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Signed at 16, Still Owned by a Team That No Longer Exists

Manila esports orgs lock minors into multi-year deals with buyout clauses that outlive the team, leaving teenagers legally bound to brands that already folded.

Ana Santos profile image
by Ana Santos

A 16-year-old signs a three-year deal with a Manila esports org. The team folds in year one. He is still under contract, still carrying a buyout clause, still unable to join a rival roster without someone paying to release him. The org is gone. The paper isn't.

This is happening across the local scene, and most of the players signing don't read past the signing bonus. They are minors. The contract runs through a parent or guardian who understands the game less than the kid does, and understands contract law not at all.

The Buyout That Buries You

Buyout clauses exist everywhere in pro sports. The idea is simple: a competing team pays a fee to pull you out of your current deal. In a healthy market, that fee protects the org that developed you.

In Manila, it works the other way. Smaller orgs set buyouts far above what the player will ever earn, which means no serious team bothers. The player stays frozen. When the org collapses, the clause often survives the collapse, written into terms that bind the individual rather than tie to an active roster.

So you get the worst version: a teenager who can't play for the dead team and can't sign with a live one. The brand that stopped paying salaries months ago still holds a veto over his career.

A Minor's Signature, an Adult's Trap

Under Article 1327 of the Civil Code (RA 386), unemancipated minors under 18 can't give consent to a contract. That doesn't make the deal vanish. A contract a minor enters into is voidable, meaning it binds until someone goes through the trouble of annulling it. Until then, the paper holds.

That's why these deals route through guardians. But a guardian co-signing doesn't fix the imbalance. It just moves the liability to someone who didn't negotiate and rarely had counsel.

Labor advocates have raised the question of whether these agreements are employment contracts, talent deals, or something the law hasn't caught up to. DOLE rules on child performers and young workers exist. Few esports orgs structure their deals to comply, and almost no 16-year-old is going to file a complaint against the org that might be their only shot at a salary.

The scrim schedule alone would flag as a problem if anyone audited it. Ten-hour practice blocks, mandatory streams, bootcamp housing that doubles as a workplace. All of it running on a signature a kid couldn't legally consent to for a motorcycle loan.

The Exit Nobody Signs

The fix is boring and specific. Cap buyout fees to the remaining value of the contract. Void the clause automatically when an org stops paying or ceases operations. Require independent legal review before any minor signs, paid for by the org, not the family.

None of that is in the current paperwork. What's in the paperwork is a clause that outlives the company that wrote it.

A player drafted at 16 can age out of the competitive window by 21. Spend one of those years locked to a brand that folded, and the math is brutal. The team disappears from the standings. The contract stays in a drawer, waiting for a buyout nobody is going to pay.

Ana Santos profile image
by Ana Santos

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