ATHLETE ENDORSEMENT DEALS

Athlete Endorsement Deals

Table of Contents

Introduction1

Discussion and Analysis1

Athlete Representation2

Endorser Effectiveness2

Risks3

Misbehavior by Athletes3

Conclusion4

Athlete Endorsement Deals

Introduction

Product endorsements have been an integral part of marketing plans since the creation of advertising. Endorsements in sport are thought to date as far back as the ancient Olympic Games. Competitors from Greek city-states were often provided with free housing, meals, and training support in preparation for the games and as compensation for athletic performances. The return of successful athletes to their hometowns may have also brought many opportunities to associate with local business people and their wares. Athletes today are often used to influence the attitudes of consumers.

Discussion and Analysis

Star power sells in today's sport industry. Corporations spend more than $12 billion on multiyear athlete endorsements, with more than $1.6 billion committed by Nike alone. Some professional athletes make more money annually from endorsement deals than from their salaries. In 2006, the top 10 professional athletes who endorse products earned over $220 million all together. Leading the way was Tiger Woods, who earned over $85 million from endorsement deals alone in 2006 and had multi-year endorsement contracts of $105 million and $40 million with Nike and Buick, respectively. Endorsement opportunities may also continue past the end of an athlete's playing career (Carlson, Donavan, 2008).

Athlete Representation

Endorsements are of great importance to athletes, not only because they can increase one's annual salary dramatically, but also because they can lead to postathletic career opportunities. Marketing client endorsements is a vital part of the athlete representation business. Whether it is a backup quarterback signing autographs at a local sporting goods store or a national television commercial involving a star wide receiver, successfully marketing athletes through endorsements can be instrumental in securing long-term relationships with them. Endorsements allow athletes to serve as spokespeople for companies, promote a specific brand, and ...