Key Factors to Look Out for in a Sport Contract.
The development and sales increase gained by sporting activities can not be overemphasized. This has resulted in the creation of various legislations to regulate sporting activities.
Contracts in sports are no different than contracts in everyday life as it binds all the parties involved.
Firstly, it is worthy of note that there are six (6) elements that are necessary for a binding and enforceable contract:
1) An agreement (Offer and Acceptance)
2) Between competent parties;
3) Based upon the genuine assent of the parties;
4) Supported by consideration;
5) An intention to create a Legal Binding;
6) In the form required by law.
A breach of contract can arise where there is a failure on the part of one party to perform his obligation as stipulated.
There are different categories of sports contracts to fit the desired specific needs, and these include:
1) professional service contract also know as a standard player contract (SPK),
2) Endorsement contract, and
3) Appearance contract.
This article will detail on the Standard Player Contract (SPK).
This particular form of contract is said to be similar for all players in a sports game, which has earned it the name "boilerplate".
Boilerplate is standard wording that can be reused over and over without change.
However, differences may arise in the aspect of bonuses and pay given to each player.
Hence, where a sports lawyer (also known as the agent) is involved in this process, his primary role is to properly negotiate the terms of compensation for his client; putting into consideration the rate earned by other players of the same standing as his client. Sports agents play an indispensable role in terms of securing and negotiating contracts for the professional athlete.
Lawyers who represent athletes have knowledge in the fundamentals of contracts and should be familiar with the current market value of their client relative to other athletes within the same sport.
Thus, we shall highlight 10 key factors to look out for in a Sport's Contract.
An SPK should expressly state the following terms in a sports contract:
1) The parties to the contract,
2) The duration of the contract (which most times includes the option to renew),
3)The duties and obligations of every parties,
4)The compensation (also known as the legal consideration expressly stating the salary, bonuses and other incentives)
5) An exclusivity clause,
6) A clause relating to Licensing and Publicity,
7) Specific grounds for termination by both parties,
8) The governing law regarding the Contract.
9) The method of dispute resolution,
10) And the execution date.
Need to be Protected by a Proper Sport Contract?
At Green Quill Solicitors, We advise on a broad range of sport contract and other related issues. We also have remarkable expertise in general sporting and contratual related negotiations.