Sports endorsement and advertising agreements represent one of the most significant sources of income for a modern athlete. This is an agreement whereby an athlete grants a company the right to use their name, image, and reputation to promote a brand or product. In Georgia, along with the development of digital marketing, Georgian athletes are increasingly becoming faces of local and international brands. However, such deals carry legal risks: breach of exclusivity, conflict of interest with club sponsors, and strict morality clauses. Assistance from a qualified lawyer is essential for the athlete to maximize commercial benefits while protecting their reputation and primary employment contract.
What Does the Endorsement Service Cover?
This service covers the full legal cycle of commercial partnerships. Specialists offer:
- Licensing Image Rights: Detailed terms for transferring rights to use the athlete's name, photo, signature, and voice (duration, territory, media channels).
- Conflict of Interest Management: Ensuring that a personal sponsor does not conflict with the interests of the club's or national team's general sponsors (e.g., Nike vs. Adidas).
- Definition of Obligations: Specifying the athlete's specific activities (social media posts, attendance at events, photoshoots).
- Review of Morality Clauses: Softening clauses that allow the company to terminate the contract due to "unethical behavior" by the athlete.
- Intellectual Property Protection: Preventing unauthorized commercial use.
Real-World Situations When You Need This Service
A lawyer is needed in interactions with sponsors in the following scenarios:
- Footwear/Apparel Contract: A footballer signs a contract with a boot manufacturer. It needs to be clarified whether they are obliged to wear this brand during training or only during matches.
- Social Media Influencing: An athlete posts about an energy drink. Compliance with the Law on Advertising is required, as well as ensuring this does not violate anti-doping or federation rules.
- Ambassadorship: A company invites an athlete to be a brand ambassador. The lawyer regulates contract termination conditions if the brand's reputation is tarnished.
- Conflict with the Club: The club demands the athlete participate in an advertisement for the club's sponsor, which contradicts the athlete's personal contract with a competitor brand.
Georgian Legal Framework
Endorsement agreements are regulated by the "Civil Code of Georgia" and the "Law on Copyright and Related Rights" (right to personal image). Also important is the "Law of Georgia on Advertising", which establishes restrictions on advertising certain products (e.g., alcohol, gambling), where the participation of athletes is often strictly regulated. Additionally, internal regulations of sports federations regarding equipment and the size of sponsor logos must be considered.
Process: How a Specialist Works
Work on an endorsement agreement includes:
- Offer Assessment: Analysis of commercial potential and reputational risks.
- Checking Restrictions: Reviewing the athlete's existing employment contract to avoid breaching exclusivity.
- Negotiating Terms: Planning the compensation scheme (fixed + bonus) and the athlete's time resources.
- Monitoring: Controlling the fulfillment of obligations by the parties during the contract term.
Why Legal.ge?
Legal.ge brings together lawyers experienced in marketing and sports law. They know how to safely turn your sports success into financial capital. Through our platform, you will be able to sign profitable advertising contracts without unnecessary risks.
Updated: ...
