Thursday, February 18, 2010

MLB Can No Longer Require Ramirez Provisions in non-Free Agency Contracts

After Manny Ramirez pledged to donate $1 million of his $45 million contract to the Dodgers' charitable foundation, the Dodgers owner thought it would be a good idea to include "Ramirez provisions" in all contracts, in amounts of the players' choosing.  Other Major League ball clubs followed suit, and some 109 contracts now contain the provision. One problem seems to be that the provisions require donations to the club's own foundation and limit the players' ability to pick their own charities for donations, but the coercive nature of the provisions in general concerned the players' union.  The LA Times has reported that a union grievance about these provisions has been settled.  The settlement has not been officially announced, but a management official said that the settlement permits the provision in contracts signed by players signing as free agents or buying out a year or years of free agency when signing a long-term contract.  A spokesperson for the Dodgers says that the club will continue to encourage charitable giving by its players, even without the provisions.


Thanks to Tori Klein for bringing this to my attention.

sng

http://lawprofessors.typepad.com/nonprofit/2010/02/mlb-can-no-longer-require-ramirez-provisions.html

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