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Sports Attorneys and Contracts [by Danielle D. Hansen, J.D.] This week at LawCrossing, we examine the world of sports agents and other attorneys who might be involved in the world of professional sports. From contract negotiation to public relations, this is a very specialized realm that can be quite rewarding should you pursue it.
The world of professional sports can be a
do so. It’s an overly specific situation where
The agent, of course, tries to negotiate as
stereotypically mysterious realm for some
his agent is inexperienced to some degree,
high a base salary as possible, just in case
females, but in my case-having grown up
and breach of contract, repayment fees, and
the client does not reach the milestone bo-
with two brothers-this wasn’t necessarily the
labor & players’ union bylaws are all coming
nuses. Injury clauses are a part of these con-
case. Even to a casual sports fan, there are
into play.
tracts as well. No where else in the working
some basic things we all know, one of which
world are employees (the athletes) subject to
is that most pro athletes are well paid. And
The National Hockey League is currently
such daily wear and tear on their bodies as
with those high salaries come some fairly
enduring a lock-out, a situation where the
in pro sports. It’s up to the agent to ensure
complex contracts, which in turn require
team owners are not allowing their players
that players are paid in full if they are injured
attorneys.
to begin the season due to contract disputes.
on the job, just like in any other profession.
The agents of individual players are fairly
So if a player gets hit by a hockey puck and
Now the basic sports attorney who repre-
uninvolved in this situation. Instead, the
has to miss a week while convalescing, the
sents individual athletes in their contracts is
unions have attorneys and the owners have
contract-and the agent-will make sure he is
an agent. The sports agent looks out for the
attorneys. There is plenty of legal work to go
still paid.
best interest of his client, including getting
around as negotiations continue. These contracts also contain specific provi-
him the best deal. This best deal rarely simply means the most amount of money, which
We point these out to show examples of cas-
sions for the dates an employee will work.
we will get into a little later.
es where attorneys can indeed be involved in
A football player performs once a week on
the world of sports without necessarily hav-
Sundays, but that doesn’t mean he’s only
Besides having a sports attorney (agent),
ing to be a sports agent. These lawyers must
obligated to “work” on those days only. The
many pro athletes these days are employ-
have a thorough understanding of the sports
practice schedules begin early each sum-
ing other attorneys as well. The headlines
world and players’ rights and responsibili-
mer and continue on into the dead of winter.
are full of unfortunate stories about pros
ties, but they won’t be involved in the day-to-
Players might only get one or two days of per
who have run into legal trouble, from drugs
day activities that an agent might be.
week, if that, and these types of things are
to assault, gambling to sexual offenses. It’s
spelled out in the contract as well.
a sad fact that many athletes have had to
So what might those duties be? What types
retain defense counselors in addition to their
of things are involved in a pro athlete’s
Unions also have their say in these contracts.
agents.
contract? Well, for starters, there’s the
One popular example that any sports fan
salary. There’s generally a base salary, and
has heard of is the no-trade clause. These
There are also less common circumstances
there are often bonus provisions. If a player
are amendments to the contract that clearly
where athletes need attorneys for specialized
becomes an all-star, for example, he may be
state that a player cannot be traded unless
events. These affairs are not in the realm
paid extra. Other such bonuses we’ve heard
the player himself approves it. Generally,
of the agents, so special counsels must be
of include extras for playing in a certain
these are clauses reserved for athletes who
brought in. Take the case of Ricky Williams,
number of games, avoiding injury, hitting
have a certain length of tenure with one team
for example. He was a Miami Dolphin run-
certain statistical milestones (such as hitting
or within the league as a whole. The unions
ning back who retired at the beginning of the
40 home runs in baseball or averaging 20
feverishly and regularly go to bat-no pun
season. And now that he wants to un-retire
points per game in basketball), among many
intended-for their members, and they are
and return to the National Football League,
others.
often responsible for getting clauses like
he’s had to retain counsel to look into how to
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these into league bylaws. Agents must work
continued on back
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LEGAL CAREER INFORMATION YOU CAN USE
in close conjunction with the union in this
something that they have signed a contract to
regard, because an agent for a rookie player
do? Not at all.
cannot demand such clauses through the league the way he can for a veteran.
In these cases, the agent may go public, telling the media about how great his client is
Another duty of the sports agent is often pub-
and why he deserves the money. The deserv-
lic relations. There are unfortunate instances
ing part is rarely in question. If someone is a
when a player refuses to report to work under
superstar, then they deserve the high salary
his current contract, and this is generally
that today’s sports market affords. But no
called “holding out.” A player often signs a
matter how much they deserve, they already
deal to play for 3 years, for example, at a base
signed a contract that says they will work for
salary. If that player excels and becomes
less money. A signed, sealed and delivered
one of the best in the league or if he sits on
document.
the bench in relative obscurity, then his base salary is still the same, as predetermined by
The agent tries to get the public on his side
the contract. So whether a player excels or is
in hopes that the fan base will pressure the
so-so, their contract is generally written to
owner to cave in and give a player a contract
give them the same salary either way.
renegotiation. This often works, but sometimes it backfires as well, leaving the player to
And the top athletes don’t like this. If a player
sit out the duration of his contract and earning
has great statistics and wants more money,
Zero dollars. Not a good thing for an agent
he often will not show up for practice and will
who has signed on to get 10% of that. What’s
want the owner to re-negotiate the contract,
10% of zero again?
and this, again, is where the agent comes in. A contract is already in place stating that the
Speaking of money, this is one of the great-
player will perform and also stating his sal-
est benefits if you’re considering becoming a
ary. This is in writing. The agent can go to the
sports agent. Even at a basic 10%, your salary
owner and say, “My client scored more points
get quickly shoot into the millions. With some
than anyone last year, yet you still are pay-
superstars earning more than $100 million
ing him the same salary as a below-average
over the duration of their contracts, a quick
player. Can we have more money.”
look at the math will show you that you stand to collect quite a lot.
The owner, of course, responds with, “No, his salary is set in writing. You signed it. Your
It’s a tough business to break into, but the
client signed it. If you want more money, you
financial rewards make it worthwhile. There’s
should have asked for it before you signed.”
also the reward of hobnobbing with some of the greatest and most famous athletes out
The impasse is in place. The player holds out
there. Currently, LSU, for example, has a
and does not report to practice or to games
program for sports agents, but passing that
until his contract is redone. This is such an
class successfully is still no guaranty of your
obvious case of breach of contract, but it’s all
success in the business world. What it takes is
but accepted in today’s sports world. Some-
hard work and knowing the right people. Then
times the owners quickly give in, knowing they
even more hard work. It’s all about building
need the player to make the team successful.
your client base.
Other times owners resist. The player is under contract and cannot go to another team on his own in this circumstance. Some say the owners are stubborn in these cases, but is it really stubbornness to ask someone to do
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