Athlete endorsements leverage the reach, influence, and authenticity of sports stars to boost brand awareness and drive sales. Unlike sponsorship, which associates broadly with a sports entity or event, endorsement deals focus on product integrations that align with athletes’ personal brands and long-term goals.
Athletes often work with agents and attorneys to source and negotiate endorsements. Attorneys provide legal analysis, draft and review contracts, and help ensure compliance with applicable laws and industry rules. They also define usage rights, protect intellectual property, and structure the deal to limit exposure to liability or future disputes. Endorsement agreements typically classify athletes as independent contractors rather than employees. This designation has financial implications, including the obligation to manage income taxes and lack of employee benefits, such as healthcare and retirement plans. Agreements also require clear compensation structures, with a mix of guaranteed fees and performance incentives. They may also include specific requirements around approval rights, rights of refusal, re-approval of legacy content, and protections from alignment with controversial or high-risk product lines.
Genuine partnerships are the cornerstone of effective influencer marketing. Athletes who genuinely believe in and use the products they endorse lend credibility to the campaigns, increasing audience trust. For example, Serena Williams’s partnership with Nike is strengthened by her authentic use of the company’s products in her training and competitions.
Athlete endorsement contracts must be carefully crafted to comply with FTC disclosure standards, which carry substantial civil penalties for non-compliance. Contracts should clearly require that paid promotions be identified as ads and should contain authenticity clauses requiring athletes to use the products they promote and base their promotional claims on actual experience. Attorneys can also help mitigate risk by ensuring that termination provisions set forth specific thresholds, timelines, and evidentiary standards to reduce the likelihood of unanticipated disputes.