GTP Minor Engagement Contracts
GTP Minor Engagement 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 information contained on this page is not to supplement or serve as formal documentation for regulations concerning the Association’s Operating Agreement and the actual Minor Engagement Contracts. The Operating Agreement which you will review during your application for Certification will serve as the governing authority, which you must agree to comply with and fully understand in order to proceed. The following is to help you understand Minor Engagement Contracts and how the Association will govern their enforcement. If you have any questions, please do not hesitate to reach out to GTP at any time.
Minor Engagement Contracts have been created for professional Athletes under 18 years of age and Certified Coaches, Trainers and Academies ONLY. Deferred compensation through Minor Engagement Contracts is secured by 15% of a Certified Minor Athletes future Tournament Winnings (prior to taxes and withholdings) via the Minor Athlete’s Guardian for services rendered ONLY by a Provider. No Coach, Trainer or Academy is entitled to more compensation than the services he or she provides. In order to execute and utilize Minor Engagement Contracts, you must be Certified as Member within GTP’s Association. In order to be Certified as a Member, you must first:
CERTIFICATION AND APPLICATION:
- Review, have your Guardian review and understand the Operating Agreement governing the Association of Ethical Tennis Coaches and Players.
- You must be under eighteen (18) years of age to be Certified as a Minor Athlete and have a Guardian who is willing to serve as the Guarantor.
- Agree and have your Guardian agree to submit and comply with all business standards set in the Operating Agreement by the Association.
- Fully complete an Application and submit to the Association for approval. Please be advised that with submission of an Application, you will granting GTP’s Association the right to conduct a Level 1 background check.
- Await the Association’s review. (Between 3-5 business days)
- Upon GTP’s Association review and approval, subscribe to the Association to complete Certification.
- Fully Certified Members may begin to execute Minor Engagement Contracts with one another.
- All Minor Engagement Contracts may be converted to a contracting parties native language for a fee, however the English version will always prevail.
- Minor Engagement Contracts are universally standard. The only portions of the contract that alter is the negotiated amounts of deferred compensation between a Certified Coach, Trainer or Academy and a Minor Athlete.
- Maximum deferred compensation amounts per hour/day/week/month must be strictly adhered to. No Coach , Trainer, Academy or Athlete may negotiate and or agree to deferred compensation amounts of more than $750 for a one-Day contract, $3,500 for a one-week contract, or $13,000 per Month.
- Maximum contract length is three (3) months but extensions may be signed. No more than two (2) extensions per Contract will be approved.
- Maximum deferred compensation a Minor Athlete may accrue under a Coaches Collective is $100,000 (USD) (including accrued interest).
- A Minor Engagement Contract is not protected under the Association until the Association approves each Contract and ensures it complies to all standards.
- Once acknowledged, accepted and approved by the Association, Contracting Members may get to work.
- No Certified Minor Athlete may have active Engagement Contracts with more than three (3) Certified Coaches at any one time. No Certified Coach may have active Minor Engagement Contracts with more than ten (10) Certified Minor Athletes at any one time
COACHES COLLECTIVE AND DEFERRED COMPENSATION:
- All deferred compensation accrued by a Minor Athlete is added to their Coaches Collective (or total amount of deferred compensation owed to a specific Coach, 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.
- Held deferred compensation (Collective) accrues a 4% interest rate per year until paid in full. (No prepayment penalties)
- A Minor Athlete’s Guardian is required at the end of each month, to make payments to GTP’s Association on the equivalent of 15% of the Minor Athlete’s tournament winnings (prior to taxes and withholdings) to pay off the Coaches Collective they have accrued. For example, in the Tennis Association, if a Minor Athlete played in one Futures Tournament and earned $100, that Minor Athlete’s Guardian is required to pay the GTP’s Tennis Association 15% or $15 towards any outstanding Collective.
- 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 a Minor Athlete’s Guardian, 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.
- In the event a Minor Athlete is unable to repay their Collective by their retirement (Not having played 8 ATP/WTA/ITF/ITF Junior sanctioned tournaments in 2 consecutive calendar years), a Minor Athlete’s Guardian, 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:
- This means, for Repayment Category A, if a Certified Minor Athlete had $40,000 outstanding Collective and had a two (2) year period of not having played 8 ATP/ITF/WTA tournaments, the Minor Athlete would be considered retired and Minor Athlete’s Guardian 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 GTP. If the Certified Minor Athlete and Guardian 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.
EXCLUSIVITY, DEFAULT, BREACHES AND TERMINATION:
- No Minor Engagement Contract has any form of exclusivity. Since a Coach, Trainer or Academy is guaranteed compensation for his or her services at fair market value, exclusivity is no longer required.
- A Minor Athlete may terminate a Contract without fear of tarnishing their reputation at any time with a Member. Upon Contract termination, a prorated amount will be added to a Collective for total service performed.
- In the event a files a breach or default, Global Tennis Professionals will serve as mediator to determine what, if any, Collective may be due.
- Fair market value for everyone involved!