 February. The basic award is calculated in the same way as statutory redundancy pay, so it is based on the employee’s age, length of service and earnings.
• Award limits and amounts payable under employment legislation from 1 February 2012.
• What is the unfair dismissal basic award?
• Unfair dismissal basic award.

3. Unfair dismissal compensatory award increases
The maximum compensatory award for unfair dismissal increases from £68,400 to £72,300 on 1 February. However, no maximum applies in certain circumstances, for example where the dismissal is for making a protected disclosure.
• Award limits and amounts payable under employment legislation from 1 February 2012.
• What is the unfair dismissal compensatory award?
• Unfair dismissal compensatory award.
• Unfair dismissal awards 2010/11 – the number of awards in each band, the highest and the average payments.

4. A “week’s pay” increases for other compensation
The increase to the statutory cap on a week’s pay from £400 to £430 on 1 February will raise the limit on certain other awards a tribunal can make. These include the award for refusing to allow an employee to be accompanied at a disciplinary or grievance hearing, and for failure to follow the statutory procedure in relation to a request for flexible working.
• Calculation of a week’s pay.
• Compensation for failure to comply with the right to be accompanied in disciplinary and grievance hearings.
• Compensation for breaches to the right to request flexible working.
• Compensation for breaches of rights in relation to pay and statutory payments.

5. Guarantee payment increases
The limit on the guarantee payment for a “workless day” rises from £22.20 to £23.50 on 1 February. A workless day is one where the employee is not provided with work throughout a day or shift on which they are normally required to work.
• Award limits and amounts payable under employment legislation from 1 February 2012.
• When is an employee entitled to a guarantee payment?
• Are there any qualifying conditions of guarantee payments?
• Quick reference guide to guarantee payments.

Feel free to contact FrontRow Legal on 0113 394 4398 for more information.

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The art of respecting confidentiality

Over the last couple of days we have seen two high profile individuals in the soccer world namely Joey Barton a premiership footballer with Queens Park Rangers and Fabio Capello, the England Manager, making public comments which could put them in deep water.

Joey Barton is a serial tweeter who believes that there is a right for any individual whether a professional footballer or not to state his views on matters involving the world of soccer and other features of everyday life. He believes in absolute freedom of speech. The problem for Joey is that he has been commenting on John Terry’s high profile forthcoming court case in relation to allegations of racial abuse of his fellow team mates Anton Ferdinand. Without the forthcoming magistrates court case (in July) there may be no significant damage, and could be regarded as “pub gossip”. The problem, however, is that there is a real danger that Joey may have placed himself in deep water for a potential contempt of court matter and his comments have been referred to the Attorney General.

Fabio Capello has decided to go public and make it clear that the decision to remove John Terry’s captaincy was a decision made by his superiors and against his wishes. Whatever Mr Capello’s thoughts are is clearly a matter for him but he may also be in deep water with his employers for breaching either express or implied duties of confidentiality.

Whilst no one will be able to examine the contract between the Football Association and Capello it is inevitable that there will be specific clauses dealing with confidential information.
A typical Managers Contract will have a clause headed confidentiality, which will read:-

“Neither party will at any time (whether during or after the termination of the agreement) disclose any privileged or confidential information belonging to the other party save to the extent required by law, or where such information enters into the public domain, other than as a result of a breach by the disclosing party of its confidentiality obligations under this agreement,”

However, there are more stringent confidentiality clauses which can be imposed upon Managers and Coaches which would read something like: –

“The Manager is aware that in the course of employment he will have access to and be entrusted with information in respect of the business and finances of the club (the employer), and his dealings and affairs, one of which information is or may be confidential.”

“The Manager should not at any time (except the proper course of his duties) during or after the period of his employment under the agreement, by force to any person whatsoever or otherwise make use of (and shall use his best endeavours to prevent the publication or disclosure of) any trade secret or any confidential information concerning the business of finances of the club and the employer.”

It may be argued by Capello that all he was doing was commenting on something which was in the public domain. The interesting question would be whether he sought permission from his bosses to make the comments he did.

Whatever the situation, both Capello and Joey Barton may regret their actions over the last two days.

Joey Barton may well escape contempt of court proceedings on the basis that John Terry’s trial is in front of a Magistrate as opposed to a Judge and Jury.

However, sooner or later what may be regarded as innocent tweeting and facebooking could land an individual in deep trouble.

As far as Capello was concerned he may face disciplinary action by the Football Association at a time when the England football team need stability, leading to the European Championships this summer.

Our advice to anyone involved in high profile sports news stories should consider their position twice before making any public comments. Seeking advice from professional advisers is always the safest way to protect one’s position.

The old adage “a still tongue makes a wise head” maybe something Messrs Capello and Barton wish they may have adopted with the benefit of hindsight.

Posted in Events, Media, Arts & Entertainment, Players, Coaches & Managers, Regulatory & Disciplinary, Uncategorized | Leave a comment

Third Party Player Ownership of Footballers

The Football Association (FA) has alleged that QPR midfielder, Alejandro Faurlin, was fielded illegally by the Club for the whole of the 2009-10 season due to his registration not being owned by QPR, but by a third party.

Specifically, these allegations are concerned with the existence of an agreement between the Club and a third party in respect of the player’s economic rights, and the alleged failure by the Club to notify the FA of that agreement before the player was registered to play in England in July 2009.

For a football player to play for a professional football team in either England or Scotland his registration must be owned by that Club, therefore meaning that the Club has the ownership right over that players services. In recent years, however, there has been a growing trend of footballers being subject to third party ownership.

Third party ownership is the term which is used to describe the situation whereby a football player is registered to play for a Club, but that Club does not own the player and is not entitled to 100% of the future transfer value. From an economic perspective, the third party will give a Club or player money in return for owning a percentage of a players transfer fee or economic rights accruing from their contract.

It is a particularly common system in South America, and as such has crept into the European game due to the biggest Clubs fighting to sign the large number of high quality players coming out of Brazil and Argentina.

The Premier League first became fully aware of such a practice back in 2007 following the high profile dispute over Argentine striker Carlos Tévez, who had then signed for Premiership Club West Ham.

On 23 August 2006, Tévez confirmed on his website that both he and compatriot Javier Mascherano were signing for West Ham United on permanent deals for £12 million each. Media reports at the time speculated that other Premier League Clubs turned down the opportunity of signing Tévez and Mascherano because of stipulations put in place by Media Sports Investments, who owned both players’ rights.

After an investigation at the end of the 2006/07 season, the independent Premier League disciplinary tribunal fined the Hammers a record £5.5 million for the signing of Tévez and Mascherano as they were found to have been partially-owned by businessman Kia Joorabchian’s Media Sports Investment (MSI) Company. West Ham were not charged at the time with breaching the prohibition on third-party ownership because the rules were not yet then in place.

This decision was widely criticized at the time as many felt the fine was not severe enough; particularly as West Ham were not docked points and debate still rages as to Tevez’s ownership. Their disciplinary case was brought by the Premier League for their failure to supply all relevant documentation in a transfer and acting in bad faith, both of which are alleged to have been committed by QPR.  

The worrying feeling behind 3rd party dealings is that players are seen as commodities, and individual or agent companies may act as a speculator by purchasing a percentage in a player from the Club in the hope that their value will go up. This is a situation which is simply not in the player’s best interests or in the interests of the game as the transfer fee does not go to the Club.

Following the West Ham and Tevez affair, The FA has imposed strict rules to regulate the involvement of third parties in transfers, thus hoping to create openness and clarity in transfer dealings.

Under the newly created Third Party Investment in Players Regulations, The FA has now raised allegations against QPR with specific reference to parts A1 and A2, being that, before registering a player for a Club, the FA must “be satisfied that there exists no agreement between the Club, player and a third party”. The FA is understood to allege Faurlin’s owner was a company and that QPR had submitted false information in documents lodged with the FA when Faurlin signed an extension to his contract in October 2010, much like the situation with West Ham in 2007.

No Club has yet been charged under the new rules, so the FA commission hearing the QPR case will be under pressure to set a convincing precedent if it upholds the charges. They will be keen to have the case decided soon, so that any penalty will come into effect this season to avoid a repeat of Sheffield United’s much benighted fall from grace after the Tevez affair. By way of comparison, in June 2008 Luton Town were docked 10 points by the FA for breaches of rules which included the dealing with unlicensed agents, none of which was as substantial as Faurlin’s.

These rules, introduced in June 2009, importantly do not act retrospectively, and as such existing third party player ownership which does not fall foul foot he previous regulations will be allowed until that player is transferred.

QPR issued a statement on Wednesday saying the Club will be “denying all of the charges and requesting a formal FA hearing to determine them. QPR are confident that there has been no deliberate wrongdoing involved”.

FrontRow Legal will provide further developments on this case as it progresses……………

Posted in Players, Coaches & Managers, Regulatory & Disciplinary, Sports Business | Leave a comment

What’s in a name?

With the sad passing of Jane Russell this week, we can all reflect that in her hey-day, some gentlemen did prefer brunettes. The various obituaries that we have come across at FrontRow talk of her status as a ‘Hollywood Sex Symbol’ and a ‘glamorous pin-up’. Image and style were as important then as they are now. Back then we had the boast from MGM (which was later denied by the actress) that Betty Grable had her legs insured for £1million. Now we have Heidi Klum who insured her legs for a little over that sum.

The most recent example of protecting one’s brand arguably comes from Julian Assange who wants to trade mark his name.

Assange filed for three trademarks recently: WikiLeaks, WIKILEAKS and JULIAN ASSANGE. Assange’s application seeks to protect his name in the areas of “Public speaking services; news reporter services; journalism; publication of texts other than publicity texts; education services and entertainment services”. This is a rather confined list of specifications, compared with other trade marks that are on the Intellectual Property Register. Once the application is advertised, opponents will have two months (which can be extended to three months) to raise objections.

Trade marking a common name is not as difficult as one would imagine provided that there are not other brands in the market which pose a real risk of confusion. Where it will get interesting will be to see whether the owners of Wikipedia (Wikimedia) object to the registration of WikiLeaks. Assange will argue that he has had a strong presence in the market and that his product has enough of a reputation not to be confused with the internet encyclopedia. Rather, he may be looking to protect himself from his present and future competitors, such as OpenLeaks.

Brand protection is a vital commodity in today’s market. Assange has reportedly come under criticism for his new status as a celebrity, given his roots in waging a ‘war on secrecy’. However, in this case he is perhaps just following in the footsteps of others who have sought to protect their product, their image, and almost, one might argue, their livelihood.

Heidi Klum’s a model. She needs those legs. And Assange is now a household name which he needs to protect.

We will continue to track the progress of the trade marks.

Posted in Media, Arts & Entertainment | Leave a comment

In The Red – The Return

Former Liverpool owners Tom Hicks and George Gillethas been given the limited chance to launch a damages claim against the Royal Bank of Scotland (RBS), former Reds chairman Sir Martin Broughton and New England Sports Ventures (NESV) over the sale of the club. The move comes after orders barring the action in the United States were varied and partially lifted by Mr Justice Floyd, a High Court Judge in London.

An anti-suit injunction is an order issued by court that prevents an opposing party from commencing or continuing a proceeding in another jurisdiction. Hicks along with his former co-owner and business partner, George Gillet, wanted to lift anti-suit orders in the Texas courts to halt the sale of the club back in October 2010 in which they believe they lost around out on about $1bn (£620).

After Broughton, NESV and RBS filed a request that the courts prohibit the former owners from commencing legal action against themselves outside of the EU, Mr Justice Floyd dismissed Hicks and Gillet’s application to lift the injunction and has varied the anti-suit injunction to allow Hicks to make an application in the US to support any proceedings in this country. The condition of this is that Hicks would have to give seven days notice to the parties that he is intending to sue.

Perhaps more importantly, the pair must now bring any claims they have in the UK and are not able ‘play at home’ in the sense that they are now prevented from pursuing a lawsuit in the United States, where it is worried that the US courts would be much more liberal on the issue, without the permission of an English court who will arguably take a stricter view.

To make matters worse for the American duo, Mr Justice Floyd also dismissed an application to strike out claims by Sir Martin Broughton who is seeking damages against Mr Hicks for his actions whilst club owner.

The background to this matter is the sale of Liverpool to NESV  now renamed the Fenway Sports Group, owners of the Boston Red Sox, for £300m last year. Hicks believes that he was the victim of an “epic swindle” when the sale was forced against his wishes. We at Front Row legal covered the sale and the High Court battle that ensued in great detail.

Hicks and Gillet bought the club back in 2007 for £220m. After an initial investment, the club was hit by the financial crisis in 2008 and it soon became clear that they did not have the financial muscle to compete in the premier league. They both reluctantly agreed to sell the club but were looking to make a handsome profit. Fellow board members took the view that the price they were asking, reported to be around £800m, was ridiculous and forced through the sale with NESV.

NESV bought the club after repaying a loan Hicks and Gillet took out with RBS. Hicks and Gillet at the time sought a temporary restraining order in Texas with the intention of stopping the sale. The anti-suit injunction was granted at this stage “on the basis of what appeared to be the unconscionable conduct of the former owners in seeking to undermine the English proceedings”.

Mr Justice Floyd in his decision not to discharge the injunction said “the reality of the situation is that the former owners have already started two sets of proceedings and openly asserted their intention to start more…there is a real threat that those proceedings will be in the US.”

“The disputes concern an English asset, duties owed by English directors under English law to English companies, and corporate governance arrangements governed by English law.” By varying the order only, Mr Justice Floyd was of the opinion that the former owners should be free to make applications in the US courts that would serve to aid proceedings in the UK.

Now at risk of potential legal action, a spokesperson for RBS defiantly said; “The courts described similar claims made last year by Hicks and Gillet as ‘not realistic and abusive’. Any further claims against RBS will as such be vigorously opposed”

Speaking today to Sky News on the issue, Richard Cramer said that the start of any legal action by Hicks would not likely cause any day to day disruption to the running of the club. “Liverpool have been striving for stability on and off the field, and now for the first time in a long time they have stability off the field. What it will do is mean the dirty linen that hovered over the club during the Hicks and Gillet era will now be aired and the true extent of the turmoil will be revealed.”

Posted in Regulatory & Disciplinary, Sports Business | Leave a comment

Football’s spending frenzy

With the rest of the country feeling the pinch of over stagflation and the government not being able to keep on public libraries, football’s detachment from social reality was proven yesterday in the final 24 hours of the January 2010/2011 season transfer window.

In total, clubs spent circa £220m, with a staggering £135m dished out by clubs in one day alone, breaking the previous record set in the 2008 season, when a trifling £175m was shelled out in total. As the last two hours of the transfer window approached, English clubs had already broken the £100m barrier for transfer fees spent this month. By way of comparison – just £29m was spent by English clubs this time last year.

The big news of the day was the breaking of two British transfer records inside the space of a few hours. Spanish centre forward Fernando Torres was, at the beginning of the day, the main attraction of media focus, and he took centre stage as he made his move to Chelsea for a English club record of £50m, placing him 4th on the biggest world transfers list.

But whilst all the attention was focused on Torres, Liverpool FC made a move for Newcastle striker Andy Carroll, and it followed that at the age of just 22, Carroll become the most expensive English player. His reported price of £35m beat the previous record set when current England captain Rio Ferdinand left Leeds for Manchester United in a deal worth £30m back in 2002, incidentally making the man with one senior international cap to his name the 9th most expensive player of all time.

But what impact do these big figures have on the clubs themselves? One might assume that if football manager’s have such big wallets to play with then in terms of balance sheets the accountants must sleep well at night.

On the contrary. Yesterday, Chelsea reported a £70.9m loss in the year to June 2010 – despite winning the Premier League and FA Cup. And this is coming from a club that has just forked out £70m for two players, Torres and Benfica centre back Luiz, coming in at a cool £21m.

And all this comes in light of the fact that three weeks ago, Uefa presented its annual report documenting the vast, unnecessary losses top-flight European clubs are making  in the game’s greatest ever commercial boom. The Premier League, by far the worlds grates commercial competition, made the higher income – £2.3bn in total – but 14 of our clubs made hefty losses. The debts of the 20 clubs, owed to banks or capitalists, were £3bn.

With Uefa’s financial fair play regulations (intending to curb such spending by the big clubs) just around the corner, failure of clubs to balance the clubs would lead to bands from European competitions by 2015, and that’s a price none of the top English clubs are able to pay.

UEFA’s head of club licensing Andrea Traverso has said that the proposing of the regulations had been of the utmost urgency, given the global financial crisis which had affected all sectors of the economy. Traverso also said that the core principle of the financial fair play concept and the new regulations was the “break-even” requirement, under which a club must not repeatedly spend more than its income – thereby stabilising European club football finances over the long term.

But by proposing these new regulations, Uefa may potentially have fuelled the sort of frenzy of spending that they were trying to eliminate? Some may argue of course that with the advent of the spending rules changing by 2013, this is the last chance for clubs to spend big. The way the sport works today, by the elite clubs spending £200m or so on players, this will be written off once qualification for the Champions League is ensured, given the amassed sponsorship deals that will follow.

But for all of Europe’s top clubs it won’t be that simple. Any big transfer fees will have to be written off over the course of the player’s contracts. It is not purely a case of writing down £50m in January and starting off with a fresh page in August. In the case of Torres, for example, a 5 year contract at £10m a year will have to be accounted for, yet alone his salary, making it even harder to balance the books.

It has however been suggested that what with the huge revenue in image rights that football now carries, elite clubs now carry a powerful punch and may use the likes of Torres to force Uefa’s hand and relax its view on club spending, when they take into consideration  the amount they can charge for television revenue.

But such a view would underestimate the determination of Uefa to enrol a ‘fair play’ policy when it comes to finances, hoping to avoid another Portsmouth FC style administration. Michel Platini, the Uefa president, sets out a standard that all clubs should follow to ensure the long-term survival of the game. In his view, the financial ‘doping’ of clubs bankrolled by debts and wealthy owners cannot continue.

Posted in Players, Coaches & Managers, Sports Business | Leave a comment

ANDY COULSON – RESIGNED TO RESIGN

ANDY COULSON – RESIGNED TO RESIGN

Andy Coulson, the Prime Minister’s Director of Communications announced his resignation on Friday. Coulson’s first resignation was back in January 2007, when he stepped down from being Editor of The News of the World amid allegations that phones belonging to members of the Royal Household had been hacked into. Coulson’s Royal Editor, Clive Goodman, was imprisoned, along with Private Investigator, Glenn Mulcaire, (for four and six months respectively) for phone hacking and retrieving voicemail messages belonging to members of the royal household. Coulson  maintained that he and other big players at the company had been kept entirely in the dark by Goodman, who they claimed acted as a “rogue reporter” but still felt conscionably responsible enough to step down as Editor-in-Chief. Coulson subsequently accepted a position with the Conservative Party, working for David Cameron – which would keep him very much still in the public eye – five months after he left News of the World

On 5 January 2011 it was announced that Ian Edmondson, assistant News of the World editor, had been suspended from active duties after evidence reportedly emerged that Edmondson had asked Mulcaire to hack into voicemail messages belonging to the football agent Sky Andrew. The results of this investigation are not known.  This arguably placed additional pressure upon Mr Coulson and ensured by confirmation of reports in the media.

The “rogue reporter” defence lacks strength in some areas and it remains to be seen whether the judiciary will consider it to have much bearing going forward. A basic presumption under civil law is that the employer is vicariously liable for his employee’s actions for work carried out during the course of his employment. It will arguably be a challenge for tabloid editors to argue that they remained ignorant of their employees’ activities. Whilst this may seem unfair to members of the press who argue that a certain degree of control is exercised by journalists independently of supervision, FrontRow Legal would advise that you always keep a handle on your staff’s methods of investigation, especially as the laws surrounding privacy continue to develop.

Claims against The News of the World for invasion of privacy mount as others join Sienna Miller and Max Clifford.

Posted in Media, Arts & Entertainment | Leave a comment

Kicking sexism into touch

Innocent banter or potential sacking offence? If nothing else, the various comments made by Andy Gray which led to his dismissal have highlighted the inherent dangers of discrimination, however discreet, within any organisation.

The BBC was recently found guilty of age discrimination against Countryfile presenter Miriam O’Reilly; at Sky Sports the roles are almost reversed as it is employees who have inadvertently, but spectacularly, demonstrated their outdated sexist views.

Nowadays, even the most innocuous of comments beside the coffee machine could reverberate among colleagues and right to the top. You don’t have to be a public figure like Gray to find yourself disciplined for a casual or unintended slur on another human being, whether on the grounds of gender, race or age – but how many organisations have in place a proper diversity and equality policy to address discrimination within their ranks? And how many actually act on its contents?

In short, the purpose of such a policy is to provide diversity and equality to all employees irrespective of gender, race, ethnic origin, disability, age, nationality, national origin, sexuality, religion or belief, marital status and social class, to prevent all forms of unlawful and unfair discrimination.

The policy should promote a working environment where all employees are treated fairly and equally; it should be enshrined in an organisation’s company handbook and/or intranet guidelines, monitored annually and implemented across the whole workforce. Any breaches of the policy should be regarded as misconduct with the potential to lead to disciplinary proceedings.

You might hope that the football industry would have learnt its lesson in 1998 when Rachel Anderson – at the time the only female football agent in England – famously won her case against the Professional Football Association: they had refused her entry to the PFA awards ceremony because she was a woman. And yet, thirteen years later, Gray and his fellow commentator Richard Keys have been branded “prehistoric” and football generally an “old boys’ club.” And now Gray has paid the ultimate price for his sexist attitude.

Although this incident has been positive in bringing the sport’s “institutionalised sexism” into the open, it has reinforced that we still have a long way to go before we will witness true equality. Sexism is still rife among pals in pubs across the country, but we can go a long way towards encouraging more enlightened attitudes by addressing the issue within places of work – both inside and outside the sports industry.

Posted in Players, Coaches & Managers, Regulatory & Disciplinary | Leave a comment

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