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Ontario Court Rules On Validity Of Contract Negotiated By Non-Licensed Football Agent

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An arbitrator’s ruling gives some insight on the use of non-licensed CFL agents to negotiate player/team contracts.

A month ago the Canadian Football League Players Association was up in arms.  An arbitrator had ruled that a contract made between a CFL team and a player was valid despite the player’s agent not receiving certification to act as a CFLPA agent prior to the negotiation and execution of the agreement.  The player wanted out of the contract, the CFLPA backed the player, yet the arbitrator said the deal was effective and the player would have to comply with its terms.

The CFLPA said that it would proceed with an application for judicial review immediately after the arbitrator’s ruling was handed down.  The Association’s official release stated, in part, “The CFLPA’s position is that CFL Clubs who negotiate with unregistered agents are at a distinct advantage in those discussions, and are depriving the CFL Player involved, regardless of who the player is, of his right to be represented by an agent who is familiar with the normal protocol of CFL Standard Player Contracts.”  The Ontario Court of Justice disagreed, but in the end it also decided to quash the arbitrator’s ruling and set it aside.

In the court’s opinion it cited to Article 28(1) of the CFL collective agreement, which provides that “All Member clubs shall be required to negotiate with each Player or any person designated by the Player in writing to represent the Player.  The Member Club shall not deal with any person who is not registered as a Contract Advisor with the C.F.L.P.A.  It is agreed that Member Clubs, Contract Advisors and Players shall, at all times, negotiate in good faith and act in accordance with ethical business practices.  In the event that a Member Club is contacted by a Contract Advisor not registered with the C.F.L.P.A., the Member Club shall notify the C.F.L.P.A. forthwith.” (emphasis added).

The standard of review on appeal of the arbitrator’s ruling was one of reasonableness.  Interestingly, the court noted that there was evidence that 50% of CFL players use unregistered contract advisors to negotiate team deals on their behalf.  Instead of quashing and setting aside the arbitrator’s ruling based on the use of an unregistered contract advisor, the court was more concerned that the CFL team failed to properly exercise its option over the player and that “the language used in the letter” sent by the CFL team to the player “is not capable of being construed as a clear communication of an intention to exercise the option and the arbitrator’s conclusion that it was clear was unreasonable.”

The court’s ruling is instructive for two reasons: (1) it shows just how meticulous teams must be in the execution of their options — instead of writing letters to players in the form of “offers”, the communications must be clear that the teams wish to invoke their option rights; and (2) the mere fact that an agent is not certified by the CFLPA is not enough to void a contract that he or she negotiates on behalf of a player with a CFL team.  The court noted, “While the arbitrator could have declared that Williams [the player] was no longer obligated to perform the contract, the arbitrator’s decision to hold him to its terms falls within the range of possible reasonable outcomes.”

Decision of Ontario Court of Justice Re CFLPA Application for Judicial Review of Williams’ Arbitration by Darren Adam Heitner

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.