Welcome back for part two of our look into NFL endorsement deals, and things you may not know.
Today will be quick, as I’m just going to finish up where I left off listing the rest of the important parts of the endorsement contract.
Click here if you missed part one.
Important Parts of Athlete’s Endorsement Contract, Continued
Adding this clause gives the you the athlete, and/or your attorney/advisor, the right and ability to review all materials featuring the athlete (in relation to the company) prior to being released publicly.
This can protect you from future issues, like if the materials are released and issues arise from it.
If you’re an avid animal lover, or are concerned with having PETA on your back, you might not want the company to make an ad that has a drawing of you stabbing a lion with a spear.
(I know that’s a retarded example, but hopefully you catch my drift.)
If that company was to release something like that without getting your approval, and it caused an uproar, this clause could alleviate you from being legally involved or liable.
The consequences of the company not getting the signed approval from the athlete all depends on how the contract is worded.
When you sign with a company to endorse a product, more than likely the company’s going to ask you to show up for presentations, autograph sessions, and other kinds of appearances and events as a representative of their product(s).
This clause allows both you and the company to be clear on the frequency of the appearances, how much you get “paid” for them, etc., and can even cover the amount of prior notice the company must give you before expecting you to show up for the events.
It’s common for the advisor of the athlete to add in this section that there be a limit on the amount of appearances that come with the contract in it’s natural state, and that additional requests above that limit require additional payments from the company.
This section should specify to the tee, exactly what products of the company you’re going to be endorsing.
If this isn’t defined properly, it can keep you from pursuing a huge range of products that might compete with other products that company makes.
If your contract advisor or lawyer fails to make sure this is specifically defined, the company might intentionally leave this definition as broad as possible.
For example, let’s say you’re endorsing some type of health drink.
If the Endorsed Products section is loosely defined to only cover “health products,” that could keep you from being able to endorse any type of health product.
This is definitely not in your best interest.
This section defines what both parties will consider a breach of contract, for both the company, as well as yourself, the athlete.
When it comes to what the company defines as a violation, it can be for things like felony convictions, positive drug tests, etc…
As with all contracts, it all depends on what’s worded in the contract and signed by both parties.
As I mentioned, companies can breach the contract as well.
Examples of ways a company can breach the contract can include non payment for services rendered by a specified period of time, and a lot more…
It all depends on what’s negotiated and put in the contract.
In this interview with the Wall Street Journal, Arian Foster discusses business in the NFL, as well as his new $43.5 million contract with the Houston Texans.
Hopefully I shared a few things you might not’ve known.
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