Sports contracts are similar to other contracts we come across each day, as they are mutual agreements that legally bind two or more parties. In the sports industry, sports contracts are those contracts, which occur between sports organizations or sports agents and players or athletes. It defines the rights and responsibilities of the various players in the professional sports business.
Sports contracts are generally express contracts as they manifest the express will of the parties either in the form of words or spoken through the methods of the offer, acceptance and consideration.
The position of implied contracts in the professional sports industry is quite difficult because it is not possible to prove the implied sports contract.
There are several types of contracts used in the professional sports world by organizations and players/athletes. They are as follows;
-Professional Service Contracts:
These are contracts signed between athletes and sports clubs or entities. These contracts are also known as standard player contracts. They are contracts of a standardized form also referred to as the boilerplate form as formal language is used and can be reused without any major alteration.
-Endorsement Contract:
This kind of contract does not require a relationship of employer and employee. These are contracts related to sponsorship rights and obligations. This contract grants the sponsor the right to use the athlete’s name, image, or likeness in connection with advertising the sponsor’s products or services.
-Appearance Contracts:
These are contracts that touch on the payment of the player/athlete for his/her appearance in any public event of any organization, institute, or company by way of Contract. Hence, it is a contract between the venue and the athlete.
-Agency Contracts:
These are contracts engaged between the agent(s) and sports persons. The agents usually help in managing the financial and professional life of the athlete.
-Insurance Contracts:
These are contracts, which regulate the indemnity of a player/athlete in cases of injuries or accidents. Hence, they ensure the safety of the player or athlete.
-Contract of Image Rights:
This is a contract aimed at protecting the use of the image of the athlete for commercial purposes. These image rights are also known as publicity rights.
-Contract of player transfer:
These are sports contracts, which deal with the transfer of players from one sports club to another. These types of contracts are quite complex in nature as they cover several other aspects of the sports law to be complete such as employment law in sports, intellectual property transfer, image rights transfer, brand rights transfer, etc.
-Contract of broadcast:
This is a media right contract to broadcast the images of a sports event, sports organization, or sports club. However, each sports organization has its own regulation regarding the sale of its broadcast rights.
-Contract of brand rights:
Very common in sport sponsorship contract deals are contracts over the rights of brands. Most often, the sponsor will ensure that his brand is protected and promoted as best as possible by the sponsored party. This explains the inclusion of a morality clause in the brand protection contract.