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.
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
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!
