Demand for sports arbitration in Hong Kong is expected to grow as disagreements between local athletes and commercial brands emerge, a top justice official said, giving rise to a pilot scheme to resolve disputes in the industry.

Deputy Secretary for Justice Horace Cheung also expressed confidence that a dispute resolution institution would be appointed to run the two-year pilot programme for sports dispute resolution.

The Department of Justice is looking for a suitable administering body and a technology provider to operate the initiative, with interested parties required to submit a joint proposal by July 31.

The appointed institution will provide support for mediation and arbitration and could open before the end of the year.

In an interview with RTHK, Cheung said the legal sector envisioned the need for a sports arbitration mechanism in the SAR, citing a recent commercial dispute between a local athlete and a sports brand over a sponsorship contract.

The case stemmed from the athlete feeling upset about being used for marketing by the brand without getting any monetary reward following a major tournament victory, and opting to work with another company instead. The brand subsequently filed a lawsuit against the athlete.

"In the past, there were very few athletes in Hong Kong who had achieved good results in international competitions," Cheung noted.

"But in recent years, we have seen an increasing number of high-performing athletes in different sports. Some of them are basically celebrities. So there will be more and more potential cases requiring arbitration in this sector."

On a separate note, Cheung said 560 lawyers have already qualified for a trial scheme allowing legal practitioners in Hong Kong and Macau to practise civil and commercial law in the Greater Bay Area.

He said lawyers should adopt a "blue ocean strategy" – where they eschew competitive areas in legal services and seek uncontested fields with potential for growth.

"Over the past one or two years, I feel that we have found an opportunity and a path," Cheung said.

"Areas such as cross-border asset restructuring and cross-boundary transactions could not be handled by mainland lawyers themselves. They need assistance from practising lawyers in the Greater Bay Area who are familiar with Hong Kong."