Incentive laden contracts are often common for professional athletes.
Scoring a certain number of goals, tries and other scoring criteria can offer mixed outcomes. Much the same could be said about appearance clauses or financial incentives tied to how well an entire club performs.
Veteran players are often the ones to have contracts that require certain performance measures to be surpassed. For some of them, it is the only way a club will take a chance on a player near the end of his or her window, especially when games have been missed due to the accumulation of injuries that can make a player coming back from knee or shoulder surgery a big risk.
Coaches sometimes have similar performance clauses in their contracts and Mitchell Pearce of the Newcastle Knights is one of those coaches.
Pearce is in the last year of his contract to coach the Knights. The club’s Chief Executive Phil Gardner, speaking to Market Watch, indicated that the Knights want to keep Pearce around – Free Bets
“We’re in negotiation with Nathan and his management and we expect to have his contract renewed soon,” Gardner told Market Watch. “We’re hoping we’ll have it done by the end of March.”
The Knights will be three games into their fixture for the 2018 Telstra NRL Premiership competition, so it would seem apparent that some tinkering with incentives for Pearce could be involved, as the club will see how the club responds in games with the Sea Eagles, Raiders and Roosters.
Gardner admitted as much. “Coming off three wooden spoons it needs to be a performance-based contract, so there’s a fair bit of negotiation with how that sits … and what the performance criteria is.”
Pearce will receive incentives based on ladder position and finals matches, so in as much as it is in his power to affect, the motivation factor of money seems to be there.
This deal with Pearce is something of the departure from the norm, that of a salary set at the beginning of a contract.
“It certainly is a new era for this,” Gardner said. “The better we perform, the more people are coming through the gates and the more revenue will be there, the players and coaches should benefit from that and the converse needs to be true.”