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The Value Of Marketing And Endorsements

Marketing and endorsements are huge components of many sports agencies. For one, agents often take a much larger cut on marketing and endorsement deals (normally 15-25%) than on contractual deals with professional teams (normally 3-4% depending on sport). Also, for many professional athletes, an agent is not needed to negotiate with teams because…there are no teams (golf, tennis, etc.).

Thus, the marketing and endorsement side of the business is a priority for many agents. Another person who takes interest in the subject is Harvard Business School professor Anita Elberse, who recently dissected this section of sports business in an article that has a sub-focus revolving around Maria Sharipova, in particular [Marketing Maria: Managing the Athlete Endorsement].

Some important extracts:

  • PricewaterhouseCoopers estimated that the sports industry accounted for around $50 billion in revenues in the United States in 2007, up from just under $35 billion in 2001. On a global scale, total revenues are expected to be nearly $100 billion this year, compared with $70 billion in 2001.
  • If a company is looking for an endorser with global star appeal, it has a reasonably large group of male athletes to choose from, but only a select few female athletes. This likely has contributed to Sharapova’s phenomenal marketing success.
  • Companies try to find athletes with brand attributes that match those of the products the athlete is asked to endorse, or at least that match the attributes the company hopes to associate with those products. Other aspects play a role too, such as good looks, public-speaking skills, and overall image.

Maybe Barbara Bonic will be the next Sharapova? That would be nice!

-Darren Heitner

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.

2 replies on “The Value Of Marketing And Endorsements”

What about the retailers that do not report endorsement sales to the agents? Then the athlete receives nothing, as well as the agent??
How can this type of greed be controlled?
I went into a store a few weeks ago, in the east bay area, they sell suits, golf and resort wear endorsed by athletes – that they do not even care about. (why do I say this?)
Well, I over heard the lady (employee i assume) say “those stupid baseball player’s don’t know anything”, as she stormed into her office. Did not even care if I heard!!! This store was selling Vida Blue golf shirts – interesting!?? Isn’t he a Baseball LEGEND? Did I hear her call Vida a stupid baseball player?hummm

My 2cents
ASportsFan

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