Introduction
In the world of sports, player contracts are common, especially among (semi-)professional athletes. Yet many sports clubs do not fully realize that such a contract may qualify as an employment contract in a legal sense. This distinction is of great significance: an employment contract entails rights and obligations under labor law, such as continued pay during sick leave, protection against dismissal, and the right to compensation. A recent case against the Lions handball club illustrates just how significant the consequences can be.
The case: player vs. Lions handball club
At the Lions handball club in Sittard-Geleen, a player competed for nearly ten years under a series of temporary player contracts. He received €1,850 net per month and was provided with a car by the club. For a long time, everything seemed fine, until the player was injured. After a few months, the club stopped paying his salary.
The player did not take this lying down and took the matter to court. His position was that, despite being labeled a “player agreement,” it was in fact an employment contract, which entitled him to continued pay during sick leave and severance pay upon termination of employment.
The judge: There is an employment contract
The judge ruled in favor of the player and classified the player’s contract as an employment contract. The following factors were considered decisive in this regard:
- The player contributed personally by participating in practices and games.
- The club provided leadership and instructions and set the schedule.
- The player was unable to have himself replaced by someone else.
- A fixed fee was paid on a regular basis.
- The player did not act as an independent contractor.
These circumstances are consistent with the legal definition of an employment contract: work, wages, and authority. The formal designation of “player contract” was not decisive for the court.
Financial Consequences: Compensation and Bankruptcy
The club was required to pay the player a transition allowance of over €6,000. In addition, fair compensation of nearly €40,000 was awarded due to the club’s grossly negligent conduct, specifically for ceasing to pay wages during sick leave.
The ruling had far-reaching consequences. The Lions, who were already under financial pressure, were forced to file for bankruptcy following the ruling. This case illustrates just how great the risk is when sports clubs fail to thoroughly examine the legal nature of their partnerships with athletes.
What does this mean for sports clubs and athletes?
Sports organizations must take a critical look at their agreements with athletes. If the actual situation meets the criteria of an employment contract, the player is entitled to protection under labor law—regardless of what the agreement is called. Among other things, this means:
- Mandatory continued payment of wages in the event of illness.
- Right to a transition payment upon termination.
- Protection Against Dismissal and Notice Periods.
- Entitlement to insurance and employment benefits.
For athletes, this provides legal clarity and protection. For sports clubs, it means they face risks if they do not comply with the legal framework. An incorrect classification can have significant financial consequences.
Conclusion
The case involving the Lions handball club shows that a player contract can quickly take on the characteristics of an employment contract. The legal consequences of this are far-reaching—and can even lead to bankruptcy, as in this case. It is therefore essential for both sports clubs and athletes to clearly document the terms of their agreements and have them reviewed by legal counsel. A well-drafted contract prevents misunderstandings and protects both parties from unexpected risks.
This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and policies—with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn’s page.
Arbeidsadvocaat.nl is happy to assist you if you have any questions about player contracts. Please feel free to contact us .
April 2025