There have been times when proper rights do not get provided which results in an outcry among the employees of the industry.
The history of formation contracts can be dated back from 1960s and early 1970s when Major League Baseball Player Association (MLBPA) entered into the scenario. Introduction of players association also enabled sports agent to enter into the games and then with the passage of time, in late 1990s the trend of sports agencies or more renowned as sports agency firms started and afterwards many players joined several sports agencies and today all big names in sports have some kind of affiliation or connection with sports agencies. Players like Roger Federer, Tiger Woods, Maria Sharapova have affiliation with Octagon. NFL, NBA, NHL, MLB have affiliations with IMG. there are many other stars having their own agents who negotiate with different organizations and producers on different issues (Ferrand, Torrigiani, & Povill, 2007).
Having a contract is one of the legal way to form an agreement or relationship between the organization and the person. Therefore celebrities as well as players need to have form agreements with the organization. Contact is important because it defines the rights and obligation of both the parties involved. And in this way one can avoid different conflicts and negotiate with each other in more effective and efficient manner.
With the introduction of third parties like agents and sport agency firms along with the popularity of different sports and celebrities because of extensive coverage of media, at the same time more investors and organizations are ready to make investment in sports and media, the bargaining power of players, athletes and celebrities have increased a lot against organizations and sponsors. Therefore now players, celebrities and athletes demand a lot more than before. Previously associations used to pay after making the players and celebrities