Location Clauses in Contracts

pad300
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Location Clauses in Contracts 

Post#1 » by pad300 » Sat Jun 22, 2019 4:27 pm

Is it legal to put a clause in a contract that pays a player more for games played in a specific location?

Some examples,
a) assuming you are a team in a no-tax state, could you put a clause in place that pays a player's tax burden when you travel to a income tax state?
b) player X hates Washington DC for personal reasons (because he's crazy or whatever...). He negotiates an extra $20,000 per game if he's required to travel with the team and play there. (Obviously, it becomes likely the team will rest him when they travel to WAS).
Smitty731
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Re: Location Clauses in Contracts 

Post#2 » by Smitty731 » Sun Jun 23, 2019 4:27 pm

pad300 wrote:Is it legal to put a clause in a contract that pays a player more for games played in a specific location?

Some examples,
a) assuming you are a team in a no-tax state, could you put a clause in place that pays a player's tax burden when you travel to a income tax state?
b) player X hates Washington DC for personal reasons (because he's crazy or whatever...). He negotiates an extra $20,000 per game if he's required to travel with the team and play there. (Obviously, it becomes likely the team will rest him when they travel to WAS).


No. The tax stuff is covered by the CBA itself. It's very complicated, because some states are tax free. Some charge a "jock tax" for athletes outside of the state playing in the state. Some states don't. It's all very complicated, but the CBA has it covered.

As for the second scenario, that's not an allowable type of bonus and that contract would be rejected.
pad300
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Re: Location Clauses in Contracts 

Post#3 » by pad300 » Sun Jun 23, 2019 8:57 pm

Smitty731 wrote:
pad300 wrote:Is it legal to put a clause in a contract that pays a player more for games played in a specific location?

Some examples,
a) assuming you are a team in a no-tax state, could you put a clause in place that pays a player's tax burden when you travel to a income tax state?
b) player X hates Washington DC for personal reasons (because he's crazy or whatever...). He negotiates an extra $20,000 per game if he's required to travel with the team and play there. (Obviously, it becomes likely the team will rest him when they travel to WAS).


No. The tax stuff is covered by the CBA itself. It's very complicated, because some states are tax free. Some charge a "jock tax" for athletes outside of the state playing in the state. Some states don't. It's all very complicated, but the CBA has it covered.

As for the second scenario, that's not an allowable type of bonus and that contract would be rejected.


Thank you

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