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PGA files breach of contract lawsuit against tour sponsor

Posted by William J. Cook | Jan 31, 2019 | 0 Comments

Becoming a sponsor for a major business entity can give a company in Florida or elsewhere a substantial amount of exposure. However, it can also be a major responsibility, and should either party fail to fully comply with the terms of the arrangement, heated disputes may ensue. The Professional Golfer's Association has recently filed a breach of contract lawsuit against a tour sponsor after claiming the company failed to keep up with sponsorship fees.

The lawsuit reportedly stems from an agreement between the PGA Tour and the company Digital Ally. The company entered an arrangement to become a sponsor for the tour and have one of its tournaments named the Digital Ally Open. Although the deal was originally set to continue for a five-year period, the PGA Tour asserts that the other company hasn't paid its annual sponsorship fees for two years.

The PGA Tour has accused Digital Ally of breach of contract and is seeking nearly $1.2 million in restitution for financial losses. However, Digital Ally claims that the arrangement has failed to prove as financially fruitful as expected. The company also asserts that other legal proceedings previously left it facing periods of monetary strain, but representatives assert that the company is now financially stable and wishes to resolve the issues and continue to sponsor the tour.

Financial disputes can place a substantial strain on business relationships. When similar concerns lead to allegations of breach of contract, all parties involved could benefit from obtaining legal counsel for guidance on how to proceed. An attorney can help a client in Florida better understand all the available options and help form a strategy on how best to protect his or her business interests.

About the Author

William J. Cook

William J. Cook represents clients in matters involving business litigation and commercial and employment disputes, securities litigation, insurance, personal injury. Mr. Cook's peers have awarded him with the highest possible rating of AV-Preeminent* by Martindale-Hubbell, which speak...

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