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Why is it important to draft and negotiate sports contracts?

Hamed Ovaisi
Hamed Ovaisi
Chairman
05 Jun 2023
— Blog
Sports contracts are a vital part of the sports industry. They are legal documents that outline the terms and conditions of an athlete's employment with a sports team or organisation.
Why is it important to draft and negotiate sports contracts?

Negotiating and drafting sports contracts for athletes is essential to ensure that the athlete is adequately compensated, protected from risks and clearly understands their role.

Why is drafting important?

One of the primary reasons why negotiating and drafting sports contracts is important for athletes is that it helps to protect their financial interests. Athletes have limited earning potential due to their comparatively short-lived careers and must ensure they are paid a fair wage for their services. Negotiating a contract with an experienced solicitor's help can ensure that athletes are compensated fairly and that their financial interests are protected.

In addition to protecting an athlete's financial interests, sports contracts can protect their physical well-being. Many sports contracts include clauses that outline the athlete's responsibilities regarding their physical health and safety. For example, a contract may require an athlete to undergo regular medical examinations to ensure that they are healthy and able to perform at their best. This can help prevent injuries and ensure that the athlete is not putting their health at risk.

Another reason why negotiating and drafting sports contracts is important for athletes is that it can help them understand their role at their club. A well-drafted contract will outline the athlete's responsibilities and expectations, as well as the expectations of the team or organisation. This can help prevent misunderstandings and ensure that the athlete understands precisely what is expected of them. 

For instance, in January 2021, Arsenal FC faced a significant issue with their captain, Pierre-Emerick Aubameyang. Aubameyang had reportedly arrived late for a pre-match team meeting, which resulted in him being dropped from the starting line-up. While it might seem like a minor issue, the incident highlighted a more significant problem - a lack of clarity around Aubameyang's role and expectations within the team.

Following the incident, Arsenal manager Mikel Arteta admitted that the club needed to have a conversation with Aubameyang to clarify his role and expectations within the team. A well-drafted sports contract could have helped prevent such an issue from occurring in the first place by outlining the specific responsibilities and expectations for Pierre-Emerick Aubameyang as the team captain. This would have helped Aubameyang to understand his role better and prevented misunderstandings between him and the team.

Finally, negotiating and drafting sports contracts can help athletes protect their personal brand. In today's social media-driven world, an athlete's personal brand, or image, is more important than ever. A well-drafted contract can include provisions that protect the athlete's image and prevent the team or organisation from using their image or likeness without their consent.

Governing Law in Various Sports

In England and Wales, sports contracts are governed by both contract law and specific regulations established by sports governing bodies such as the Football Association (FA), the England and Wales Cricket Board (ECB) and the Rugby Football Union (RFU). Under UK contract law, a contract is a legally binding agreement between two or more parties, and it must contain certain elements to be valid. These include an offer, acceptance, consideration, and an intention to create legal relations. Failure to include these elements in any contract can render the contract unenforceable. 

The FA has also established rules and regulations governing the negotiation and drafting of contracts for players. These rules aim to protect the interests of both the players and the clubs and ensure that all contracts are fair and equitable. For example, the FA requires that all contracts be made out in writing, and signed by both the player and the club. The contract must also include details of the player's salary, bonuses, and other benefits, as well as any performance-related clauses or termination clauses. The FA also has specific rules regarding the transfer of players between clubs. These rules aim to prevent the exploitation of players and ensure that all transfers are conducted in a fair and transparent manner.

In cricket, the ECB is responsible for regulating and administering the sport. The ECB has specific rules and regulations regarding players' contracts, including minimum standards for salaries and other benefits. The ECB also has specific rules regarding player availability, which can impact their selection for national and domestic teams.

Similarly, in rugby, the RFU regulates and administers the sport in England. The RFU has specific rules and regulations regarding player contracts, which include minimum standards for salaries and other benefits. The RFU also has specific rules regarding player availability, which can impact their selection for both national and domestic teams.

In addition to the rules and regulations of the various sporting bodies, sports lawyers in the UK must also be familiar with relevant UK employment law, including discrimination laws, minimum wage laws, and health and safety regulations. This knowledge is essential to ensure that sports contracts comply with UK law and that the rights of players and clubs are protected.

Overall, negotiating and drafting sports contracts in the UK requires a thorough understanding of both contract law and the specific rules and regulations established by sports governing bodies such as the FA. Working with an experienced sports lawyer familiar with these laws and regulations is essential to ensure that contracts are fair, equitable, and legally enforceable.

Contact SO Legal's sports law solicitors.

Our sports law experience ranges from advising on player contracts and disciplinary hearings to structuring sponsorship agreements and complex financing arrangements for clubs looking to raise funds.

We have offices in London, Brighton, Eastbourne, Hastings, Uckfield, and Ulverston and offer specialist legal services to clients across the UK.

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