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What makes a good player contract? How do you ensure that it is enforceable, transparent, and aligned with league regulations? This article will guide you through the process of drafting a standard player contract tailored to the Indian sports context. You will learn about the essential legal framework, the critical clauses, and the practical nuances that should inform every line you write.

Introduction

It happens quite frequently: a rising young athlete, fresh off a record-breaking performance in a local tournament, is often suddenly approached by a franchise in a major sports league. 

This is usually followed by excitement, as dreams become reality. But before the jersey is donned and the cheers erupt, a quiet, yet critical process begins behind the scenes: drafting the player’s contract.

In the sports ecosystem, whether you are a legal advisor, a team manager, or even an aspiring player, you must understand that the player contract is more than just a piece of paper. It is the very foundation of a professional relationship. It defines rights, outlines responsibilities, and, most importantly, sets the tone for fairness and accountability.

In recent years, the Indian sports landscape has undergone a dramatic transformation. Cricket may have led the way with the Indian Premier League (IPL). But leagues like the Indian Super League (ISL) in football, the Pro Kabaddi League (PKL), and the Ultimate Table Tennis League have followed suit, creating structured pathways for athletes. 

With this growth has come an increased need for proper legal documentation. Especially standardised player contracts that balance the interests of both the franchise and the player.

Because in sport, as in law, it is not just about showing up. It is about playing smart and playing fair. And it all begins with the contract.

Legal framework in India

Before you begin drafting a player contract, it is important that you understand the legal ecosystem within which Indian sports leagues operate. India may not yet have a single codified law governing sports, but several pieces of legislation alongside the rules of regulatory bodies come together to form the legal scaffolding of sports contracts. As a drafter, you need to be aware of both the letter of the law and the unwritten norms that govern sporting relationships in India.

The Indian Contract Act, 1872

It goes without saying that this is your starting point. 

Every player contract is, at its core, a legally binding agreement. This means that the contact and the parties must therefore comply with the provisions of the Indian Contract Act. Sections dealing with offer and acceptance, lawful consideration, competence of parties, and lawful object must all be satisfied. In essence, a valid player contract must reflect free consent, clear terms, and an intention to create legal obligations.

You must also keep in mind that the agreement cannot include any unlawful or immoral terms, performance-enhancing drugs or match-fixing arrangements. Such clauses would render the contract completely void and potentially criminal. But you already know this, but you must also know what to look out for. 

Labour and employment laws

Labour laws actually do not come into play all that often. Most player contracts are structured as an independent contractor agreement. However, the nature of the player’s obligations may, at times, blur the lines between a contractor and an employee. You must examine whether provisions relating to working hours, termination, or benefits invoke any obligations under Indian labour laws, such as:

• The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
• The Payment of Bonus Act, 1965
• The Shops and Establishments Acts (varies by state)

Franchises need to be cautious, as misclassifying players could result in unexpected statutory liabilities.

However, I would suggest consulting a labour law expert for high-profile or long-term contracts. You will need to clearly distinguish between contractor and employee status in the contract, and you must include explicit language stating that the player is an independent contractor, provided the relationship genuinely meets those criteria. Misclassification could trigger obligations under labour laws, such as provident fund contributions or gratuity.

Taxation

Tax is not merely a post-contract concern. As the drafter, you need to structure remuneration in a tax-compliant manner. Players in India are subject to tax under the Income Tax Act, 1961, and any signing bonus, match fee, performance incentive, or endorsement revenue must be declared appropriately.

For foreign players, withholding tax obligations may arise under the Income Tax Act or Double Taxation Avoidance Agreements (DTAAs). Proper planning and clear clauses on tax liabilities and deductions are essential. Section 195 covers this. Foreign players need to have a TRC to claim DTAA benefits. Keep in mind that there will also be GST applicability for endorsement or promotional services, especially if the player is contracted as an independent service provider.

Clubs should include a clause requiring players to provide tax-related documentation (e.g., PAN, Form 10F) to ensure compliance.

Intellectual property rights

IPR plays a very important role. 

In modern sports contracts, image rights are often the most negotiated clauses after salary. You must be well-versed in the Trade Marks Act, 1999, Copyrights Act, 1957 and other intellectual property laws, as they govern the commercial use of a player’s name, likeness, and persona. 

You might see this all the time: a league or team is licensing a player’s image for promotional or sponsorship purposes. This is very common, but it must be contractually documented with clarity on consent, scope, duration, and royalties, if any.

Players are required to disclose pre-existing endorsement deals in a schedule to the contract to avoid conflicts. Also, keep in mind that post-term use of image rights is limited to non-commercial purposes and requires the player’s consent for any new commercial exploitation after contract termination.

Dispute resolution laws

Disputes in sport can become highly public and reputationally damaging. The Arbitration and Conciliation Act, 1996, provides an efficient mechanism for private dispute resolution. You are advised to incorporate an arbitration clause, especially if the league does not offer an in-built grievance redressal mechanism.

Moreover, be mindful of the jurisdiction clause. If the league is national in scope, avoid making local jurisdictions binding unless justified.

Sports-specific regulations

Beyond legislation, you must refer to the rules and guidelines set by the relevant sports body. For instance:

• BCCI Player Regulations for Cricket
• AIFF Regulations on the Status and Transfer of Players for Football
• PKL’s Player Auction and Contracting Guidelines for Kabaddi

These regulatory documents often override or supplement the contract in areas such as eligibility, registration, conduct, and dispute resolution.

In short, drafting a player contract is not an isolated legal exercise; it is a multidisciplinary task. You must bring together contract law, labour law, taxation, intellectual property, and regulatory frameworks in a way that is practical, enforceable, and fair.

Key clauses in a standard player contract

When you sit down to draft a player contract, what exactly are you doing? You are not merely creating a list of obligations; you are building trust. 

A well-drafted contract should balance the commercial interests of the team with the professional needs and rights of the player. Every word matters, and every clause should serve a purpose. Below are the key components that no standard player contract should be without, especially within the Indian sports context.

1. Parties to the agreement

Start with absolute clarity on who is entering into the contract. This section must identify the player, including full legal name, nationality, age, and identification number (such as PAN or voter ID if applicable). It must also identify the team or franchise, including its legal entity name, registered office, and the name of the authorised signatory.

This may seem straightforward, but ambiguity here could create issues later, especially in leagues with multiple ownership layers or foreign signings.

2. Term and duration

This clause defines when the contract begins and ends. Specify the exact start and end dates and mention whether the contract is. It could be season-specific (e.g., for IPL 2025 only) or multi-year.

A contract can also be automatically renewable or subject to mutual consent.

You should also address pre-season and post-season obligations, such as training camps or promotional tours, and whether they fall within the contract period.

3. Player duties and commitments

You must clearly spell out what is expected of the player. Typical inclusions are attendance, adherence, participation, and restrictions. 

Attendance means presence at all scheduled matches, training sessions, and team meetings, and adherence is usually about fitness and medical protocols.

Participation could be in promotional, media, or sponsorship activities as required by the team or league. Restrictions usually deal with engaging in risky activities (e.g., adventure sports) during the contract term.

Make sure these duties are not vague. Specificity protects both parties in the event of disagreement.

4. Remuneration and benefits

This is often the most scrutinised part of the contract. You must provide a clear breakdown of payments, including:

• Base salary or retainer fee
• Match fees or appearance fees
• Performance bonuses (e.g., per goal scored, wickets taken, or MVP awards)
• Prizes or special incentives (such as Man of the Match or endorsement shares)

Do not forget to mention when the payments will be made monthly, lump-sum, or in instalments and whether they are inclusive or exclusive of tax.

Additionally, include non-monetary benefits such as accommodation and travel allowances, health insurance and medical cover and injury protection (including who pays for treatment and how long support continues).

5. Image rights and sponsorships

In today’s commercial sports environment, this clause can make or break a deal. You must define who owns the rights to use the player’s name, image, and likeness.

You also need to make sure it answers questions about whether the team or league may use these for marketing or sponsorship, and the player’s right to enter into personal endorsement deals (and whether they need prior team approval).

There can also be conflicts of interest. An example would be if a player endorses a rival brand. You need to put this down in the contract as well. 

If your client is the franchise, you will want broader rights. If you are representing the player, you may want carve-outs for personal branding.

6. Termination clauses

Termination clauses must address how the contract may end, either by mutual agreement or by breach, for example, missing matches, doping violations, or disciplinary issues.

It could also be because of uncontrollable factors, such as due to force majeure, for example, a league suspension due to a pandemic. It could also happen due to injury or long-term illness.

You should also outline the notice period, whether any buyout or compensation is payable, and the consequences of wrongful termination by either party.

7. Code of conduct and disciplinary measures

This clause ensures players adhere to professional standards. It should refer to the team’s or league’s official code of conduct, penalties for violations, including warnings, fines, suspension, or contract termination, and processes for handling misconduct allegations.

This is especially important for maintaining team culture and reputation.

8. Dispute resolution mechanism

Disputes can always arise. Sport often involves fast decisions, but legal disputes must be handled thoughtfully. Your contract should specify whether disputes will be resolved through arbitration, mediation, or litigation. If it is arbitration, then it should mention the seat of arbitration (city and country), the applicable law (e.g., laws of India), and the language of the proceedings.

If the league has an internal tribunal or grievance body, mention it here and explain its relationship with external legal remedies.

9. Force majeure

I mentioned that force majeure is an uncontrollable event. However, you must clearly define it in the contract so that the parties are on the same page. 

What does this clause essentially do? It protects both parties from events beyond their control, such as natural disasters, political unrest, or global pandemics. This means that you should define what qualifies as a force majeure event and specify the rights and responsibilities of both parties during such an event. You must also include options for contract suspension or renegotiation if the league is postponed or cancelled.

Each of these clauses, when carefully tailored to the sport, the league, and the player’s individual circumstances, helps build a secure and functional professional relationship. It is not enough to copy-paste from existing templates; you must draft with foresight, fairness, and precision.

Customisation by sport and league

No two sports are the same, and neither are the leagues that organise them. What works for cricket may not be suitable for football, kabaddi, or tennis. Each sport carries its own rhythm, risks, and revenue model, all of which must be reflected in a player’s contract. As a drafter, you must go beyond the generic and tailor your clauses to the specific sport and league in question.

Cricket: tournaments, auctions, and match caps

In Indian cricket, particularly in leagues such as the Indian Premier League (IPL), player contracts are heavily influenced by the auction system and the Board of Control for Cricket in India (BCCI) guidelines. When drafting these contracts, consider the following:

1. Auction price and salary cap: The player’s fee is usually determined by the winning bid at auction, subject to league-mandated salary caps. You must ensure the contract does not exceed permitted spending limits.
2. Availability windows: International players often have national commitments. You should specify their availability and pro-rata compensation if they miss matches.
3. Central contracts vs. franchise contracts: Indian players with BCCI central contracts may have restrictions or pre-approved terms. Your contract must align with BCCI’s overarching policies.

Additionally, cricket contracts often include per-match appearance clauses, travel logistics for international legs, and specifics on media day obligations.

Football: transfers, loan agreements, and salary structures

In Indian football, particularly under the Indian Super League (ISL), contracts closely follow FIFA and All India Football Federation (AIFF) regulations. If you are drafting a contract for a footballer, key distinctions include:

1. Transfer and loan clauses: Unlike auction-based models, football contracts often contain provisions for mid-season transfers or loans to other clubs. These require clarity on fee-sharing, salary responsibility, and recall conditions.
2. Buy-out clause: A buy-out clause is a contractual provision that sets a fixed amount a club must pay to release a player from their contract. If another club meets this amount, the player is free to leave regardless of their current club’s wishes.
   
3. Sell-on clause: A sell-on clause entitles a player’s former club (the original or “parent” club) to receive a percentage of the transfer fee if the player is sold again in the future. For example, if Player A is transferred from Club X to Club Y, and Club Y later transfers the player to Club Z, Club X receives the agreed-upon percentage from that second transfer fee.
4. Salary breakdown: Footballers may be paid monthly, and there may be caps on foreign players’ salaries. You must detail each payment head and bonus (such as clean sheets for goalkeepers or goal bonuses for forwards).
5. Registration compliance: AIFF requires every player to be properly registered through its CMS (Centralised Management System). You must add a clause conditioning the contract’s validity upon successful registration.

Also, football contracts may involve agent fees, which must be disclosed and legally justified.

Kabaddi: auction mechanisms and injury coverage

In leagues like the Pro Kabaddi League (PKL), player contracts are often seasonal and auction-driven. Important aspects to consider include:

1. Injury clauses: Kabaddi is a high-contact sport with a greater risk of injury. Your contract must detail who bears the cost of medical treatment and whether injured players are entitled to compensation or insurance.
2. Auction contracts vs. retention contracts: Some players are directly retained by franchises, while others are acquired via auction. Retained players may require separate addendums or pre-agreements.
3. Training camp obligations: Given the physical nature of the sport, many teams conduct extensive training camps before the season. Make sure these obligations and related compensation are covered.

You should also be aware of regional language inclusions in contracts where players are not fluent in English or Hindi.

Emerging sports: tennis, athletics, esports, and more

As India diversifies its sports ecosystem, contracts are also evolving. In individual sports such as tennis or track and field, players often sign contracts with sponsors, event organisers, or training academies, not teams. In such cases:

1. Performance clauses may be tied to world rankings, medals, or qualification to major tournaments.
2. Coaching and facility access must be clearly described, especially when academies or sponsors offer developmental support.
3. Endorsement exclusivity is crucial; brands often want sole visibility rights, which may clash with the player’s personal sponsorships.

In esports, you must go even further afield. Player contracts in esports may include streaming obligations on social media platforms, equipment sponsorships and behavioural codes specific to online gaming.

Do not assume that traditional contract formats apply; emerging sports may require new legal templates altogether.

To draft effectively, you must understand the rhythm and commercial structure of each sport. Always ask: Who benefits from what, and when? What makes this sport unique, and how should the contract reflect that?

Common pitfalls to avoid

Drafting a standard player contract may seem straightforward at first glance. You include the remuneration, the duties, and the dates the job was done, right? Unfortunately, in practice, even small drafting errors or omissions can lead to serious disputes, financial losses, or regulatory violations. Here are the most common pitfalls you must watch for and, crucially, how to avoid them.

Overly generic templates

One of the gravest mistakes is relying on a one-size-fits-all contract. You cannot simply take a template from cricket and repurpose it for kabaddi or football without significant changes. Doing so not only risks legal incoherence but also shows a lack of respect for the unique features of each sport.

I would suggest you start with a base, but always customise the contract to the league’s framework, the sport’s physical demands, and the player’s specific role.

Vague or missing remuneration clauses

Ambiguity around payment terms is a fast track to disputes. If the player believes they are owed a bonus that the team claims was discretionary, matters can escalate quickly.

What you need to be specific. Mention exact amounts, payment dates, the method of transfer, and how taxes will be deducted. If there are conditions to earning a bonus (e.g., minimum matches played), state them clearly.

No provision for injury or force majeure

Many young drafters forget to address what happens if the player suffers a long-term injury or if the league is suspended. This is not hypothetical; consider the COVID-19 pandemic and how it disrupted nearly every sports league.

Tip: Include a robust injury clause detailing treatment responsibilities, compensation, and potential suspension of the contract. Your force majeure clause should be well-drafted and sport-appropriate, especially in contact-heavy games like kabaddi or football.

Over-restriction of personal endorsements

Teams often want exclusivity over a player’s image rights and commercial deals. But if you draft the clause too broadly, you may violate the player’s autonomy or breach existing brand commitments.

Tip: Clearly define which endorsements are off-limits (e.g., rival team sponsors) and which are permissible with team consent. Always check whether the player has pre-existing deals that need to be honoured.

Ignoring league or federation rules

Each league, whether IPL, ISL, or PKL, has its own contract guidelines. If your draft violates them, it may be rendered invalid or non-enforceable.

Make sure you familiarise yourself with the league’s rulebook. Include a clause stating that the contract is subject to league approval, and make room for adjustments if the league issues new directives mid-season.

Absence of a dispute resolution framework

If the contract does not specify how disputes will be resolved, you leave both parties vulnerable to lengthy litigation, often across different jurisdictions.

You need to include a well-thought-out dispute resolution clause with arbitration as the preferred mechanism. State the seat, language, and governing law. And do not forget: if the league has its own grievance body, you must respect that process.

Inconsistent language or multiple drafts floating around

It is surprisingly common to find multiple versions of the same contract in circulation, especially during hectic pre-season periods. Inconsistencies in numbering, defined terms, or clause references can be fatal.

What you can do is use version control. Keep one final, signed PDF and, ideally, a version with tracked changes if modifications are made. If the player or team is not fluent in English, consider translating key sections and attaching them as annexures.

Avoiding these pitfalls is not merely about avoiding disputes, it is about building long-term professional relationships based on clarity, fairness, and legal integrity. As a drafter, your role is not only to protect your client but to ensure the agreement reflects the spirit of the sport itself: fair play, commitment, and respect.

Drafting tips for young lawyers and interns

When you are just starting out in the legal profession, especially in a dynamic and high-pressure domain like sports law, drafting a player contract can feel intimidating. But with the right approach, you can turn each assignment into an opportunity to develop skill, earn trust, and build your reputation. Here is how to get it right methodically, thoughtfully, and professionally.

Do not rush to write; read first.

Before your fingers touch the keyboard, immerse yourself in the background. Who is the player? What is the league? Are there special circumstances (injuries, ongoing deals, training obligations)?

Make sure you always ask for the brief in writing. If you are working under a senior, request access to similar past contracts. Read the league’s rulebook, and review any communications between the parties that might affect drafting.

Understand the commercial logic.

Every contract is a story about risk and reward. Why is this player being signed? Is the team investing in a young talent for long-term value, or bringing in an experienced athlete for short-term performance?

So ask yourself, “What are both parties worried about?” Then ensure the contract addresses those concerns. This kind of thinking will elevate your draft above the rest.

Learn the art of clause structuring.

Avoid overly long or blocky paragraphs. Each clause should deal with one clear issue, be it remuneration, termination, or image rights. Poor structuring is one of the easiest ways to confuse readers or cause later disputes.

So, use sub-clauses and bullet points, especially in performance-linked compensation or training requirements. Clarity is not only professional, it is essential.

Do not blindly copy and paste.

It is tempting to reuse older contracts, especially under pressure. However, copying clauses without adapting them is dangerous. A footballer’s performance bonus clause will not work for a kabaddi player, and an IPL injury clause cannot be blindly used for a tennis athlete.

Therefore, make sure to always read each clause as if it were being seen for the first time. Ask: “Is this appropriate for this deal, and for this sport?”

Respect the voice and intent of the client.

If you are working for a team or franchise, they will likely want protective clauses. If you are representing a player, they will care more about freedom, security, and fair compensation. You cannot serve both sides with the same template.

You can identify who your client is and draft in their best interests while remaining fair. Never assume both sides want the same things.

Review your work with a fresh set of eyes.

After you have finished the draft, walk away for a while. Come back with a reviewer’s mindset, not a drafter’s. Check for typos, cross-references, numbering errors, and consistency in defined terms.

Read it aloud. If something sounds convoluted or unnatural, it probably is. Also, always double-check annexures and exhibits, as they are often forgotten.

Ask questions, but do your homework first.

If you are unsure about a clause, do not guess. But do not ask vague questions either. For example, instead of saying, “I do not understand the termination clause,” ask, “Should we allow immediate termination for breach of training obligations, or would a cure period be more appropriate?”

Senior lawyers value clarity and initiative. If you show that you have thought through the issue, even if you are unsure, you will earn their trust.

Drafting is not merely about legal knowledge; it is about anticipation, logic, and precision. And in sports, where careers are short and contracts are intense, the impact of your drafting can be profound.

Conclusion 

As a young legal professional, you are stepping into a space that is no longer niche. Sports law in India is growing, and with it, the standards expected from drafters are rising. Gone are the days when vague clauses and handshake deals sufficed. Today, leagues want precision, players want clarity, and regulators want compliance.

What does the future hold? Think digital contracts integrated with wearable tech data. Think of clauses linked to social media engagement metrics. Think AI-based dispute resolution mechanisms for contract breaches. The canvas is wide, and you, the next-generation drafter, hold the brush.

So, whether you are drafting your first contract for a state-level kabaddi player or reviewing a multi-crore deal for an international cricketer, remember this: you are not just writing legal text. You are shaping the very framework that supports Indian sport. Draft well and draft with purpose.

Now that we have understood the concepts, let us explore how to apply this knowledge in practical situations. Click here to learn more on this.

FAQs 

1. How can drafters ensure compliance with evolving sports regulations in India?

Sports regulations in India, such as those from the All India Football Federation (AIFF) or the Board of Control for Cricket in India (BCCI), are frequently updated. To ensure compliance, you should regularly check the official websites or publications of the relevant sports body (e.g., AIFF’s Player Status and Transfer Regulations or ISL’s operational guidelines). You can also include a clause in the contract stating that it is subject to the latest league or federation rules, with provisions for amendments if new regulations are issued mid-season.

Also, consult with the league’s legal or compliance team before finalising the contract to confirm alignment with current policies.

2. What are the legal implications of using electronic signatures for sports contracts in India?

Electronic signatures are legally valid in India under the Information Technology Act, 2000, provided they comply with section 3A (e.g., using Aadhaar-based e-signature or digital signatures issued by a Certifying Authority). However, you should also ensure both parties consent to electronic execution and use a secure platform compliant with Indian law. Make sure to retain a verifiable audit trail of the signing process to avoid disputes over authenticity.

Also, specify in the contract that the electronic version is legally binding, as courts may prioritise physical copies in case of ambiguity unless explicitly stated otherwise.

3. How should mental health support be addressed in player contracts?

Mental health is increasingly critical in professional sports, yet often overlooked in contracts. To address this, you can include a clause requiring the club to provide access to mental health professionals (e.g., psychologists or counsellors) as part of medical care. Allow reasonable time off for mental health-related issues, similar to physical injury provisions, with clear protocols for confidentiality and return-to-play assessments. Ensure compliance with Indian laws on medical privacy (e.g., Mental Healthcare Act, 2017) to protect the player’s sensitive information.

4. What precautions should be taken when drafting contracts for minor athletes (under 18)?

Contracts for minors in India must comply with the Indian Contract Act, 1872, which deems agreements with minors void (Section 11). However, contracts can be executed through a legal guardian or parent, who acts as the contracting party on behalf of the minor.

You can also include a clause stating that the contract is binding on the guardian and will be ratified by the player upon reaching the age of majority. Also, ensure compliance with child labour laws (e.g., Child and Adolescent Labour (Prohibition and Regulation) Act, 1986) to avoid issues related to training hours or promotional activities for minors.

5. How can contracts address player relocation and family support for out-of-state or foreign players?

Relocation can be a significant concern for players, especially in a diverse country like India or for foreign players in the ISL. To address this:

• Include provisions for relocation assistance, such as covering moving costs or providing temporary accommodation for the player and their immediate family.
• Specify whether the club will assist with visa processes for foreign players or their families, including compliance with the Foreigners Act, 1946.
• Offer cultural integration support (e.g., language classes or orientation programs) to help players settle, which can enhance performance and retention.

6. What are the risks of verbal agreements or side letters in sports contracts, and how can they be avoided?

Verbal agreements or informal side letters are common in Indian sports but pose significant risks, as they may not be enforceable under the Indian Contract Act, 1872, which prioritises written agreements. To mitigate, insist that all terms, including preliminary negotiations or promises (e.g., additional bonuses or playing time assurances), are documented in the main contract or an annexed schedule.

You can also include a clause (as seen in Clause 16.1 of the document) stating that the contract supersedes all prior oral or written agreements. Also, use version control and maintain a single, signed copy of the contract to avoid disputes over multiple drafts or informal communications.

7. How should contracts handle player loans or mid-season transfers in football?

Football contracts, especially in the ISL, must align with FIFA Regulations on the Status and Transfer of Players (RSTP) for loans and transfers. You should include a specific clause detailing the conditions for loans or transfers, such as fee-sharing arrangements, salary responsibilities, and recall conditions (e.g., for injuries or performance issues). You also require the player’s consent for any loan or transfer to avoid disputes, as unilateral transfers may violate FIFA RSTP. You must also ensure compliance with AIFF’s Centralised Management System (CMS) for player registration during transfers, with a clause conditioning the transfer’s validity on successful registration.