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