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What Every Player Should Know About Morals Clauses

The recent scandals in the sports world have painfully demonstrated to some athletes that the salary clause in their player contracts and endorsement contracts is not the only contractual term that deserves substantial attention during the negotiation process. This article explores the often overlooked “morals clause” which gives the athlete’s team, league or company paying the athlete to endorse its products the right to terminate a contract or otherwise punish a player who engages in criminal or unseemly behavior.

Brian R. Socolow is a partner at Loeb & Loeb LLP. He represents organizations in the sports industry and other businesses. He is based out of the New York office.

This article was first printed in the August 2008 edition of Moves Magazine. Permission for article reprint has been granted.