GTP Agent Initiated Contracts
Whether you are a Coach, Athlete, Guardian, Trainer, Agent, Academy or Minor Athlete, we thank you for taking the interest in protecting your value. By becoming a GTP Certified Member of the Association, you will be playing a role in bringing uniformity and standard ethical practices to our tennis community.
The following is an overview of Agent Initiated Contracts and how they work. This is not to supplement or serve as formal documentation for regulations concerning the Association’s Operating Agreement and any actual Agent Initiated Contracts. The Operating Agreement which, you as an Agent must review during your application for Certification, which you must agree to comply with, and fully understand in order to proceed. The following is merely to help you understand Agent Initiated Contracts and how your Association will govern their enforcement. If you have any questions, please do not hesitate to reach out to GTP at any time
Agent Initiated Contracts have been created to allow Certified Agents an opportunity to contribute to the GTP movement. All aforementioned Contracts with the exception of Amateur Contracts may be initiated by a Certified Agent by and between two (2) Certified Members. All provisions of each Contract remain the same, the only change is that the Agent is responsible for negotiating the term, upfront and deferred compensation and services to be received, including any extensions.
CERTIFICATION AND APPLICATION:
1) Review, and have your counsel of choice review the Operating Agreement governing the Association of Ethical Tennis Coaches and Players.
2) Fully understand the rules and regulations governing your the Association’s Operating Agreement and agree to submit and comply with standards set in the Operating Agreement by the Association.
3) Fully complete an Application for a Certified Athlete and ensure the parties you are contracting are Certified as well. Please be advised that you will be allowing GTP’s Association to conduct a Level 1 background check.
4) Submit an Application Fee, as well as an Annual Renewal Membership Fee.
5) Upon GTP’s Association review of your Application, and Certification as an Agent, you may then Initiate a Certified Contract between a Provider and a Client.
6) A Certified Agent may initiate any Contracts with the exception of the Amateur Contracts.
1) All Agent Initiated Contracts can be converted to a either contracting parties native language for a fee, however the English version will prevail if any discrepancies arise.
2) Agent Initiated Contracts are universally standard within each Association. The only portions of the contract that alter is the negotiated amounts of deferred compensation between a Certified Coach, Trainer or Academy and an Athlete.
3) Maximum deferred compensation amounts per hour/day/week/month must be strictly adhered to. No Coach , Trainer, Academy and Athlete may negotiate and or agree to more than $750 for a one-Day contract, $3,500 for a one-week contract, or $13,000 per Month.
4) Maximum contract length is three (3) months but extensions may be signed. No more than two (2) extensions per Contract will be acknowledged. An Agent is responsible for alerting the Association to any changes of an executed Certified Contract.
5) Maximum deferred compensation an Athlete may accrue under a Coaches Collective is $100,000 (USD) (including accrued interest).
6) An Agent Initiated Contract is not protected under the Association until the respective Association approves each Contract and ensures it complies to all standards.
7) Once acknowledged, accepted and approved by the Association, Contracting Members may get to work. It is the responsibility of the Agent to alert the contracting parties to begin work.
8) No Certified Athlete may have active Engagement Contracts with more than three (3) Certified Coaches at any one time. No Certified Coach may have active Engagement Contracts with more than ten (10) Certified Athletes at any one time.
COACHES COLLECTIVE AND DEFERRED COMPENSATION:
1) All deferred compensation accrued by an Athlete with Agent Initiated Contracts is added to their Coaches Collective (or total amount of deferred compensation owed to Coaches, Trainers or Academies for services provided). GTP’s Association will hold all deferred compensation on behalf of the Certified Coaches, Trainers or Academies to collect from the Certified Athlete.
2) Held deferred compensation (Collective) accrues a 4% interest rate per year until paid in full.
3) An Athlete is required at the end of each month, to make payments to GTP’s Association on 15% of earnings (Tournament Winnings prior to taxes and withholdings) to pay off the Coaches Collective they have accumulated. For example, in the Tennis Association, if an Athlete played in one Futures Tournament and earned $100, that Athlete is required to pay the GTP’s Tennis Association 15% or $15 towards any outstanding Collective.
4) GTP will receive 20% of that principal payment and distribute the remaining 80% to the Coach. An Agent will receive 20% of the principal that GTP Collects.
5) Coaches will be paid on a pro-rata basis based on their percentage of contribution to the Coaches Collective. For example, if Coach A is owed $1000 and Coach B is owed $2000, then on a $15 payment by an Athlete, Coach A will receive 1/3 while Coach B will receive 2/3 of disbursements less the Association’s fee per the Association’s Operating Agreement.
5) In the event an Athlete is unable to repay their Collective by their retirement (Each Association defines retirement differently for each sport), an Athlete, two years post their retirement is required to begin a payment plan on remaining deferred compensation (identical to a Certified Guardian with an Amateur Contract) in the following manner:
1) This means, for Repayment Category A, if a Certified Athlete had $40,000 remaining or outstanding Collective, two (2) years post their retirement, the Athlete will commence a payment plan on 3.5% per quarter of $40,000 or $1,400 per quarter ($467.00 per month) or $5,600 per year to be paid directly to the Association. In most Association instances, if the Certified Athlete remains in Good Standing and makes all payments for five (5) years in a timely manner, a balloon payment at the conclusion of 5 years will be required, or at the Association’s discretion, may extend the payment plan.
A Collective may be paid down at any time with no prepayment penalties.
An Agent will receive 20% of the principal that GTP collects for all Agent Initiated Contracts.
EXCLUSIVITY, DEFAULT, BREACHES AND TERMINATION:
1) No Engagement Contract has any form of exclusivity. Since a Coach, Trainer or Academy is guaranteed compensation for his services at fair market value, exclusivity is no longer required.
2) An Athlete may terminate a Contract without fear of tarnishing their reputation at any time with a Coach, Trainer or Academy in case a Coach is not living up to expectations.
3) In the event a Coach, Trainer, Athlete or Academy does not live up to agreed upon terms because of either a breach of contract or default, Global Tennis Professionals will serve as a mediator to determine what if any Collective should be accounted for.
4) Fair market value for everyone involved!