Modern sport is commonly seen at the elite level as a business. In business it is common to enter into contracts with parties one is dealing with for many reasons. Firstly, each party knows what they are getting from the transaction with their obligations and benefits being specifically detailed in the contract. It also reduces the margin for dispute. Any dispute would be resolved primarily by reference to the contract.
In the bigger sporting leagues, there may be many millions of dollars at stake. Sporting bodies must protect the clubs, their financial backers – the sponsors – and thereby the athletes’ financial interests. In order to achieve their aims, they must create rules that regulate the game or the sport and the way athletes conduct their affairs in terms of marketing themselves. They must also protect the sport’s reputation, hence codes of conduct. However, this creates a matrix of regulations acting upon the athlete’s professional and private life far more restrictively than is the case in the general workforce.
