Sports contracts work similarly to other employment contracts, compensating athletes for their services. Agents negotiate contracts on behalf of athletes, working with lawyers familiar with their client's market value compared to peers. While not required, most athletes hire agents and lawyers for better representation and focus on their career. Contracts without agents are called personal services contracts that can't be transferred, since an athlete's skill is unique. Standard contracts allow teams to assign a player's contract, but popular players can negotiate no-trade clauses preventing unwanted assignments.

1. 9/28/2019 Title Card Capital - The basic principles of a sports contract
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2. 9/28/2019 Title Card Capital - The basic principles of a sports contract
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3. 9/28/2019 Title Card Capital - The basic principles of a sports contract
https://sites.google.com/view/title-card-capital/blog/the-basic-principles-of-a-sports-contract?authuser=0 3/3
Sports contracts are not so different from other contracts. Professional athletes
are compensated for their services just as we get a salary for the work we do in the
office, explains private equity firm TitleCard Capital, which is in the sports industry.
The role of sports agents is to secure and negotiate contracts on behalf of
professional athletes. This entails working with the lawyers who represent these
athletes. These attorneys must be very familiar with the current market value of
their respective clients in relation to other athletes in their sport.
While having an agent or a lawyer is not necessary for athletes to secure contracts,
most do so for a variety of sensible reasons such as better representation and
focus on their athletic careers. A contract an athlete enters into with no lawyer or
agent is called a personal services contract, which are technically non-
transferrable. This is simply because the talent or skill of an athlete is considered
unique to him or her.
Note that any non-personal services contract may be assigned with permission of
the involved parties. This right to assign is included in a player’s contract. But
certain players, especially popular ones, have the bargaining power to add a do-
not-trade clause for a given duration, preventing teams from assigning players to a
team the latter don’t want to play for, adds TitleCard Capital.
Private equity firm TitleCard Capital looks for ventures related to the early stage
growth of businesses, where the company believes it can add exceptional value via
public relations, social media, and other strategic marketing mediums. For more
sports-related reads, visit this page.
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