Senior judges have ruled that an image rights representation agreement a sports management firm made with soccer star Wayne Rooney when he was a teenager with "stellar potential" was an unreasonable restraint of trade.
Three appeal judges concluded that the agreement Rooney made with Proactive in 2003, when he was 17, was legally "unenforceable".
Proactive Sports Management no longer represents the 26-year-old Manchester United and England striker or his wife Coleen.
But the firm said it was owed commission payments and made a £4.3 million claim.
Last year Judge Brendan Hegarty QC ruled against Proactive following a hearing at Manchester Mercantile Court.
And appeal judges said they agreed with Judge Hegarty's conclusion that the agreement was "unenforceable as being in unreasonable restraint of trade".
Appeal judges Lady Justice Arden, Lord Justice Sullivan and Lord Justice Gross announced their findings following a hearing at the Court of Appeal in London in July.
"Was the judge's conclusion that the image rights representation agreement was unenforceable as being in unreasonable restraint of trade wrong in law for any of the three grounds advanced on this appeal by Proactive?" asked Lady Justice Arden. "Answer: No."