What is a Sports Contract Review?
A sports contract is a legal agreement that’s typically signed between an athlete and a team or sponsor with whom they wish to work. It explains important aspects of their collaboration, such as terms of employment, payment, duties, and expectations.
Since these contracts are highly customizable, they need to be closely reviewed so that you’re happy with all their terms.
Read the rest of this article to explore what information sports contracts typically contain, how to review them, and when you should consult with a professional lawyer for assistance with the process.
What’s Included in a Sports Contract?
A sports contract usually contains key aspects and terms, such as the following:
- Work scope. This specifies the roles and responsibilities the athlete will have during the employment term. It can include making media appearances, training, and competing.
- Compensation. The agreement must specify the compensation packages the athlete will receive, such as a base salary and bonuses tied to performance.
- Endorsements. Athletes will usually enter into endorsements or sponsorships with brands. The sports contract might include details about these activities so that different agreements don’t clash with each other.
- Intellectual property (IP) rights. How the athlete’s name and likeness can be used for commercial reasons needs to be stated clearly so there is no confusion that can result in infringement or disputes.
- Termination. This states how either party is able to end the contract. It can include buyout clauses.
- Dispute resolution. In the case of a dispute arising between parties, the contract needs to explain the best method for resolving it, such as mediation or arbitration.
- Insurance. Since athletes are at risk of injury, the sports contract needs to include insurance information, such as coverage for medical costs.
How Can You Review a Sports Contract?
When reviewing a sports contract, you should check all terms closely to ensure you protect your interests and reduce your risks.
Here are some tips to consider.
Review it in Hard Copy
It can sometimes be easier to read and review contracts when they’re in printed copy instead of on a screen. This enables you to better spot mistakes and engage with the text.
Flag Anything Unclear
When reading the sports contract, you want to ensure you understand everything so there’s no confusion or room for misinterpretation. Highlight anything that doesn’t seem to make sense, is filled with legal jargon, or needs further clarification.
Think About Your Future Needs
As an athlete, you should review the sports contract while thinking about your future, such as opportunities post-retirement or receiving severance pay after contract termination. This will help you prioritize what’s important to you.
Check Contract Duration
You want to know for how long your contract is effective so that it doesn’t hamper your other career opportunities. Check if there are any post-contract duties you’ll need to fulfil. The contract should also specify if the contract can be extended, terminated early, or renewed.
Clarify all Payments
Some sports contracts can include complicated payment structures and details. The base salary included is just one aspect of payment, as there can be signing bonuses, performance-based bonuses, and even payment for image rights.
Don’t Neglect Injury Provisions
It’s essential to check what injury provisions are available under the agreement so that you’re protected financially if you experience a serious injury. The type of compensation can vary depending on the specific injury, such as disability pay.
Identify Non-Compete and Non-Solicitation Clauses
Some sports contracts containing these clauses can prevent athletes from working with other parties, such as teams, after their contract is terminated. These terms shouldn’t be too broad or restrictive as they can hamper your career opportunities.
Negotiate Unfavorable Terms
If you’ve identified any terms in the sports contract that you would like to change, you should discuss them with the other party. You can also bring these flagged aspects of the contract to a reputable lawyer, who can help you formulate a negotiation strategy to achieve a better deal.
Should You Hire a Lawyer for a Sports Contract Review?
Although you don’t always have to hire a lawyer to review a sports contract, such as if it’s straightforward, it’s highly advisable. These agreements are detailed, complex, and legally binding. If you sign a sports contract that isn’t in your best interest, it can put your finances or career at risk.
Here is how a lawyer can help you negotiate the sports contract review process:
- They’ll use their in-depth legal knowledge to identify any hidden or vague clauses that can put you at risk.
- They’ll spot unfair, unreasonable terms that limit your opportunities. A prime example is a restrictive termination clause.
- They’ll check that the sports contract meets your interests, priorities, and goals.
- They’ll help you negotiate with the other party if anything in the contract should be revised.
- They’ll conduct research to find out if the salary and other compensation you’re being offered is fair.
- They’ll protect you against being exploited, whether by teams or agents.
- They’ll break down the contract so that everything is clear and easy to understand.
- They’ll explain your rights and duties.
- They’ll represent you in the case of a dispute, such as by helping you during mediation.
Where Can You Find a Lawyer for a Sports Contract Review?
Finding a lawyer doesn’t have to be a complicated or time-consuming process. Online legal marketplaces make it much easier, as they put you in contact with professional, reliable lawyers.
An example of a well-known platform is ContractsCounsel, an online legal marketplace where people and businesses can easily find qualified, vetted lawyers for contract reviews and legal guidance. The platform matches you with professional lawyers who have the skills to help you.
Here are the steps to follow if you want to work with a lawyer to review your sports contract.
- Visit the ContractsCounsel marketplace.
- Choose the option for a one-time project and select the “review contract” option.
- Create a free post that describes what you need.
- After sending your request for a sports contract review, you’ll receive bids from multiple vetted attorneys on the platform.
- You can review the lawyers’ profiles to gain information about their background, credentials, experience, and client ratings for other projects.
- Compare the details and select the best lawyer to meet your legal requirements.
