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A Legal Anaylysis of College Coaching Contract Litigation View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Carolina Digital Repository WHERE DID THE HANDSHAKE GO? A LEGAL ANAYLYSIS OF COLLEGE COACHING CONTRACT LITIGATION Brandon James Maddux A Thesis submitted to the faculty of the University of North Carolina at Chapel Hill in partial fulfillment of the requirements for the degree of Master of the Arts in the Department of Exercise and Sport Science. Chapel Hill 2010 Approved by: Barbara Osborne, J.D. Richard Southall, Ed.D. John Brunner, M.A. © 2010 Brandon James Maddux ALL RIGHTS RESERVED ABSTRACT ii ABSTRACT BRANDON JAMES MADDUX: WHERE DID THE HANDSHAKE GO? A LEGAL ANAYLYSIS OF COLLEGE COACHING CONTRACT LITIGATION (Under the supervision of Barbara Osborne J.D.) The current culture of the National Collegiate Athletic Association (NCAA) driven by commercial and professional movements has experienced increasing trends in big-time coaching salaries and media attention of coaching contracts. The purpose of this study was to identify the legal issues and clauses that were presented in head coach litigation involving NCAA Division I football and basketball coaches. The study set out to answer the following questions: 1) What general contract issues are being litigated in breach of contract cases involving coaches?, 2) Are there certain clause that are frequently covered in contract lawsuits?, 3) What contract clauses protect head coaches in contract formation?, and 4) What contract clauses protect institutions in contract formation? The study found the importance of a thoughtful negotiation process and concluded with 19 recommendations for drafting Division I college coaching contracts that will help minimize the costly consequences of premature termination. iii ACKNOWLEDGEMENTS Let me begin, simply, by saying a big heartfelt thank you to my Adviser, Barbara Osborne J.D. I say simply because it would take more words than this document holds, including the amount of my words she had to read and reread, to truly express my appreciation for her help and guidance. This was a large accomplishment that I did not know if I would ever see the end of, but with your help I completed this task so thank you for that. I would like to also thank my other committee members, Dr. Richard Southall and John Brunner, for their commitment to this arduous process. Dr. Southall, thank you for challenging me to make my research the best it could possibly be. John, I cannot express my gratitude for always lending an open ear and offering great insights not only for this study but during my whole time at Carolina. Also a big thank you to Ellen Culler and Brandon Fanney who always had their office doors open to allow me to come in and vent through this process. Thank you for your friendship and always sage advice. My family has always been there for me, and this achievement was just more of the same. Mom, dad, Honey, and granddad, somehow you managed to offer your loving support from over 20+ hours away, and always help me keep my perspective of the big picture and what truly is important. I could not include my family, and forget my soon to be wife, Kristin. Even after two years living in different states and countless hours on the iv phone, our love has grown stronger. You are my best friend, and I thank you for the support as I pursued my dream of going to school at UNC. I could not write a list of acknowledgements and leave out the nine people I spent the majority of my time with while in Chapel Hill. It has been a quick two years, but to Bly, Brett, Cat, Che “live from Madison Square Garden” Mock, Evie, Jerry, Laura “HLP”, Meeghan, and Rob”in” thanks for all the memories and good times. I wish you all nothing but success and happiness. Finally, I would be crazy to believe I was blessed with all these great people in my life as mere coincidence. God has blessed me and given me strength to carry on when I did not believe it was there. When I fall down you pick me up. I finished my thesis so try and tell me miracles do not exist. v TABLE OF CONTENTS LIST OF TABLES..……………………………………………………………. x Chapter I. INTRODUCTION……………………….………………………………….. 1 Introduction…………………………………………... …….................. 1 Statement of purpose…………………………………...……................ 3 Research questions………………………………...…………………... 4 Definition of terms ………………………………………..…………... 5 Limitations ……………………………...……………………….......... 7 Delimitations........................................................................................... 8 Significance of study............................................................................... 8 II. REVIEW OF LITERATURE…………………………..…………………... 10 Negotiation Theory……………………………..................................... 10 Commercialism and Professionalism……….......................................... 13 The Environment and the Elements.............……….…………..……… 16 The coaching environment….................................................................. 16 Contract essentials…...……………….................................................... 19 vi Contract elements……………………………………………………… 21 Purpose………………………………………………………… 22 Position/Duties………………………………………………… 23 Term of Employment…..……………………………………… 24 Compensation…...…………………..………………………… 25 Termination……...…………………..………………………… 26 Miscellaneous…....…………………..………………………… 29 III. METHODOLOGY………………………………………………………… 30 Step One....……………………………………………………………………… 30 Step Two………………………………………………………………... 31 Step Three.......………………………………………………………...... 31 Step Four……..…………………………………..................................... 32 IV. RESULTS………………………………………………………………..... 33 Research Question 1…………………………………………………….. 35 Breach of contract.……………………………………………… 37 Termination for cause ……………………………………...…... 39 Liquidated damages...................................................................... 39 Reassignment……........................................................................ 40 Due process................................................................................... 42 Court interpretation....................................................................... 43 Jurisdiction……………………………………............................ 45 Validity of addendums………………………………………….. 48 Court fees……………………………………………………….. 49 vii Parol evidence…………………………………………………... 50 Statute of frauds………………………………………………… 52 Discrimination…………………………………………………... 52 First Amendment Claims……...……………............................... 53 Defamation……………………….……………………………... 54 Inducement………………….…………………………………... 55 Research Question 2…………………………………………………….. 57 Liquidated damages clause……………………………………... 57 Termination clause……………………………………………… 60 Reassignment clause……………………………………………. 62 Claims-release clause…………………………………………… 64 Perquisites clause……………………………………………….. 65 Outside employment clause…………………………………….. 65 Integration clause……………………………………………….. 66 Research Question 3…………………………………………………….. 68 Research Question 4…………………………………………………….. 73 V. SUMMARY AND CONCLUSIONS……………..……………………….. 76 Summary......................................………………………………………. 76 Discussion..………………………………………………………........... 77 Research Question 1…………………………………………………...... 77 Research Question 2…………………………………………………….. 81 Research Question 3…………………………………………………….. 86 Research Question 4…………………………………………………….. 90 viii Important clause to include that do not necessarily favor the coach or institution…………………………………………… 94 A suggested negotiation model…………………………………………. 95 Suggestions for future research…………………………………………. 97 Recommendations………………………………………………………. 99 APPENDICES……………………………………………………...................... 102 Appendix A: List of Case Briefs………………………………………... 102 REFERENCES……………………………………………………...................... 132 ix LIST OF TABLES Table 1: College sports typology……………………............................................ 15 Table 2: Chronological list of cases……………………….................................... 34 Table 3: Legal issues by case…………………………………….......................... 36 x CHAPTER I Introduction Intercollegiate athletics has endured many changes from the time of its inception in the late nineteenth century and continues to change each day. The very mention of the NCAA or college sport in the current culture creates images of big business for much of the general public (Southall & Nagel, 2008). This mental imagery creates picture of athletic departments turning to commercialism for more and more ways to create revenues in the current environment. Commercialism may be defined several ways, but the connotation of commercialization of college sports has become such a hot topic that it has been reflected in reports and committees by the NCAA and the Knight Commission (Knight Commission on Intercollegiate Athletics, College Sports 101). The idea of commercialism, while currently often in the news, is nothing new. The Carnegie Commission addressed this issue as far back as 1929. The report focused on the threats in college athletics, and making mention to the high coaching salaries of the time (Savage, 1929). Beyond today’s commercialization of the student-athletes, the marketing, and the sponsorships, the money trail still finds its way to the current coaching environment. Salaries continue to grow. The average person’s salary does not begin to compare to the compensation of today’s professional athlete (Anderson, 2000). The multi-million dollar contracts of the top-tier football and basketball coaches are unfathomable to the typical blue collar American. It may not always receive the same amount of attention in the media, but “Professional
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