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We've all heard of it – the infamous "90-day no compete clause" (which I'll be shortening to the NDNCC for this discussion) – a contractual clause that limits wrestlers who sign (with the WWE specifically) from competing with rival companies (presuming of course that they are televised nationally or are video taped) for upward of 90 days following their release. But how much legal power is behind it truly? Always loud-at-the-mouth Jim Cornette doesn't seem to think very much. When asked about the possibility of seeing Bryan Danielson return to ROH following his recent release from the WWE, JC had this to say about the situation and the WWE's 90-day no compete clause:
A quick look into history and one might infer that the very birth of the NDNCC/NCC came following Lex Luger's infamous "ship jump" back in 1995 when he walked onto the set of Nitro's premiere the day of his contract expiration with the WWE. Just eight days prior had appeared at their SummerSlam PPV, and the story goes that his contract ran out at midnight that Monday, and because of a legal loophole he was able to jump ship without anyone at the WWE even realizing it, despite being in talks to renegotiate his contract with them at the time. That legal loophole was quite obviously sought a solution for after a number of Vince's talents at the time followed suit over the years including Kevin Nash, Scott Hall, Randy Savage, Curt Hennig and Bret Hart among others. Not all of the aforementioned jumped the way Luger did overnight, obviously, but regardless each at some point in time left their former employer in the WWE for "greener pastures" in the WCW on the drop of a dime, and Vince couldn't do a thing but sit back and watch the talents he helped create begin to make more and more money for the competition that was trying to axe him.
Fast forward to the present day and McMahon seems to have found the solution to that loophole that so many of his former talents slipped through back during the Monday Night Wars by requiring a NCC of some type (the amount of time varies depending on the performer from what I understand) be included in any contract given to a WWE on-air performer. He seemingly guaranteed that a Luger-type event would never happen again on his watch, and furthermore protected his neck to an even greater degree by forcibly removing whatever talents he let go of from immediate relevance for upward of 3 months following their release from his company – an act many perceive as industry terrorism, despite it's accolades for being an ingenius business decision. As anyone here can tell, three months in the wrestling world can be a very, very long time, which can effectively write out the impact (no pun intended) of said performer were they to debut in a rival company once that NCC did in fact expire.
All of this, of course, begs a number of questions. While it's not possible for any of us to truly understand the legal ramifications of the NDNCC or NCC's in general (seeing as we don't actually work for the WWE and aren't privy to that much information regarding the structure of their contracts), does it/do they still hold ]some value to the industry as a whole, or is that value specific only to the WWE and it's ability to save face following the release of one of their former talents? Secondarily, if they are industry damaging, how badly does it affect the ability of the industry as a whole or rival companies to utilize former WWE talents whose contracts included a NDNCC/NCC?
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That said, it's Q&A Time!
• What are your thoughts on the 90-day no-compete clause, or no-compete clauses in general? Do you feel they benefit the industry as a whole, or are they more of a fail safe for the WWE to protect it's neck when releasing would-be former talents?
• If you consider them industry damaging, to what extent to you think they prevent talents from jumping ship to maximize their full potential? Is it possible talents can still after waiting out the duration of their contracts and still fulfill at least some of that same impact they might have had they shown up on their own accord?
• Do you think a company will ever challenge the WWE on the validity of the NDNCC or a NCC of any type by having a talent debut prior to it's expiration, and what do you think the legal ramifications of such an act would be?
"I don't understand it. As to whether Bryan will be in Ring of Honor, of course we would love to have him back, and of course/on the same token, since he has just been released, he's obviously under one of their non-compete clauses, which I would love to someone challenge one of those in court one day. It's just another example of 'We're gonna go to the zoo and scoop up a handful of monkey feces, and we're gonna throw it in the face of every wrestling fan,' because we will continue to give you all of this child-like, inane, inconsequential pablum we give you on television every week, but when we accidentally hit the somebody that people want to see, we're gonna screw that up as quickly as possible. It's ridiculous. I would love to see Bryan Danielson back in Ring of Honor."
A quick look into history and one might infer that the very birth of the NDNCC/NCC came following Lex Luger's infamous "ship jump" back in 1995 when he walked onto the set of Nitro's premiere the day of his contract expiration with the WWE. Just eight days prior had appeared at their SummerSlam PPV, and the story goes that his contract ran out at midnight that Monday, and because of a legal loophole he was able to jump ship without anyone at the WWE even realizing it, despite being in talks to renegotiate his contract with them at the time. That legal loophole was quite obviously sought a solution for after a number of Vince's talents at the time followed suit over the years including Kevin Nash, Scott Hall, Randy Savage, Curt Hennig and Bret Hart among others. Not all of the aforementioned jumped the way Luger did overnight, obviously, but regardless each at some point in time left their former employer in the WWE for "greener pastures" in the WCW on the drop of a dime, and Vince couldn't do a thing but sit back and watch the talents he helped create begin to make more and more money for the competition that was trying to axe him.
Fast forward to the present day and McMahon seems to have found the solution to that loophole that so many of his former talents slipped through back during the Monday Night Wars by requiring a NCC of some type (the amount of time varies depending on the performer from what I understand) be included in any contract given to a WWE on-air performer. He seemingly guaranteed that a Luger-type event would never happen again on his watch, and furthermore protected his neck to an even greater degree by forcibly removing whatever talents he let go of from immediate relevance for upward of 3 months following their release from his company – an act many perceive as industry terrorism, despite it's accolades for being an ingenius business decision. As anyone here can tell, three months in the wrestling world can be a very, very long time, which can effectively write out the impact (no pun intended) of said performer were they to debut in a rival company once that NCC did in fact expire.
All of this, of course, begs a number of questions. While it's not possible for any of us to truly understand the legal ramifications of the NDNCC or NCC's in general (seeing as we don't actually work for the WWE and aren't privy to that much information regarding the structure of their contracts), does it/do they still hold ]some value to the industry as a whole, or is that value specific only to the WWE and it's ability to save face following the release of one of their former talents? Secondarily, if they are industry damaging, how badly does it affect the ability of the industry as a whole or rival companies to utilize former WWE talents whose contracts included a NDNCC/NCC?
--
That said, it's Q&A Time!
• What are your thoughts on the 90-day no-compete clause, or no-compete clauses in general? Do you feel they benefit the industry as a whole, or are they more of a fail safe for the WWE to protect it's neck when releasing would-be former talents?
• If you consider them industry damaging, to what extent to you think they prevent talents from jumping ship to maximize their full potential? Is it possible talents can still after waiting out the duration of their contracts and still fulfill at least some of that same impact they might have had they shown up on their own accord?
• Do you think a company will ever challenge the WWE on the validity of the NDNCC or a NCC of any type by having a talent debut prior to it's expiration, and what do you think the legal ramifications of such an act would be?