Troubles and Triumps: A Chronicle of a Dubious Business Agreement
In the year 1999, sports agency No Limit Sports negotiated a business contract for Ricky Williams, the reigning Heisman Trophy winner, with the New Orleans Saints. The contract, a seven-year, $68 million deal, was highly incentive-based, promising Williams heftier bonuses for breaking rushing thresholds that were practically unachievable.
However, the contract was widely judged to be disastrous for Williams and an embarrassment to No Limit Sports. The contract took a page from the contract of Terrell Davis, with sections of Davis's contract appearing to have been cut and pasted into Williams's contract in a sometimes nonsensical manner. Some of the incentives in the contract seemed highly unlikely to be achieved, such as earning Super Bowl MVP or catching 12 touchdowns in a season.
The contract contained 26 incentives, each worth $50,000, for Williams to meet. Williams would have had to match three out of four of Davis's recent milestones to earn up to $39 million over his final three seasons. Only a fraction of the $68 million contract was achievable, even for the greatest running backs in recent memory.
The Saints traded Williams to the Miami Dolphins in 2002, and Williams left No Limit Sports and signed with Leigh Steinberg in 2000. The contract problems contributed to the failure of No Limit's sports business, with many of the agency's clients defecting due to the disastrous negotiation on behalf of Williams.
The contract issues led to the decline and eventual bankruptcy of No Limit's record business. The agency's mismanagement of Williams's contract became a case study in sports business, with ESPN calling Williams's contract the worst one for a player in NFL history. Master P pulled the plug on his sports business after the client defections, marking the end of a turbulent era.
Ricky Williams, despite the contract debacle, had a successful career in the NFL, earning about $14 million of his $68 million contract with the Saints. The story serves as a reminder of the importance of fair and feasible contracts in the world of sports.
