The Value Of Contracts

1
The Value Of Contracts

• Tommy D. Witt, CGCS

2
(No Transcript)
3
Today I would like to share some information with
you on 3 main topics

• The value of contracts to employers
• The value of contracts to employees
• The spirit of fairness

4
The club does not do contracts.

• This is generally untrue because other club
  professionals do in fact have more detailed and
  secure employment agreements

5
The term contract and employment agreement can be
used interchangeably.
6
Contracts are about much more than money
Salary and benefits Job description Reporting
structure Severance clause Indemnification
clause Force majeur clause
7
Many times our jobs and our livelihood are in the
hands of employers with virtually no experience
or knowledge involving Golf Course Management .
8
Without a fair employment agreement, we put
ourselves and our families at risk.
9
Paul VoykinI have never needed a contract.A
handshake is good enough for me.
This is great for Paul but how many 75 year old
Superintendents do you know that are still in
the business?
10
Controlling the Uncontrollable

• Superintendents are challenged to deal with a
  variety of factors out of their control and
  their jobs often are in jeopardy because of these
  factors.

11
We are asked to deal with extreme personalities
12
Too often, members and employers place
Superintendents in political situations for
personal initiatives.
13
Superintendents are forced to take the course
conditioning to extreme and potentially unsafe
agronomic levels
14
Superintendents walk a fine line between in
meeting employer expectations and implementing
sound agronomic practices.
15
Superintendents cant control ice damage,
flooding, or temperature extremes but these
uncontrollable forces influence or jobs
16
We are asked to manage the most difficult,
virtually impossible water situations
17
Employers can bring new people into the mix that
totally change the original employment agreement
18
Superintendents are judged everyday on the
condition of the courses they manage. There is
no room for error.
19
Without a fair and established employment
agreement, Superintendents and employers alike
will
Win some
Lose some
20
In most cases,the golf course is the key asset.
21
Joe TorreHall of Fame Manager12 consecutive
years of going to the playoffsForced outNo
one can depend on fairness
22
Jimmy and JerryFrom Super Bowl Champions to
Enemies
23
The workplace is a different world today
24
It would be great if everyone was equally
committed to positive relationships but that is
not the case
25
Not everyone has a boss like this
Not every employer Has integrity Cares about
people Is concerned about fairness Knows the
golf course operation
26
Not all employment marriages are made to last but
they dont have to end as enemies and in cruelty.

Mike Davis University of Indiana Basketball
Coach
27
Informal Survey

• 80 of General Managers have a contract
• 70 of Golf Professionals have a contract
• 25 of Superintendents have a contract

Something is wrong with this picture
28
A well written contracts should

• Be fair to both parties
• Be a win-win for both parties
• Be as valuable to the employer as the employee

29
An employment agreement should protect both the
employer and the employee.This does not mean
there is guaranteed security for anyone but it
should offer certain legal protections.
30
Contracts are not intended to give any employee
100 security against negligent performance
31
A well written contract should benefit the
employer

• Retain the services of a proven performer on a
  long term basis
• Have a sufficient notice time period in the event
  the employee leaves
• Allows for the termination of an inferior
  performance or misconduct by the employee

32
Contracts Protect the EmployerTommy Tuberville
Auburn CoachIt would have taken a 6 million
buyout for Texas AM to hire him
78-32 record in the past 9 years 5th best record
in the NCAA Auburn is protected against losing a
proven performer
33
The contract protected the employee when
Tubberville left his position a mere year
later.Fairly written work agreements do work
both ways
34
Contracts Benefit the EmployerTexas AM Coach
Franchione
The university wanted to hire a different
coach. There were allegations he violated the
terms of his contract when he was selling
information to alumni via his web page. The
university then had the legal option of replacing
him without paying him the 8 million dollars
remaining on his contract.
35
Contracts protect the employer against
inappropriate employee behavior
36
Both of these coaches were replaced after public
behavior issues that violated their employment
agreements.
Iowa State
Oklahoma State
37
Contracts should include

• Salary and benefits
• Reporting structure
• Severance clause
• Indemnification clause
• The club will agree to represent the
• employee in the event of legal action
• against the club
• Force majeur clause
• The employee cannot be held
• responsible for acts of nature

38
Too often the original VERBAL agreements of
employment are forgotten or changed after a year
or two when a Chairman rotates off the board or
when a new GM is hired.
39
The vast majority of club members either have or
work in an arena that provides contracts for
their employees

• Why then should it be different in the employment
  of the Golf Course Superintendent?

40
Current trends in contracts

• Signing bonuses
• Performance bonuses
• Long term agreements (3 to 5 years)
• Rollover Contracts
• Fair severance packages
• Minimum of 1 month for every year employed
• Retirement exit strategies
• Pay the Superintendent for 5 years following his
  retirement to act as a consultant for the facility

41
The necessity of fair contracts

• Club volunteers (chairmen) rotate on a frequent
  basis resulting in a new boss on too frequent
  of a basis
• General Managers change jobs on a frequent basis
• The emotions of a single member or golfer can set
  the wheels in motion for the termination of a
  Superintendent
• The financial situation of a facility can change
• Ownership of the facility can change
• Weather influences can cause damage

Each of these is out of the control
of the Superintendent
42
As an employer, if you have an outstanding
performer on staff, why would you risk letting
him ever leave?
43
Employers and EmployeesThere is no need to
gamble on good people and professional careers
44
If you are seeking a contract with your employer

• Promote the benefits to them
• Let them know you want to secure a long term
  relationship with them
• Help them understand this is a normal document
  and trend in your profession
• Stress fairness

45
Good luck and God Bless.