Introduction
The world of professional sports is a complex one. For a player desiring to get the best contracts and agents there are several things to consider. The player, agent and the league have to work together to make professional sports world a great environment.
Player Contracts
Contracts play a big role in sports due to the risks involved, escalating payments of elite athletes and complexities of contract. In considering a contract a player has to consider financial, health and media aspects.
Agents
It is important a player gets the best agent to negotiate his contract. Contracts are law documents with complex clauses and options. The wording is delicate and legally binding. It affects the financial payoff a player will be entitled to. There are different kind of risks and taxation implications in different contracts.
League rules & Conflict resolution
These league policies on salary are important in that they promote a competitive balance in clubs and ensure club stability since the salaries are pegged on club’s profitability. Setting salary limits also ensures all players will have good salaries not just the elite ones. The conflict resolution process should incorporate aspects of procedural justice where people’s perception of justice is enhanced.
Abstract
The world of professional sports is a complex one. For a player desiring to get the best contracts and agents there are several things to consider. What kind of contract should he sign and which kind of agent will best represent his interest? An agent usually ends up being a confidante, financial adviser, business coach, friend and lawyer. Trust is paramount. There have been incidences of agents who are thieves. There are different kinds of contracts with different inherent risks in professional sports. Contracts play a big role in sports due to the risks involved, escalating payments of elite athletes and complexities of contract (Foster, Greyser, Walsh, 2006, p149). There are also league and club rules to conform to. The player, agent and the league have to work together to make professional sports world a great environment.
Player Contracts
There are guaranteed contracts for players where the club bears the risk. The player is guaranteed a specific amount of salary. In the event of an injury or performances below expectation the club has to pay the amount. The second type of guaranteed contract the player bears the risk in that he will only receive his payment if he remains in the active player list. There are contracts where the player is given a huge up-front bonus in addition to the guaranteed contract amounts. This is usually paid in high amounts to highly demanded players in order to reduce risk in case of injury and performances below the expected benchmark.
A player may enter a contract with performance bonuses. This provides great incentive to the player however if one does not accomplish the set performance milestones there is no payment. In considering a contract a player has to consider financial, health and media aspects. It is important a player has an agent to help in negotiating for contracts.
Agents
Contracts are law documents with different kind of risks and taxation implications in different contracts. A player has several options in choosing an agent. He may choose a large organization that handles many players engaged in different kind of sports. A big company has a wealth of experience and expertise. Another option is a medium-sized company handling fewer clients thus offering specialized attention. An individual already handling other clients may also be considered.
League Policies & Conflict Resolution
Leagues have policies concerning salary payments. The player’s salary may be set to a percentage of the total league-related revenue or constrained at the club level where a club cannot exceed the cap. If it does it faces heavy penalties or taxes. The leagues also set minimum individual salary payments. These policies on salary are important in that they promote a competitive balance and ensure club stability since the salaries are pegged on club profitability.
Setting limits also ensures all players have good salaries not just the elite ones. In sports there are usually conflicts between the players and the clubs. Athletes may break the law, league rules and club rules. There are also conflicts that may arise between the athlete and other athletes, coach or the agent. For proper conflict resolution there needs to be an understanding of all the characters involved in the dispute (Optimax Editors, n, d).
Players should feel or perceive that they have been treated fairly. Perceptions on fair treatment affect a player’s attitude about an institution, trust and compliance with sanctions (Findlay & Hyatt, 2008). The conflict resolution process should incorporate aspects of procedural justice where people’s perception of justice is enhanced. There should be fairness in application of the law rather than the league concentration on the content of the laws.
Reference List
Foster, G., Greyser, S. A., & Walsh, B. (2006). The business of sports: Text and Cases on Strategy and Management. Mason OH: Thompson South-Western.
Findlay, H. & Hyatt, C. (2008). Procedural justice as a critical element in managing disputes. North America Society for Sports Management. Web.
Optimax Editors (n, d) Conflict Resolution. Optimax. Web.