Virtual advertising: legal implications for sport

The latest technological development in television and stadium advertising is virtual advertising. Virtual advertising (also referred to as virtual signage or electronic billboards) refers to real-time video insertions into television broadcasts. This involves overlaying an advertisement into a space in the telecast - either over the top of existing ground signage, or alternatively in a "free-space" on the field of play or in the crowd. This form of advertising is only visible to the television viewer. People at the ground cannot see the imposed sign. There are important legal ramifications associated with this technology. This paper explores the potential legal impact of virtual advertising on key stakeholders. It considers legal implications this technology will have for facility managers, event operators, sponsors and television broadcasters. This review identifies the legal framework surrounding the use of virtual advertising and the obligations of all parties in ensuring that contractual agreements are upheld. A model is developed which highlights the potential relationships. It provides a description of how each party can seek to protect its respective interests.