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Tuesday, April 03, 2012
 
Tim Tebow and Reviewing Contracts

With Tim Tebow now officially a Jet, I wanted to initiate my blogging by addressing a simple but important point. 

According to reports, the trade of Tebow to the Jets hit a snag because of language in his contract relating to the payment of salary advances.  Eventually the Broncos and Jets resolved whatever issue there might have been, reportedly by splitting the $4 million plus at issue.  Mike Tannenbaum the general manager of the Jets, himself is a lawyer and the Jets have high-quality legal talent that they turn to for contractual and other legal issues, so I have no doubt that they handled this situation properly and there were in fact no surprises to Tebow's contract. 

The issue that this situation highlighted for me is the importance of involving lawyers early on in an contractual review process, or other legal matter, when they can provide the advice that will set the transaction on the right course and avoid problems down the road.  Without legal advice at an early stage, transactions can get off track and by the time lawyers are asked to get involved, the task of fixing the problem is often a more time-consuming and expensive one than had the lawyer been involved from the outset.  This is as true in the sports context as any other.





1 Comments:

"Mike Tannenbaum the general manager of the Jets, himself is a lawyer and the Jets have high-quality legal talent that they turn to for contractual and other legal issues, so I have no doubt that they handled this situation properly and there were in fact no surprises to Tebow's contract."

This is where I become confused. If they were aware of the clause before, why was there a delay thereafter?

The result is perfectly acceptable, but you are making it sound as if the Jets deliberately pretended not to know about the clause (the alternative being that they didn't see it, or pay attention to it) so that they could re-open negotiation on that issue.

It seems (again, especially given the result) that negotiating with knowledge of the clause upfront would have been better for all parties.

Blogger Ken Houghton -- 4/03/2012 12:32 PM  


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