Posted by s3231:
I think there will be a clause preventing Larry from coaching this upcoming season in which if Larry decided to coach another team, that team would have to give the Pistons compensation of some sort.
Non compete clauses have been held to be enforceable if they are reasonable in terms of time and area. The classic case involved a major international corporation where the non compete clause was for life on a worldwide basis. The court held that it was reasonable because of the amount of money involved.
I would believe that the clause, if well written, and I would assume that it would be, would be held to be valid. For example, if the clause said he could not coach in the NBA for the life of the agreement it would appropriately be held valid because of the amount of money involved and because he would have alternatives such as coaching in college, Europe, the WNBA or even high school.
[Edited by - TheSage on 07/18/2005 20:50:02]