A Californian court ruled that Nike acted within the law when signing Rory McIlroy on a $20 million a year equipment contract in 2012.

The golfer’s former apparel and eye-wear sponsor Oakley had sued the golfer and Nike in December 2012, alleging that it had not received adequate first right of refusal under the terms of its contract.

Oakley reached an undisclosed out-of-court settlement with McIlroy last November but Judge James Selna found against Oakley when its case against Nike reached the Central District Court of California before Christmas. Court documents reveal Nike made its initial approach to McIlroy's representatives in the Fall 2012.

In a statement released to Golfweek, Nike said: “We are pleased with the court's decision as it reflects the professional approach with which we undertook the negotiations.”