Sports and Events Management Focus
Neil MorganSenior Counsel,Head of Sports and Events
Hannah EdmondsonSenior Associate,Corporate Commercial
Footballers are becoming increasingly aware of the value of their own image. Outside of standard apparel deals (for example football boots and shin pads) we are now seeing footballers promoting a whole host of products and services. Last year,it was reported the world’s five highest paid footballers all made a significant amount from personal endorsements:
Mohamed Salah. Salary: US$24.5 million. Endorsements US$15 million.
Neymar. Salary: US$56 million. Endorsements: US$35 million.
Lionel Messi. Salary: US$62 million. Endorsements: US$48 million.
Cristiano Ronaldo. Salary: US$53 million. Endorsements: US$60 million.
Kylian Mbappe. Salary: US$105 million. Endorsements: US$20 million.
This increased awareness of the value of their own image rights has at times led to a power struggle between the obligations of a player’s personal endorsement deals and those owed to their club or international association/federation sponsor deals.When we refer to a player’s image we are not only referring to the image of the player themselves but also their name, likeness, voice, signature, physical details and other personal characteristics.
Players will often exploit their image rights in a personal context but they also grant both their domestic and international clubs/associations/federations the right to utitlise their image rights in a club/association/federation context. In simple terms, personal context endorsements do not allow any use of club/association/federations intellectual property rights when exploiting the image rights, for example logos, playing kits etc., whereas a club/association/federation context must always include these identifiers to make clear the player is endorsing a sponsor as part of the sponsor’s deal with the club/association/federation rather than in an individual capacity.
The standard approach for clubs, is that the club obtains all rights to utilise the player’s image rights in a club context and unless separately agreed between the player and club, the player (or their image rights company) retains all rights for exploitation of the image rights in a personal context.
In the majority of standard club playing contracts the player grants the club the right to utilize their image rights in a club context (including for club sponsors) provided that such use is limited to no greater usage than the average for all players regularly in the club’s first team. Clubs will often adopt a ‘rule of three’ approach whereby the player is always included alongside two other players in marketing materials and at appearances in order to try not to fall foul of the ‘average use’ requirement.
In addition, clubs will often enter into separate image rights agreements with players which gives them additional usage rights of the player’s image rights over and above those included within most standard from contracts (more often than not, always in a club context). By way of example, subject to some exceptions, this will often include the right to use players individually with club sponsors and not include any average use requirements.
The ability for brands to be able to use player image rights in their marketing and promotional materials often form a key part of any club/association/federation sponsorship deal. But what happens when personal deals and club/association/federation deals collide or where players refuse to undertake activities for club/association/federations?
We have seen some recent examples of this occurring. It is reported that Kylian Mbappe refused to participate in recent team photo and sponsor activities because he does not want to endorse some brands, including fast food chains and betting companies, under contract with the national team. We witnessed Cristiano Ronaldo remove a Coca Cola bottle during a Euro 2020 press conference. The media also reported several stories on Mohammed Salah’s alleged dispute with the Egyptian Football Association concerning alleged unauthorised use of his image on the Egypt national team’s plane for the Russia World Cup.
..when negotiating personal endorsement deals for players, ensure that both domestic and international club requirements (including sponsor requirements of such entities) are carved out from any exclusivity granted.
In order to try and avoid any potential pitfalls when dealing with player’s image rights, we often advise clients to be aware of the following:
when negotiating personal endorsement deals for players, ensure that both domestic and international club requirements (including sponsor requirements of such entities) are carved out from any exclusivity granted;
when negotiating sponsorship deals for clubs/associations/federations be careful not to over commit to specific players being available for appearances or endorsements;
when negotiating playing contracts and image rights deals with clubs:
protect the player’s personal deals (for example ensure any club sponsor conflicting with a personal sponsor can only be use the player in collective use rather than individually);
protect the player’s religious and moral beliefs to ensure the player has flexibility; and
protect the player’s ability to enter into future personal deals whilst ensuring club sponsor deals are respected.
We regularly advise players, clubs, and associations on playing contracts, image rights agreements, endorsement and sponsorship agreements and have several lawyers who have worded in house within football clubs and who are well versed in issues that can arise when image rights commitments conflict.
For further information,please contact Neil Morgan orHannah Edmondson.
Published in October 2022
