The word endorsement could simply mean giving a thumbs up. Many companies use sports personalities to give a thumbs up to their products and services so that they can win public trust which r6esults in more business. When the player signs the endorsement contract, they will have granted the company permission to use their name, image or likeness in the promotion of their product.
Agent and Athlete Compensation
Compensation will most likely be the primary concern for the athlete as well as the company offering the contract. Agents should note details for royalties, incentives, free products, testing products and fixed fees, and discuss these with the athlete in detail. Some companies may include an indemnification clause which may specify that the company is compensated for any loss, should the athlete terminate the contract. Agents should make sure the indemnification clause protects the player as well, in case the company terminates the contract.
Endorsement Contract Details
A signed contract gives the company a legal right to use the player name and image, so agents must make sure the players have the ability to exercise control over the product/service they will be asked to endorse. The player must understand exactly how the endorsement will be used, in what form it will be used, such as print media, online or television, and where it will be used geographically. Endorsement methods need to be fully understood by all parties, so player and agent must discuss all aspects of the contract in great detail. Where will the athlete be asked to provide an endorsement? When? What product?
Just because a player has gotten a huge endorsement does not mean it is business as usual. As much as you are making money you need to show the endorsing company that you are worth the money they are splashing on you. Once a company endorses you, you become a marketing asset so conduct yourself as one. Do things that make the company stick out.
You’re a marketing asset.
When talking with a company, look at their sponsorship as a marketing investment and act accordingly. That means at all times you are to represent and support the company that is endorsing you in any way.
At the same time “marketing” is one of the first places to face budget cuts, which is why you must make yourself a valuable asset to the company to insure longevity.
How can I be considered valuable to a company?
Longevity within a company will come with dedication to the brand, a strong showing of involvement within one’s industry, and a consistent flow of action, whether it is video or photos. Companies that are endorsing athletes love to be in close contact, and it is important to keep them regularly updated with what projects your involved in.
Endorsements can bring in a lot of money for the player. It also brings in more if you are active on social media platforms such as Twitter. A Tweet form Tiger Woods on average is worth $27,000.
1.ROGER FEDERER | ATP
While his years of continued dominance are waning, Federer is still producing at the highest level in 2015. At 33 years old, Federer is the oldest player in the ATP World Tour Ranking’s top 5, sitting at No. 2 behind Novak Djokovic. Much of Federer’s ongoing success as the world’s highest-paid athlete endorser can be linked to several long-term deals he holds with premiere brands including Nike, Mercedes, and Rolex.
2.TIGER WOODS | PGA TOUR
How the mighty have fallen — on the course, that is. While Tiger can’t seem to string two made cuts together in 2015, his endorsement earnings are still on par with the dominance he formerly displayed. His game isn’t what it once was, but Woods’ endorsement profile still includes Nike, Rolex, and 2014 deals with MusclePharm and Hero motorcycles.