10 Terms to Know
These important contract terms control value and risk for both you and the team.
Teams usually create the contract. Each contract is different and covers unique terms; there are different contracts for different types of competition across esports, and even teams in the same ecosystem will have their own contract structure based on what they value most.
CHAPTER 2
💵 Base Salary
How much you’re getting paid and when.
You likely get paid every few weeks or every month, but your total salary is usually described in dollars per year.
This does not include bonuses, penalties, or prize money.
The 5 Core Terms
📉 Salary Reduction
One-time or permanent penalty conditions.
Common one-time penalties include those for bad behavior or not fulfilling requirements.
Permanent penalties happen when a team benches you or moves you to a lower-tier roster.
📅 Term Length
How long your contract lasts.
In League of Legends, 3-4 years is limit.
This section may also specify parts of your contract that change during the term, like between the competitive season and the off-season.
🤝 Trade Rights
If, when, and how teams can trade you.
Most importantly, look for rules that define how much say you have in the process.
This is critical if there aren’t official league restrictions. Check how a team can trade you or sell your contract, where they can send you, and how much they can charge.
❌ Termination Rights
How and when your contract can be broken.
Contracts may be broken with or without cause; the latter usually having more rules.
For instance, a team that breaks your contract without cause may only do so during pre-agreed times, must give advance notice, and pay you additional months of salary.
💻 Sponsors, Streaming, and Content
Your responsibilities within these areas.
These terms usually dictate how much and what you need to do, and are often vague to allow teams room for flexibility if say, they sign on additional sponsors during your contract term.
The Other 5 Important Ones
📸 Intellectual Property Rights
What teams can do with your brand.
Teams need rights to your picture, name, and voice for media promotions and merchandise. They also transfer these rights to sponsors, tournament organizers, and publishers to use.
These terms say what likenesses are signed over, how they can be used, and for how long — especially after your contract is over.
⭐ Bonuses and Prize Money
Conditions for extras beyond your base salary.
This details how your team grants bonuses, how tournaments send prize money, how that’s distributed, and when you’ll get your share.
For bonuses, you’ll commonly see performance bonuses, which are tied to both team and individual achievements.
Team achievements include playoffs placements, major wins, or your or your teammates winning MVP awards.
Individual bonuses are usually based on high-benchmark achievements, like if you exceeded your contract’s requirements for streaming hours.
🍔 Food, Travel, Housing, and Gear
How and to what extent teams grant these.
It’s helpful to understand the standards for your esports ecosystem, based on competition structure, location, and travel requirements.
Teams deliver these benefits differently, whether they’ve hired chefs to make your meals, or simply give you a meal stipend every few weeks or so.
📝 Independent Sponsorships
If and how you can sign your own sponsors.
Although you obviously can’t have competing sponsors with the team, they might let you sign independent deals in areas they’re not interested in.