Wednesday, January 31, 2007

A "Just in Case You're Indicted" Clause in Bonds' Contract

The new contract Barry Bonds agreed to with the San Francisco Giants that will pay him $15+ million has an unusual clause allowing the team to void the contract if he is indicted for perjury in the ongoing Balco (Bay Area Laboratory Co-operative) steroids investigation.  Some baseball contracts permit a team to back out if a player sustains a certain type of injury, such as the recent contract J.D. Drew signed with the Boston Red Sox relating to a previously-injured shoulder.  Baseball also has a "good conduct" requirement, but a criminal indictment alone would not necessarily keep him from pursuing Hank Aaron's home run record.

Bonds has been under investigation for nearly two years for possible perjury related to his grand jury testimony in 2003 in which he denied knowingly taking steroids.  Another issue that emerged relates to possible tax evasion for not reporting income from autograph signings and memorabilia sales. Whether Bonds is charged is very much an open question since the U.S. Attorney for the Northern District of California, Kevin Ryan, lost his position.  That change raises doubts about whether new leadership in the office will continue to pursue a case that has already triggered civil contempts and appeals to the Ninth Circuit for three witnesses who have refused to testify: Bonds' former trainer and two San Francisco Chronicle reporters. 

It could be, though, that the Giants know something about the direction of the case.  In July 2006, the team submitted Bonds' medical records to the grand jury, and a team physician and trainer testified.  It is not clear whether the contract provision will pass muster with the players union or the Commissioner's office, so it may come to naught.  A Chronicle story (here) discusses Bonds' new contract. (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2007/01/a_just_in_case_.html

Grand Jury, Investigations, Perjury | Permalink

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