A limited time has the advantage of security. Both parties know when the agreement expires and it provides some consolation to continue the relationship for the period that has been set. This security can be useful if you are building a new relationship, and if you also want to put the agent`s existing customers under your agency umbrella, this can offer security to promote integration. Agencies may attempt to align the duration of the representative`s contract with certain contractual terms of representation (or ensure that the expiry date of certain existing representative representation contracts takes place during the duration of the representative`s or agency`s contract). If the agency agreement is not exclusive, the agreement must clearly define the activities covered by the agreement and those that are not. As a starting point, you should keep in mind that one or both parties may prefer the flexibility of a rolling time contract. This allows greater freedom to terminate the relationship, usually at a certain termination period. However, agents will generally be careful about this type of relationship when the agent is required to assign existing contractual relationships with players/athletes to the agency, or to end a new direct relationship between players/athletes and the agency. If a rolling concept is the preference of the parties, clear provisions regarding dismissal and termination of rights regarding the treatment of these players/athletes are essential. Before entering into a contract with an agency or agent, the parties should have confidence that they have carried out the necessary due diligence audits of their potential new business partner.
The apparent background checks will not only be important, including verification of references and registrations and publicly available regulatory information, but the representative or agency should also be able to have confidence in identifying and assessing the risks of all existing obligations and liabilities to third parties (particularly potential issues relating to termination or implementation of agreements). We have seen a number of litigations in the Agency`s marketplace related to some of the following issues (which is obviously not an exhaustive list): the decision of the agency agreement must be exclusive or not depends entirely on the circumstances of the parties.