Key points for athletes to consider before signing a sponsorship agreement

The financial rewards available to professional athletes from entering into brand endorsements are extensive. However, whilst the amount of the fee and identity of the brand is inherently important to any athlete’s decision to enter into an endorsement, athletes also need to bear in mind the impact that their endorsements and other commercial activities may have on aspects of their life other than their bank balance. This article looks at some of the key factors that athletes should consider when negotiating an endorsement agreement, including:

1. how best to structure the term and financials of the agreement;

2. awareness of potential commercial restrictions owed to third parties;

3. how to limit any impact on an athlete’s sporting commitments;

4. how to control use of an athlete’s image; and

5. issues arising when an endorsement ends or is suspended.