Sports Technology Contracts & The EU Data Act Chapter 6: What it Means for Clubs, Leagues and Suppliers

Key parts of the EU’s Data Act^[1] (the Act), which many lawyers describe as the most significant change to technology contracts since the introduction of the GDPR, have now been fully in-force for almost 6 months, yet many technology suppliers, sports organisations and indeed lawyers don’t seem to be aware of the disruption it could still bring.

The Act is a wide-ranging piece of EU legislation that establishes new rules governing access to, and sharing of, data generated by connected products and related services across the EU. This article focuses specifically on Chapter VI of the Act^[2] entitled “Switching Between Data Processing Services”.  Chapter VI introduces mandatory rules on switching between services such as cloud platforms and software-as-a-service products. Its provisions are particularly relevant to the sports industry, where organisations increasingly rely on third-party technology platforms for everything from analytics and performance tracking to fan engagement and rights management.  

This article explains Chapter VI within the context of the Act and then identifies key points that sports organisations and tech suppliers should be aware of.

Article overview

• Which tech contracts does the Act affect and how?
• Which services does Chapter VI apply to?
• The main points of Chapter VI
  • Sports organisations gain statutory switching rights
  • Switching charges are being eliminated
  • Early termination fees remain - but only if proportionate
• Opportunities & risks
• Relevance to the UK 
• Practical tips for sports organisation and tech suppliers