Sports Marketing: Right Of First Refusal
If the identification of the talent has been well thought through, an extension of the term becomes a necessity. It is important to have a ROFR (right of first refusal) to extend at the best possible terms. Best possible terms are what the market is willing to pay or lesser but never higher. This is where the ROFR becomes important. The ROFR can be at a predetermined price or at what a third party is willing to pay for the talent at the end of a term. There can be various creative ways of Writing the ROFR – it doesn’t need to be about money exclusively. Also, the ROFR cannot extend beyond the tenure of the contract. The ROFR expires at the end of the term.
