ground 1: right of first call
ground 1: right of first call
Contractual provisions
Clause 2.7 of the First Contract stated as follows:
Notwithstanding any other provision of this Agreement, Sky shall have first call on the Company’s Personnel [Mr Barnes (Footnote: 2)] for the provision of the services. … Neither the Company nor any Personnel shall endorse or promote or otherwise grant any rights of association or provide marketing or promotional services to any competitor of Sky, its products, brands or services.
The Key Terms included the following (FTT[31(1)]:
The Assignment will be from 1st June 2013 to 31st May 2017 on an ad hoc and when required basis for up to 228 days. For the purposes of this Agreement, “Year” means each consecutive 12 month period commencing 1st June each year.
In the Second Contract, the definition of “services” included the following:
The Company shall provide the services of the Personnel as a commentator, interviewer and/or other participant in the making of any editorial, programme and/or video whether in vision or audio and/or whether in studio or on location, live or recorded on an ad hoc as and when required basis by Sky for up to two hundred and twenty eight (228) days per year during the Term.
The above shall include, by way of example only, appearances on Sky Sports News (including reacting to breaking news stories), appearances on other Sky Sports programming and the provision, on request by Sky, of additional bespoke content (including but not limited to columns, blogs and interviews) for use on Sky Sports’ digital services.
While the “services” to be so provided are defined slightly differently in the First and Second Contract, for both contracts, clause 1.1 of the “Key Terms” provides as follows:
The Services will be provided on the terms set out in this Agreement subject to any variations agreed by the Parties in writing and to any Associated Company as may be agreed between the parties from time to time.
The term “Associated Company” is definedas, broadly, a holding company or subsidiary of BSkyB or a company controlled by BSkyB (Footnote: 3).
- Heading
- Introduction
- THE LEGISLATION AND THE ISSUE BEFORE THE FTT
- THE APPROACH TO DETERMINING WHETHER THE INTERMEDIARIES LEGISLATION APPLIES
- background facts
- the ftt’s decision
- grounds of appeal
- ground 1: right of first call
- Basis of appeal
- Significance of issue
- Arguments of the parties
- Discussion
- ground 2: the third rmc stage
- HMRC’s appeal
- Arguments of the parties
- Nature of HMRC’s challenge
- FTT’s self-direction
- Discussion: the factors identified as relevant by the FTT
- Factors (1) and (2)
- Factor (3)
- Factors (4), (5) and (9)
- Factor (6)
- Factor (7)
- Factor (8)
- Factor (10)
- Factor (11)
- Factor (12)
- Conclusions
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