Sports Law
Philadelphia Ball Club v. Lajoie (Pa. 1902) - ANS * Lajoie is a clear example of someone with
juice, which is the ability to write your own ticket.
* K prohibited him from playing baseball w/ any other club other than his current one. (Reserve
Cl.)
* Injunction was issued b/c services were of unique character, which rendered them of peculiar
value to the club.
Detroit Football Co. v. Robinson (E.D. La. 1960) - ANS * Early example of how Ks were
interpreted b/f the NFL changed its SPK to reflect lessened importance to the commissioner's
signature approving the K.
* Detroit did not "sign up" Robinson b/c signature is a condition precedent to existence of K.
Pasquel v. Owen (8th Cir. 1950) - ANS * When breach occurs after partial performance of K, it's
useful to look at how the parties actually functioned under K.
* K uses the term "player-manager" and does not indicate which time he would be a manager or
player.
* Owen waived breach of K when he performed as manager and player w/o complaint.
SPK - ANS * The key link between players and their teams in prof. sports.
* The only employment agreement that is allowed in prof. sports.
* It is a contract of adhesion that has been shaped and reshaped by court challenges and
collective bargaining.
* It is an employment K that specifies the player's rights and states that this player, no matter
how average she appears to be, possesses unique skills.
* B/c each player is unique, the SPK includes a clause that gives the team the equitable ability
to obtain injunctive relief so as to thwart the player from breaching the K and jumping to another
team. (Lajoie)
* Calls for annual physical examinations.
Johnson v. Green Bay Packers (Wis. 1956) - ANS * The court found for player Johnson,
interpreting the term "season K" by looking at sport's customs and its typical business usage of
the term to supply meaning.
Tillman v. New Orleans Saints (La. Ct. App. 4th Cir. 1972) - ANS * Emphasizes the importance
of decisions made about a player's fitness to play by both the team physician and the coach.
* Tillman was injured during a preseason drill and his damaged knee was operated on and
repaired. After recuperation, he was instructed to return to camp and begin an exercise program
and was cleared by the team physician to resume full duty.
,* Tillman was later released under para. 6 on grounds that he did not possess the requisite skills
to make the team.
* Court gave deference to the team's physician's finding of fitness.
* Tillman lost.
Incorporation Clause - ANS * Modified the SPK by incorporating into the document other
documents, most notably the collective bargaining agreement and the league's bylaws and
constitution.
Signing Bonuses - ANS * The most sought after goal in the K negotiation process.
* It is the upfront money that all the player has to do, at a minimum, is appear in training camp
ready to play.
* The player must at least try to perform in order to secure a bonus.
* It is not considered salary b/c the athlete receives it for the mere act of signing.
* In the NFL, the bonus can be prorated by mutual agreement if it's a long-term K.
* Roster Bonus - payable for making the team.
Alabama Football Inc v. Stabler (Ala. 1975) - ANS * Allows the athlete to keep the signing
bonus even though the team is no longer in existence.
* Court inferred the players' willingness to play by allowing the team to use their names and
likeness for publicity purposes.
White v. NFL (Michael Vick) (8th Cir. 2009) - ANS * Even though he was suspended for dog
fighting, he can still keep the roster bonus.
* SSA precludes the forfeiture of the roster bonus having already been earned.
White v. NFL (Ashlie Lelie) (2007) - ANS * Court was asked to consider whether the Bronco's
option for a sixth year was valid.
* Stipulation and Settlement Agreement (SSA) states no forfeitures permitted for option bonuses
for years already performed.
* Lelie won and the option bonus is protected from forfeiture.
No-Cut Clauses - ANS * Assures the player that he will not be cut during the life of the K.
* Cunningham model protects the player from a cut based on a lack of skill but not from one
based on poor physical or mental condition, inability to perform as result of off-field injuries, or
suspension without pay for disciplinary reasons.
* Standard NFL model is comparable to the Cunningham model but more specific to the
necessity of maintaining a superior physical condition.
* Hudson model is "salary payable in any event" but does not waive the team's right to suspend
the player or protect him if he fails to show a good-faith effort.
Termination - ANS * If termination is not justified, the termination of an athlete's employment K
is a breach of K.
* Employers can terminate if the athlete is physically unable to perform.
, * If a team terminates an employee on the basis of an injury, such an action is usually covered
by a provision in the CBA.
* The club can rightfully terminate a player's K if the athlete is out of shape, lacks skill, defies
club and league rules, or for a material breach of SPK.
* Each SPK contains a clause that allows the team to trade players at will, unless the player has
a no-trade clause.
* Ks cannot be terminated for illegal purposes.
* Alleged false representations regarding the effective date of a K and promise that the matter
would be kept secret was insufficient to rescind the K on fraud in the inducement.
Professional athletes have little job security - ANS
Metro. Sports Facilities Comm'n v. Minn. Twin P'Ship (Minn. Ct. App. 2002) - ANS * Comm'n
successfully sought an injunction.
* Emphasizes the fact that in a use agreement btwn a govt sports authority and a prof. sports
team, money damages cannot fully compensate the non-breaching party when the agreement
provided that the benefit of the bargain is the team's promise to play its home games at the
publicly funded and operated stadium.
Contraction - ANS * A club can rightfully terminate a K for material breach.
* The ability to trade players from team to team as if they were chattel has been prerogative of
management.
* Injunctions are allowed b/c specific performance is unacceptable.
* Earlier forms of player Ks allowed the team to simply terminate the K after a brief period
following notice.
* The question of whether the athlete exhibits sufficient ability is determined solely by the head
coach or manager.
Minnesota Muskies v. Hudson (M.D.N.C. 1969) - ANS * Court held that the Muskies soiled its
hands to such an extent that the injunctive relief should be denied.
* The Muskies contacted Hudson while he was still actively engaged in another team.
Conn. Pro'f Sports Corp. v. Heyman (S.D. N.Y. 1967) - ANS * Court held that the terms and
provisions of this K are too harsh and one-sided to permit equitable enforcement.
* The primary reason for denying relief is the fact that they seek to enforce a K that purports to
bind Heyman for a one-year period and at the same time permit them to terminate at will.
Price v. Univ. of Ala. (N.D. Ala. 2003) - ANS * Price was fired as Alabama's head football coach
b/c of inappropriate behavior at a golf tournament.
* Price lost b/c he did not sign a contract and did not have a property interest in the position.
Functions of agents - ANS * Represent their interests
* Negotiation of a personal services K with a prof. sports team.
* Tax and financial investments
Philadelphia Ball Club v. Lajoie (Pa. 1902) - ANS * Lajoie is a clear example of someone with
juice, which is the ability to write your own ticket.
* K prohibited him from playing baseball w/ any other club other than his current one. (Reserve
Cl.)
* Injunction was issued b/c services were of unique character, which rendered them of peculiar
value to the club.
Detroit Football Co. v. Robinson (E.D. La. 1960) - ANS * Early example of how Ks were
interpreted b/f the NFL changed its SPK to reflect lessened importance to the commissioner's
signature approving the K.
* Detroit did not "sign up" Robinson b/c signature is a condition precedent to existence of K.
Pasquel v. Owen (8th Cir. 1950) - ANS * When breach occurs after partial performance of K, it's
useful to look at how the parties actually functioned under K.
* K uses the term "player-manager" and does not indicate which time he would be a manager or
player.
* Owen waived breach of K when he performed as manager and player w/o complaint.
SPK - ANS * The key link between players and their teams in prof. sports.
* The only employment agreement that is allowed in prof. sports.
* It is a contract of adhesion that has been shaped and reshaped by court challenges and
collective bargaining.
* It is an employment K that specifies the player's rights and states that this player, no matter
how average she appears to be, possesses unique skills.
* B/c each player is unique, the SPK includes a clause that gives the team the equitable ability
to obtain injunctive relief so as to thwart the player from breaching the K and jumping to another
team. (Lajoie)
* Calls for annual physical examinations.
Johnson v. Green Bay Packers (Wis. 1956) - ANS * The court found for player Johnson,
interpreting the term "season K" by looking at sport's customs and its typical business usage of
the term to supply meaning.
Tillman v. New Orleans Saints (La. Ct. App. 4th Cir. 1972) - ANS * Emphasizes the importance
of decisions made about a player's fitness to play by both the team physician and the coach.
* Tillman was injured during a preseason drill and his damaged knee was operated on and
repaired. After recuperation, he was instructed to return to camp and begin an exercise program
and was cleared by the team physician to resume full duty.
,* Tillman was later released under para. 6 on grounds that he did not possess the requisite skills
to make the team.
* Court gave deference to the team's physician's finding of fitness.
* Tillman lost.
Incorporation Clause - ANS * Modified the SPK by incorporating into the document other
documents, most notably the collective bargaining agreement and the league's bylaws and
constitution.
Signing Bonuses - ANS * The most sought after goal in the K negotiation process.
* It is the upfront money that all the player has to do, at a minimum, is appear in training camp
ready to play.
* The player must at least try to perform in order to secure a bonus.
* It is not considered salary b/c the athlete receives it for the mere act of signing.
* In the NFL, the bonus can be prorated by mutual agreement if it's a long-term K.
* Roster Bonus - payable for making the team.
Alabama Football Inc v. Stabler (Ala. 1975) - ANS * Allows the athlete to keep the signing
bonus even though the team is no longer in existence.
* Court inferred the players' willingness to play by allowing the team to use their names and
likeness for publicity purposes.
White v. NFL (Michael Vick) (8th Cir. 2009) - ANS * Even though he was suspended for dog
fighting, he can still keep the roster bonus.
* SSA precludes the forfeiture of the roster bonus having already been earned.
White v. NFL (Ashlie Lelie) (2007) - ANS * Court was asked to consider whether the Bronco's
option for a sixth year was valid.
* Stipulation and Settlement Agreement (SSA) states no forfeitures permitted for option bonuses
for years already performed.
* Lelie won and the option bonus is protected from forfeiture.
No-Cut Clauses - ANS * Assures the player that he will not be cut during the life of the K.
* Cunningham model protects the player from a cut based on a lack of skill but not from one
based on poor physical or mental condition, inability to perform as result of off-field injuries, or
suspension without pay for disciplinary reasons.
* Standard NFL model is comparable to the Cunningham model but more specific to the
necessity of maintaining a superior physical condition.
* Hudson model is "salary payable in any event" but does not waive the team's right to suspend
the player or protect him if he fails to show a good-faith effort.
Termination - ANS * If termination is not justified, the termination of an athlete's employment K
is a breach of K.
* Employers can terminate if the athlete is physically unable to perform.
, * If a team terminates an employee on the basis of an injury, such an action is usually covered
by a provision in the CBA.
* The club can rightfully terminate a player's K if the athlete is out of shape, lacks skill, defies
club and league rules, or for a material breach of SPK.
* Each SPK contains a clause that allows the team to trade players at will, unless the player has
a no-trade clause.
* Ks cannot be terminated for illegal purposes.
* Alleged false representations regarding the effective date of a K and promise that the matter
would be kept secret was insufficient to rescind the K on fraud in the inducement.
Professional athletes have little job security - ANS
Metro. Sports Facilities Comm'n v. Minn. Twin P'Ship (Minn. Ct. App. 2002) - ANS * Comm'n
successfully sought an injunction.
* Emphasizes the fact that in a use agreement btwn a govt sports authority and a prof. sports
team, money damages cannot fully compensate the non-breaching party when the agreement
provided that the benefit of the bargain is the team's promise to play its home games at the
publicly funded and operated stadium.
Contraction - ANS * A club can rightfully terminate a K for material breach.
* The ability to trade players from team to team as if they were chattel has been prerogative of
management.
* Injunctions are allowed b/c specific performance is unacceptable.
* Earlier forms of player Ks allowed the team to simply terminate the K after a brief period
following notice.
* The question of whether the athlete exhibits sufficient ability is determined solely by the head
coach or manager.
Minnesota Muskies v. Hudson (M.D.N.C. 1969) - ANS * Court held that the Muskies soiled its
hands to such an extent that the injunctive relief should be denied.
* The Muskies contacted Hudson while he was still actively engaged in another team.
Conn. Pro'f Sports Corp. v. Heyman (S.D. N.Y. 1967) - ANS * Court held that the terms and
provisions of this K are too harsh and one-sided to permit equitable enforcement.
* The primary reason for denying relief is the fact that they seek to enforce a K that purports to
bind Heyman for a one-year period and at the same time permit them to terminate at will.
Price v. Univ. of Ala. (N.D. Ala. 2003) - ANS * Price was fired as Alabama's head football coach
b/c of inappropriate behavior at a golf tournament.
* Price lost b/c he did not sign a contract and did not have a property interest in the position.
Functions of agents - ANS * Represent their interests
* Negotiation of a personal services K with a prof. sports team.
* Tax and financial investments
