Canucks score in sponsorship lawsuit against Canon Canada 0
A B.C. Supreme Court judge has awarded $825,987 to the Canucks after finding Canon Canada backed out of a contract in 2008, which left the team hanging with unsold sponsorship benefits — including pricey advertisement minutes on the Rogers Arena scoreboard. (REUTERS)
The Vancouver Canucks have won an $825,987 suit against Canon Canada over a breached five-year sponsorship and equipment agreement.
At issue are unsold sponsorship benefits the Canucks were left holding for the next several years, having reserved the space for the photo-imaging giant from 2008 to 2013, according to the B.C. Supreme Court decision released Friday.
Losses included dollars from Canon’s expected advertisements on the ice rink’s $15,000-$20,000 per-minute arena displays — the “power ring” and “score clock halos” — which the team couldn’t fully re-sell for four seasons.
The organization also couldn’t resell several player-tunnel signs, a rink-board sign and a full-page Canucks Magazine ad in the first season of the agreement.
Other benefits included autographed items, season tickets and rooms, though the team managed to sell off of its excess tickets.
According to the decision, Canon, under the original agreement, would provide updated office equipment for the Canucks, while it was allowed to buy sponsorship benefits and receives a preferred supplier status with the team.
Canon backed out of the contract in December 2008 a few months after it was signed, according to the decision.
The company will also have to pay HST on top of the claimed amount.