Honoring Contracts

Danno · 06-21-2005, 04:02 PM

With the recent Terrell Owens contract soap opera and its aftermath, and many years of similar contract disagreements, I've read a lot of opinions about teams honoring contracts as well as players honoring contracts. Some ask why should a player honor a contract when teams so often don't? Well I find a glaring problem with that thought process. When a player signs an NFL contract, he knows certain things inherent with that contract that both he and his agent agree to upon signing. Basically the contract states that,

A) The team will pay you X dollars, if you make their roster.

B) If you do not make the roster, you will not be paid the contract amount, and you are free to negotiate with any team you desire to.

C) The team has the right to terminate the contract anytime they want by simply releasing you. You are then free to negotiate with any other team in the NFL for your services.

D) We have rights to your services for the duration of the contract that you agree to and sign.

The player then either agrees to the contract, and its duration and signs it, or continues to negotiate. Often guaranteed money, or a signing bonus are included in the contract, which is irrelevant to honoring a contract, since it is money due that player regardless of the situation.

Nowhere does a contract state that the player has a right not to honor the contract if he feels he is under-paid. That right is forfeited, with the consent of the player and agent, the moment he signs that contract. That is why many players and agents will back-load a contract. It gives the player the long-term advantage. If the team still wants him, they must pay the back-loaded amount. If the team doesn't want him at that price, the team has the right (agreed to by both player and agent) to terminate the contract and allow that player to negotiate with any team they so desire.

So as far as honoring a contract, it basically comes down to two primary obligations,
1. The team is obligated to pay the player the agreed amount, or release them and allow them to pursue appropriate compensation elsewhere.
2. The player is obligated to play for the agreed amount, or decide not to honor the contract, not play, and not get paid any of the contract amount.

I have yet to see a team not honor a contract, but I've seen many players not honor theirs.

06-21-2005, 04:02 PM	#1
Danno Truth Addict Join Date: Dec 2003 Location: Spanish Fort, AL (via NO and B/R) Posts: 24,747	Honoring Contracts With the recent Terrell Owens contract soap opera and its aftermath, and many years of similar contract disagreements, I've read a lot of opinions about teams honoring contracts as well as players honoring contracts. Some ask why should a player honor a contract when teams so often don't? Well I find a glaring problem with that thought process. When a player signs an NFL contract, he knows certain things inherent with that contract that both he and his agent agree to upon signing. Basically the contract states that, A) The team will pay you X dollars, if you make their roster. B) If you do not make the roster, you will not be paid the contract amount, and you are free to negotiate with any team you desire to. C) The team has the right to terminate the contract anytime they want by simply releasing you. You are then free to negotiate with any other team in the NFL for your services. D) We have rights to your services for the duration of the contract that you agree to and sign. The player then either agrees to the contract, and its duration and signs it, or continues to negotiate. Often guaranteed money, or a signing bonus are included in the contract, which is irrelevant to honoring a contract, since it is money due that player regardless of the situation. Nowhere does a contract state that the player has a right not to honor the contract if he feels he is under-paid. That right is forfeited, with the consent of the player and agent, the moment he signs that contract. That is why many players and agents will back-load a contract. It gives the player the long-term advantage. If the team still wants him, they must pay the back-loaded amount. If the team doesn't want him at that price, the team has the right (agreed to by both player and agent) to terminate the contract and allow that player to negotiate with any team they so desire. So as far as honoring a contract, it basically comes down to two primary obligations, 1. The team is obligated to pay the player the agreed amount, or release them and allow them to pursue appropriate compensation elsewhere. 2. The player is obligated to play for the agreed amount, or decide not to honor the contract, not play, and not get paid any of the contract amount. I have yet to see a team not honor a contract, but I've seen many players not honor theirs.