The Basics of a Sports Contract (Pickleball Specifically) and Its Details
Disclaimer: NOTHING here creates an attorney-client relationship of any kind. This is for educational purposes only. The writer of this article incorporates all disclaimers and waivers of all legal blogs.
If you’re seeing all your friends get sponsors, or all of these new partnerships come into play, then you probably know it is all run on contracts – sports contracts, to be exact.
First of all, contracts have the same basic core, regardless if it is for sports, movies, etc.
What is a contract?
It is a consensual agreement between two or more parties that are competent enough to make such an agreement, where one party offers something in return in acceptance of something, and there is some compensation. While there are many types of contracts (service or product), I will stick with the most basic idea of a contract: an express contract. This just means the contract was formalized with words on paper or out loud.1
Can a contract be terminated?
Usually, termination of a contract won’t be argued in court because courts do not like to touch something that was essentially agreed upon between two private persons. Pre-made terms can be implemented into a contract to avoid arguments later. This would be a condition that CAN terminate a contract. These are, the contract had a time limit, one party is unable to fulfill the contract anymore because of some injury, or the contract specifies that if anything was violated in the contract, it is null. Other ways are: rejecting the offer or there being a counteroffer by a party of the contract.
Fun fact: When you sign the waiver when registering for a pickleball tournament, you are signing a contract.
What kinds of contracts can we see in pickleball?
We might see: a standard contract, endorsements and sponsorships, and even appearance contracts.
Endorsement contracts are a bit different because it is more of an independent contractor type, granting the sponsor the right to license the athlete’s name or likeness in return for getting the product or some other form of compensation.
A sponsorship is the concept of supporting a person or thing by giving them compensation through money, products, or encouragement.2
However, in most contracts, there is a lot of boilerplate, or language taken from a contract template, until the contracts are customized per term (salaries, time limit, etc.).
What does the contract look like, word for word?
Some things you might see in the contract are: limitations, salary, an exclusivity clause, usage rights, force majeure or extraordinary events occurring that prevents fulfillment of the contract, a morals clause for unethical conduct, and a confidentiality agreement.
There are many ways to draft a contract. Some contracts even have arbitration agreements – an agreement to settle legal issues through an alternative form of court, called arbitration.
Here is a sample of what a sponsorship agreement may look like:3
The purpose of this contract between (Sponsor Name), (hereinafter “SPONSOR”) and [Athlete Name] (hereinafter “ATHLETE”) is (State Purpose). I (“ATHLETE” Name), accept every part of this contract and agree to the following:
Agreement Time Period. This Agreement is for two years long from (Date) to (Date), and can be extended if both parties agree.
Definition. (A great place to define any terms used)
Exclusivity. “ATHLETE” agrees to not wear any product showing another brand’s name or logo other than SPONSOR’s name and logo during the Agreement Time Period
Use of SPONSOR Product. ATHLETE agrees to use exclusively SPONSOR’s Product in training for and competing in (said sport) during the Agreement Time Period. ATHLETE is also responsible to post about SPONSOR’s sent products to ATHLETE at least four times a month on at least one Social Media platform of ATHLETE’s choosing.
Compensation: ATHLETE will receive (products, compensation like money for endorsing the products, etc.) each month.
Breach: The following is considered a breach of this contract by ATHLETE: ATHLETE violates any part of this contract or engages in behavior that goes against SPONSOR’s company policy. SPONSOR reserves the right to revoke the contract at any time for any breach or violation. (This is where an attorney can come in and negotiate with SPONSOR to allow a grace period or violation warning of some kind so that ATHLETE is not left without a sponsor).
Indemnification: (This is a great clause to release SPONSOR from any liability or legal costs that arise from injury to ATHLETE, especially if it is due to the SPONSOR’s negligence. This does not apply if SPONSOR was willful in the injury or harm to ATHLETE)
Confidentiality agreement: (to keep everything in contract confidential)
Termination: SPONSOR has the right to terminate this Agreement for breach or (state reasons, usually “at any time for any reason”). (This is where an attorney can come in and negotiate with SPONSOR to allow a grace period or violation warning of some kind so that ATHLETE is not left without a sponsor).
Modification: (can state that contract can be modified if agreed upon by both parties).
ACCEPTED AND AGREED: (ATHLETE’s or ATHLETE guardian’s signature)
Sponsor’s signature:
By: Team Manager Name
Company Name
Why it can be helpful to understand how contracts work:
Sometimes, sponsors don’t want athletes to be wearing clothes or using items from other companies other than their own because they know an athlete wearing their clothes and being an influencer of the product will help their profits grow. It is not always the case though, as sponsors are well aware that athletes rely on multiple sponsors.4 Sometimes the fee can also be just in the form of products instead of actual money. This is where reading the contract carefully becomes really important (though the entire contract is important, these are the most popular terms):
The Fee:
This is the most important aspect. Note that a sponsorship does not have to be in the form of payment of money. However, if this is what you want, you have to look for this. It can come in various forms: a fixed price, in increments, or performance based price. This is where negotiating comes in.5
The Sponsor’s Rights:
What kind of exclusivity is your sponsor getting?
1) Exclusivity: Are you only allowed to wear Company A’s merch, or is it just applicable to shoes or paddle? The reason why exclusivity is so important to most companies is because it increases brand awareness. When you think of certain athlete, you think of the brand with which they work. It is all about brand exposure and business for the sponsor, so make sure you love the brand enough to exclusively where their products, or at least ensure it is not exclusive.
2) Intellectual Property: Your sponsor may also get the right to use the athlete’s name and likeness in their advertising. Generally, a person does not have total ownership right in their name or likeness. However, every U.S. state for example, individually has laws on privacy and publicity to a person’s name or likeness without prior consent of the individual.
Although this article was for educational purposes only, this gives you an idea of what a contract may look like in detail. It is always best to consult an attorney or agent, as this article does not create any attorney-client contract between the reader, creator, or writer.
