Tuesday, April 3, 2012
Tim Tebow and Reviewing Contracts
According to reports, the trade of Tebow to the Jets hit a snag because of language in his contract relating to the payment of salary advances. Eventually the Broncos and Jets resolved whatever issue there might have been, reportedly by splitting the $4 million plus at issue. Mike Tannenbaum the general manager of the Jets, himself is a lawyer and the Jets have high-quality legal talent that they turn to for contractual and other legal issues, so I have no doubt that they handled this situation properly and there were in fact no surprises to Tebow's contract.
The issue that this situation highlighted for me is the importance of involving lawyers early on in an contractual review process, or other legal matter, when they can provide the advice that will set the transaction on the right course and avoid problems down the road. Without legal advice at an early stage, transactions can get off track and by the time lawyers are asked to get involved, the task of fixing the problem is often a more time-consuming and expensive one than had the lawyer been involved from the outset. This is as true in the sports context as any other.