Esports Contracts Exposed: Clauses That Trap Young Gamers

Published on April 17, 2024

by Jonathan Ringel

When people think of professional athletes, they often think of those in traditional sports like basketball, football, or soccer. But with the rise of Esports, there is a new breed of professional athletes making waves in the industry – esports players. These gamers make a living by competing in video game tournaments, streaming their gameplay online, and representing teams or sponsors. But just like any other professional athlete, esports players also have to navigate through contracts – legal agreements that outline the terms of their employment. And unfortunately, just like in traditional sports, there are clauses in these esports contracts that can trap young gamers, ultimately hindering their careers and livelihood. In this article, we’ll be diving into the world of esports contracts and exposing some of the clauses that young gamers should be aware of.Esports Contracts Exposed: Clauses That Trap Young Gamers

What are Esports Contracts?

Esports contracts are agreements between a player and an organization or team, outlining the terms and conditions of their employment. These contracts typically cover details such as the player’s salary, benefits, tournament winnings, sponsorship deals, and more. They also include clauses that protect both parties and ensure that the relationship runs smoothly.

The Importance of Understanding Esports Contracts

For young gamers breaking into the professional esports scene, contracts can be overwhelming and confusing. These players often come from a background of simply playing video games for fun and may not have prior experience with legal agreements. This lack of knowledge and understanding can leave them vulnerable to clauses that can potentially harm their career and financial stability.

It is essential that esports players educate themselves on the ins and outs of contracts before signing anything. They need to understand their rights and what they’re agreeing to fully. That’s why it’s crucial for organizations and teams to provide their players with transparent and easily comprehensible contracts.

The Clauses That Trap Young Gamers

Non-Compete Clauses

A non-compete clause is a common clause in esports contracts that states a player cannot compete with any other team or organization during their contract period. While this might seem standard, it often comes with limitations such as restricting players from streaming their gameplay on other platforms or participating in other tournaments.

For young gamers, this can severely limit their opportunities to grow their personal brand and make a name for themselves in the industry. It also puts them at a disadvantage when negotiating future contracts as they will have less experience and exposure compared to players who were not restricted by non-compete clauses.

Exclusive Streaming Clause

Another common clause in esports contracts is the exclusive streaming clause, which requires players to stream exclusively on the organization’s designated streaming platform. This means that the player cannot stream on platforms like Twitch or YouTube, which are popular among esports fans.

Exclusive streaming clauses may also limit a player’s ability to monetize their streams, as they may not be able to accept donations or sponsorships from other companies. This can significantly impact their income and hinder their personal brand growth.

Indefinite Contract Renewals

Many esports contracts also include the option for indefinite contract renewals, giving organizations the power to keep a player on their team without renegotiating their terms. This essentially ties the player to the organization for an unlimited amount of time and can trap them into unfavorable conditions.

Indefinite contract renewals can also prevent players from seeking better opportunities and negotiating for better terms with other organizations.

What Can Young Gamers Do to Protect Themselves?

Esports players should always consult with a lawyer before signing any contracts to ensure they fully understand the terms and any potential repercussions. They should also request that any clauses they are uncomfortable with be removed or amended before signing.

Players should also do their research on the organization or team offering them the contract. They should look into their reputation and past dealings with players to get a better understanding of what to expect.

Lastly, players should keep themselves well-informed about the industry and the legal aspects of their profession. This will enable them to enter contract negotiations with confidence and better protect themselves and their career in the long run.

In Conclusion

The esports industry is rapidly growing, and with it comes the need for more transparent and fair contracts for players. Young gamers must educate themselves on the potential pitfalls of esports contracts and take the necessary steps to protect themselves. By understanding the clauses that can trap them, they can navigate the world of professional esports with confidence and make the most out of their careers. Let’s empower young gamers to take control of their futures in esports.