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.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
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!
