We are live!
Our Associates Mukhtar and Ibrahim will be hosting today's discuss. While we enjoy the front end of the sporting competitions (AFCON, FIFA Women's World Cup, Wimbledon and Cricket World Cup), let's intimate you on the intricacies of the back end dealings.
Why don't we discuss Evolving Issues and Trends in Contractual Negotiations in Sport. We shall focus on creation, formation and termination of contracts involving athletes and sportspersons.
I am certain that we sometimes wonder what goes on in those transfer rooms, the negotiations, the counter offers, the million dollar deals and the A list sportsmen. Well, lets try to simplify it for you.
From the Roman Coliseums to the modern stadia, Sports has always captivated the attention of millions. Sports has shown its power to unite millions and be a big economic sector. From Muhammed Ali to Serena Williams famous sporting personalities have inspired younger generations
First things first what is a contract? A Contract is a voluntary, deliberate, and legally binding agreement between two or more competent parties. Important elements are offer, acceptance, consideration and legal capacity.
Legal capacity here is key as we have several minors entering into sports contract. Let's look into the issue of minors contracting in Sports
By law, you cannot contract with a minor as he/she lacks capacity. However, world over minors are always scouted as it is at youth that talent is discovered. A contemporary prime example is Coco Gauff, who exceeded all expectations at Wimbledon Open.
She had a fantastic outing beating Venus Williams and other seeded players. Definitely one for the future
Thus, in the case of minors, parental/guardian consent is a necessary prerequisite when contracting with underage star prospects. Therefore, in such negotiations the parents are responsible for transacting on behalf of the minor. *Take note rising stars*
Moving on, parties enter into a contract to be bound by it but scenarios change and disputes may occur. Recently, Cardiff City made their biggest ever signing for Emiliano Sala from Nantes. The player tragically died in a plane crash. What do you think, is Cardiff obliged to pay?
Well.. at the moment Cardiff City have refused to make the first scheduled payment for the Argentine and parties are currently still in dispute as to if the contract was completed or not.
Another example is that of Kendrick Norton, a 2018 seventh-round pick of the Panthers who joined the Dolphins late last season in the NFL. Sadly, the 22-year-old was hospitalized after a near fatal car crash that saw him lose a hand. Should this vitiate his contract?
*whew* intricacies of contract dealings are exhilarating
To answer, it is important to understand that each negotiation and contract should be looked at on a case by case scenario. However, if the ruling in the Mutu against Chelsea FC is anything to go by then parties can opt out of contracts under the auspices of repudiatory breach
In Mutu against Chelsea, Mutu was sacked by the club after testing positive for cocaine. He was subsequently banned and ordered by the Court of Arbitration of Sports to repay his signing fee to the club.
In Nigeria, pressing issues when it comes to Sport contracts are issues of exploitation of minors/academy athletes via unfair & unequally bargained contracts.
It is important that parties are educated on their rights and the effect of contractual restrictions on their development
It is important that parties are educated on their rights and the effect of contractual restrictions on their development
On this note, we urge athletes to always remember that parties are bound by their agreements, as such they must always ensure that they fully understand the impacts the contractual terms may have on their careers.
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