Arbitrator Finds For Ex-Agent, Awards $1.2M

Quick note before we jump in this week:

We’re closing in on one year of The Sideline! What a wild ride it’s been so far. I really appreciate you guys tuning in every Thursday morning.

A special thank you to those who helped me reach my Team For Kids Berlin Marathon fundraising goal. I’m proud to share we’ve raised over $3,300 to date.

With the race on Sunday, I’ll be OOO next Thursday. Although I’m bummed to see my 43-week newsletter streak come to an end, it’ll be nice to unplug for a week. And of course, I’ll have all the sports law headlines when I’m back.

Can’t wait to share more about the race and subsequent trip with you all.

With that, let’s jump into this week’s edition:

Last week, an arbitrator ruled that Derrick Jones Jr. must pay his former agent Aaron Turner $1.2 million, or 4% commission, on a three-year, $30 million contract between Jones and the Los Angeles Clippers.

At the center of the arbitrator’s decision? Jones filed to provide Turner with 15 days written notice regarding his decision to fire him before he signed with Los Angeles.

Here’s what we know about the arbitrator’s ruling:

Legal Framework

The National Basketball Players Association acts as the exclusive bargaining representative of NBA players. Part of the NBPA’s duties is to license player agents, which allows agents to legally represent players in negotiations with NBA teams.

Regarding an NBA player’s employment with a team, the NBPA Standard Player Agent Contract, or SPAC, governs the legal relationship between a player and agent. 

NBPA Standard Player Agent Contract

Two key provisions of the SPAC that apply to the situation here:

Notice of termination: According to paragraph six of the SPAC, either the player or agent may terminate the underlying agreement “effective fifteen (15) days after written notice of termination is given to the other party.”

Arbitration: Paragraph seven of the SPAC states player-agent disputes are subject to arbitration. Therefore, disputes must be heard by an arbitrator, not a judge.

Timeline of Events

April 18, 2016: Jones and Turner sign a SPAC as Jones signs with the Phoenix Suns as a rookie free agent

2016 - 2023: Jones spent time as a role player for the Phoenix Suns, Miami Heat, Portland Trail Blazers and Chicago Bulls. Jones also spent time in the NBA Development League.

As part of a breakthrough season, Jones helped the Dallas Mavericks reach the 2024 NBA Finals, where they were defeated by the Boston Celtics in five games. 

Throughout the playoff run, Jones primarily guarded the opposing team’s best player, including Shai Gilgeous-Alexander, Anthony Edwards, and Paul George. 

June 21, 2024: Four days after the NBA season ended, the Mavericks offered Jones a three-year, $27 million contract. 

Here’s where things get tricky: