Once a contract is up, the parties involved might need to re-negotiate the terms prior to renewing the contract or drafting a new contract. This is common for professional athletes who re-sign with a team but also seek terms that could benefit their own franchise. Athlete endorsements allow the professional to brand themselves while also making capital gains. For athletes that have remained on a team for numerous seasons, it is important that they bring their needs and goals to the table when negotiating a contract. This could avoid serious issues with the contract such as breach.
It was recently reported that Dwayne Wade is staying with the Miami Heat, which was evidenced by the new contract signed. The two-year deal is expected to provide more flexibility for the player and the only franchise he has ever known, the Heat. Wade has spent every year of his professional career with the Heat and he aspires to continue that.
The details and terms of the new two-year contract have not been announced at this time, however, it was disclosed that the second year of the contract is a player option. This would allow the player to extend their contract for an additional year past the scheduled end date of their signed contract. Although Wade appears content with his team and shows no signs of changing direction, this option provides the athlete with control and benefits.
When athletes consider the terms of their contract, they often consider the full picture of their career. This might include bonuses, buyouts and other terms relating to their time with the team. Moreover, it could also address details such as endorsements and speaking engagements. It is important that the terms of the contract are upheld, so both parties should fully understand the terms contained in the legal document.
Whether it is an athlete’s first contract or a renewal, it is important that they understand what they are signing and what they want out of the contract. It could help them with their negotiation strategies and ability to benefit while also protecting the person’s best interests in the arrangement.
Source: Sault Ste. Maries Evening News, “Dwyane Wade re-signs with Miami Heat,” July 15, 2014