WITH HIS expertise on sports law, working behind the scenes on many issues that have made the sports news headlines over the years, Mickey Ingles undoubtedly has some thoughts on what has transpired during the MPL-PH offseason.
Esports organization Onic PH has been put under the spotlight recently. While the sudden release of its core players has alarmed the community, a former key member of the org has alleged numerous issues within the team. One issue stood out: problems with the release of the team's winnings from the M3 world championship to the players — previously hinted at by ex-player Paul Ian "Beemo" Sergio during a guesting at Eat Bulaga.
To Atty. Ingles, this issue illustrates the need to take a close look at athlete contracts.
“I guess if you’re looking at the legal side, everything will be based on the contract between the organization and the player," said Spin.ph's sports law columnist. "So that will govern who should get the prize money. Will it go to the team or should it go to the player? Because if it’s written somewhere in the contract that it will go to the organization, then by means of the contract it will go to the organization."
Ingles, who also handles taxation law at the firm of Ingles Laurel Calderon, added: “But if it’s there in the contract that it goes to the players, then it goes to the players. Since contracts can stipulate almost anything as long as it’s not contrary to public morals, policy, public order, or other laws, then whatever is at the contract will govern.”
Are esports athletes employees? Or contractors?
The contract will also define the relationship between a player and their org... and the benefits and compensation that this will entail.
“Because if the players are legally considered as employees of the organization, then they will have all the rights of a normal employee. So, what are those rights? Security of tenure — meaning they cannot be terminated without just cause under the law. That means they cannot be terminated based on the whim of the employer," explained Ingles.
However, if the contract defines players as independent contractors, then that's another matter entirely. “If you’re an independent contractor, you don’t have as much protection as a regular employee under the Labor Code."
The only thing, then, that will protect the players, is "what’s stipulated in the contract," said the author and lawyer.
“If the player for example signs off his competition winnings towards the team, then that’s legal. Or if it’s in the contract that the team can terminate the player for whatever reason, then that’s also arguably legal, because they’re not employees but independent contractors.”
Ingles gives his thoughts on Coach Duckeyyy's public statements
This week, as esports contract talks were hotly debated within the community, Coach Francis “Duckeyyy” Glindro offered some legal advice for amateurs wishing to turn pro.
“To all amateur MLBB players please be cautious when signing predatory contracts," the Bren Esports coach wrote on his social media pages. "Never sign a contract that ties you with an org for 3-5 years. Heck don’t even sign up for two. Consult people with extensive Esports experience when in doubt. We’re here to help.”
Would Ingles agree that these term lengths are predatory?
Ingles is not so sure. "That period doesn’t necessarily mean that it’s a predatory contract because if you enter into that contract willingly and knowingly with your full consent, knowing that the two years, three years, or four years will be beneficial for you then you sign it, then it’s not predatory."
For example, PBA players regularly sign multi-year contracts.
“I mean, sure, there are other provisions there that will make it predatory or unfair to the player, but the length of the contract doesn’t make it a bad contract. We have PBA players signing 3-year deals because they got a lot of money. What I’m just trying to say is, have a lawyer look at it, have a lawyer explain it to you, then if it’s fine for the lawyer and you then go ahead and sign it.”
As a lawyer himself, Ingles can't stress that part enough.
“Well, the number one thing you do before you sign a contract whether it’s a lease contract for your condo, a deed of sale for your house, or a contract to play for a team, you have to let a lawyer review it.
"Because the lawyer will understand how long the contract will be, what are your obligations, what are your duties, what are the obligations of the team towards you. And hopefully that lawyer will explain it to you so that you have a clearer picture of what you’re getting into.”
Nevertheless, he does agree with Duckeyyy in that respect. “You have to be cautious when signing these contracts.”
[UPDATE, 8:55 p.m., 8 July] Duckeyyy has contacted Spin.ph to clarify his Facebook post.
"What I meant with 'predatory' was not really about the duration of an athlete’s contract but rather the terms in it," said the M2 World Championship coach. "I have seen contracts pulled off directly from Google, copy-pasted."
Who should esports athletes turn to for help?
Duckeyyy also shared a list of names prospective athletes can consult with if they have any questions about their contracts.
Here's where Ingles outlined the important roles that both agents and lawyers play in protecting an athlete's rights. Because while a lawyer may be well versed in labor law, an agent or a consultant would have the necessary knowledge about the ins and outs of the esports industry.
“It would be better if it’s a lawyer, but it’s also good if the person advising you has knowledge about the industry," he said.
Take professional basketball players, who often have agents and lawyers at the same time. "They ask a lawyer and they also ask their agents because the latter knows some things that a lawyer won’t know. The agents are the ones who know [about] negotiations of the teams and the industry itself, but it’s the lawyer who would know [about] labor law, contract law, the rules and regulations of the league.”
Ingles disclosed that while his main work has revolved around traditional sports, he has had a client who needed consultation with him with regards a play-to-earn game.
"We've helped a client with their needs when it comes to Axie (Infinity)," he said. But he admitted that no esports athlete, as of yet, has approached his firm. "But we’re willing to help esports athletes when it comes to contracts."
And whether you're talking about sports or esports, law is law.
"That’s what I do. As a sports lawyer, I have a different perspective on how the law applies to sports, in a manner that some other people might not be able to see it. It’s just a matter of applying the current laws into esports."
He added: "And these two relationships, employer-employee relationship, principal-independent contractual relationships, these are basic concepts in labor and civil law, but how do you apply them to esports? That’s where a good sports lawyer comes in."
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