Faulty Fax Leaves NFL Team without a Top Player
6 minutes cost Elvis Dumervil $12 Million
You may have missed this headline, but it’s a story that has stuck with our team here at STG. The NFL Broncos were forced to cut Elvis Dumervil, their top pass rusher, from their 2013 NFL team as his signed contract reached their headquarters 6 minutes past the deadline. Dumervil’s contract had to be renegotiated due to salary cap requirements heading into the postseason that would cut his salary by $4 million. The negotiations came down to the wire.
With the 4 pm negotiating deadline looming, Dumervil was anxiously pacing a Miami Kinkos store attempting to fax his signed contract to Denver headquarters. With his agent located in Philadelphia, Dumervil was on his own frantically making every effort to get the contract sent on time. He failed.
WHO WAS IMPACTED BY THIS FIASCO?
The player, Elvis Dumervil, was unable to play for the Broncos for the entire 2013 season and lost $12 million in salary for the year.
The agent, Marty Magid, was fired, fined and suspended by the NFL Players' Association.
The team, the Denver Broncos, found itself without one of the league's top pass rushers and went from 1st to 21st in the league in pass rushing in the 2013 season.
Some have said that it was unprofessional for the agent and player not to be physically located together during these key negotiations to ensure the timely submission of the contract. Yes, that could have potentially prevented this crazy scenario from happening, but surely this should not be a requirement given the technology we have available today.
Instead, imagine if the entire process had been managed digitally:
No paper, no pens, no faxes, no email
Replaced by a contract on a mobile phone and the player’s finger used to sign the contract.
In fact, this no longer requires a big stretch of your imagination - this scenario is a reality today.
Our Athlete Contract Management solution, built with smart contracts on a blockchain, can make all of this possible. Blockchain smart contracts are instantly delivered to all parties, enabling each stakeholder to engage in a remote, transparent, trusted and secure negotiation process. A fully electronic process ensures all parties have visibility during each stage of the negotiation.
Once the negotiation is complete, the smart contract is executed. All parties instantly sign from their connected mobile devices. No faxes required. No missed deadlines. No players out for the season.
In sports, we know that the difference between winning and losing can come down to seconds or inches. Taking advantage of every single competitive edge is often the key to success. Ensuring the right players are on the field because you managed their contract negotiation better than any other team in your league, will give you a competitive advantage.
There is a lot more that we can discuss, to contact us, please visit www.sportstech.io.