Nike Drops Lawsuit, Helping Olympic Hopeful Boris Berian To Ward Off Distraction

(RTTNews) - Nike Inc. has dropped its endorsement lawsuit against American runner Boris Berian, as it wants the Olympic running prospect to ward off any distraction before the trials. A Nike spokesman reportedly confirmed that Berian is no longer a Nike athlete.

The Sportswear company, which sued Berian last month alleging the violation of Nike endorsement deal, filed a notice of voluntary dismissal late Thursday.

U.S. District Judge Marco Hernandez is set to rule on June 28 on Nike's request for a preliminary injunction to bar Berian from competing in any non-Nike gear at the trials, which begins on July 1.

The company said it wanted to eliminate the distraction of the lawsuit on the eve of the Olympic Trials. Berian, the 23-year-old world indoor 800-meter champion, is a hopeful to get a place in the U.S. squad for the Summer Gamest in Rio de Janeiro.

According to Nike, Berian violated the contract when he agreed to a sponsorship with New Balance Athletics Inc., rejecting a matching offer by Nike.

In a statement, the company said, "Nike legitimately exercised its right to match the New Balance offer and believe we would prove this at trial. As a running company, we also recognize that this is a significant time for Boris and in light of the judge's decision to delay the ruling until June 28th, the eve of the Olympic Trials, we decided to eliminate this distraction for Boris."

Sponsors generally include reduction clauses in endorsement contracts, giving them the option to reduce payment to track and field athletes if a runner doesn't meet certain competitive standards. The Berian case was an example of this, which had faced much criticism in the sportswear industry.

According to copies of the contracts, New Balance's three-year $405,000 contract offered to Berian in January didn't include reduction clauses, while an offer from Nike matched the base pay but included several clauses allowing Nike to cut Berian's take by 50 percent.

Supporting Berian, Nike rivals such as Brooks Running Co., Oiselle Running Inc., and New Balance, filed depositions, saying reduction clauses aren't standard in the industry.

Meanwhile, Berian would wear Nike when he makes into the Olympic squad, as the company is the official sponsor of the U.S. Track & Field team.