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Do Sponsorship Contracts Go Both Ways Between Athletes And Companies?

A few months ago when Tiger Woods got hurt I remember hearing a story on TV that some of his sponsors might consider dropping him. I actually thought that was odd and gave it some thought. I realize that companies and athletes have contracts and moral clause language in there that allows the companies to dump the stars and void the contract. Yes stars can be and have been dropped for a DUI, getting in a bar fight, dealing or using drugs and many other things.

My real question today is does it go both ways? Do you think there is language in the contract allowing the star to opt out if the company doesn’t do things the right way?

  • What happens if the company files bankruptcy?
  • What happens if the CEO embezzles money?
  • What happens if the company comes out with a new product and unfortunately a few people get really sick?

Since I am not a star and don’t run in those circles I really have no idea what goes into those contracts.

Do you have any insight on this?

My gut is that years ago contracts were probably one-sided and only protected the company but today I am not sure.

I look forward to reading your comments.

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