Rory McIlroy: Seeking to cancel agreements.

Golfer Rory McIlroy has claimed he paid over $6.8m (€5m) to his agent Horizon Sports Management Ltd based on unreasonable fee rates “many times greater” than is standard in the sports agency industry.

The contract was entered into in a solicitors’ office on the day of Horizon’s Christmas party “in circumstances of great informality”, Mr McIlroy claims.

The two-time major winner, who has brought his case to the Commercial Court, also alleged Horizon is not entitled to be paid certain, future fees on his $20m-a-year sponsorship deal with Nike.

Mr McIlroy is seeking orders canceling “restrictive” and “unconscionable” representation agreements with Horizon and related companies on grounds including alleged negligence, breach of contract, and breach of fiduciary duty.

Agreements providing for payment to one of the companies of 20% of all pre-tax sums due to him under the Nike deal up to 2017, and 15% of all sums if that contract is renewed after 2017, even if that company was no longer his agent, are “oppressive, it is alleged.

Horizon and the other companies have denied the claims and yesterday indicated that they will slap a counter claim on the 24-year-old golfer in what is shaping up to be a mega legal battle in the big business division of the High Court.

Mr McIlroy, who began a month-long tour of Asia yesterday, was not in court when his case was fast-tracked to be heard in autumn 2014.

Mr McIlroy, with an address in Monaco, claims to have paid more than $6.8m to Horizon based on commission rates of 5% on his pre-tax, on-course earnings and 20% for off-course.

He claims “reasonable” commission should have been 0% for golf course and 5% to 7% for off-course earnings, and he should be repaid the difference. He is also claiming damages.

Among other claims, Mr McIlroy alleges Horizon paid $166,000 of his money to children’s charity Unicef without his knowledge.

The Unicef payment, which was later reversed, was “a deliberate defiance” of an instruction from Mr McIlroy, who supports children’s charities through his personal charity foundation, it is claimed.

Horizon, it is alleged, also converted a first-class plane ticket to Abu Dhabi in Mr McIlroy’s name to business class for use by the agent’s staff without crediting that payment to his account. Horizon had acknowledged it had used tickets belonging to him without his permission on previous occasions, it is alleged.

Mr McIlroy also claims his relationship with the Creative Artists Agency was terminated due to the unreasonable conduct of Horizon, and particularly its managing director, Conor Ridge.

The case is against Dublin-based Horizon Sports Management Ltd, Gurteen Ltd, with a registered address in Malta, and Dublin-based Canovan Management Services, over representation agreements of Dec 2011 and Mar 2013.

In letters to Mr McIlroy, solicitors for the defendant companies alleged he had received “extraordinary benefits” from the work of the agents and is seeking to avoid his contractual responsibilities.

Mr McIlroy claims the initial representation agreement he entered into in Dec 2011 was done when he had little expertise in business matters following a presentation by Mr Ridge at Mr McIlroy’s Belfast home.

The agreement was entered into at the offices of solicitors William Fry during Horizon’s Christmas party in “circumstances of great informality” when he himself had received no independent legal advice and without receiving any draft of that agreement, it is claimed. That agreement gave Horizon complete control over his affairs, including his commercial activities, and placed the defendants in a “position of great trust”, it is alleged.