The European Court of Justice (“the Court”) issued a ruling on March 20, 2025, that has significant implications for the protection of minor athletes. This ruling concerns how sports organizations and managers should establish contracts with young athletes in the future. The case revolves around the extent to which European consumer law applies to long-term management contracts with minor athletes. The judgment highlights the balance between talent development and protection of minor athletes.
Facts
The case concerns a long-term contract between a sports management company and young basketball player C. In 2009, C’s parents signed an agreement on behalf of their then 17-year-old son with the company. The contract ran for 15 years and provided C with support for his athletic and professional development, including training, medical care, and legal assistance. In return, C had to pay 10% of his net income, with a minimum of 1,500 euros per month.
The investment paid off: C became a well-paid professional. When C refused to pay part of his income to the management company, a legal conflict arose. In 2020, the management company demanded over 1.6 million euros, corresponding to 10% of C’s income. The Latvian court ruled that the contract violated consumer legislation because the commission clause was unfair. The management company appealed, arguing that consumer legislation does not apply to contracts with minor athletes. This led to preliminary questions to the Court about the scope of consumer rights in sports.
Relevant Regulations
EU consumer protection, particularly the Unfair Terms Directive (Directive 93/13/EEC), protects consumers against unfair contract terms from professional parties. This because consumers are often in a weaker negotiating position and have less information. The situation becomes more complex when a young athlete develops into a professional during the contract term. Does consumer protection still apply to a contract that was concluded when the athlete was not yet a professional? And what if the contract is mainly executed during their professional career?
Court’s Considerations
The Court determines that contracts with minor athletes fall under the Unfair Terms Directive. Those who enter into contracts as minors are protected as consumers, even if they later become professionals. The status at the time of concluding the contract is decisive. Contracts must be clear about financial consequences and the relationship between compensation and services provided. This protects young athletes against unclear or unfair provisions.
National courts must always be able to assess whether a contractual term is unfair, even regarding clear price or compensation agreements. The court looks at the balance between rights and obligations, market practices, and risks for the service provider. If a term is considered unfair, it is deemed to have never existed, and the athlete doesn’t have to pay, even for costs incurred. The Court emphasizes the importance of extra protection for minors: age, parental representation, and maturity level are considered when assessing whether a term is unfair for the athlete.
Conclusion
With this ruling, the Court strengthens the protection of young sports talents. EU consumer protection thus also applies to management contracts with minor athletes who later become professionals. Commission clauses and long-term contracts remain possible, as long as they are fair, transparent, and protective of minors. This creates a better balance between talent development and protection of minor athletes. Bovenkant formulier
