Legal Points Of The Basketball Player – Club Agreement

The basketball player – club agreement is probably one of the most essential documents in the business of basketball. I highly recommend my clients, be they players, clubs, or agents, to include all of the points listed below in each player-club agreement. This helps the parties to define and clarify the boundaries and avoid unnecessary disputes and misunderstandings.

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1. Parties of the agreement. 

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2. Term of the agreement.

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3. Medical examination.

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Generally, the parties agree that a medical examination is performed within 48-72 hours of the player’s arrival at the club. The club informs the player in writing of the results. It is quite common to link the results of a medical examination to the date on which the agreement enters into force.

4. Basic salary and terms of payment. 

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In most cases, the annual amount of the basic salary is divided into 8 to 10 equal monthly payments. It is important to agree in advance whether a player’s salary payments are NET or GROSS.

5. Bonuses and Terms of payment. 

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6. Taxes

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It is important to agree on which party to the agreement is required to pay taxes to the state on salaries and bonuses.

 7. Sanctions for late salary payments.

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Quite often clubs are allowed to be late in paying salaries. The delay period is contractual and usually ranges from 15 to 60 days. However, at the end of the term, it is important to agree on the sanctions to be applied if the club continues to delay the payment of salaries.

 8. Duties and obligations of the Player

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9. Duties and obligations of the Club

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10. Health insurance 

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Health is a key part of the sports business and injuries occur frequently. It is therefore essential to agree which party to the agreement will cover medical bills for the player in case of illness, injury, disability, and death.

11. Additional benefits compensated by the Club

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An apartment rental, a car, additional flight tickets, school tuition for the player’s children are the most common benefits compensated by clubs. However, the parties should agree on each benefit separately, describe it precisely, and include liability for damages.

12. Costs of travels with the team

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Typically, teams pay for players’ accommodation and travel expenses when the player is traveling with a team. However, problems arise when a player refuses to share a hotel room with a teammate and demands for a separate room that the club is not willing to pay for; or when a player uses a minibar or room service at a hotel and the club refuses to compensate for that and so on. It is therefore beneficial for both parties to agree on the costs in advance.

13. Visas and permission to reside

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This is another thing worth including in a player – club agreement if the player is a foreign national. Dealing with migration offices and embassies requires special knowledge, a lot of paperwork, and time. Therefore, prior agreement on which party is responsible for arranging a visa/residence permit for a foreign player would be beneficial to both parties.

14. Vacations/days off

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15. National Team

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It is wise to discuss the conditions in advance, in case the player might be asked to join his/her National Team during the season.

16. Club’s internal rules

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Almost every club has its internal document, which lists all the club rules and provides penalties for violating the rules. Club rules apply equally to all team members. The club must provide the player with the rules and the player must explicitly agree to abide by the rules before entering into an employment contract.

17. Cases where the agreement can be terminated earlier

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18. Image rights and promotional activities

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19. Agent’s fee

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20. Applicable law

I am a devoted fan of the Basketball Arbitral Tribunal Basketball (BAT) for its professionalism, quick dispute solving, clarity and consistent jurisprudence. BAT is an international dispute solving institution recognized by FIBA. Moreover, FIBA assists in enforcement of the BAT awards acting directly or via local federations. For more info: https://www.fiba.basketball/bat

For any disputes to be admissible to BAT, the following arbitration clause must appear in a contractual agreement:

“Any dispute arising from or related to the present contract shall be submitted to the Basketball Arbitral Tribunal (BAT) in Geneva, Switzerland and shall be resolved in accordance with the BAT Arbitration Rules by a single arbitrator appointed by the BAT President. The seat of the arbitration shall be Geneva, Switzerland. The arbitration shall be governed by Chapter 12 of the Swiss Act on Private International Law, irrespective of the parties’ domicile. The language of the arbitration shall be English. The arbitrator shall decide the dispute ex aequo et bono.” (BAT Arbitration Rules, point 0.3)

In case the Club of the agreement is one of the Euroleague license holders, parties may choose the Euroleague Basketball Dispute Resolution Chamber (EBDRC) as an alternative dispute solving institution. Note, however, that only clubs with a Euroleague license are subordinate to the Euroleague as an institution. The Euroleague has no jurisdiction over other clubs.

For any dispute to be admissible to the EBDRC, the following arbitration clause must appear in a contractual agreement:

Any disputes arising out of or in connection with the present contract shall be submitted to the Euroleague Basketball Dispute Resolution Chamber (EBDRC) and shall be finally resolved in accordance with the Euroleague Basketball Arbitration Code by a single arbitrator appointed in accordance with this Code. The arbitration shall be held in English. The arbitration shall be seated in Lugano, Switzerland and shall be subject to Chapter 12 of the Swiss Private International Law Act irrespective of the parties’ domicile. The arbitrator shall decide the dispute ex aequo et bono taking into account the EuroLeague Bylaws, as well as all relevant EuroLeague collective bargaining agreement and/or arrangements.

21. Miscellaneous

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22. Parties [signatures]

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Definitely, there are many more points, conditions, rights, duties, and obligations that may be included in the player-club agreement, as each agreement is a result of mutual wishes, negotiations, and the ability to reach a common solution. However, if parties of the agreement cannot find a mutual solution, that is why lawyers are at your disposal.

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