Players, Coaches & Managers

Richard Cramer discusses with The Law Society Gazette the recent uproar surrounding the European Super League and provides some insight into his career and how he became a Lawyer. Take a read here.

___________________________________________________________________

Front Row Legal are a boutique law firm that specialises in Sport, Media and Business Law in England and Wales. They have specialist knowledge in these areas of law, which means they can help where many law firms won’t have the experience. They are based in Leeds with a national client base. frontrowlegal.com

Take a read below where I discuss how potential legal action by Uefa and the Premier League against the clubs could stop European Super League getting off the ground.

___________________________________________________________________

Richard Cramer provides answers here to some of the questions raised by Sheffield Wednesday supporters regarding the ongoing Sheffield Wednesday EFL charge.

___________________________________________________________________

In a week where the main rugby news has involved numerous Leicester Tigers players being released from their contracts. It is safe to say that the controversy of NRL, Cronulla Sharks forward, Toby Rudolf’s proposed move to the Vodafone Warriors, has flown under the radar of rugby and sport news.

Rudolf is understood to have agreed to a three-year deal with the Vodafone Warriors while the Telstra Premiership was suspended (due to Covid-19) but, he now wants out on compassionate grounds due to a family health issue.

It is believed that Rudolf’s grandmother has become seriously ill and thus he would like to remain closer to home, rather than relocate to New Zealand, as his legally blind mother will struggle to look after his grandmother.

*As things stand, there is nothing legally contentious*

However, according to close sources and journalists in Australia, it is believed that Rudolf may be able to renege on the three-year deal with the Warriors because, it is alleged that, Rudolf merely signed a letter of intent and not a contract.

The Warriors are confident of convincing Cronulla prop Toby Rudolf to move across the Tasman and honour an agreement to join the New Zealand-based club next season.

But, if Rudolf has had a change of heart and wants to stay at Cronulla, then the Warriors may seek compensation.

So, the crucial questions in this scenario is:

Is a letter of intent legally binding?

What are letters of intent?

A letter of intent signals a formal start to negotiations. Similar to how a starter pistol indicates an athletic race is to start, a letter of intent fundamentally serves as an indicator that two parties are commencing negotiations.

Letters of intent are usually entered into when parties are not yet in a position to sign a detailed contract. They can be used to set out the parties’ agreement in principle on the key commercial issues at an early stage of a transaction and are not intended to be binding.

However, if not carefully drafted, there can be uncertainty and doubts over whether or not the parties intended to be legally bound by all or some of the terms.

This can be taken to be a written affirmation of many key elements of negotiating, such as good faith. Further, whilst you may not have the final terms of your contract set out, it is wise to have a document which symbolises that this is soon to be the case.

No intention to be legally bound

An agreement made on the basis that the parties don’t intend to be legally bound until they enter into a more formal contract, is not itself usually legally binding. But it can create a strong moral commitment which it might be difficult to later move away from.

To ensure that no implied contractual relationship is created, case law shows the importance of:

Expressly stating that the terms are not intended to be binding;
Ensuring that any further documents envisaged by heads of terms are drafted and executed as quickly as possible; and
The parties carefully consider whether to take any action to implement the letter of intent as doing so might suggest that they intend to be bound.

‘Subject to contract’

The use of the phrase “subject to contract” in commercial negotiations creates a strong presumption that the parties do not wish to be bound, particularly if this is understood from usage in the industry. However, again, if the parties start to perform the contract envisaged by the letter of intent, beware that this presumption will not always apply.

Binding agreements

If the whole agreement or some of the provisions are intended to be binding by the parties, this should ideally be clearly stated. Further, the legal requirements for creating a valid contract must be satisfied:

The terms must be sufficiently certain to be enforceable;
All essential terms crucial to the existence of a binding contract must have been agreed;
Unless the terms outlined in the letter of intent are executed under seal or as a deed, there must be consideration moving from the party benefiting from the agreement to the other party. In practice this is usually a promise, payment or action, or a delay in enforcing a legal right; and
The parties handling the negotiations must have authority to enter into the agreement.

When a letter of intent is non-binding

Suppose a letter of intent is non-binding, but one company incurs costs or devotes resources only to eventually have the deal fall through. In many cases, there is no recourse for losses incurred. However, it is possible that the breaching party could be found to have failed to negotiate in good faith.

These laws are ambiguous and likely depend on the jurisdiction and the type of letter of intent.

___________________________________________________

In Rudolf’s case:

As is usually the case, the key to avoiding uncertainty is careful drafting in the first place. At this moment in time, we do not have all the details regarding Rudolf’s agreement, was it well worded and if so, in who’s favour. So, I cannot give an opinion on the likelihood of either party’s chances of being successful.

However, I do believe it is fairly evident that Rudolf had negotiated in good faith but, he has since been affected by the very real and sudden situation regarding his family members. Therefore, I don’t believe the Warriors will seek to challenge whether the letter of intent was signed in good faith.

The likely conclusion to this scenario is that Rudolf will find another club who wishes to sign him for the upcoming season, most likely Cronulla, and they will then pay the Warriors a fee to grant Rudolf release from his agreement.

Rudolf will honour the agreement with the Warriors and move himself (and his family over if possible or pay for care).

The Warriors will relieve Rudolf of the agreement on compassionate grounds.

In conclusion, this is not the first, nor will it be the last, case where letters of intent and contracts within sports have been brought into question. It is not yet clear on the details of this case, but if this is similar to previous cases then the lack of clarity in these legal documents may have had a part to play.

Always make sure that you read through any document carefully, especially when money is on the line.

The devil is in the detail.

___________________________________________________________________

Richard Cramer discusses Manu Tuilagi's rejection of his new Leicester contract in the Daily Express here.

___________________________________________________________________

Richard Cramer discusses on Sky Sports how tensions are running high between Premiership clubs and their players and that players could go on strike if the current pay dispute cannot be resolved, click here to watch the interview.

___________________________________________________________________

Richard Cramer discusses his thoughts on when we can expect to see some normality back in the world of professional Football this morning on BBC Radio Leeds:

___________________________________________________________________

Following our virtual breakfast seminar held on Wednesday 8 April, the speaker being Sir Ian McGeechan OBE, here are some short clips of the event. Thank you to everyone that attended. The testimonials to the seminar can also be read here.

___________________________________________________________________

Click here to read Richard Cramer's interview with The Guardian where he discusses The Premiership Rugby and insurance.

___________________________________________________________________

Ken Jones is a successful Business Consultant whose initial career was in the Military serving with many notable Regiments including the Special Forces.

Since leaving the Army Ken spent 20 years in the Telecoms industry for T Mobile, O2 and as Vice President International for Marconi Services.

In his career as a Consultant Ken has worked for several Blue-Chip organisations providing Change and Transformation projects, his clients included the BBC, Npower, Tunstall Telehealth, McGee, Samsung and the RFL.

Ken has a wide-ranging experience in Rugby League not only at the governing body but on the front line with Featherstone Rovers, Sheffield Eagles and Bradford Bulls RLFC.

___________________________________________________

Transformation or Die

It is now time to be open and honest with ourselves, the game of Rugby league has been struggling for many years to not just grow; but to simply survive. Operating costs (coupled with reduced revenues (lower crowds, poor sponsorship and reduction in commercial income due to increased competition) has created a perfect storm.

Covid-19 is not the cause of the situation, it has simply accelerated the problems which have beset the game.

Things started to really go awry after the vote in Manchester to essentially allow a break away by Super League to run its own competition. As was stated many times during this process the game would become fractured and incur significant additional costs which the game could not fund.

There is perhaps a sudden realisation that maybe this was not the way to go, however to simply continue to bumble along hoping upon hope that the virus disappears and we can continue as normal, is not facing up to reality.

What we must to do now is stop all competition for the season and conduct a full, open, honest and radical review of the game as a whole. Now is not the time for emotion or to be distracted by tradition.

Change is best managed when you are in control, it requires a radical and painful Transformation to ensure it is fit for the future, it needs to re-focus on becoming truly sustainable, here is a radical 10-point blueprint for success:

A Clear Strategic Direction – This has to be a clear and concise realisation of what we are, what we do well, and what we do badly. The starting point for any effective strategic plan is the “Vision” and what success looks like.
Transformation – A whole game review undertaken by independent professionals. This review is a full top down, sidewise review looking at, Skills, Staff, Systems, Structure, Leadership Style and Systems. Most radical of all is the Structure, currently too top heavy and with too many Clubs offering a poor return in investment and a major consolidation would be required.
A Professional Game Board – Urgently needed to be the driving force behind both any changes needed for implementation but also to ensure the game is managed effectively and remove conflict of interest from decision making.
Sticking to the Knitting – This is a Marketing Term which means stick to what you are good at (Core Competencies), let’s be honest we are poor at expansion. Let’s look at Paris, Wales on numerous occasions, plus the multiple reincarnations of London. We should be honest with ourselves and accept that we are a Northern game. We can be proud of our heritage, focus on our strengths and remove the weaknesses. Rugby League simply cannot afford financially to continue with an expansion strategy that clearly has little benefit in the current climate.
Reduction/Removal of Overseas Players – Overseas players which do bring enjoyment to the game is unfortunately costing the Clubs large amounts in financial resources (Wages/Travel/Schooling etc), which perhaps could be better spent elsewhere.
Focus on Home Grown Players – Every £ saved on overseas players could be spent on developing our own talent and growing participation. If we use Bradford as an example, (even after all the troubles that they have encountered) they have maintained a superb academy and player pathway system. This has netted some substantial revenues to ensure their survival. Hull KR have designed and developed an Academy system that will benefit them for years to come. This in turn aids the National Team by producing top quality talent.
Franchise – Bring back Franchising but not as it was previously, by implementing a fixed 3-year term governed by strict KPI’s the game would benefit by periods of stability and growth. The Franchise would not be simply for Super League but the levels below to ensure consistency and ensure any Clubs wishing to be promoted via the system are fit for purpose. Further benefits are sustainable growth and businesses capable of moving seamlessly between levels of competition.
New Governance – The game in many ways is stifled by regulation and not flexible to be able to react quickly to issues or opportunities. Continuous rounds of consultation followed by poor decision making has hampered the growth and effectiveness of the game. A new governance model is urgently needed to ensure the game can meet the challenges of the future.
Business Ethos – Rugby League needs a greater approach to working as a business at all levels, the focus on player spend hampers Clubs with little ability to invest in the resources to run a business, being more reliant on well-meaning volunteers. Club’s should be working to a standard structure with Skills appropriate to their needs. KPI’s would therefore drive the need to invest in appropriate skills and resources in order to run and grow businesses effectively.
Consolidation – Not enough money to go around what should we do? Consolidation is critical requirement, we have too many underperforming Clubs both on and off the field. The game simply cannot afford to maintain so many Clubs. With a new TV deal probably not producing the same levels of income, distribution levels are expected to dramatically reduce. Reducing the number of Clubs will ensure a slimmer more sustainable financial model for the game, the player pool will be improved rather than damaged as players can move elsewhere and the games themselves become more competitive.

__________________________________________________

In the absence of games being played and logistical difficulties the Government bailout, as requested by the RFL, becomes critical especially with the Rugby League World Cup in 2021.

With the backdrop of the UK Government’s 5 point action plan that must be met before it considers lifting the lockdown measures and as we approach the next review date, 7 May 2020, in this first part blog we examine some of the current challenges faced by professional rugby league clubs, the impact it has on players and the legal issues that stem from complying with the Government regulations.

Duty of Care

The RFL (the national governing body for Rugby League in the UK) has a duty of care to its members. In turn, each UK based professional club has a duty of care, as employers, to their employees (whether it’s players or staff members) as well as comply with employment and health and safety legislation.

Putting economic pressures aside, for the sport to be in a position to ‘bounce-back’ there’s going to have to be some careful strategic planning which doesn’t fall foul of the Government regulations, doesn’t put anyone at unnecessary health risk or breach any terms of contract. The RFL, in line with their duty of care, have already collected feedback from Stakeholders to canvass opinions from across the game whether it be Men’s, Women’s and Wheelchair; players and their representatives; coaches, match officials, media and medical professionals to aid discussions with Clubs and Council members as to the future of the game. With a total of 183 completed surveys there’s a lot of issues (understandably) being raised.

Health & Safety

We hear daily at the Government’s press conferences the scientific advice delivered by the senior medical advisors. The consistent message being ‘Stay at Home. Protect the NHS. Save Lives.’

To see games back in action once the restrictions are relaxed, a lot will depend on how the RFL agree on fixtures, how Clubs intend to operate in line with the limitations, to provide a safe working and playing environment. Stating the obvious but being a full-contact sport how can Clubs ensure social distancing between the players even if matches take place behind closed-doors? How do you prevent players from spitting on pitch or from hugging each other during celebratory win?

What about the fans? There’s been talk generally about having matches behind closed-doors with a limited number of attendees, but even with a limited number of attendees that in itself can potentially bring problems for the owners of stadiums who owe a duty of care (under the Occupier’s Liability Act 1957) to people who visit.

Player Welfare

Players are employees and have the same employment rights as everyone else. There are a lot of uncertainties for players coming out of contract at the end of November (June for rugby union/football). Player safety has to be paramount and it’s not uncommon for players to feel vulnerable about returning to the field before it is safe to do so for fear of contracting the virus and passing it to their families. The key issue for Clubs will be if a player objects that the venue for training or games are not safe and so not reasonable for them to participate. The thought of seeing players playing in masks and gloves would feel surreal.

Club Finance in the UK

We’ve all heard about CBILS (set up by the Government to help small and medium-sized businesses affected by Covid-19 to access finance of up to £5m). Sounds great in theory but the reality of qualifying for CBILS is much more challenging than first meets the eye. Whilst it took some time for the Government to let go off the personal guarantee criteria, the remaining general requirements to provide banks with profitability and cashflow forecast is a challenge for any business let alone a rugby league club which relies on its fan-based revenue to survive. So how can it realistically forecast its cashflow with sport on hold, lockdown measures in place and players and staff in furlough?

Only recently we’ve seen it reported that Hull FC owner, Adam Pearson, has been critical of the Government and the bank after being denied a loan which would have helped them get through a period with little to no income.

The CJRS (set up by the Government as a job retention scheme) to cover wages for employees on temporary leave (furlough) comes to an end at the end of June with no sight of that period being extended. Really this scheme has been the lifeline of Clubs, so how can they be expected to survive when this scheme ends and lockdown measures in situ?

Even with the recent initiative of the Government’s Bounce Back Loan (to help small and medium-sized businesses affected by Covid-19 to access finance of up to £50k) which we’re told is a one-page simple application and money given within 24 hours of approval, may well help a Championship Club but for a Super League Club they may in the short term see some benefit but they certainly won’t see much major benefit in the long-term.

Overseas Clubs

It was announced recently by the French Prime Minister that sport, including behind closed doors, wouldn’t continue until September.

That leaves both Catalan Dragons and Toulouse Olympique not being able to host matches for the majority of the season. An issue both Super League and the RFL probably hadn’t anticipated. It’s highly unlikely that a pandemic would feature in a contingency plan. How and when will fixtures be set and be fair?

We’ve also seen a three phased plan unfold ‘Framework to restart Ontario’ which sees sporting events continued to be restricted for the foreseeable future. Where does that leave Toronto Wolfpack?

Travel Restrictions

Even if we dare ourselves to imagine fixtures taking place, how can players and the like be expected to travel and attend? Whether it be Catalan or Toulouse or Toronto entry restrictions may well see them being quarantined for at least 14 days, how is that even practical let alone the health and safety risks it could impose and duty of care on the Clubs?

The consensus will be its never-ending, no win, situation.

If lockdown measures or social distancing continue for the foreseeable future and if Clubs can’t get access to the finance that it desperately needs, isn’t it inevitable that the game will die?

The Government clearly has a duty of care to the public and whilst it’s good news to hear the Prime Minister announce today that we’re ‘past the peak’ there is still a lot of uncertainty. The biggest danger would be to start bringing games back into the calendar but then finding that the reproduction rate “R” rises above 1 meaning a further lockdown period making it very difficult to start planning ahead. Guest blogger, Ken Jones, explores in the second part blog his 10 point blueprint to reset the game of Rugby League and to see it prosper as a success in the future.

__________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

Search