Beyond the income they receive from playing the game, athletes (as well as teams, leagues, or specific sporting events) can also make money by engaging with sponsorships and endorsements from local or national businesses. However, it is crucial that you know exactly what it means to be a part of one of these deals. A skilled sports attorney could discuss the legal ramifications of athletic sponsorships and endorsements in Boca Raton.
A sponsorship is an agreement that sets out the terms in which the sponsor will provide support for an event, club, athlete, or team. Businesses use the sponsorship of athletes and events as a form of marketing to sell their goods or services. It also allows athletes to focus more on their training and performance, and reduces the stress of generating income.
The primary types of sport sponsorships are individual, team, association, and event sponsorship. In addition, there are four types of event sponsorships:
Athletes who achieve individual success and popularity will often be involved in sponsorship deals. Some of the biggest athlete sponsorships have included Derrick Rose with Adidas, estimated at $260 million; Rory McIlroy with Nike, estimated value of $250 million, as well as soccer legend David Beckham, and famed pro golfer Tiger Woods.
Brands will sponsor athletes to build deeper relationships with target audiences, increase brand awareness, drive overall traffic, and promote new products and services. The brands that tend to give out the most athletic sponsorships are Nike, Samsung, Coca Cola, Pepsi Co., and Red Bull.
There may be times, however, where an athlete, team, or event should not accept a sponsorship deal. It is critical that they obtain counsel in Boca Raton to negotiate terms and review the language in the sponsorship agreement so they are not getting a raw deal or boxing themselves into something that is against their interests.
There are no guaranteed financial returns for a sponsorship deal and there is always the chance of potential controversies with the athlete or team. For athletes, one potential downside of a sponsorship agreement is the exclusivity clause – that they can only partner with one business at a time (of a certain business category), which could limit their options. However, a business could get exclusivity in partnering with a certain event, which is why they should consult a Boca Raton lawyer to learn how to make the most of the partnership.
An endorsement contract grants the sponsor the right to use the athlete’s name, image, or likeness in connection with advertising the sponsor’s products or services. In return, the athlete can reach a wider audience and earn more income. Endorsements agreements should discuss the kinds of rights that are granted, compensation, breach provisions, and termination provision. The most common companies to participate in athletic endorsements include Nike, Adidas, Pepsi, Coca Cola, McDonald’s, and Samsung. Athletes are often allowed to represent more than one company at a time.
Sports merchandising refers to selling a brand’s name on the team or league jerseys, T-shirts, hats, and collectibles, as well as exercise equipment, sports equipment, and other items. It is important to read the language in a sports merchandising contract, and know the default, termination, and exclusivity provisions. A sports contract lawyer in Boca Raton reviews the language of all contracts before the parties can sign.
Partnerships with a major business can be a boost to your career, was well as your income or revenue, but it is important to know all that comes with it. The team at Lomnitzer Law knows how to protect your interests when it comes to athletic sponsorships and endorsements in Boca Raton. Give us a call and set up a free consultation.