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Athlete contracts are often complex documents that outline the terms and conditions under which athletes are signed by teams or organizations. While many clauses in these contracts are straightforward and cover the usual aspects of compensation, performance expectations and endorsements, some unusual and intriguing clauses have made their way into athlete contracts. In this blog post, we explore some of the tricky language, these strange clauses, and the stories behind them.
Some athlete contracts contain clauses that prohibit players from engaging in specific activities or behaviors. For example, clauses may restrict athletes from participating in high-risk activities such as riding hot air balloons, skateboarding, or motorcycles, potentially resulting in injuries that may affect their performance or availability to the team.
Then some athletes like Michael Jordan have enough bargaining power to get some interesting inclusions in their causes. One of the greatest basketball players of all time had a clause in his contract that allowed him to play pick-up basketball games whenever he desired, which is a no-no for most players due to the risk of injury. This unusual inclusion showcased Jordan's love for the game and his desire to stay sharp and competitive even outside of official team practices and games.
Rollie Fingers, a former pitcher for the Oakland Athletics (MLB – Major League Baseball), had a unique clause in his contract related to his iconic mustache. The team's owner, Charlie Finley, offered players a bonus to grow mustaches, and Fingers accepted the challenge. In the subsequent contract negotiations, Fingers secured a $100 mustache wax allowance to maintain his signature look.
In some cases, the team has an unusual inclusion, like in the case of Eddie Lacy. The Seattle Seahawks (NFL – National Football League) offered running back Lacy a unique incentive to help him improve his performance. Lacy had struggled with weight gain, which he blamed on an affinity for Chinese takeout, and the team included a stipulation in his contract that required him to reach and maintain a specific weight. If Lacy could cut his weight from the 267 pounds reported during his free-agent visits in March to 245 pounds by September — and keep it there until December — the Seahawks would pay him an additional $385,000 that year.
Here are a few key terms for you to talk shop:
1. Free Agency and Unrestricted Free Agency: One standard inclusion in athlete contracts is a provision that defines what it means to be a free agent or an unrestricted free agent. A free agent refers to a player, not under contract with any team and is free to negotiate and sign with any team they choose. An unrestricted free agent has completed the terms of their agreement and is free to deal with any team without any restrictions or limitations.
2. Guaranteed Money: Guaranteed money refers to the portion of an athlete's contract that is assured to be paid to them, regardless of their performance or other circumstances. This provides financial security to the athlete even if they are injured or their performance declines. Guaranteed money is often a significant factor in contract negotiations and can vary greatly depending on the athlete's reputation, skills, and market demand.
3. Luxury Tax and Salary Cap: The luxury tax and salary cap are financial mechanisms used in professional sports leagues to promote competitive balance and financial stability. The luxury tax, prevalent in MLB, is imposed on teams whose total player salaries exceed a predetermined threshold. In contrast, the salary cap sets a maximum limit on the total payroll that a team can allocate to its players. These clauses prevent teams from overspending and gaining an unfair competitive advantage.
4. Deferred Payments: Deferred payments refer to a clause in a contract that allows a portion of an athlete's earnings to be paid later instead of immediately. This can be advantageous for teams facing financial constraints or athletes looking to maximize their earning potential over an extended period. However, it also means that the athlete will receive the deferred portion of their compensation later.
5. Franchise Tag: The franchise tag is a clause used in professional sports leagues that allows teams to retain the rights to a player for one additional season, even if the player's contract has expired. The franchise tag is typically used on key players to ensure they remain with the team for at least another season, providing stability and preventing them from becoming free agents.
From weight loss incentives to mustache wax allowances, these strange clauses add a touch of uniqueness and personalization to athlete contracts. They remind us that professional sports are not just about the game but also the personalities and quirks that make each athlete distinct.
