How to End a Standard Player Contract
Analyze the player's contract., Provide the player with written notice., Pay the player any money due under the contract.
Step-by-Step Guide
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Step 1: Analyze the player's contract.
While the standard player contract includes basic provisions for termination of the contract, an individual player's addendum may have additional clauses that address contract termination.For example, the SPK used in the NFL allows clubs to release players at any time.
Since the NFL has salary caps and requires teams to pay fines for going over the salary cap, teams often release players so they can stay below the salary cap.
A high-profile player may negotiate an addendum that specifies certain conditions must be met or that he is guaranteed a certain amount of money if he is released for such a reason.
Keep in mind that teams normally are reluctant to make deals that guarantee money, because they have to pay that money even if they release the player – and that payout counts towards the team's total payroll for the purposes of the league's salary cap. -
Step 2: Provide the player with written notice.
Typically if a club plans to release a player the contract requires the club to provide that player of written notice that he or she is being released.For example, the SPK used in the NFL provides that a contract is terminated when the player receives written notice that his contract has been terminated.
The termination is effective on that day – there is no advance notice required under the SPK, although individual players are free to negotiate such conditions. , When the player is released, the club must pay that player any money he or she has earned in the current pay period, as well as any additional amount specified in the SPK or the player's addendum.For example, if the player is paid every other week during the season, and he is released mid-season, he would receive a paycheck for the days he'd been on the roster during that pay period before the date he was released.
In most cases, players aren't entitled to any money besides this once they are released.
In contrast to the NFL, professional baseball players are entitled to termination pay plus reasonable traveling expenses back to their home town if their clubs terminate their contracts. -
Step 3: Pay the player any money due under the contract.
Detailed Guide
While the standard player contract includes basic provisions for termination of the contract, an individual player's addendum may have additional clauses that address contract termination.For example, the SPK used in the NFL allows clubs to release players at any time.
Since the NFL has salary caps and requires teams to pay fines for going over the salary cap, teams often release players so they can stay below the salary cap.
A high-profile player may negotiate an addendum that specifies certain conditions must be met or that he is guaranteed a certain amount of money if he is released for such a reason.
Keep in mind that teams normally are reluctant to make deals that guarantee money, because they have to pay that money even if they release the player – and that payout counts towards the team's total payroll for the purposes of the league's salary cap.
Typically if a club plans to release a player the contract requires the club to provide that player of written notice that he or she is being released.For example, the SPK used in the NFL provides that a contract is terminated when the player receives written notice that his contract has been terminated.
The termination is effective on that day – there is no advance notice required under the SPK, although individual players are free to negotiate such conditions. , When the player is released, the club must pay that player any money he or she has earned in the current pay period, as well as any additional amount specified in the SPK or the player's addendum.For example, if the player is paid every other week during the season, and he is released mid-season, he would receive a paycheck for the days he'd been on the roster during that pay period before the date he was released.
In most cases, players aren't entitled to any money besides this once they are released.
In contrast to the NFL, professional baseball players are entitled to termination pay plus reasonable traveling expenses back to their home town if their clubs terminate their contracts.
About the Author
Megan Campbell
A passionate writer with expertise in lifestyle topics. Loves sharing practical knowledge.
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