Yoop wrote: ↑25 May 2021 07:25
unless I'am mistaken, which I'am sure you'll correct me if I'am, only Favre was still under contract, the rest where allowed to finish there contract.
why does a contract protect the employer, but not the worker?
It's just the firm protecting themself and taking some credit for developing, retaining and investing into the person.
The professional service industry is a completely different animal than a normal "labor vs entity" where the product is a physical product.
If a CPA firm, law firm, health clinic develops and invests time into a certain individual, that comes with a LOT of cost to the firm. The firm therefore needs to protect themselves in case the employee they invested heavily into decides they want to bail. That employee could take a lot of the firm's equity with him/her, again, as a result of the firm investing in that employee.
In the real world, the risk is taking firm clients. Which is why nearly every high level professional service job has a non-compete in the contract for high performers. My wife for instance. Once she gets in with a clinic, she won't be able to practice usually within a 10 to 20 mile radius after leaving said clinic and that part is heavily negotiated prior to any signing. It is why her and I will hire an attorney for those discussions.
For me, I can still practice in a vicinity, but I cannot take any of my firm's clients for a couple year period.
In the football world, the Packers don't want Rodgers to just take his services elsewhere if he decides to leave on a limb. It's not about taking clients at that point but instead competing for another team. So the "contract" is born. However, unlike the NBA or MLB, the NFL has 53 active players and 90 players in the offseason. This means even though the revenue is bigger, the cost to generate that revenue is also bigger. AND the risk from the firm's standpoint is significantly larger. You have 53 things that could go wrong each day and a fully guaranteed contract increases that risk significantly because the team bears all the risk at that point.
So to combat that, the value of the contract would need to go down SIGNIFICANTLY which the players don't want because they want nearly 50% of the revenue share and I don't blame them. So the firm comes back and says, "okay, but we need to hold some power here to let the team move on if and when it wants." At an individual level then, the player and team can negotiate just how much they want each contract to have risk be burdened by each side. In the case of Rodgers, he has a lot of power so the team offered significant signing bonus which essentially guaranteed Rodgers 5 of a 6 year deal.