Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comKey Contacts
Back
What is a no-trade clause?
In a number of professional sports leagues, when a player develops a certain degree of clout within his or her organization, the individual’s contract may include a no-trade clause.
Most of the time, players have little control over when they will be traded or what organization they will be moved to. Luke Ridnour, a veteran point guard in the NBA, spent one week in September as a member of the Orlando Magic, Memphis Grizzlies, Charlotte Hornets, Oklahoma City Thunder and Toronto Raptors. He had no choice in the matter, and eventually decided to sit out the 2015-2016 NBA season. Professional sports leagues are businesses, and like it or not, many players get moved. However, some have a say about where they will end up.
These individuals have contracts that include a no-trade clause. These provisions have, in recent years, led to a number of star athletes being sent to New York teams, among others, and give players an important modicum of power when it comes to deciding what organization they sign with.
How a no-trade clause works
When a player has a no-trade clause in his contract he can essentially shut down any trade proposed by his organization. This special portion of any contract can be waived by the player, and sometimes includes a clause that denotes which teams he will be OK with being moved to. If a player with a no-trade clause is to be moved, leagues such as the NFL have procedures designed to move the process forward.
The team that hopes to trade the player must obtain written permission from him and his agent to move him to another organization. This permission comes in the form of the individual waiving the no-trade clause within his contract. A player may waive the clause only when being moved to certain clubs or following a disagreement with the organization prompting him to seek a change of scenery, so to speak. Additionally, if an organization tries to move an individual with a no-trade clause in his contract, he may cite the provision in vetoing the trade.
A no-trade clause can alleviate players’ concerns
In the NFL blockbuster, trades are fairly uncommon and a no-trade clause – though still important – will likely not come up often. However, in other sports such as basketball or hockey, these provisions can prove extremely significant and change how teams deal with certain players.
Players concerned about being traded, or being moved to certain regions, will likely have to look into whether they can work no-trade clauses into future contracts. These provisions offer protections that athletes often aren’t afforded, which can be significant, especially in regard to factors such as comfort and family.
If you are interested in negotiating a no-trade clause into your contract, speak to an agent with knowledge of sports law who can help you work the provision into your next agreement with your team.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Knowing the No-Trade Clause
Author: Scarinci Hollenbeck, LLC
What is a no-trade clause?
In a number of professional sports leagues, when a player develops a certain degree of clout within his or her organization, the individual’s contract may include a no-trade clause.
Most of the time, players have little control over when they will be traded or what organization they will be moved to. Luke Ridnour, a veteran point guard in the NBA, spent one week in September as a member of the Orlando Magic, Memphis Grizzlies, Charlotte Hornets, Oklahoma City Thunder and Toronto Raptors. He had no choice in the matter, and eventually decided to sit out the 2015-2016 NBA season. Professional sports leagues are businesses, and like it or not, many players get moved. However, some have a say about where they will end up.
These individuals have contracts that include a no-trade clause. These provisions have, in recent years, led to a number of star athletes being sent to New York teams, among others, and give players an important modicum of power when it comes to deciding what organization they sign with.
How a no-trade clause works
When a player has a no-trade clause in his contract he can essentially shut down any trade proposed by his organization. This special portion of any contract can be waived by the player, and sometimes includes a clause that denotes which teams he will be OK with being moved to. If a player with a no-trade clause is to be moved, leagues such as the NFL have procedures designed to move the process forward.
The team that hopes to trade the player must obtain written permission from him and his agent to move him to another organization. This permission comes in the form of the individual waiving the no-trade clause within his contract. A player may waive the clause only when being moved to certain clubs or following a disagreement with the organization prompting him to seek a change of scenery, so to speak. Additionally, if an organization tries to move an individual with a no-trade clause in his contract, he may cite the provision in vetoing the trade.
A no-trade clause can alleviate players’ concerns
In the NFL blockbuster, trades are fairly uncommon and a no-trade clause – though still important – will likely not come up often. However, in other sports such as basketball or hockey, these provisions can prove extremely significant and change how teams deal with certain players.
Players concerned about being traded, or being moved to certain regions, will likely have to look into whether they can work no-trade clauses into future contracts. These provisions offer protections that athletes often aren’t afforded, which can be significant, especially in regard to factors such as comfort and family.
If you are interested in negotiating a no-trade clause into your contract, speak to an agent with knowledge of sports law who can help you work the provision into your next agreement with your team.