• Mehr als 3 Millionen Wörter Inhalt
  • |
  • info@itmedialaw.com
  • |
  • Tel: 03322 5078053
Kurzberatung
Rechtsanwalt Marian Härtel - ITMediaLaw

No products in the cart.

  • en English
  • de Deutsch
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
Rechtsanwalt Marian Härtel - ITMediaLaw

Contractual penalties for misconduct in esport player contracts

7. November 2022
in Law and Esport
Reading Time: 4 mins read
0 0
A A
0
laptop 3196481 1920
Key Facts
  • Contractual penalties in esports player contracts are possible under certain conditions under German law.
  • Differentiation between employment contracts and marketing contracts is crucial for contractual penalties.
  • Contractual penalties must not be unlawful and must be formulated in a comprehensible manner.
  • The amount of the contractual penalty should be proportionate to the severity of the breach.
  • Requirements under GTC law must be observed, as many contractual penalties are considered GTC.
  • High contractual penalties can result in the clause being invalid.
  • Legal support is recommended in order to formulate appropriate contractual penalties.

Since I had to deal with some major player contracts this week, or rather recreate them for international teams, I would like to end the week by saying a few words on the subject of contractual penalties in player contracts.

Many professional teams in esports now want to include penalties in contracts if, for example, players or coaches don’t show up for practice, don’t participate in events, or even if they don’t perform as they should. But is that even possible under German law? Last year, I published a few posts around the topic, for example around the problem of toxic behavior or also on the problem of match fixing. The latter may possibly also result in criminal consequences.

In this problem area, a distinction must be made above all between employment contracts and marketing contracts, because although it is possible to stipulate certain requirements in marketing contracts or to attach conditions to sponsorship payments, the nature of the matter makes it more difficult to force certain behavior from players who are only tied to the team via marketing contracts. You can read more about this in this article on the differences, and this article on what all goes into a player contract.

Today, and in the context of this article, I would like to talk about employment contracts, because an important point in the question of how much penalty is possible, is always relevant to the earning potential of the player and the nature of the job.

Therefore, let us put it first: Theoretically, contractual penalties are also permitted in employment contracts. They are only subject to GTC control, i.e. they must be comprehensible and not ambiguous, may not be designed in a surprising manner and may not constitute an unreasonable involvement of the employee (on the problem of GTC and prohibited clauses, see this article). There really isn’t much case law on the subject, however, so you’ll have to factor in a bit of contract tactics, business acumen and legal skills. This is because labor judges often do not like to see contractual penalties, since there are certainly “milder” means at hand in the form of admonitions and warnings. Contractual penalties should therefore be used to generalize actual damages that are otherwise difficult to quantify, rather than actually understanding the monetary payment as a disciplinary measure. Details in the wording of the clauses are therefore quite relevant here if they are to hold up before German labor courts.

In principle, it is possible to impose a contractual penalty, especially if the purpose is to punish the unlawful detachment from the employment contract. The same is thus true in professional sports (i.e., professional esports as well) and is directly related to the question of whether transfer fees are actually possible in esports (see this article). A contractual penalty is then structured as a contractual agreement that obligates the contractual partner who has made the promise of penalty to pay a certain sum of money if he culpably, i.e. intentionally or negligently, violates certain contractual obligations. The labor courts usually accept such contractual penalties, as the employer otherwise has no particularly effective way of defending itself against an unlawful repudiation of the contract. Because you can’t force people in Germany to work (or “play” in esports). This is already regulated in the Code of Civil Procedure, because according to Section 888 III of the Code of Civil Procedure, a performance judgment that obligates an employee to work cannot be enforced at all.

Although such clauses are therefore possible in principle, they must stand up to scrutiny under GTC law. This is because promises of contractual penalties are practically always GTCs. This therefore means that these must not be cheated into the player contract somehow and somewhere, must be clear and understandable for an average employee (here, of course, what is usual in other esports is relevant, e.g. participation in majors etc. or certain types of training situations) and they must not constitute an unreasonable disadvantage. The last condition tends to be the most difficult to assess, because here there are already countless judgments of the most diverse kind in the area of regular case law on GTCs. Certainly not possible are clauses of an absolutely general nature, such as provisions imposing a contractual penalty on the employee in the event of “culpable conduct in breach of contract” or a “serious breach of contract”. The violations must be clearly stated and formulated. And the violations must also be neutrally verifiable and not purely at the discretion of the employer, i.e. the team, in the assessment. Clauses in esports player contracts regarding the quality of play, i.e. whether a player is “good” or “bad” or “not improving”, therefore tend to be problematic.

As outlined above, such clauses may also not unreasonably disadvantage the employee, i.e. the player, contrary to the requirements of good faith. The main issue here is the amount of the contractual penalty. The penalty must not be disproportionate to the employer’s interest in the employee’s compliance with the contract. A disproportionately high contractual penalty would result in the entire contractual penalty clause being invalid. Even a severability clause is of no help in such cases. German labor courts often follow the rule of thumb that one month’s salary is sufficient as a penalty in most cases. However, in individual cases and in the case of particularly high employee interest, more would be possible. If, for example, a team is unable to participate in a major tournament or a league final as a result of its conduct, and if there is also a risk that sponsors may drop out or demand compensation, higher penalties are also conceivable.

As you can see, it is advisable that such clauses are drafted by lawyers who have seen market conditions many times and who could defend the clauses in labor court in case of doubt. This is relevant if only because damages caused by employees, even if major sponsors recover money, trigger the jurisdiction of the Labor Court, in which the employer (as the team) must bear its own costs even if it prevails completely.

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: AGBCase lawContractual penaltyDamagesEsportEventsJudgmentsLabor CourtLigamarketingSponsorVerträgeWarningWorkers

Weitere spannende Blogposts

DDOS attacks: Criminal liability, warning and compensation?

DDOS attacks: Criminal liability, warning and compensation?
18. July 2023

In the digital world, distributed denial of service (DDoS) attacks are a common form of cybercrime. They aim to cripple...

Read moreDetails

Cold Contacting on LinkedIn: Current ruling of the OLG Hamm and what it means for you

Cold Contacting on LinkedIn: Current ruling of the OLG Hamm and what it means for you
6. September 2023

In the digital world, we are all constantly connected, and platforms like LinkedIn offer us the opportunity to expand our...

Read moreDetails

The invaluable value of well-drafted contracts: Promoting legal certainty, legal peace and entrepreneurial growth

The invaluable value of well-drafted contracts: Promoting legal certainty, legal peace and entrepreneurial growth
15. May 2023

Introduction: Contracts - the foundation of the business world In my years of practice as a contract specialist, I have...

Read moreDetails

Attention with Black Friday advertising!

Attention with Black Friday advertising!
7. November 2022

This week it starts again. Feels like every retailer has a discount promotion with somehow associated with the color "black"....

Read moreDetails

Is it allowed to reproduce Italian cultural monuments in our own works?

Is it allowed to reproduce Italian cultural monuments in our own works?
26. September 2019

The following article was originally written by Andrea Rizzi from www.insightlegal.it and will be published here in German and in...

Read moreDetails

Broadcasting State Treaty and Esport Streams?

Broadcasting State Treaty and Esport Streams?
20. November 2018

Over the past year, there has been a lot of discussion in the games industry about whether professional YouTubers or...

Read moreDetails

Artificial Intelligence in Software and Game Development: Opportunities, Risks and Legal Challenges

Artificial Intelligence in Software and Game Development: Opportunities, Risks and Legal Challenges
12. May 2023

AI in software and game development: potential and pitfalls The use of artificial intelligence (AI) in software and game development...

Read moreDetails

DSGVO, data protection and data scraping: Case analysis LG Offenburg and Facebook

DSGVO, data protection and data scraping: Case analysis LG Offenburg and Facebook
23. May 2023

Introduction In the era of digital advancement, data scraping is a widespread practice that raises privacy concerns. But what exactly...

Read moreDetails

Federal Patent Court does not delete trademark “Black Friday” completely!

Federal Patent Court does not delete trademark “Black Friday” completely!
7. November 2022

The Federal Patent Court has ruled that the disputed word mark "Black Friday" must be cancelled for some services in...

Read moreDetails
Modding in EULAs und Verträgen – was gilt rechtlich in Deutschland?
Law and computer games

Modding in EULAs und Verträgen – was gilt rechtlich in Deutschland?

8. September 2025

Mods erweitern Videospiele um neue Inhalte, verbessern Grafik oder fügen völlig neue Spielweisen hinzu. Kaum ein großer PC-Titel kommt heute...

Read moreDetails
Schiedsvereinbarungen in EULAs und Entwicklerverträgen

Schiedsvereinbarungen in EULAs und Entwicklerverträgen

7. September 2025
Chain of Title im Game-Development: Rechtekette sauber aufbauen

Chain of Title im Game-Development: Rechtekette sauber aufbauen

6. September 2025
Fail-Fast Klauseln in Medienproduktionen – Was ist das eigentlich?

Fail-Fast Klauseln in Medienproduktionen – Was ist das eigentlich?

5. September 2025
Founder’s Agreement vs. Gesellschaftervertrag: Frühzeitige Weichenstellung für Startups

Founder’s Agreement vs. Gesellschaftervertrag: Frühzeitige Weichenstellung für Startups

12. August 2025

Podcastfolge

Rechtliche Beratung für Startups – Investitionen, die sich lohnen

Rechtliche Beratung für Startups – Investitionen, die sich lohnen

17. November 2024

In dieser Episode des ITmedialaw.com Podcasts dreht sich alles um die Bedeutung rechtlicher Beratung für Startups. Host Marian Härtel spricht...

Read moreDetails
Rechtliche Grundlagen und Praxis von Open Source in der Softwareentwicklung

Rechtliche Grundlagen und Praxis von Open Source in der Softwareentwicklung

19. April 2025
Rechtliche Herausforderungen im Gaming-Universum: Ein Leitfaden für Entwickler, Esportler und Gamer

Was wird 2025 für Startups juristisch bringen? Chancen? Risiken?

24. January 2025
Die Rolle des IT-Rechtsanwalts

Die Rolle des IT-Rechtsanwalts

5. September 2024
Rechtliche Risiken bei langen Entwicklungszeiten und der Stornierung von Crowdfundingspielen

Rechtliche Risiken bei langen Entwicklungszeiten und der Stornierung von Crowdfundingspielen

20. April 2025

Video

Mein transparente Abrechnung

Mein transparente Abrechnung

10. February 2025

In diesem Video rede ich ein wenig über transparente Abrechnung und wie ich kommuniziere, was es kostet, wenn man mit...

Read moreDetails
Faszination zwischen und Recht und Technologie

Faszination zwischen und Recht und Technologie

10. February 2025
Meine zwei größten Herausforderungen sind?

Meine zwei größten Herausforderungen sind?

10. February 2025
Was mich wirklich freut

Was mich wirklich freut

10. February 2025
Was ich an meinem Job liebe!

Was ich an meinem Job liebe!

10. February 2025
  • Privacy policy
  • Imprint
  • Contact
  • About lawyer Marian Härtel
Marian Härtel, Rathenaustr. 58a, 14612 Falkensee, info@itmedialaw.com

Marian Härtel - Rechtsanwalt für IT-Recht, Medienrecht und Startups, mit einem Fokus auf innovative Geschäftsmodelle, Games, KI und Finanzierungsberatung.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
    • Laws
    • Legal terms
    • Contract types
    • Clause types
    • Forms of financing
    • Legal means
    • Authorities
    • Company forms
    • Tax
    • Concepts
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
  • en English
  • de Deutsch
Kostenlose Kurzberatung