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Posts Tagged ‘Athlete Endorsements’

I’ve read on more than one occasion since the Tiger Woods story broke last month that the endorsement market for all athletes will suffer as a result of his indiscretions. The thinking goes that if companies can’t trust someone like Tiger, who for years had the cleanest image among all athletes, who can they trust?

Tiger Woods continues to endorse Nike. The organization stands behind him.

I don’t agree with this assessment. There’s an inherent risk whenever a company utilizes an athlete. He could get hurt, traded, arrested or, in the case of Tiger, caught with his pants down. Athletes have been endorsing products for close to 100 years and will continue to do so.

For every high-profile scandal such as Tiger or Kobe Bryant earlier this decade that resulted in companies either cancelling or not renewing their endorsement agreements, there are countless examples of endorsement deals that have been successful. Do you think Nike was disappointed with Michael Jordan or Gatorade with Derek Jeter?

Over the weekend, I was watching CNN and three commercials in a row featured athletes – Howie Long for Chevrolet, Dan Marino for NutriSystem and Chris Berman for Applebees. So will there be any fallout from “Tigergate”?

My guess is that companies will scrutinize potential endorsers even closer. Morality clauses, which give companies the ability to opt out of an endorsement agreement should an issue arise, will likely be tightened even more. And most importantly, companies likely won’t build their entire advertising campaign around just one athlete, which is what Accenture did with Tiger. Some people have estimated it will cost Accenture tens of millions of dollars just to remove all the advertising featuring Tiger. How many times have you been in an airport and seen an Accenture billboard with Tiger?

Speaking of Tiger, his fall from the mountaintop has been historic. Never has an athlete of Tiger’s stature fallen so far so fast. Just a month ago, ask someone to describe Tiger’s image and you would likely hear such words as squeaky-clean, trustworthy and integrity. To date, among his sponsors who have either cancelled or scaled down their involvement with him  include Tag Heuer, Accenture and Gillette. Gatorade is phasing out its Tiger product, although it made the announcement a few days prior to the start of Tiger’s problems.

PFP Sports and Celebrity Talent Agency is a top booking agent for athlete endorsement deals,  athlete appearances and sports speakers. For more information on how to book an athlete endorsement or appearance, call 800.966.1380

Athlete endorsements aren’t new. Ever since Red Rock Cola hired Babe Ruth to endorse its soft drink brand in the 1930‘s, companies have utilized athletes to pitch their products and serve as company spokespersons. It is estimated that companies spend close to one billion dollars on athlete and celebrity endorsements each year and for good reason. Studies have shown that consumers are more likely to purchase products endorsed by athletes than products not endorsed. Athletes are role models and consumers tend to believe athletes, especially those with a positive public image.

The top superstars today can earn much more in endorsements than in salary. For instance, in 2008, Tiger Woods earned close to $6 million on the PGA Tour and close to $100 million from endorsements. It’s no surprise that he leads the list of top athlete endorsers. Arguably the most popular athlete in the world, Tiger resonates with people across all demographics. Among his deals are Nike, Accenture, Gatorade, EA Sports & Gillette.

Among the other top athlete endorsers are Phil Mickelson, Dale Earnhardt Jr., Lebron James, Kobe Bryant, Shaquille O’Neal and Payton Manning.

The top two female endorsers are race car driver Danica Patrick and tennis star Maria Sharapova. What’s interesting about Danica is that she’s not a dominant force in the sport of auto racing. In fact, she’s only one won race in her career, the 2008 IndyCar race in Japan. Her popularity is largely a result of her being a female in a male-dominated sport. Among Danica’s deals are Marquis Jet, Tissot, Peak Antifreeze, Kaenon, Alpinestars and GoDaddy.

Two of the top retired athlete endorsers are Michael Jordan and Cal Ripken Jr. Jordan earns an estimated $40 million per year in endorsement income and, before Tiger Woods, was considered the “King of Endorsements”. Jordan’s deal with Nike in 1984 launched what would become the most successful athlete endorsement campaign in history. Jordan’s other deals include Gatorade and Hanes .

An often overlooked but very effective athlete endorser is boxing legend George Foreman, who’s George Foreman Grill is among the top selling houseware items in the U.S. each year. During the height of his boxing career, Foreman earned $20,000 in endorsement income. With his grill, he’s earned hundreds of millions of dollars. In fact, Foreman originally was to receive a percentage of grill sales, but through-the-roof sales of his “Lean Mean Fat-Reducing Grilling Machines” prompted Salton to buy him out for a reported $137.5 million.

There’s no doubt that companies are spending less on athlete endorsements in the current economy. However, that’s just a temporary slowdown. As the economy picks up, so too will endorsement opportunities for athletes. Companies are going to have to differentiate themselves from the competition. And what better way to do that than to have an athlete in your corner who people trust and admire.

PFP is a top celebrity booking agent for booking athlete endorsements,  sports stars and celebrities. If you would like to find out how to hire an athlete for a speaking engagement, appearance, endorsement, autograph signing or special event call PFP Sports and Celebrity Talent Agency at 800.966.1380.