I wouldn't necessarily call his a non-compete clause as he's free to take jobs elsewhere (with ESPN's permission). He's just going to have to give up bread to do it, which has been the case with other ESPN talent that got laid off who had the same contract stipulations.
He’s a weird case in that I think ESPN would love to have him back, but not at his current contract price as it’s always been said over the years how highly they thought of him. He’s not coming back though I think Disney would step in and say no like they did with Jaws years back.
IIRC, I think Ed Werder has been the only ESPN talent that got laid off to only end up coming back later.
By definition if you cannot take jobs without employer approval that is a non-compete clause or restrictive covenant. This is established law, especially in New York and CA where so much ESPN talent is located. What you’re describing is waiving a non-compete. New York passed a ban on non-competes just last month, not sure if Governor Hochul has signed it yet but read the definition: “any agreement, or clause contained in any agreement, between an employer and a covered individual that prohibits or restricts such covered individual from obtaining employment, after the conclusion of employment the employer included as a party to the agreement.”
The bill is drafted to be inclusive of “any . . . person who . . . performs work or services for another person,” meaning that it is likely to apply to employees as well as independent contractors.
Historically, there needs to be some sort of adequate consideration such as payment you would not otherwise be entitled to in order to uphold a non-compete. It is most likely that Keyshawn negotiated for a full pay out in the event of termination but only in the event that he would not be able to be employed by a competitor for a set period of time. The alternative is he receives nothing except what he was owed for the work he had completed but was otherwise free to find new employment. Again, we are dealing with an unsourced report and haven’t seen the contract. But that’s how these things normally go. ESPN doesn’t want whatever audience you may have cultivated on their network following you.
As an aside, NY’s new law is interesting because unlike other states, it doesn’t have an income threshold so in theory highly paid employees would be subject to it as well - i.e. an ESPN employee. The FTC is also looking to potentially ban all non-competes.