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Arbitration Contract Negotiation

U-Turn(er)

Edit: This is issue has been settled by the Melbourne Storm trading 2 players to the Gold Coast Titans and AUS$85,000 compensation. Read the story here.
An on-going battle has been taking place in the world of rugby lately. Steve Turner played for the Melbourne Storm last season and during the season announced he would be joining the new expansion team, the Gold Coast Titans. However, gaining a first team spot with the Storm, he backtracked and decided to sign a new contract with the Storm.

Instantly you would think this is not possible as he agreed to join Gold Coast, however Steve Turner never signed a contract or a letter of intent with the Gold Coast. Thus, he had a verbal agreement that he would join.

There is a saying that goes “A verbal agreement is not worth the paper it’s printed on”. However, in this case the League has ruled in favor of Gold Coast, and did not allow the player’s contract with Melbourne to be passed. Furthermore, every training session Steve misses with Gold Coast he is fined $1000. The League is happy to let the clubs sort something out, however until such time, his contract with Melbourne is invalid.
Several options have been discussed to keep Steve in Melbourne. These include:

– Financial compensation

Players in lieu of Turner

– Banned from playing for a period of time

So what implications does this have from an agent’s point of view?

Firstly, ensure that your client does not commit to anything unless it is in writing. Verbal agreements carry much more weight than they used to, so be very careful and make certain your client understands this. Especially in regards to matters regarding playing contracts.

I will keep you posted on the final outcome.

– Chris Lesley

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