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Current Video: Off the Beaten Track: Contracts

Rick Horrow discusses some interesting ways teams work contracts. Find out how Larry Bird changed the way NBA teams do business.

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Full Transcript (Automatically generated. May not be 100% accurate)

" This is the sports professor Rick Karl with all off the beaten track. Quirky sports contracts. Well NFL training camps are opening up in the spotlight. Is on the picks in the spotlight is also on lawyers and negotiators. To take a look at collective bargaining agreement. In some in the working clauses each of the four big sports. Forest football is concerned you have the franchise tag for players where it's been negotiating impasse has reached. A team can guess if franchise guy if he's not in the middle of the long term contract and sign him based on the highest average of the top five players. The Ralph saw it in the Baltimore Ravens six years -- seventy million dollars and Julius Peppers one year deal seventy familiar with the Carolina Panthers. Then there's baseball number two and baseball's binding arbitration. Is there quirk. If you have a long term deal that you've had from three to six years of service. -- go to arbitration the NHL -- a system like that but unlike baseball that's not by being. This is and it's a very important negotiating tactic. Because everybody on the agent players and -- side knows that with the arbitrator says. Is final. Very important part of -- Knicks the NBA and the Larry Bird exception. Created in a very clever way to give incentive for superstar to stay at home. The first case Larry Bird a smaller deal with the counting against the cap. And a bigger deal for the player to get an incentive to stay at home just like Larry Bird did with the Boston Celtics. Finally the NHL here's one the overall cap for a superstar player. Very novel idea where a player's salary cannot count for more than 20% of the total team payroll. The closest is Alex Ovechkin 70% of the capital. Payroll the bottom line is even a one player superstar he can't. Dominate the payroll so as the NFL camps opened the lawyers come center stage. Quirky sports contracts. Hybrid --"

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