Sports Law: Stephen Curry, the NCAA and the week that was
By Blake Yagman
3. Carmelo and no-trade clauses
After months of speculation, Carmelo Anthony was finally traded this weekend to the Oklahoma City Thunder in exchange for Enes Kanter, Doug McDermott and a second-round draft pick.
The trade of Carmelo Anthony was a difficult task for his former team, the New York Knicks. This is because of the existence of a no-trade clause in his contract.
A no-trade clause is a contract provision that is unique to sports. It allows the player to refuse to be traded from his current team onto any other team. In the law of contracts, this would be similar to a non-assignment provision because the act of ‘trading’ a player is essentially the same as assigning his contract to a different team.
Of course, in a case like Carmelo, where the player wants to be traded, the player who’s contract that is being assigned may choose to waive it. Alternatively, a player can choose to add an addendum to his contract which stipulates to different situations where the athlete may be willing to be traded. Generally speaking, athletes choose to provide lists based on preferred geography or — as in Carmelo’s case– to a team with a higher likelihood of winning a championship. These clauses are usually only reserved for star players in each sport.
Interestingly, Carmelo was almost traded with Paul George to Cleveland on draft night and a Rockets-Knicks trade for Carmelo fell through recently.