ADV 378S Lecture Notes - Lecture 14: A.D. Vision

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10 May 2016
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ADV 378 Mar 23rd:
Sports Contracts
What is a contract?
oAgreement between competent parties
oBased upon the genuine assent of the parties
oSupported by consideration
oMade for a lawful objective
oIn the form required by law
Defining Contracts
oDetermine rights and obligations of the parties
oIndividual player contracts are subject to CBA agreements between the league
and the player association/union
Contracts
oElements of a contract
Concerned with clarifying and enforcing the will of the parties in
determining agreements
When there is a dispute, courts don’t look at what’s fair or what would
make a better contract
Only at what was the original intent of the parties
Sports contracts are generally express contracts, a contract in which the
agreement of the parties is evidenced by their words, whether spoken or
written
Formation of a contract
oSet or promises which the law somehow recognizes as a duty, in the case of a
breach, the law offers remedies
oThe formation of the contract has four fundamental aspects
Agreement: offer and acceptance of exact offers or creation of a counter
offer
Consideration: exchange of value
Capacity: legal competence
Legality: must not violate law to be enforceable
Canons of interpretation
oCourt will try to interpret a contract as an integrated whole
oIn the event of ambiguity, the court favors the side that did not write the
contract
oThose entering into a contract must consider the worst case scenario
oThe intent which will be enforced is what a reasonable person would believe that
the parties intended
Contracts
oAre oral contracts enforceable?
Yes, but not for
Land
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Goods over 500
Contracts that can’t be performed within one year
Must have elements of a contract
Contract remedies
oBreach of contract: when one party fails to perform essential aspects of a
contract
oMust be remediable, but often the contract is terminated and the non breaching
party is awarded damages
oIn a contract case, the court is not attempting to punish the party that breached,
only to compensate the innocent party
Compensatory or punitive
Specific: stated up front
Recision or restitution: contract voided
Who’s affected by contracts?
oEveryone
Elite talent (FIX)
oProfessional athletes are elite talents, one in a thousand
Pay may well be justified in terms of true value created
Their status as elite talent and irreplaceable has legal consequences that
leads to injunctive relief were they to breach
oWhy do athletes rarely breach?
oIn exchange for money, athletes provide a level of expertise that may not be
easily replaceable
Individual sports athletes
oIndependent contractors
oSign participation contract to compete for stipulated prize money
oMay also enter into contracts to receive appearance money in exchange for
playing in an event
oWhy are individual athletes often the highest endorsement earners?
More recognizable
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find more resources at oneclass.com