It’s a Deal--With Morals Clauses for Endorsers

How do companies that have spent millions of dollars in advertising on an athlete respond when that athlete’s image suddenly takes a turn for the worse? An increasing number of sports marketing consultants are advising morals clauses. Nova Lanktree, of Chicago-based Lanktree Sports Celebrity Network, says all the contracts she now negotiates for corporations with players’ agents have morals clauses in them. Many contracts also allow corporations great latitude in deciding when to cut an athlete off. They no longer are worded to go into effect only with a conviction, Lanktree said. The clauses go into effect for what is termed “embarrassing” behavior, she said. Over the last year, companies have taken a wide range of actions regarding endorsers who’ve received bad publicity. Fast-food chain Carl’s Jr. temporarily pulled a campaign featuring NBA bad boy Dennis Rodman after he kicked a cameraman. But Reebok International Ltd. kept NBA Rookie of the Year Allen Iverson on board after he pleaded no contest to an off-season weapons charge and a marijuana-possession charge was dropped.