Lesson 8.6 –
Endorsements
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement:
The celebrity agrees to
allow the company to
use his or her likeness
to promote company
goods and services
Copyright
A partnership between an
athlete or entertainer and a
company in which the
athlete or entertainer
receives compensation in
return for their support and
approval of a company
product or service
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Gatorade featuring athletes like Usain Bolt, Bill
Russell, Serena Williams, Michael Jordan, Mia Hamm,
Peyton Manning, Sidney Crosby, Jimmie Johnson,
Abby Wambach and others in a new ad campaign as
part of their re-branding effort
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Subway featuring “famous fans”
like Jimmy Fallon, Blake
Griffin, RG3, Apolo Ohno, Carl
Edwards, CC Sabathia,
Michael Phelps, Ryan Howard,
Justin Tuck, Michael Strahan,
Ndamukong Suh & Nastia
Liukin in advertising
campaigns
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
What characteristics among celebrities do sports
and entertainment marketers look for?
 Success and high levels of performance
 Media following
 Work ethic
 Personality traits
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Effective endorsement campaigns
 The most successful campaigns will feature athletes
or celebrities who actively promote the product or
brand
 Consumers must actually believe the athlete or
celebrity uses the product or service otherwise the
campaign’s credibility risks being undermined
 Companies invest a lot in celebrities to promote
their products so aligning with the right athlete or
entertainer is paramount
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Kevin Durant has maintained a positive image
throughout his NBA career and as a result, his
marketability is on the rise
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
As a result, he earned $13
million in endorsements last
year according to Sports
Illustrated’s “Fortunate 50”
list in 2014, ranking him as
the sixth highest paid
athlete in terms of
endorsement (even edging
out Peyton Manning who
was seventh on the list,
earning $12.5 million).
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Prior to the 2010 NBA Draft, Reebok locked up
budding superstar and eventual number one overall
pick John Wall to a five year deal, reportedly worth
$25 million. Reebok was banking on Wall
successfully replacing Allen Iverson as the face of
their basketball brand in a move that never quite
paid off (he moved on to adidas in 2013)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
In an effort to show their allegiance to the brands
they endorse, both Robert Griffin III (Adidas) and
Tom Brady (Under Armour) were fined by the NFL
for covering up the Nike swoosh logo during the
2013 season (Nike is the league sponsor)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Athlete endorsement earnings, according to Sports
Illustrated’s “Fortunate 50” annual list of the 50 topearning American athletes, published in 2014
LeBron James $38
million
Phil Mickelson $33
million
Tiger Woods $31
million
Kobe Bryant $20
million
Click here to view the top 20 earning International athletes in terms of endorsement compensation
Derrick
Rose $17 million
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Derrick Rose did not play in a single game in
2014-14 due to injury, so adidas actually
tracked his rehab through a season long
marketing campaign (#thereturn)
Video: http://www.usatoday.com/story/gameon/2012/10/04/derrickrose-adidas-rehab-nba-chicago-bulls/1613261/
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Floyd “Money” Mayweather was the top earning
American athlete, yet did not generate any
revenue through endorsements
Click here to view SI’s entire “Fortunate 50” list, including salary
and endorsement earnings
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Finalizing the Selection Process
 Background checks
 Discussion with celebrities to determine levels
of commitment
 Development of a contract and having each
party carefully review the terms
 Familiarizing the celebrity with the product or
service in which they will endorse
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Marketers can refer to a prospective
endorsers “q score” to determine the
individual celebrity’s marketing potential
According to the q scores Website, a q score
“measures the familiarity and appeal of
personalities in a variety of categories to
determine targeted audience attraction”
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Basketball Hall of Famer Michael Jordan
remains the best-known and most-liked
pro athlete, nearly a decade after he
retired as a player. He is recognized by
89 percent of fans and has a positive Q
score of 43 percent.
Denver Broncos quarterback Peyton
Manning is tops among active athletes.
He’s recognized by 88 percent and has
a positive Q Score of 32 percent.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Failure to live up to expectations may result in a
sponsor parting ways with the athlete or celebrity,
particularly in the midst of any negative publicity
surrounding the individual
After accepting a plea deal with
Major League Baseball for his part
in a performance enhancing drug
scandal, Brewers’ star Ryan Braun
was quickly dropped by most
sponsors, including Nike, while
65% of fans felt his brand would
never recover based on a poll
conducted on bleacherreport.com
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Failure to live up to expectations may result in a
sponsor parting ways with the athlete or celebrity,
particularly in the midst of any negative publicity
surrounding the individual
In 2013, Tara Costa, former star
from the popular TV show ‘Biggest
Loser,’ was being sued by a
corporate partner on the basis that
she had allegedly gained too much
weight to continue representing
their brand.
VIDEO: http://video.foxbusiness.com/v/2546539407001/biggest-loser-taracosta-on-getting-sued-for-weight-gain/
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
Studies have shown that celebrity
endorsements can be extremely
effective in helping a company drive
sales of its products or services
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
In 1984, Puma sold only 15,000 tennis
racquets a year. In 1985, following
Becker's first victory in Wimbledon and
his backing of Puma rackets, sales
jumped to 150,000 rackets
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
In 2000, Nike Golf signed Tiger Woods to
play its golf ball. By 2005, Nike Golf
enjoyed revenue growth of an astounding
24 percent per year.
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
Given the
incredible sales
success of his
branded grills,
George Foreman
now sorts through
as many as 20
endorsement
offers per week
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© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
After signing on with
Converse, Dwyane
Wade’s support of the
brand made an
immediate impact as
his likeness contributed
to an 82 percent
increase in sneaker
sales in the first two
years of the campaign
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
1-800-Flowers teamed up with
Justin Bieber for what was
originally intended to be a
small Valentine's Day
promotion. It turned into one
of the biggest campaigns in
the company's history and led
to an annual relationship with
the teen pop sensation.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
Last year, Nike sold $300 million in LeBron James’
signature shoes in the U.S. alone (compare that to
Dwight Howard’s $5 million in sales for adidas)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
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LESSON 8.6 REVIEW (ANSWERS)
Sponsorship &
Endorsements
1) Define endorsement
An endorsement is a partnership
between an athlete or entertainer and a
company in which the athlete or
entertainer receives compensation in
return for their support and approval of
a company product or service.
The celebrity then agrees to allow the
company to use his or her likeness to
promote company goods and services.
Copyright
© 2014 by Sports Career Consulting, LLC