Athletes and other celebrities often benefit from endorsement deals, but it’s important that they do so in a manner that protects them and their reputation they have worked so hard to build. This is where the nuts and the bolts of an endorsement deal become important.
Exceptional athletes frequently garner attention when companies intend to use the athlete’s reputation and popularity to promote a product or a service. However, it’s important to consider all of the different aspects that may be included in your endorsement contract.
Step 1: Understand the Compensation
The primary concern for you as the athlete or celebrity is to identify any items that may come in the form of compensation, including fixed fees, royalties, free products, incentives or any other opportunities offered. Make sure you are being paid for all aspects of your services.
Step 2: Review the Morality Clause
A morality clause will most likely be included in an endorsement contract. This helps to keep a company from being associated with what they would term “immoral behavior”.
When your image and reputation is being used to promote their company, any activities that could harm this image may lead to a breach of contract. Your lawyer should carefully review this to identify what actions could qualify for triggering this clause. For your benefit as the athlete or celebrity, only the most serious behavior should trigger this clause.
Step 3: Don’t Be Blamed for Actions of Others
Make sure you have an indemnification clause in your deal contract. This would essentially protect you from being liable for the actions or inactions of others. If you were to be sued because of someone else’s behavior, you want to make sure they will step in and defend you. For instance, you represent the product you are endorsing in a certain light due to the company’s representations of you. Suppose they lied to you and you are sued because you repeated the lie?
Step 4: Identify The Specifics of Your Representation
Endorsement deals can cover a broad range of situations, but it is essential to be as specific as possible. For example, the company may request that you only wear their logo or certain clothing types while you are playing your sport. In the event that you have to travel and make personal appearances, this information should be clearly outlined in the contract so that you can make appropriate travel arrangements and include this in your schedule.
Step 5: Ask Your Attorney to Determine Whether or Not There Are Competing Endorsements
The more popular that you become as an athlete or celebrity, the more likely you are in demand for endorsement deals with numerous companies. Identify potential conflicts well before they arise.
If you have a pre-existing sponsorship or endorsement deal with somebody else that may continue after your new agreement takes place, you need to clarify these deals upfront and tell the new sponsor and your current sponsor about them. There is a good chance that your current endorsement agreement will prohibit you from entering into other sponsorship agreements with what the company would classify as direct competitors.
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
