Thursday, November 20, 2014

Report: McIlroy lawsuit could cost him almost $40 million

In less than three months, Rory McIlroy will find himself on the stand in an Irish court, testifying on the record in the trial of a lawsuit he brought in 2013 against his former representation at Dublin-based Horizon Sports Management.
McIlroy sued Horizon and its leader Conor Ridge, as well as a few other parties, suggesting the agency signed him to a representation agreement with unfair terms, including commissions McIlroy regards as too high, particularly compared to friend, fellow countryman and then-proxy Horizon recruiter Graeme McDowell. Though McIlroy signed an extension with Horizon early in 2013, months later he broke away from the firm to start his own company, Rory McIlroy Inc., to manage his business interests. Horizon has countersued.
What has leaked out smacks of an ugly case: document requests dragging McDowell and McIlroy's father into the proceedings, a failed attempt at out-of-court mediation, among other things.
McIlroy clearly believes in his case and is willing to see it through. However, what will it cost him -- beyond what is revealed in court -- if he loses? A report in the Daily Mail suggests the worst-case scenario could cost McIlroy some £25 million, or about $39.2 million. The estimation doesn't include a breakdown of costs, but that's likely a lump of legal fees, commissions McIlroy would have to pay to Horizon and potential punitive damages paid to Horizon for the perhaps irreparable damage to its reputation.
The trial begins in February, but McIlroy, who is in Dubai for this week's season-ending DP World Tour Championship on the European Tour, is adamant the looming proceedings won't impact his focus heading into the 2015 Masters, his first chance to complete the career grand slam.
"So yeah, it’s not the best thing to be going through but it will be over and done with a good bit before I have to go down Magnolia Lane in April," he said. "As long as I’ve got a clear head going there, I’m happy with that."

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