12/09/2014

McIlroy Devices in Dublin Discovery


The High Court in Dublin has been told that golfer Rory McIlroy deliberately wiped clean up to eight mobile phone and electronic devices, even though they may have contained important information relating to his legal action against his former sports management company.

Lawyers for Horizon Sports Management and two other companies said the "factory resetting" of devices was also done to devices belonging to three other key figures in the case, including Mr McIlroy's father Gerry.

Senior Counsel Paul Sreenan said this resetting was "incredible" for a person in Mr McIlroy's position.

Horizon wants orders from the court for further disclosure of documents and inspection of electronic devices.

Mr Sreenan said his clients had to bring the application because Mr McIlroy had refused or failed to respond to requests for better disclosure.

He said Rory McIlroy and three others close to him had also wiped their devices before passing them on to others or to charity.

Mr McIlroy is suing Horizon, along with Gurteen Ltd, with a registered address in Malta, and Canovan Management Services, also based in Dublin, claiming a representation agreement signed by him in December 2011 is invalid and unenforceable on a number of grounds including alleged undue influence.

The defendants deny the claims and have counter-claimed for around US$3m allegedly outstanding under the agreement for off-course revenues.

Mr Sreenan said Mr McIlroy had given no satisfactory explanation for the destruction of electronic data on his devices.

He said if his side's experts gets the devices, it may be possible to recover some of the information sought or other information of assistance to the case.

He said it was a very serious matter for the administration of justice where someone involved in court proceedings had failed to preserve material, he said.

Mr McIlroy had initially claimed he changed his devices regularly because of his "transient lifestyle".

But today he had stated he changed them to avoid phone calls from journalists, the court was told.

The defendants believe he could not have changed phones and devices without backing up data and conversations because it would mean, for instance, ongoing conversations about who would be on the Ryder Cup team would be wiped.

Earlier, Mr Sreenan said difficulties over the December 2011 agreement arose "when the ink was barely dry", counsel said.

Mr McIlroy had set up his own company called "Rory McIlroy Inc" essentially to manage himself which was resisted by Horizon.

Around the same time, key figures who had worked for Horizon, including Mr McIlroy's personal assistant and a consultant, started working for the golfer's new firm, counsel said.

Mr Sreenan said the amount of lost commission to his clients is now estimated at $9m.

Mr McIlroy, in his claim, says Horizon charged commission "many times greater" than is standard in the sports agency industry including one agreement in which he must pay 20% of his sponsorship and 15% if the contract is renewed after 2017.

He also alleges Horizon is not entitled to be paid certain fees into the future related to his $20m a year sponsorship deal with sportswear giant Nike.

He says he has paid more than $6.8m to Horizon based on commission rates of some 5% on his pre-tax on-course earnings and 20% for off-course.

This agreement was entered into when he was 22, with little business expertise and without the benefit of legal advice, he says.


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