The world’s best golfer is about to put his career on hold to prepare for a court battle against his former management company.
Rory McIlroy says he was young and naive when he signed a contract with a Dublin-based management company that collected commissions of 20 per cent on lucrative endorsement deals with likes the of Nike, Omega and Bose.
McIlroy claims his agreement with Horizon Sports Management is unenforceable on grounds that include ‘undue influence’ and absence of independent legal advice.
Perhaps even more bruising to the young golfer is that it is believed the deal is less favourable than one with countryman and Ryder Cup team-mate Graeme McDowell, who is both a client and a shareholder of the company.
The Commercial Court Judge in the case wisely suggested that the sides try to mediate the dispute before proceeding to trial.
What is Mediation?
Mediation is a non-adversarial process that allows disputing parties to meet privately and confidentially to work out an agreeable solution to their mutual problem.
Participants have an equal opportunity to share their side of the story in an effort to promote settlement, compromise, and understanding.
The mediator does not evaluate or make judgments – he listens and asks questions to help parties fashion their own mutually-beneficial resolution.
There are many good reasons why McIlory and his former management company should give it a try.
Timeliness
Mediation is faster than litigation, and the parties have more control over their timetable.
Most mediations can be completed in a few hours compared with months or even years in litigation.
If this matter goes to trial, it will disrupt McIlroy’s preparations for The Masters, derailing a chance for him to become the sixth player in history to win a career Grand Slam.
Cost Savings
The cost of mediation is a fraction of what will be spent in court.
A survey released this spring by Canada’s Mediate BC Society showed that the average total mediation fee for family disputes in British Columbia was just $1,784 shared between both parties.
In contrast, Canadian Lawyer magazine reports that the average legal fees for litigation of a family dispute through a two-day trial are $14,500 per party.
Costs may not be paramount to millionaire golfers, but certainly matters to the rest of us.
Confidentiality
This disagreement is becoming a public spectacle with potential to cause lasting damage to the reputations of both Rory McIlroy and Horizon Sports Management.
American golfer Phil Mickelson took a jab at McIlroy, McDowell, and the European team at this year’s Ryder Cup by saying that not only do the United States players get along “but we don’t litigate against each other”.
Mediation will allow McIlroy and Horizon to keep details of their dispute in the clubhouse instead of the courthouse. What happens in mediation is confidential, and cannot be disclosed at any judicial proceeding or trial.
Preservation of Relationships
The relationship between Rory McIlroy and Horizon is severely damaged if not destroyed. It will be worse after litigation.
Since mediation is a collaborative process rather than adversarial, relationships often can be salvaged.
Will Mediation Work?
Most disputes can be handled quickly and easily through mediation – with a high level of satisfaction.
To be successful, McIlory and Horizon must genuinely wish to achieve a settlement.
This may not be the desire of one or both of the parties – but each has many good reasons to be open to a process that holds the promise to save time, money, reputations, and stress.
(Jay Witherbee is a mediator, facilitator, and dispute resolution specialist based in Halifax, Nova Scotia, Canada)