Tigers to sign up Hawkins?

The boiling issue involving the status of estranged Philippine Basketball Association (PBA) star Bong Hawkins took a twist when Airfreight 2001 president and FedEx team manager Lito Alvarez told The Star yesterday he was informed that Coca-Cola is prepared to offer the power forward a playing contract for the coming Third Conference.

Coca-Cola coach Chot Reyes later confirmed he is ready to sign up Hawkins, if he’s available and agreeable, in place of injured Freddie Abuda.

But after the PBA Board of Governors ruled last Tuesday that Airfreight 2001 must pay Hawkins the balance of his contract, equivalent to P9.6 million, as a condition for his release, Reyes may wind up looking for somebody else.

Hawkins, 35, has two years left on his contract that he originally inked to play for Tanduay in 2001. When Airfreight bought Tanduay’s franchise after the 2001 season, his PBA-registered uniform players contract (UPC) was assumed by FedEx. Also assumed was a separate Memorandum of Agreement (MOA) signed by Hawkins and Tanduay team manager Ramoncito Bugia, noted by owner Lucio Tan, Jr.

The MOA stipulated Hawkins’ basic salary to be P250,000 a month in 2001, P350,000 a month in 2002, and P400,000 a month in 2003 and 2004. The won-game bonuses were generous–in 2001, P15,000 in the eliminations, P20,000 in the semifinals and P28,000 in the finals; in 2002, P18,000 in the eliminations, P23,000 in the semifinals and P31,000 in the finals. There were also provisions for 2003 and 2004. Allowances were P300 for each practice and P500 for each game. Placing bonuses were P250,000 for the semifinals, P500,000 for the finals and P750,000 for a championship. Other incentives included P1 Million for the MVP award, P500,000 for the Best Player award in a conference, double the won-game bonus for the Best Player of the Game award and P250,000 for a Mythical 5 or Defensive 5 award.

Hawkins was also entitled to receive a cash advance equivalent to 35 percent of his annual salary payable within the first quarter of each year, free tickets (four special ringside, five courtside and five lower level), a yearly Philippine Airlines round trip ticket from Manila to San Francisco and back and other perks.

The MOA included a clause where the agreeing parties "may, within 60 days before Dec. 31, 2002, give a written notice to the other party of an intention to renegotiate the terms of the player’s employment, including, without limitation, the compensation and bonuses of the player which shall be applicable after Dec. 31, 2002." It further said that "within 15 days from receipt of such written notice by the other party, the parties shall renegotiate, if for any reason after the giving of such written notice the parties fail to reach an agreement with respect to the terms of employment and compensation and bonuses of the player which shall be applicable after Dec. 31, 2002, the UPC and this agreement shall be deemed mutually rescinded by the parties and shall have no further force and effect."

Under the terms of his contract, Hawkins received P4.2 Million from FedEx last year even as he never played a single game for the Express.

But when Alvarez sought to rescind Hawkins’ contract last year, citing the exit clause provided by the MOA, the PBA ruled FedEx out of order.

Then-PBA commissioner Jun Bernardino said Hawkins’ UPC was binding but not the MOA which was "defective" and "flawed" because it violated the bonus cap scheme. Since Airfreight assumed Tanduay’s obligations, it had to assume whatever was due to Hawkins in his original contract, Bernardino said.

Alvarez argued that the MOA was executed before the PBA adopted the bonus cap scheme and cited the rule of separability in segregating the valid from the void provisions. Besides, Alvarez pointed out Hawkins benefited from the provisions of the MOA in 2001 and the PBA never questioned the propriety of the payments.

Alvarez said the PBA "led us to believe that there was no problem with the MOA and that it was acceptable."

PBA chairman Casiano Cabalan and commissioner Noli Eala attempted to broker a settlement between Airfreight and Hawkins. Alvarez offered two compromise proposals but Hawkins turned them both down.

Alvarez’ initial offer was a "solomonic" solution to the problem where Airfreight would pay Hawkins the sum of P2.7 million for the last two years of his contract. He arrived at the figure by subtracting what Airfreight paid to Hawkins last year or P4.2 million from 50 percent of his four-year P13.8 million contract or P6.9 million.

After Hawkins rejected Alvarez’ first offer, Cabalan asked if another figure could be proposed. Alvarez then offered a net of P3 million.

"If we consider the withholding taxes portion of this amount and the P858,400 received by Hawkins from Tanduay in 2001 based on the MOA which he is now saying is not binding, the gross amount of our second offer is actually P4.6 million," explained Alvarez.

But Alvarez’ second offer, which was described as generous and fair by independent quarters, was rejected once more by Hawkins.

Last Tuesday, the PBA Board took up the Hawkins issue and upheld his UPC as valid, in effect, ordering Airfreight to pay up the balance of P9.6 Million in the last two years of his contract.

Alvarez said he will not go to court to challenge the PBA ruling. Instead, he will ask his lawyers to check on whether Tanduay could be sued.

"It’s just not fair to us," lamented Alvarez. "We paid P75 million for our PBA franchise. We’re being asked to contribute to settle the PBA’s tax obligations. We bought the Tanduay franchise and assumed its obligations based on contracts that we were made to understand to be binding."