Coaching Contract - Termination of Agreements.

Some time ago on the blog, I wrote about the unilateral termination of contracts between football clubs and professional players. In today's article, I will focus on similar issues, but this time regarding contracts between football clubs and coaches. In the current season of the 2015/2016 Ekstraklasa, 8 coaches were released at the time of writing this article in the top tier of the league, which is quite significant considering there are 16 teams in the Ekstraklasa. Are there any regulations protecting coaches from dismissal?

With the introduction of the widely discussed change in the PZPN regulations over a year ago, which stipulates that a coach can represent only one club in the same league round, a resolution was adopted regarding the Rules Regulating the Relationship between a Sports Club and a Football Coach ¹⁾resolution no. XII/189 of December 12, 2014..

According to the above-mentioned provisions, contracts are divided into professional and amateur categories. Ekstraklasa clubs as well as clubs from the first and second leagues are obliged to enter into a professional contract with the head coach of the team and the head coach of the team participating in the Central Junior League, which can take the form of a civil law agreement or an employment contract. While the resolution fairly succinctly covers the issues related to the obligations arising from the coaching contract, the matters concerning its termination have been subject to detailed regulation.

Kontrakt trenerski ²⁾in the following part, I will refer to the regulations regarding professional coaching contracts; provisions regarding amateur contracts are regulated in Chapter IV of the resolution is concluded for a period of at least 1 football season, and if the contract is signed during the season, it is the obligation of the parties to conclude the contract at least until the end of that season.

In contrast to player contracts, no upper limit on the length of the coaching contract was decided, so theoretically it can be concluded for any period of time, for example, 10 years. The question arises whether a coaching contract in the form of a civil law agreement can be concluded for an indefinite period ³⁾because there is no doubt that a coaching contract in the form of an employment contract can be concluded for an indefinite period? The resolution does not expressly prohibit this, but in such a situation, an interpretational problem would arise.

The resolution states that if the coach does not agree to the termination of the contract by mutual agreement of the parties, and at the same time there are no grounds for terminating the contract in another way, the club may release the coach from the obligation to provide coaching services while retaining the right to remuneration for the remaining period of the contract. In the case of a contract concluded for an indefinite period, the expiration date of the contract is not specified, and thus theoretically the club's obligation would not be limited in time. However, the problem seems to be purely theoretical considering the practice of concluding coaching contracts.

A coaching contract (in the form of a civil law agreement) can be terminated:

a) at any time based on the unanimous declaration of will of the parties expressed - under penalty of invalidity - in writing,

b) by the club submitting a declaration of contract termination with the option of a one-time compensation payment, if the parties envisaged such a possibility when signing the contract,

c) at the request of the coach - upon prior submission by the club of a declaration of release of the football coach from the obligation to provide coaching services, while retaining the right to remuneration (Art. 17 para. 1 - 3),

d) by the coach submitting a declaration of contract termination with the option of payment of compensation, if the parties envisaged such a possibility when signing the contract,

e) by the club in an immediate manner - in the event of gross violation by the football coach of legal provisions or contractual obligations,

f) by the football coach in an immediate manner - in the event of gross violation by the club of legal provisions or contractual obligations, especially in case of delay by the club in paying the remuneration specified in the contract for a period of at least 3 months.

Each contract can therefore be terminated by one of the parties in the event of a violation of legal provisions or contractual obligations by the other party. Termination of the contract by one of the parties through the payment of a one-time compensation, commonly referred to as a "severance package," is possible only if the parties to the contract have envisaged such an option in the agreement. This refers to a special clause, akin to a contractual penalty clause, under which a party undertakes to pay a specified amount if the contract is unilaterally terminated. Such a provision somewhat resembles a release clause used in football contracts.

A coaching contract, like almost any civil law agreement, can be terminated by mutual agreement of the parties. Therefore, the parties can end their cooperation in any case, freely determining the terms of such an agreement. The agreement can be paid or unpaid. However, if the contract does not provide for the possibility of unilateral termination of the agreement with compensation, neither party has committed any breaches of the contract or legal provisions, and the parties have not reached an agreement on an amicable termination of the contract, the club still has the option to hire a new coach, provided the current coach is released from the obligation to provide coaching services. In such a situation, the coach released from the obligation to provide services retains the right to remuneration until the expiration of the contract.

However, the coach cannot take up employment with another club until submitting a request for termination of the contract. In this case, the contract is terminated on the date of receipt of the application by the club's secretariat, and the coach loses the right to receive remuneration.

It is worth emphasizing that both agreements and statements forming the basis for the unilateral termination of the contract ⁴⁾with the exception of the aforementioned request from the coach sent to the club's secretariat are effective only upon their delivery to the governing body of the competition. In cases where the form of contract termination requires additional actions beyond the submission of the statement itself, proof of the action taken must be included. For example, if the contract has been terminated by mutual agreement and it has been agreed that the coach is entitled to additional compensation as a result of the termination, it is necessary for the effective termination of the contract to send to the governing body of the competition a statement signed by the coach confirming the club's settlement of all dues, or if the payment deadlines are not yet due (payment deadline has not yet arrived), an agreement specifying the terms of contract termination (enclosed in an envelope).

As can be seen, the provisions of the resolution allow for the inclusion of clauses in the contract to protect the coach at least financially. Any financial disputes arising from professional coaching contracts (entered into in the form of a civil law agreement) must, under penalty of invalidity, include a provision for arbitration specifying the Polish Football Arbitration Court of the Polish Football Association (PZPN). The Polish Football Arbitration Court is also competent in cases where a party seeks a declaration of the ineffectiveness of the unilateral termination of the contract.

Photo by Giorgio Frasca/Bajo la mirada del DT CC BY-NC-ND 2.0

1. Resolution No. XII/189 of December 12, 2014.
2. In the following part, I will refer to the regulations regarding professional coaching contracts; provisions concerning amateur contracts have been regulated in Chapter IV of the resolution.
3. because there is no doubt that a coaching contract in the form of an employment agreement can be concluded for an indefinite period
4. except for the above-described request from the coach directed to the club's secretariat