Terry Sports Complex offers world-class training on a wide range of sports education programs. The programs include sports coaching, recreation, and development of the athlete’s talents. The reason why I formed this sports complex is to bring a change in relationships, education, health, and joy. The legal structure will be a sole proprietorship business structure. A sole proprietorship is easy to control because the proprietor is always in control of the business in person. To start the business, one only needs to acquire an Australian Tax File Number, which is used for tax purposes, and register an official business name. (De Simone et al., 2015).
Besides, when it comes to taxes, it will be done at a personal level which will save money for the business. The contract offers a diverse range of sports to cater for all needs, and we expect all parties involved to abide by the contract.
Professional Services Contract
The professional service contract is tailored in such a way that wordings in the contract can be reused severally without. A similar contract is presented to all players, and they have treated the same apart from the payment and bonus. New leagues usually come up with their contracts to capture the needs of relevant athletes. However, start-up leagues have a new angle of approaching professional service contracts, whereby they pay minimal salary to the athletes in a specific sport and afterward reward the entire team with incentives which are done per every game (Swart et al., 2015).
Categories of professional services contracts
- The most basic type of contract is a fixed-rate contract. Employees work for a certain amount of time, and there is a description of the relationship between the parties involved.
- The duration contact depends on the amount of time an employee carries a specific time after which he is rewarded.
- Rate contracts are based on a fixed rate of the amount, which is stipulated in the contract. For example, an athlete agrees to a specific amount rating of payment to do an advertisement.
- Cap fixed contract which the one-party pays a fixed amount for a specified period.
- Timely contract tracks hours and payments made. Many people prefer this type of contract because you are paid for the work you perform but also, it is easy to lose money and contract as well.
Under this contract, the responsibility of the players is to:
- Work carefully when in the field to ensure maximum score capacity.
- Acts in Terry’s Sports Company’s best interests which are to produce quality players who will be competitive in the market.
- Ensuring everything is done on time. For example, training time in which the player is expected to keep time because discipline is paramount.
- Follow the rules, standards, and guidelines in his respective area.b) The endorsement contract is based on the relationship between the employee and the employer (Cornwell, 2016).
Under this contract, it grants sponsors the authority to use athletes’ actual name, image, or likeness for advertising purposes. Duties and obligations: After the establishment of parties, terms, and agreement, and purpose, the obligations of the sponsors include compensation, services of athlete which can include several products to advertise, payment rates, and marketing rights.
Appearance contract athletes receive payment for special appearances in events or public functions (Roland, 2018). The contract incorporates
- The agreed-upon price which specifies the amount of any deposit, the amount due when the contract is signed and when the total balance is due.
- Expenses that will be paid by the sponsor. Examples of expenses include accommodation and travel charges.
- Both the sponsor or a representative and athlete must sign this contract.
- Duties and obligations: Both the athlete and sponsor will be responsible for the promotion of personal appearance and the athlete agrees to allow the company to use his or her name and likeness for promotional purposes.
Importance of the agreements to ensure both parties are committed we understand, contracts are associations. The two associations approve to work together and create a rapport that will ensure both parties benefit. Hence, the contract visually represents that relationship (Delaney et al., 2018).
Also, the contract holds each party to their original agreement. For example, an athlete agrees to serve the company for a specific amount of time. The contract acts as a footprint that ensures both parties accountable for their original word.
- Prevention and mitigation of risk contracts involve negotiation between both parties to ensure everyone is satisfied. Efficient negotiation should ensure that both parties mutually are successful and prevent conflict between them (Morley & Stephenson, 2015). The negotiations set a strong foundation for the future growth of both parties.
- Contracts should be easy to understand the various steps involved. The steps will help in audit processes which nowadays have been automated apart from emailing services. Emailing services are hard to audit and make comparisons. The development process management should be made online with an inclusive audit step such that anyone can understand every step that was made and when it was made. They assist in ensuring compliance is observed in the organization’s compliance is vital in an organization, but not all employees remember to abide by them unless they have a legal background. Establishment of a procedure for a contract or how to manage it assists the employee to keep in mind that they need to come up with a contract that should be acceptable before the eyes of another party (Glahn & Taulbee, 2015).
- They serve as a collaboration and communication tool contracts create an opportunity for parties to collaborate and determine their necessities. Collaboration creates rapport across the various sections of the different parties as well.
- Acts as a partnership and conversing tool when a third party comes on board, the collaboration continues to be in place.
To have a good quality of a contract, negotiation is always crucial. When the contract -has been signed by both parties, both partners should know there was efficient communication.