Employment Law in Sport Flashcards
(32 cards)
What are the key characteristics of an employment relationship?
. Almost always written e.g. PL managers’ contracts must be
. Contains certain clauses negotiated between representatives of the players, clubs and the NGB
. Contains mimimum level of protection for all parties
. Rules ensuring players conform to rules of the NGB and ISF
How has the employment relationship changed over the years and what is the situation now?
. Commercialisation has led to clarification of sporting relationships, frequently through litigation
. Dominant position of NGBs like the Football Association challenged by successful clubs and latterly ‘player power’-power shift
. Sometimes English courts willing to take a pragmatic, sports-orientated interpretation of the law; Manchester City v Royle [2005], NB vs Liverpool
. NGBs have tried to reclaim control of their sports in part through the creation of specialist tribunals
What is the main source of employment rights?
Employment Rights Act 1996
- Centrally these employment rights cover the formation, performance and termination of the contract
What are the performance contractual terms in football?
. Both clubs and players are under several express obligations. e.g.
Club to pay wages during injury periods, provide medical and insurance cover
. The Player agrees to play to the best of his ability in all football matches,
. To observe the Rules of the Club at all times,
. To keep and maintain a high standard of physical fitness and agrees not to indulge in any sport, activity or practice that might endanger such fitness e.g. drink driving or skiing
When is an interpretation of contract terms an issue?
When there is a breach or termination of contract
When is a contract breached?
Contract breached when one of the parties fails to comply with terms & can lead to compensation claims
What is an example of the courts taking a sports-friendly approach when interpreting a contract?
Manchester City v Royle [2005].
What is the background of the Manchester City v Royle [2005] case?
. Parties in dispute over compensation after City sacked manager Royle
. Term in contract stated that if contract terminated before end of duration then they would pay compenation
. Compensation would be eitther 12 months salary if in PL and 6 months if in the Championship
What was the claim in the City vs Royle case 2005?
. 19th May-Club relegated
. 21st May sacked
. Royle argued he was entitled to PL compensation as they were still on shareholder member of PL
. Club argued it had been relegated sporting wise and was therefore entitled to paying Championship compensation
What was the judgement in the City vs Royle case 2005?
. Court of appeal said the test of contract interpretation to be applied was that of ‘the reasonable person with a knowledge of football’
. Football person would conclude they were not a PL club after last game of the season
. Compensation payable was Championship rate
What are two forms of contract breach?
Repudiatory breach and constructive dismissal
What is repudiatory breach? and example case
A fundamental breach of a contract that a breach so fundamental that it permits the distressed party to terminate performance of the contract, in addition to entitling that party to sue for damages/compensation
e.g. Mutu v Chelsea FC Ltd CAS 2008
What is constructive dismissal? and example
Where an employer has committed a serious breach of contract, entitling the employee to resign in response to the employer’s conduct. Dismissal as a result of not being able to carry out bob originally agreed.
Keegan v Newcastle United FC Ltd [2009]
What is the background to Mutu vs Chelsea 2008?
. Mutu tested positive for cocaine in two occasions during 2004 (July & Oct)
. Chelsea terminated employment contract in 28th Oct 2004- Mutu appealed but FAPLAC had stated he committed a breach of contract without just cause
. Mutu signed for Italian Club, Livorno, in 29th Jan 2005 & 2 days later for Juventus.
What was the award of the FAPL AC and DRC for Mutu case?
. FIFA DRC awarded 17,173 990 Euro compensation to Chelsea-based on transfer fee, agent fees, replacement costs of new player and deterrent of behaviour
. Chelsea applied DRC for payment of compensation by Livorno and Juventus (to be held jointly liable) & awarded the decision after Mutu could not pay back amount
. Juventus & Livorno appealed to CAS and the decision of FIFA DRC overturned as they had not induced the player
What is the background to Keegan v Newcastle United FC Ltd [2009]?
. Keegan took job in 2008 understanding he would have last say on transfers
. Club signed South American player against Keegan’s consent
. Keegan resigned after disagreement over who had final say
What was the decision of the Keegan v Newcastle United FC Ltd [2009]?
. Newcastle admitted signing was for commercial reasons as a favour for 2 S American agents
. Public statement saying Keegan was in charge of transfers was just public relations to please fans
. Claimant found entitled to being treated as constructively dismissed
What are the relevant Articles of FIFA Regulations on Status and Transfers of Players in terms of contract termination?
. Art. 13: “A contract between a professional and a club may only be
terminated upon expiry of the term of the contract or by mutual agreement.”
. Art. 16:”A contract cannot be unilaterally terminated during the course of a
season.”
. Art. 14: Termination with Just Cause: “A contract may be terminated
by either party without consequences of any kind (either payment of
compensation or imposition of sporting sanctions) where there is just cause.”e.g overdue payables (2months), permanent injury
Why were FIFA Regulations on Status and Transfers of Players brought in?
Following the Bosman ruling, FIFA wanted to provide stability to contractual relationships to prevent excessive player power
What is an example of a sporting just cause written in FIFA Regulations on Status and Transfers of Players?
“An established professional who has, in the course
of the season, appeared in fewer than ten per cent of the official matches in which his club has been involved may terminate his contract prematurely on the ground of sporting just cause…”
What are the relevant Articles of FIFA Regulations on Status and Transfers of Players in terms of calculating compensation?
Art. 17.1 - Compensation shall be calculated with due consideration for; the law of the country concerned, the specificity of sport, and any other objective criteria
What is the objective criteria for calculating compensation?
. The remuneration and other benefits due to the player under the existing contract and/or the new contract
. The time remaining on the existing contract up to a maximum of five years
. The fees and expenses paid or incurred by the former club (amortised over the term of the contract)
. Whether the contractual breach falls within a protected period
When was the Shakhtar Donetsk vs Matuzalem case?
2008
What is the background of the Shakhtar Donetsk vs Matuzalem case?
In July 2004, signed 5 year contract with Shakhtar Donetsk
. 3 years in he unilaterally terminated contract without due cause
. June 2007, signed 3 year contract with Real Zaragoza SAD
