Image rights contracts increase players’ taxes, and teams can breach them without any liability to the player. Over the last ten or so years many European teams have begun signing players to image rights contracts in addition to the players’ salary contracts. Teams get significant tax advantages from image rights contracts and often pressure agents and players to sign them. Many agents and players do not understand the full legal ramifications in terms of tax liability and enforcement, and sign the image rights contracts without much thought. But that needs to change because many teams are now using the BAT to avoid their obligations in the image rights contracts.
How Image Rights Contracts Work
Here’s how image rights contracts work: Typically a player will sign an original contract with a team for a salary amount net of all taxes. Let’s use, for example, a contract worth $200,000. After the player signs the original contract, the team will approach the player with two additional contracts, a league contract and an image rights contract.… Read More
Do sports agents need written player-agent agreements?
Does a Player-Agent Agreement have to be in writing? The simple answer is yes, but it may not matter.
FIBA regulations require a “written contract” between a player and agent. But no formalities to that written agreement are prescribed by FIBA. Any writing evidencing the agreement will suffice. FIBA Regulations Article 3-156 states:
An Agent may represent a player or manage his affairs under the terms of article 3-155 above only if he has a written contract with the player in question.
FIBA does not even require the writing to be signed by both parties. Ostensibly, FIBA only requires the writing to be signed by the party against whom enforcement is sought.
For example, an email in which the player asks the agent to find him a job should be sufficient to create a player-agent agreement under FIBA regulations. If the agent subsequently gets a job offer for the player, that agent should be due the agent fee for the contract.… Read More
This is a continuing series documenting cases the IBPA’s lawyers have resolved in favor of their clients without having to resort to BAT Arbitration.
BFSN Law’s attorneys recently settled a case for $25,000 for a client without having to resort to BAT arbitration. An agent (“European Agent”) contacted the IBPA because one of his players (“Player”), with whom he signed a 2-year player-agent agreement, had signed a contract to play for a European Team (“Team”) with another agent (“US Agent”). The Player’s contract with the Team stated the US Agent, and not our client, was to receive the $25,000 agent fee. The European Agent wanted to know what he could do to get the agent fee.
Most agents sign players to 1- or 2-year player-agent agreements with evergreen provisions. Evergreen provisions are more commonly known as rollover provisions because they act to roll the contract over at the end of the primary term for additional 1-year terms unless the player or the agent properly terminates prior to the end of the primary term.… Read More
This is the second part of a two-part series on rollover provisions in player-agent agreements. To see the first part, click here.
The point of all this, of course, is how can an agent enforce his player-agent agreement on a) players who go behind the agent’s back to sign with a new agent, and b) agents who poach players under a binding contract.
a) Enforcing against Players who Breach
How can an agent enforce his player-agent contract against a player? The agent can always petition FIBA to sanction the player. The FIBA regulations prohibit certain actions by players. “A player may use the services of only one Agent licensed under the terms and conditions of these Regulations.” FIBA Reg. 163. FIBA has the authority to sanction Players who violate FIBA Regulations: “In the event that a player uses the services of . . . more than one agent at the same time, FIBA acting through the Secretary General is entitled to:
The past few months we have received several complaints from FIBA agents about players signing contracts behind their backs and other agents poaching players. This two-part article explores the legality under the FIBA regulations of rollover clauses in player-agent agreements and what remedies agents have against their former players and other agents. To view the second part, click here.
A rollover clause is a contractual provision that causes the contract to roll over after each agreed period until cancelled by one party. Many FIBA agents utilize a 1-year rollover provision that requires notice prior to 30 days before the end of the 1-year term. This type of provision eliminates the need to re-sign the player each year and gives both the player and agent confidence for the future. Many player-agent agreements are signed in the summer months, which is the peak scouting and signing season for European teams. If an agent were constantly unsure about a player’s status because the agent had to re-sign the player during the summer each year, that agent would be less likely to focus his energy on getting that player a job.… Read More
One of the most common questions we hear about BAT cases is what law does the Tribunal use. The answer: ex aequo et bono, which is a Latin phrase that means “In equity and good conscience” legal-dictionary.com. The BAT rules state ex aequo et bono means the arbitrator applies “general considerations of justice and fairness without reference to any particular national or international law.” BAT Rule 15.1. But what does that mean? Essentially, the BAT decides cases based on fairness and equity for the betterment of the parties.
This can be a confusing concept for many who are used to state and federal statutes being applied in their home courts. Especially individuals who come from civil law jurisdictions based on the Napoleonic Code, which include most of Europe and Latin America. The civil code is a series of very specific statutes that pronounce the law in a particular state. The law is written, stemming from statutes, and is not decided by the particular tribunal hearing the dispute.… Read More