I’ve been hearing this in a lot of Esports pro teams but can’t really understand how they work, tried google but to no avail. Like what happends if you buy out a player? Who gets the money? Who is paying?
In: 9
Contacts will typically have a timescale attached to them. A player may be hired with a contract that states they will be paid $25,000 a year, and that they will be employed for three years.
The problem comes when one side wants to change this agreement – maybe a team decide they don’t want the player on their side and want rid of them, or the player decides that they would rather play for a different team. In these situations they will be breaking the context they previously made, with one side gaining a benefit, and one side taking a loss, so naturally the losing side will want to say ‘no, we want to finish the contract as agreed’.
The idea of buying out a contract is that the two sides will come to an agreement on how they should break that contact in a way that is acceptable to both sides. Typically by ‘buying’ it from the losing side.
So if a good player wants to leave and join a bigger team, that bigger team may pay the previous team a sum of money equivalent to cover the losses they would expect to make without that player.
Or a team may want rid of a player, so instead of paying them $25,000 for another three years, they may agree to pay them more, but only for the current year (after which the player will be free to start a new contract with another team).
Some of this will be set out in advance in the contracts signed, while since of this will be negotiated at the time.
Contacts will typically have a timescale attached to them. A player may be hired with a contract that states they will be paid $25,000 a year, and that they will be employed for three years.
The problem comes when one side wants to change this agreement – maybe a team decide they don’t want the player on their side and want rid of them, or the player decides that they would rather play for a different team. In these situations they will be breaking the context they previously made, with one side gaining a benefit, and one side taking a loss, so naturally the losing side will want to say ‘no, we want to finish the contract as agreed’.
The idea of buying out a contract is that the two sides will come to an agreement on how they should break that contact in a way that is acceptable to both sides. Typically by ‘buying’ it from the losing side.
So if a good player wants to leave and join a bigger team, that bigger team may pay the previous team a sum of money equivalent to cover the losses they would expect to make without that player.
Or a team may want rid of a player, so instead of paying them $25,000 for another three years, they may agree to pay them more, but only for the current year (after which the player will be free to start a new contract with another team).
Some of this will be set out in advance in the contracts signed, while since of this will be negotiated at the time.
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