Key Principles On Player Contracts From The Basketball Arbitral Tribunal (Part 3 – Compensation For Wrongful Termination)

This is the third and final article in a series that explains the Basketball Arbitral Tribunal’s (BAT) jurisprudence on basketball employment contracts1.

Part 3 focuses on the consequences of wrongful (unjust) termination of contracts and the principles of calculating compensation, looking in particular at:

• Club’s duty to pay compensation

  • Duty to mitigate

  • Can parties eliminate the duty to mitigate?

  • Player’s contributory behaviour

  • Other circumstances

• Player’s duty to pay compensation

  • What kind of damages incurred by the club could be recognized by BAT?

  • Special indemnity

• Key principles for practitioners

Part 1, which looked at contractual formation, is available here.2

Part 2, which looked at interpretation and performance of contracts, is available here.3