Comments on: More on Letter of Intent and Release Bargaining http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/ Academic commentary on law, business, economics and more Fri, 19 Mar 2010 20:08:11 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Josh http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/comment-page-1/#comment-144165 Josh Tue, 06 Jan 2009 17:18:29 +0000 http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/#comment-144165 Totally agree. I suspect we will see more competition on this margin in the years to come for top recruits as quick coaching changes become more common, etc. Totally agree. I suspect we will see more competition on this margin in the years to come for top recruits as quick coaching changes become more common, etc.

]]> By: antitrust guy http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/comment-page-1/#comment-144164 antitrust guy Tue, 06 Jan 2009 17:16:30 +0000 http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/#comment-144164 Agreed. Cousins clearly has an advantage since he's taking the "home team discount" in a way. But presumably even top recruits will have some leverage, since a lot of them are being courted by the same schools. So a guy might talk to Florida, Miami, and FSU and tell all of them he wants an out clause in a set of circumstances, and whichever gives it to him gets the NIL. One can only imagine what would happen if Scott Boras could represent recruits--I imagine the vast majority of them have pretty much no clue about this stuff (nor their families) when they're in high school and looking at the various colleges. Agreed. Cousins clearly has an advantage since he’s taking the “home team discount” in a way.

But presumably even top recruits will have some leverage, since a lot of them are being courted by the same schools. So a guy might talk to Florida, Miami, and FSU and tell all of them he wants an out clause in a set of circumstances, and whichever gives it to him gets the NIL.

One can only imagine what would happen if Scott Boras could represent recruits–I imagine the vast majority of them have pretty much no clue about this stuff (nor their families) when they’re in high school and looking at the various colleges.

]]> By: Josh http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/comment-page-1/#comment-144163 Josh Tue, 06 Jan 2009 15:54:07 +0000 http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/#comment-144163 Interesting. Either way, I suspect that we'll see more and more players attempting to secure some kind of contractual guarantees ex ante. The Demarcus Cousins story is one type, i.e. player has some leverage because is a once in a generation player for a school like UAB, but I suspect this might become more common for 5 star recruits generally. Will be interesting to watch. Interesting. Either way, I suspect that we’ll see more and more players attempting to secure some kind of contractual guarantees ex ante. The Demarcus Cousins story is one type, i.e. player has some leverage because is a once in a generation player for a school like UAB, but I suspect this might become more common for 5 star recruits generally. Will be interesting to watch.

]]> By: antitrust guy http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/comment-page-1/#comment-144162 antitrust guy Tue, 06 Jan 2009 15:13:10 +0000 http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/#comment-144162 Okay. I suspect that's sloppy reporting/writing, but maybe we both have an imperfect understanding of the rules. I had thought one could transfer anywhere so long as you sit out a year, and Miami could not prevent that no matter what. Marve, of course, wants to play this Fall and, if so, has to get permission from Miami on its terms. BTW, at least one court (9th Cir.) appears to have upheld transfer restrictions in the face of a Sherman Act challenge. Tanaka v. USC, 253 F.3d 1059 http://bulk.resource.org/courts.gov/c/F3/252/252.F3d.1059.00-55046.html Okay. I suspect that’s sloppy reporting/writing, but maybe we both have an imperfect understanding of the rules. I had thought one could transfer anywhere so long as you sit out a year, and Miami could not prevent that no matter what. Marve, of course, wants to play this Fall and, if so, has to get permission from Miami on its terms.

BTW, at least one court (9th Cir.) appears to have upheld transfer restrictions in the face of a Sherman Act challenge. Tanaka v. USC, 253 F.3d 1059

http://bulk.resource.org/courts.gov/c/F3/252/252.F3d.1059.00-55046.html

]]> By: Josh http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/comment-page-1/#comment-144161 Josh Mon, 05 Jan 2009 22:28:41 +0000 http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/#comment-144161 My understanding is that the default is not that UM doesn't have the "right" to prevent him from going anywhere, but rather what they have is the right to prevent him from going anywhere without incurring the penalty of sitting out one year after the transfer. One might sensibly argue that the restrictions still increase Marve's options relative to a benchmark of maximum possible restrictions under the contract. Its unclear, at least in the ESPN story, however, whether the conditional release would prevent him even from transferring to play football with the penalty (Marve is an underclassmen I think and so could sit out in theory w. remaining eligibility, though I might be wrong about that). The language in the stories though, suggests in a few places that Marve would not be allowed to transfer or obtain release to certain schools under any condition. My understanding is that the default is not that UM doesn’t have the “right” to prevent him from going anywhere, but rather what they have is the right to prevent him from going anywhere without incurring the penalty of sitting out one year after the transfer. One might sensibly argue that the restrictions still increase Marve’s options relative to a benchmark of maximum possible restrictions under the contract. Its unclear, at least in the ESPN story, however, whether the conditional release would prevent him even from transferring to play football with the penalty (Marve is an underclassmen I think and so could sit out in theory w. remaining eligibility, though I might be wrong about that). The language in the stories though, suggests in a few places that Marve would not be allowed to transfer or obtain release to certain schools under any condition.

]]> By: antitrust guy http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/comment-page-1/#comment-144160 antitrust guy Mon, 05 Jan 2009 21:11:04 +0000 http://www.truthonthemarket.com/2008/12/30/more-on-letter-of-intent-and-release-bargaining/#comment-144160 Isn't the standard/default rule that there is no release? In other words Miami was letting Marve go somewhere, just not anywhere, when it had the "right" to prevent him from going anywhere. But, yes, of course it makes sense to negotiate ex ante, particularly if you're going somewhere because of the coach. Isn’t the standard/default rule that there is no release? In other words Miami was letting Marve go somewhere, just not anywhere, when it had the “right” to prevent him from going anywhere.

But, yes, of course it makes sense to negotiate ex ante, particularly if you’re going somewhere because of the coach.

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