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Recent litigation involving Wayne Rooney shows the problems of entering
into binding contracts with minors, and also the tactics that might best
be employed by agents looking to sign up minors.
The case involved a two-year agency agreement signed by Rooney when
he was 15. Clearly, the starting point is that any contract with a minor is
voidable. There are, however, two exceptions. Firstly, there are contracts
for ‘necessaries’ (eg basics such as food and clothing). Secondly, there
is an exception for those contracts that are analogous to a contract for
apprenticeship, service or other benefit. If the contract is beneficial to
the minor then it can be binding. In the litigation involving Rooney, the
agent argued that the contract came within this exception, since it
related to Rooney’s employment as a footballer (providing him with
representation, management and advice whilst he was learning his trade
with Everton).
The agent’s case was summarily dismissed. The key point was that
Rooney was already signed with Everton at the time he entered into
the agency agreement. Thus, it was Everton that paid his wages
and provided him with training (ie he did not need an agent to help him
make a living). Moreover, the contract did not require the agent to
pursue commercial deals (eg the sale of image rights). Accordingly, the
contract did not come within the exception and it followed that it was
voidable.
The issues raised in the Rooney case are important for those involved in
the talent sector. To an extent, the decision encourages the poaching of
talent who sign agreements under the age of 18. Given that concern, the
best approach for those contracting with minors must be to ensure that
the contract is genuinely binding on the minor (and so not voidable). This
might be done by negotiating and securing contracts (eg with football
clubs or for related commercial revenue streams) shortly after entering
into the contract with the minor. This would ensure the contract assists
the minor to earn a living. At the same time, an element of training (eg
media or financial training) that assists the talent in his or her career
could also be enough. Unless those precautions are taken, agents who
sign with minors could well find that the time and money they invest in
their young stars is wasted, when those clients decide to go elsewhere
(perhaps as a result of poaching activities). See commentary by Kendall
Freeman on Proform v Proactive [2006] EWHC 2812 (Ch) in [2007] The
In-House Lawyer May p44. © Practical Lawyer
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