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Maracaibo, Venezuela
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Vol. 40, Nº 73 (2022), 768-785
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Recibdio el 17/03/2022 Aceptado el 24/05/2022
The Role of Sports Contracts in
International Trade Contracts
DOI: https://doi.org/10.46398/cuestpol.4073.44
Jamileh Rezaei *
Abstract
Sports activities, which were originally considered
entertainment, have become a large industry and, consequently,
their commercial dimensions have gained special prominence.
Iurged to address this problem in the form of scientic research the
fact that, now, sport is an independent commercial phenomenon,
both in civil and international trade. Thus, in the rst place, the
concept of sports contracts is analyzed. This research has used
descriptive, analytical methods and bibliographic research with
valid legal sources to collect information. The results ofthe study
showed that the formation and dissolution ofthe sports contract
is subject to special rules, international and national, which have
distinguished it from the general rules of other contracts. Therefore, due to
the expansion of professional sport, special regulations in various sports-
related elds are an undeniable necessity and, at the same time, a novel
eld for scientic legal study.
Keywords: sports; trade contracts; international sports; professional
athlete; sponsor.
* Department of Law, Islamic Azad University Damghan Branch, Damghan, Iran. ORCID ID: https://orcid.
org/0000-0002-8504-8120
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El papel de los contratos deportivos en los contratos
de comercio internacional
Resumen
Las actividades deportivas, que en un principio se consideraban
entretenimiento, se han convertido en una gran industria y, en consecuencia,
sus dimensiones comerciales han cobrado especial protagonismo. Impulsó
a abordar este problema en forma de investigación cientíca el hecho de
que, ahora, el deporte es un fenómeno comercial independiente, tanto
en el comercio civil como internacional. Así, en primer lugar se analiza el
concepto de contratos deportivos. La presente investigación ha utilizado
métodos descriptivos, analíticos e investigación bibliográca con fuentes
legales válidas para recolectar información. Los resultados del estudio
mostraron que la formación y disolución del contrato deportivo está sujetas
a normas especiales, internacionales y nacionales, que lo han distinguido de
las reglas generales de otros contratos. Por lo tanto, debido a la expansión
del deporte profesional, las regulaciones especiales en diversos campos
relacionados con el deporte son una necesidad innegable y, al mismo
tiempo, un novedoso ámbito para el estudio cientíco jurídico.
Palabras clave: deportes; contratos de comercio; deportes
internacionales; deportista profesional; patrocinador.
Introduction
International contract law is a very important branch of international
trade law that plays a great role in international and cross-border trade
connections; so, most international trade connections are formed in
contracts. The recognition of various legal aspects of such contracts is
undeniable. Familiarity with the common terms and conditions of such
contracts, which can be referred to as the general rules of international
contracts, is necessary, regarding the diversity and multiplicity of
international contracts. Trade globalization has been the result of
contemporary history, which has created a deep-rooted and extensive
process in trading. The growing trade is now moving beyond national
borders as an evolving reality.
Globalization transforms the free ow of trade every day and removes
the traditional and cumbersome rules and regulations (Shiravi et al., 2019).
However, before going to any discussion, the scope and meaning of legal
rules or regulations should be taken into account. Sports contracts may be
divided into two categories, national sports contracts, and international
sports contracts according to sports law and international trade law
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The Role of Sports Contracts in International Trade Contracts
subjects. National sports contracts are accomplished within a country, and
the contract parties should have the citizenship of a similar country; the
rules governing that contract are subject to the laws of that country.
Therefore, its international description should not cast doubt on its
inclusion in the rules and regulations of civil law. In other words, they
are not dierent in terms of their subordination to civil rights and the
current rules and regulations in civil law(Klepikova et al., 2021). Examples
of sports contracts include standard player contracts, coaches ‘contracts,
doctors’ contracts, sta contracts, sports facilities contracts, marketing or
sponsorship contracts (Maleki and Yaghoub, 2017).
Since sports have long been transformed from entertainment to
protable business for federations and players, and because they have
national and international regulations, sports contracts in international
and cross-border elds are progressing day by day. In this article, we will
rst examine the principles governing international trade agreements in
the rst place, and then we will explain sports contracts and their types and
methods of dissolution in the next ones.
2. International Trade Contracts
2.1 Conceptology
One of the most important issues in international trade is the regulation
and conclusion of international trade agreements. International trade
agreements include the three terms “contract”, “commercial” and
“international”. A contract is an agreement that establishes a relationship
between two or more parties. These relationships can be in the eld of
buying and selling, renting, mortgaging, guaranteeing or providing nancial
facilities.
A commercial contract is a contract that is concluded for business
purposes and to meet business needs. Contracts that are made to meet
personal needs are called consumer contracts. It is worth noting that here
commercial contracts are not in contrast to civil contracts - as is the case in
some legal systems such as France - and therefore, if the contract is not for
personal or family use and is intended for business and income, it is subject
to commercial contracts (Shiravi et al., 2019).
An international clause indicates that the parties to the contract are
trading across borders or that the contract is intended to be executed across
borders. A contract that is concluded and executed within the framework
of a country is considered an internal contract and is out of the scope of
discussion.
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There are many dierent types of international trade contracts, at
the top of which are contracts for the purchase and sale of goods and
services, according to which materials, tools, equipment, machinery,
technical and engineering services, etc. are traded. Transport contracts,
insurance, nancial facilities, commercial representation, international
distribution, licensing, technical and production cooperation, participation
in investment, construction, operation and transfer, various methods of
mutual trade of other contracts It is internationally important and is widely
used in international trade (Barr, 2011).
International contracts dier from domestic contracts in many ways.
The most important dierence is the relationship between international
treaties and more than one national system. Unlike domestic treaties that
are concluded and enforced within the framework of a national legal system,
international treaties have at least two national systems.
International contract law is a very important branch of international
trade law and plays a great role in international and cross-border trade
relations, so that it can be said that most international trade relations are
formed in the form of contracts. Therefore, understanding the various
legal aspects of such contracts is undeniable, and given the diversity and
plurality of international contracts, familiarity with the common terms and
conditions of such contracts, which can be referred to as the general rules of
international contracts, is necessary. A sports contract is a type of contract
that is somehow related to sports aairs.
Examples of sports contracts include standard player contracts, coaching
contracts, sta contracts, sports facilities contracts, marketing contracts or
attracting sponsorships in sports contracts concluded between sports clubs
and athletes and coaches.
2.2 Arranging an International Contract
The rst step in arranging and concluding international trade agreements
is to determine the goals and how to achieve them. The contract must rst
be designed to achieve the desired goals and then based on that plan, the
terms of the contract must be set. After determining the general framework
of the contract, one of the parties usually prepares the initial draft of the
contract for further negotiations (Shiravi, 2018).
The initial agreements are the next step in setting up contracts. In daily
transactions, negotiations and contract conclusions are done at the same
time, as if someone goes to a store to buy a product and after knowing the
value of the transaction and its price, buys the desired product. However,
in social and economic relations, there are many cases where the parties
are not able to nalize and conclude their contract immediately for some
reason, and it is necessary to prepare before concluding the contract or to
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agree to the negotiating parties (Shiravi, 2010). Preliminary agreements are
becoming more and more important in economic and business life. This is
especially important in international trade relations, investment projects,
and the formation of joint venture companies.
Preliminary agreements refer to a set of charters, contracts, agreements,
agreement noting, protocols, etc. These preliminary agreements and
contracts may be brief or, conversely, very complex and detailed. This
agreement may contain all the basic terms of the futures contract or may
contain only a series of vague and general obligations. In some preliminary
agreements, the parties explicitly stipulate that their agreement has no legal
eect, and they express the desire of the parties to negotiate and conclude
the main contract if an agreement is concluded.
Conversely, some of these agreements imply specic or vague
obligations to the parties. It is as if the parties are committed to continue
the negotiations and conclude a nal contract, the details of which are not
yet known. Also, in many cases, preliminary agreements do not specify
whether or not they have legal eect (Shiravi, 2010).
In the next step of contract formation, we determine the form of the
contract, which may be concluded in various ways. An international contract
may be concluded orally or by letter exchange, fax or e-mail. However, the
vast majority of international agreements are in writing. This does not mean
that most contracts are concluded by signing a written contract, but rather
in most contracts, the order is made in writing or accepted by sending the
goods with an invoice.
An important issue in the contract is whether it is concise or detailed.
In a detailed contract, the rights and obligations of the parties, the contract
termination cases, rewards and penalties, dispute resolution, the governing
law, and other details are described in detail. The shorter the contract, the
greater the governing law inclusion in interpreting and supplementing the
provisions of the contract. Whether a contract is made briey or in detail
depends on the type of contract, the applicable law, and the complexity
of the contractual relationship. The higher the contract value, the longer
it takes, or the more complex the subject matter is, the more detail the
contract should be.
In such cases where the contract must be valid for a long time, the
contract must have the necessary power to be able to withstand future
changing events and happenings. The parties in this type of contract must
consider the possibilities and future events and anticipate how to deal with
them. These types of contracts may include conditions that increase the
exibility of the contract in the face of changing circumstances and avoid
contract fragility. Contracts that seek to regulate complex relationships
between the parties should also be prepared in more detail.
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An important principle that is taken into account in the contract is that
the contract terms should be as transparent and precise as possible so
that it clearly indicates the intention of the parties. Since the conventional
meaning of words and phrases is considered in the interpretation of the
contract, it is necessary to pay attention to their conventional meanings
in choosing words and phrases. The meaning of conventional meanings is
the meaning and concept of a kind of words and phrases according to all
situations, appropriate to the type of profession, class, and specialized eld.
If the conventional meanings of words and phrases are not clear, it is
recommended to explain the meanings of those words and phrases in the
denition section. When a phrase is dened in a contract, an arrangement
must be made to specify where in the contract the use of those words and
phrases has a dened meaning and where it has a conventional meaning.
2.3 Provisions and Scope of Principles Governing the
Regulation of International Sports Trade Contracts
Today, the “Principles and Rules” represent a set of principles and rules
of contract law that are common in national legal systems or in compliance
with the specic requirements of international commercial transactions
with applicable legal rules in their contract. The parties to the contract may,
instead of choosing the “law” of a country, choose the “principles and rules
of law” as the governing law of their contract. In international sports trade
agreements, this issue becomes more important as the parties are subject to
dierent legal systems and are more unstable.
For this reason, in these contracts, the parties sometimes anticipate
the circumstances that may occur after the conclusion of the contract and
make it dicult to execute the contract. This prediction is usually made in
the form of a condition called hardship condition. In fact, by anticipating
such conditions, the parties determine the obligation of the contract in an
unpredictable event that leads to the diculty of implementing the contract
and the loss of its balance. However, in most cases, such conditions are
not included because predicting several conditions requires knowledge and
experience about this situation and can not be expected from uninformed
parties.
On the other hand, imposing contract terms on unskilled parties
due to the lack of such terms is far from fair and just. In this situation,
theories such as hardship are introduced. Principles and rules governing
the regulation of international trade agreements in this article (1-2-6) have
dened hardship, after emphasizing the principle of contracts necessity.
This article stipulates that hardship is created when:
The occurrence of accidents will fundamentally change the balance of the
contract, either due to the increase in execution costs or due to the decrease
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in the exchange value that the party receives. 2) The accident occurs or
becomes public after the conclusion of the contract. 3) The accident could
not have been reasonably considered by the loser. 4) The accident is out of
the control of the party and 5) the risk of the accident is not accepted by the
loser.
When the disputes are referred to the International Court of Arbitration
for Sport, the rules of law are considered. According to the opinions issued
by this authority, the principle of equality of arms, the principle of good faith,
the principle of equality and proportionality, the principle of fair judgment,
have all been emphasized and approved (Panagiotopoulos, 2014).
3. The Nature of the Sports Contract
Sports law covers a variety of issues. One of the most important issues
that can be considered in sports law is the category of “sports contract”
because it can be said that the most basic element of professional sports
is the sports contract. When a contract is signed and a relationship is
established between sports activists, no competition will take place and
many issues in sports law will not be relevant. For example, the salaries
and duties of coaches, players, clubs, sports equipment sellers, journalists,
sports representatives, club doctors, sponsors, etc. are dened on a contract,
and none of these issues are conceivable until a contract is concluded.
Before regarding the main topics, it is necessary to provide a
comprehensive denition of the sports contract and specify the desired
contract from other examples of the sports contract. no specic denition
has been found so far regarding the sports contract; according to the rules
and regulations of the sports federation and the contract of those who
work to conduct the competition, the sports customs, and contracts sports,
the denition can be achieved with certainty in the sports contract as it is
said: it is a contract whose subject is directly or indirectly related to sports,
whether the subject of the contract is directly about sports activity or the
terms that are unavoidable for doing sports activities.
The only sports contract that deals directly with sports activities are
the clubs’ contracts with players, but if the subject of a sports contract is
something that is unavoidable for a match, there will be many dierent
examples. Among sports contracts, like the contracts of coaches, team
doctors, sports lawyers, sports representatives, journalists, sponsors,
etc., clubs’ contracts with players are the most important and main sports
contracts.
Because athletes and players use all the eorts that provide the
equipment and supplies for the competition, and perform sports activities
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in the form of competition, in fact, they play the last role in the professional
sport of the players; if they are not players, preparing the equipment for
the competition will be in vain. Therefore, it can be boldly claimed that the
most important and main sports contract is the clubs’ contract with the
players.
Determining the legal nature of a sports contract requires an analysis of
the issues that make up the framework of a sports contract, without which
the contract will lose its formality and legitimacy. For this purpose, we
consider the sports contract’s body.
A) The Player
One of the parties in the sports contract is the player. A player is a person
who devotes all his time and talent to training and education in a particular
sport and has chosen sports as his main job so that they allocate time to it.
In professional sports, each player’s skills and physical and mental strength
are unique in their kind, and clubs use their players to benet from their
sports abilities, which builds the sports personality of the players. It is also
the most important and the only selection criterion. This makes the sports
contract being in the category in which the personality of one party plays a
key role and is the main reason for the contract. On this basis, the contract
is concluded under the supervision of the player.
B) Club
With dierent types of sports contracts, we nd that clubs are one of the
permanent and main parties to these contracts; For example: in the contract
of construction of sports facilities and equipment, purchase of equipment
and their transportation, television, and radio broadcast of matches,
employment of technical and administrative sta of the club and contract
with players, etc., one of the xed parties is the club. For this reason, it can
be argued that clubs are one of the building blocks of professional sports,
which on the one hand, as employers, conclude contracts with players and
control their sports activities, and on the other hand, by concluding various
sports contracts provide the ground for competitions.
Today, sports clubs are often established and managed as stock
companies, and their shares are also oered on the stock market like
Chelsea, Real Madrid, Manchester United.
3.1 Types of Sports Contracts:
3.1.1 Coaches’ Contract
The employer-employee relationship between a team or institution
and the coach is similar to the usual employer-employee relationship
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The Role of Sports Contracts in International Trade Contracts
in the business world. The coaching contract is somewhat similar to the
employment contract, in which the nature of the work, the duration of the
employment, and the salary are specied. However, unlike the standard
contract of athletes, the contract of coaches, especially prominent and well-
known people, has independent and unique clauses.
3.1.2 Medics’ Contract
Physical activity requires the presence of a physician. Injuries are
inevitable in sports competitions; therefore, rapid diagnosis and treatment
by a qualied physician are very important. The doctors are independent
contractors and, as a result, the hiring party will not take responsibilities
under the principles of proxy liability. In fact, a doctor’s contract is a type of
employment contract that has certain terms and conditions.
3.1.3 Employee Contract
The employer-employee relationship diers from independent
contractor in various areas such as personal responsibility, taxation,
insurance, salary-pension, and dismissal. Therefore, recognizing the
dierence between the two is very important. If it is proven that there
was an employer-employee relationship, the action of the employees will
make the employer responsible for losses; Therefore, many employees hire
contractors to ensure that they arrange the contract in such a way that the
employees are recognized as independent contractors.
3.1.4 Contract for Sports Facilities
When an amateur sports club or professional team does not have land,
it is necessary to sign a contract to rent it. In addition to how the venues are
used (game schedules, training grounds, locker rooms, parking lots, etc.)
as well as the workings of nancial sponsors and advertisers, other factors
such as rent, payment methods, and special services by the owner should
be considered.
3.1.5 Marketing Contract
Marketing and sponsorship contracts, like other contracts, mention
the parties, time limits, obligations of the parties, and their terms. A
sponsorship agreement, whether between a company and a player or
between a company and a sporting event, is a binding agreement in which
either party is required to meet its obligations. It is clear that the language
of the contract must be clear in various cases, such as the obligations of each
party in unpredictable circumstances, such as disputes, natural disasters,
player injuries, or the sponsor’s bankruptcy.
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4. FIFA Rules in Contracts
The rules of international organizations, such as the World Football
Federation (FIFA), apply to international competitions, and the national
clubs and teams are required to comply with them. Otherwise, penalties will
be the suspension of membership of the club or national team of the violated
country, in which the organization and international competitions will
follow. The rules of these international organizations are also authoritative
regarding the rules of the game, but the rules of these institutions are
guidelines regarding the transfers of players, the formation of clubs, and
the starting matches (Guillermo, 2014); however, in many cases where
national law is impartial on a matter, it refers to the rules of international
institutions.
FIFA denes a minimum for a contract, and any contract that meets the
31 conditions set by FIFA is a minimum professional contract. It is a good
thing if the federations come up with a ready-made format to standardize
the appearance of the contracts. On the other hand, they must also allow
the parties to enter into additional conditions or remove some of them. The
“principle of contractual freedom” is a universal and transnational rule and
has been considered in Iranian civil law.
The Executive Committee of FIFA on November 24, 2008, by sending
Circular No. 1171, emphasized the same international principle. The title
of this circular is the minimum contract requirements of a professional
player, and in this section of the letter, 13 important contract headings
are explained. According to the section of the letter, a valid contract is a
contract that has 13 headings and assignments, meaning that it has listed
the minimums that must be assigned, and no maximum can be assigned to
these 13 items.
Another point is that these 31 items should be in the football contract, but
the content of these items is determined by agreement between the player
and the club and the federation has no right to interfere in the content.
These include party specications, denitions, club commitments, player
commitments, salaries and benets, dispute resolution, and more.
4.1 Sponsership and Advertising Contract (Sponsorship)
Sponsorship is a commercial contract in which a sponsor pays a certain
amount of money to a person with a commercial reputation or provides
them with goods, services, and other facilities. In return, by receiving certain
salaries and through promotional activities by individuals, they enhance
their business position and expand the sales of their products and services
(Wong, 2010). Sports advocacy, which is considered the cornerstone of all
sports marketing arrangements, is of great value and importance in this
eld.
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On the other hand, famous athletes earn high income through
sponsorship contracts, which is even more than what they earn on the eld.
For example, in 1999, Schumacher, a well-known car racing driver, earned
$ 80 million through personal sponsorship contracts (Youse and Hassani,
2010).
On the other hand, a sponsorship deal brings huge benets to clubs
because companies compete with sports activists for contracts and pay them
millions of dollars to promote a wide range of their products (Wong, 2010).
Sponsorship sports organizations and athletes are shortcuts for sposers
to oer their products to a large number of consumers and penetrate the
market as soon as possible (Thornton, 2010).
Of course, there are very special cases in which advocacy is not done for
a direct commercial purpose; Among them is a contract between Barcelona
and UNICEF, under which even the Spanish club is obliged to pay money
to help the child protection fund in exchange for the UNICEF name on the
club’s shirts, but it must be admitted that such cases were rare. Moreover,
commercial intentions motivate sports parties and businesses to enter into
sponsorship agreements (McDonnell and Moir, 2013). Sports sponsorship
contracts fall into several categories:
4.1.1 Collective Sponsorship Contracts
A sports sponsorship agreement is an agreement between a sponsor
and a group of sports organizations, including clubs, leagues, national
organizations, or international sports institutions, to use their credit
to promote the supportive business. In the club sponsorship contract,
the sponsor’s trademark and letters are axed to the team uniform and
equipment of the club, and signs and promotional items are displayed on
the ground and at the entrances of the club’s sports elds.
The latest sponsorship deal was signed in 2015 between Chelsea Football
Club and Japanese company Yokohama (a car tire manufacturer) for 40
million in ve years. This is the type of contract that is common in some
sports, according to which the name of the sports club is changed to the
name of the sponsor or a word reminding the sponsoring business is added
to the name of the club.
4.1.2 Personal Sponsorship Contract
However, in EU law, there is no distinction between collective and
individual supportive contracts; but in American law, personal protection
is an independent form of such agreements (Nafziger and Ross, 2011).
This agreement is a contract between an athlete and a business company,
according to which the company, as a sponsor, obtains permission to use
the name, image, signature, etc. of an athlete in advertising his products
and services (Spengler et al., 2016).
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The use of celebrities in advertising is considered an eective business
strategy to help promote new products, increase market share for existing
brands and nd new ways to communicate with customers (Li, 2011). With
the boom of the market economy, the image of a person and his personal and
physical characteristics have gained considerable value, so the name and
image of the star in today’s society are considered a valuable commodity.
Natural or legal persons use the visual rights of stars to promote and
develop their goods and services (Jafari and Mokhtari, 2016). On the other
hand, many outstanding athletes earn a signicant portion of their income
from sponsorship and commercial certication (Czarnota, 2012).
4.1.3 Stadium Naming Contract
Another new and special type of sponsorship contract, which rst
developed in the United States over time, gained a prominent place in Europe;
it has become very popular in the world since 2000. The phenomenon of
naming stadiums and sports elds and even Platforms are called sponsors
(Blackshaw, 2011). At present, the importance and application of naming
contracts have been proven as an eective way to promote brands and
improve the competitive position of rms (Neils, 2012). These successes are
usually long-term, unlike individual and collective support agreements. The
biggest naming rights contract, for example, was signed in 2004 between
Arsenal Football Club and the Fly Emirates to 100 million over a 15-year
period, under which Arsenal renamed their own stadium to Emirates.
4.1.4 TV Broadcasting Rights Contracts
The right to broadcast and satisfy the needs of fans watching national
football matches and other disciplines are the most important segments
of holding matches until the World Cup receives their acceptance as well
as the broadcasting of these matches and events. Beyond the media and
entertainment aspect of this event, the right to broadcast ensures protability
and income not only for the club as a broadcast of each country’s league but
also for the organizers of prestigious international competitions such as the
AFC and the Asian Club Cup. The Asian Cup, as well as FIFA, will be held
to host a variety of competitions, from the Junior World Cup to the Adult
World Cup.
In today’s world, clubs make big money through television broadcasting
rights. If the clubs can earn money this way to cultivate players and sell
these players, they can buy any player at any price they want. They can even
attract international players and sell their games internationally. In 2010,
the German Bundesliga earned 1.5 billion euros from German football
matches, nearly 750 million euros from television broadcasting rights and
ticket sales are a huge number in the world.
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In European stadiums, they have even made suites that have all
the facilities of a private home, and families rent them out every year to
encourage their team, and they can have a good time whenever the match
takes place. The rent of these suites is about 50,000 euros per year, and a
club earns a considerable income by renting them.
Recent advances in technology have introduced a new player in the eld
of sports broadcasting. Virtual advertising is a type of digital technology
that allows television advertisers to use logo names, animated images, and
computer-generated brands. In sports competitions, these advertisements
may even be shown during the broadcast of a live television match. As this
type of advertisement is used in the broadcast of football matches, even
bowling can be seen in various sports competitions. This type of technology
has been used since 1995, which has reached its peak in recent years and is
commonly seen in various sports.
In 2000, due to the lack of resources and rights in these cases, there
were many problems, and one of these problems was the reluctance and
consent of companies to have virtual environmental advertising. In fact,
many commercial contracts related to virtual environmental advertising
remained impartial. Despite the free trade market in the United States, there
were numerous restrictions on virtual advertising under the applicable law.
First, the inconsistencies became apparent when virtual advertisements for
products had to be replaced without obtaining permission from the owners
of places where the advertisements could be actually installed.
The cost of virtual advertising is somewhat equal to the so-called old
and traditional advertising. In baseball, for example, the cost of a virtual
ad is equal to showing a traditional ad for 30 seconds, when showing the
result of a match. However, we must also add the cost of producing virtual
advertising to this price. Despite the high costs of this type of advertising,
due to their benets, this type of advertising still plays a signicant role,
which highlights the need for legal standards of broadcasting competitions
at the regional level (Deutsch, 2000).
4.1.5 Sports License Contracts
A license is an agreement whereby the holder of intellectual property,
called a licensor (licensor), authorizes another person, called a licensee
(licensor), to exercise all or part of his exclusive rights under certain
conditions and for a period of time. It is known and gives in a specic
territory and usually with limitations (Poltorak, 2004).
Teams, Leagues, Athletes, and International Organizations benet from
the reputation they have gained by licensing their trademarks to large
companies producing sports or non-sporting goods which are mentioned
as “Sports Goods License Agreement”. This contract includes the products
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ranging from sports items to food and toys, etc., or the services related to
logo, and other sports trademarks (Rosner and Shropshire, 2004: 183).
This license allows sports activists to establish themselves in the market
and become a brand; earning money increase their reputation, without
the need to spend exorbitant costs, while the risks of production and the
success of the business started by the licensee. In addition, sports licenses
are considered an eective tool in protecting trademarks and maintaining
the credibility and reputation of sports personalities (Masteralexis et al.,
2011). From the licensee’s view, the bachelor’s degree contract provides an
opportunity in the rst place to benet from the reputation and popularity
of athletes and teams, which results in more credibility and faster market
penetration. In addition, companies can increase the price of their products
and increase their revenue level by simply adding a logo or trademark to
their pre-manufactured products. In addition, the sports license contract
opens new distribution in sports stadiums and fan clubs, which will greatly
help the development of the business (Bruton, 2015).
4.2 Dissolution of the Sports Contract
Obligations under the contract may be dissolved for one of these cases:
1- By Performance
2- By agreement
3. By Rescission BY
4- By Operation of Law
5- By breach of contract - By Breach
6- Due to the impossibility of executing the contract - By Frustration
In the rst place, the contract may be completed and executed
satisfactorily, in which case the contract is terminated and there is no room
left for dissolution. On the other hand, the parties may agree to their lack of
obligations without the involvement of an external cause or the fault of one
party, the obligation falls under the rule of law. This in itself may involve
a variety of situations, sometimes the next law prohibits the obligations
under the contract. The next case, in which the sports contract may be
dissolved by agreement, is also referred to as dissolution right or voluntary
dissolution.
In the case of contract dissolution, one of the methods of compensating
for the damage caused by the contract breach is to terminate the contract
as if the contract never happened. Contract law in this way refers to the
termination, and it is assumed that the parties will be returned to their pre-
contractual position. Each termination or dissolution of a contract, although
having more or less the same result, takes place in dierent situations.
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The Role of Sports Contracts in International Trade Contracts
In the latter case, if one of the parties is exonerated from fullling his
obligations, his failure to fulll the obligation will not be considered a
violation. An unpredictable event that makes it very impossible or dicult
to fulll the obligations can lead to his exoneration of non-fulllment of
the obligations. during the validity of the contract without either party’s
violation, an event may occur that makes the continuation of the contract
impossible or illegal, or it causes such a fundamental change in the
circumstances; as a result, the contract becomes something completely
dierent from what the commitment is made rst, in which case the
contract will end automatically.
Conclusion and Recommendations
International trade contracts are based on very important principles,
most of which are general legal principles that civilized nations such
as the principle of free will, the principle of good faith, the principle of
proportionality, and fair judgment, which result in a very strong framework.
And enable the implementation of contracts. One of the most important
and practical contracts in the eld of international trade, which is cross-
border, is sports contracts. In addition to adhering to international trade
contract terms under the national regulations, there are many types of
sports contracts, depending on whether they are directly or indirectly
related to sports, are examined in detail in the study.
Sports contracts, in addition to emphasizing physical and mental health,
encouraging team activities, paying bonuses and salaries to players, have
been able to have a great impact on the rules and regulations of the contract.
Also, national and international federations have tried to help the growth
of the eld at the international level by uniting and removing obstacles to
the transfer of players and creating an equal structure to improve education
and coaching.
Also, by concluding sponsorship agreements with sponsors, the
television broadcasting agreements, and clubs, in addition to economic
growth and economic prosperity of sports, were able to have a great impact
on creating a culture and encouraging people to use mass media and
growing companies by advertising. Therefore, in addition to players and
clubs, sports contracts have not been able to bring other prominent players
into the eld.
In this research, we rst got acquainted with the concept of sports
contracts and parties’ main parts or parties to the contract and then analyzed
the types and varieties of such contracts. Then, in the last part of the article,
we examined the methods of dissolving the sports contract. In summarizing
the written material, we came to the conclusion that sports contracts are
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among the contracts; if they have similarities to national contracts, due to
special regulations, they have a special legal institution and establishment.
In international organizations, federations and the sports refereeing court,
have greatly contributed to the authenticity and strength of such contracts.
The research conducted in this study showed that one of the issues that
are specic to international sports contracts is the conict between the
personal rights of athletes, the clubs’ rights, or unions’ collective rights.
The gradual movement of sport towards professionalization and the
development of the relationship between sport, sports assets trade, and
human talents have certainly led to the emergence of sporting commercial
contracts in the near future.
Contracts, the dimensions of which are also subject to various
ambiguities, will not be a way to solve these diculties, and it is necessary
to formulate appropriate sports regulations, both at the national level, the
international federations and to adopt ecient and desirable procedures,
especially in the executive standards of unions to face the problems of this
eld and adequately secured the salaries of sports activists, players, and
other factors.
Despite the existence of laws and regulations related to contracts,
unfortunately, there are few resources on sports law, especially sports
contracts, both national and international. Therefore, in the position of
providing suggestions for future research, the issues that are considered in
the eld of sports in the specic meaning of sports, are strongly felt.
Today, as sports are increasing day by day, and they are gaining more
legal framework and organizational authority, it is also great to review
international organizations that have taken action in the eld of sports or
specic sports. Also, in the eld of comparative science, the regulations
governing sports in Iran can be contributed with other countries and written
in the form of research, relevant to federations. The signicant progress of
countries in certain sports can be an important example in sports.
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Esta revista fue editada en formato digital y publicada
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Vol.40 Nº 73
