Ranga Chivaviro is officially a Kaizer Chiefs player after the Soweto giants announced him alongside five other players. It remains to be seen whether Richards Bay whom he signed a pre-contract with, have a case.
Chivaviro penned a two-year deal with the Soweto giants with an option of a year. However, in March, the Limpopo-born forward signed a pre-contract before Marumo Gallants exercised their option to renew.
Chivaviro had joined Marumo from Venda Football Academy on a one-year deal with an option. After sparkling on the continent, weighing in with all-important goals, the 30-year-old caught the interest of several clubs locally and internationally.
Richards Bay moved swiftly to hand him a pre-contract while Marumo also came later to exercise their option.
PRE-CONTRACT AND OPTION CLAUSE
FARPost caught up with an agent Pontsho Madumo of Cream Sports Management who explained the dynamics of pre-contracts and the option to extend.
Explain the option to extend, how it works and why clubs make extensive use of this type of contractual clause.
In laymen’s language, the option clause gives a club the exclusive possibility to increase the employment relationship with a player whose contract is about to come to an end. This would be for an agreed period stipulated in the initial contract after its expiry. It’s important to note that some previously negotiated conditions should be met.
When is the last date for exercising an option to extend?
It varies from contract to contract, so it all depends on the agreement on the contract. But, generally, it’s usually six months before the end of the contract. However, it depends on what is written in the contract. So, you may find a scenario where a club exercises its option a week before the initial contract expires. This happens when there is no stipulated date under the option clause.
What is the pre-contract?
A pre-contract is an agreement between a club and a player who commits to a move being made once the player’s current deal comes to a close.
Can a club exercise an option even though the player has signed a pre-contract elsewhere?
A player cannot sign a pre-contract before the date of exercising an option by the club has expired. In an instance where there is no date for the option, it stands until the last day of the contract. The club is obliged to inform the player when they exercise the option. This must be done via email or a written letter.
THE RANGA CHIVAVIRO CASE
Marumo had the irrevocable option to renew his contract for a further year. Chivaviro signed his pre-contract in March, three months before the expiry of his initial contract with Marumo Gallants. The Limpopo side then triggered their option which had no time limitation. Thereafter, they sold him to Kaizer Chiefs for an undisclosed fee. Based on this, the pre-contract Chivaviro signed with Richards Bay is invalid.
Pontsho Madumo is the founder of Cream Sports Agency which manages Mamelodi Sundowns’ left-back Terrence Mashego, Sekhukhune United duo of Kgothatso Mariba and Elias Mokwana, Richards Bay captain Katlego Maphathe, newly signed Golden Arrows forward Angelo Van Rooi and Nkosinathi Ononogbu.
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