Why is Jamal Murray delaying signing? 

In late June 2024, it was reported that Jamal Murray, a player for the Denver Nuggets, had yet to sign a contract extension that was offered to him a few weeks earlier. The delay in signing, coupled with his announced participation in the Olympic Games for Team Canada, has led to questions about the real reason for the delay. 

In this blog, we do not delve into media speculations, but we must mention them since the alleged reason for not signing the contract extension is the topic we are addressing in this article. Media speculations suggest that Murray’s hesitation to sign might stem from the physical fitness and injury clauses that the Nuggets included in the contract. 

During a broadcast on Denver Sports 104.3, it was mentioned that the team offered Murray a four-year contract worth $209 million, but with somewhat different terms, humorously referred to as ‘babysitting clauses’. Although Murray has achieved significant success, the Nuggets sought to create a contract that would protect them from potential injuries and insufficient physical fitness. It was also mentioned that the maximum contract offered was not fully guaranteed. We will explain what it means for a contract to be not fully guaranteed in this text. 

On the other hand, Murray and his agent have expressed dissatisfaction with signing a contract that is not fully guaranteed and contains clauses regarding playing conditions, playing time, and physical fitness. 

Why Would the Nuggets Want to Protect Themselves? The past year was not easy for Murray; he played 59 games but injured his tendon early in the season, which caused him problems throughout the season and ultimately in the playoffs. 

What kind of contract did Zion Williamson sign? 

It is speculated that the Nuggets have prepared contract language similar to the one Zion Williamson signed with conditions affecting the guarantee of the contract. 

Zion Williamson’s 2023 contract with the New Orleans Pelicans contained several interesting clauses related to his injuries and performance. The contract included weight clauses and specified checkpoints for the player’s weight and allowed body fat percentages. If Williamson passes all six checkpoints in the 2024/25 season, he is guaranteed 20% of his salary for the following season. 

Furthermore, the Pelicans included an injury clause that can affect his earnings. In short, Williamson’s contract is not fully guaranteed, and his financial situation depends on his availability on the court and physical condition. 

Aren’t these common clauses in sports contracts?

Yes, most sports contracts include clauses about the player’s physical fitness and potential injuries. In previous texts, we have mentioned that sports law is a combination of various types of law and that it is essential to consider the rules of the relevant sports federation. For now, we will explain how this works in basketball (mainly in the NBA). 

If we look at the standard clauses of NBA contracts or the NBA Uniform Player Contract-Standard Clauses, we can immediately see the sixth clause, which states that if a player, in the opinion of the team’s doctor, is not in good physical condition on the day of their first scheduled game or if, at the beginning or during any season, fails to remain in good physical condition, the team has the right to suspend the athlete and reduce their salary in proportion to the period during which they were unable to play qualified basketball. 

There is an exception mentioned – if such a condition is directly caused by an injury the player sustained while participating in any basketball game played for the team during the season. Additionally, the team will pay reasonable hospitalization and medical expenses directly related to the sustained injury. 

Similarly, if we look at the professional player engagement contract of the Basketball Federation of Serbia, we see that one of the player’s obligations is to take care of their health, maintain a sports lifestyle, and give their maximum in performances for the club. 

Since these contracts represent employment contracts, it is entirely normal that the obligations of a professional athlete relate to their physical fitness, health, and potential injuries. 

What if an NBA player gets injured – Do they still get paid?

Above, we mentioned standard clauses, but now we will explain what guaranteed and partially guaranteed contracts are. Therefore, all NBA player contracts are guaranteed or partially guaranteed against injuries, so as long as the injury occurs during a game or practice, the player will be paid. 

Most sports contracts in the NBA include full guarantees for injuries, and as long as basketball, i.e., practice or a game in the club’s jersey, caused the injury, athletes will be compensated for their injuries, without any additional clauses negotiated to stipulate different circumstances. 

However, to return to Murray’s issue – some contracts are not fully guaranteed upon signing. It is often added that athletes with non-guaranteed contracts who are still on the team’s roster until January 10 of each league year can receive a guaranteed contract for the remainder of the season. 

Let’s simplify this – a player’s annual salary is the amount they earn. So, if someone signs a three-year contract worth $60 million, it means they are paid $20 million annually, but it can also be agreed that the athlete will be paid less in the first year and more in the second and third years. 

Besides the salary, the most crucial factor for a player is the guarantee clause – if there is a guarantee clause, the player will receive a certain amount of money regardless of whether they are injured or not. If the situation is different, we are talking about a contract that is not guaranteed or partially guaranteed. 

What is the Disabled Player exception? 

The Disabled Player Exception is a special clause prescribed in the Collective Bargaining Agreement (CBA) between the NBA and the National Basketball Players Association (NBPA), which allows teams to compensate for the loss of a player who is severely injured and will not be able to play for the remainder of the season by signing a replacement under certain conditions. 

The team must submit a request to the NBA for this exception, stating and proving that the player is seriously injured and will not be able to play for the rest of the season. The NBA then selects an independent doctor to examine the injured player and confirm the severity of the injury and the inability to play. 

If this exception is approved, the team can sign a new player but at a value of 50% of the injured player’s salary or at the value of the Mid-Level Exception, whichever is lower. It is important to note that this exception can be used until January 15 of the current season. 

Injury clauses in the NFL 

You might be wondering why we are now mentioning NFL injuries in the midst of a discussion about NBA player injuries? 

The NFL is one of the few sports where contracts are not fully guaranteed. Therefore, it makes sense why players want to negotiate injury clauses. In most cases, NFL players are not guaranteed to receive the full amount specified in their contract, but negotiating injury clauses can provide them with financial security, especially if an injury prevents them from signing with another team. 

For example, the Indianapolis Colts had a record of three wins, three losses, and one tie when they decided that Matt Ryan would be replaced and spend the rest of the season on the bench. It was unusual why the Colts decided that a former NFL MVP would spend the rest of the season on the bench, but considering his contract, it became clear that the decision was more about saving money (if he is not on the roster next season) than his playing abilities. 

Ryan’s contract included an injury clause stating that the Colts owe an additional $17.25 million on his base salary if an injury prevents him from passing a physical. At the time he was benched, Ryan had a shoulder injury; although the injury was not considered serious, further injuries could activate the contract clause. 

A similar clause is found in the contract of Derek Carr, the quarterback of the Las Vegas Raiders. In short, Carr’s contract was not guaranteed, even if the team released him after the season. However, if he were injured and unable to pass a physical, the Raiders would owe him a significant amount. 

This article is the third part of a series on the specifics of sports contracts. If you are interested in more, we suggest reading the Guide to Sports Law Contracts and the article on Specific Clauses in Sports Contracts, as well as other topics in sports law, such as our Guide to Establishing a Sports Association. 

**Note: This text does not constitute legal advice but represents the author’s opinion.**