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CSA wins $175,000 from Hyundai for breach of contract


Vic

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Ha! Not likely to see a Hyundai badge anywhere a CSA property anytime soon I'd expect. Which may or may not be a big deal but suing an unhappy sponsor doesn't sound like especially good business to me.

In a ruling released this week, Justice Robert Smith of the Ontario Superior Court said there was nothing in the sponsorship contract requiring the CSA to “maintain a positive reputation and to avoid any negative media publicity.”

I'm pretty sure for the CSA's part that wasn't just a happy accident.

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The important part of this story ... is we now know the relative value of a major CSA sponsorship deal... is chump change, 125k then 175k over two years 300k ......breakdown the advertising cost and the CSA gives very good exposure on tv/live for the amount of sponsorship.... is Winners paying as much ?

The downside of course of a suit is that the next sponsor is going to put in a "moral action clause" to allow them to exit an agreement when the CSA embarasses itself.

I have to give Hundai props for calling a spade a spade, and pulling sponsorship if they felt it was harming their brand.... message to CSA pooh bahs... do things right openly ...with transparancy don't lie to a sponsor saying your men's u20 team will do well and they sponsor will get lots of basking in the glory.

Now.... just who is out selling sponsorship to the Women's team... who are showing they can get glory ?

CSA spokesperson Scott any comment ?

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I have to give Hundai props for calling a spade a spade, and pulling sponsorship if they felt it was harming their brand.... message to CSA pooh bahs... do things right openly ...with transparancy don't lie to a sponsor saying your men's u20 team will do well and they sponsor will get lots of basking in the glory.

CSA spokesperson Scott any comment ?

Sorry Trillium but I think this is complete BS. Regardless, of the problems of the CSA, Hyundai basically tried to screw Canadian soccer. In fact, one could call them the corporate equivalent of Begovic. They signed a two year deal with the CSA for sponsorship of which the absolute main attraction was the U-20 World Cup. Hyundai got lots of publicity at the U-20, probably worth far more than what they paid even if they had paid the two year sum. It is also probable that there were other possible sponsors who might have paid more to sponsor the event itself than Hyundai but Hyundai won because they offered a long term sponsorship with more total money. Then when the main benefit of the sponsorship was over they tried to find a BS excuse to get out of it before even paying half of the agreed upon sponsorship sum. Certainly the internal problems of the CSA were not pretty but they received very little media coverage and very few outside of the hardcore Canadian soccer fans knew about them. In other words they had absolutly no impact on Hyundai's image among the general public and even those aware of and critical of the CSA would still have looked upon any sponsors positively.

So to get straight to the point, Hyundai basically tried to scam the CSA and with it Canadian soccer. The CSA has done a lot of things poorly no doubt about that but suing Hyundai is one of the things they did right. I don't think it will effect other potential sponsors at all as it shows some professionalism on the CSA's part. I imagine the CSA also won court costs but I wish the judge had awarded them damages in addition to the initial sum.

And if anyone from Hyundai is reading this, here is a message: F-UCK YOU HYUNDAI. You have lost any good will you got from Canadian supporters from the sponsorship by trying to scam us and our association and showing that your are a dishonest and dishonourable company.

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^ But as Grizzly said, no one outside of this forum really knew much about the fiasco with the predecessors to P. Montopoli.

I think Hyundai tried to bail because of the crap-fest that was our U20 WC appearance and got quite rightfully nailed for that transgression.

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CSA will probably get less sponsorships now due to this lawsuit.

You really think? "Oh, we better not go into business with the CSA; if we breach our contract they'll sue us for it." What? That's the score in every line of business! If you think that sponsoring Canada's soccer programs is good for your business, you won't change your mind because of that. Maybe you'll insist on an out in the contract if some morals clauses are broken, but that's it.

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