NFL RESTRICTIONS ON ENDORSEMENTS
The NFL restricts the kinds of endorsements players and coaches can undertake.
Before pursuing or agreeing to an endorsement opportunity, the player and/or his agent should check some of the following rules or restrictions first.
Dallas Cowboys quarterback Tony Romo signed a five-year, $10 million endorsement with Starter. (ICON Sports)
Alcohol/tobacco products.
NFL prohibits players, coaches and other employees from appearing in commercials for or endorsing
alcoholic beverages or tobacco products.
Banned substances.
Players can’t endorse any
companies that produce any products that are on the NFL’s Prohibited Substance list.
Notice that the rule says that the player can’t endorse a company that produces “anything banned”.
So even if you’re endorsing a product that’s
not banned, if the company makes
anything that is, you can’t endorse their company, or
any of their products.
Medical/pharmaceutical companies.
When it comes to endorsing medications and pharmaceuticals, players can only endorse stuff from approved companies that make stuff like allergy medication, hair growth, dermatological products, or cholesterol reduction.
Restrictions on Athletic Wear
The National Football League recently signed a contract with Nike, which requires that all NFL players wear Nike shoes during games.
If if you have your own endorsement deal with a competitor of Nike, all logos and symbols that identify that company have to be covered up when you’re on the field, including practice fields.
You also have to cover them up in press conferences.
THREE KINDS OF ENDORSEMENT CONTRACTS
There are three categories that endorsements normally fall under: hard goods, headgear and clothing, and non-marking sponsorships.
Let’s talk about these real quick.
Hard Goods
These kinds of deals for football players are often for protective wear, like the four-year deal Darren McFadden
signed with Nike back in 2008.
This was a “head-to-toe” deal, meaning that everything McFadden wore other than his NFL uniform (which were made by Reebok at the time) were to be made by Nike.
A lot of companies view Headgear and Clothing deals as the most valuable kind of endorsement, because their logos often show up on the athlete.
But as I said earlier, NFL players often find themselves unable to wear the company’s clothing (especially in games) due to the restrictions the NFL puts on showing the logos of competitors.
Non-Marking Sponsorships
These are deals where the athlete doesn’t have to wear anything on them representing the company.
When you consider these types of deals, you have to make sure you don’t violate any conflicts of interest with sponsors of the NFL, just like with Headgear and Clothing deals.
In these kinds of deals, the company leverages the athletes image, likeness, or have them appear in advertisements, appearances, speaking engagements, and even autograph signings.
An example of a non-marking deal would be Peyton Manning’s
endorsement for MasterCard.