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ENDORSEMENT CONSIDERATIONS FOR ATHLETE-FRIENDLY TECH

7/2/2014

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There has been an interesting trend in recent years of technology being developed for athletes. From simple pedometers, shoes that track your speed and distance, to equipment that monitors how you strike a ball, tech for athletes is becoming increasingly popular and mainstream. 

Perhaps you've seen the new Apple commercial below which has been airing frequently during the World Cup: 
What would a tech trend be without Apple's involvement? This video shows off several examples of how tech is integrating with athletes to help them hone their abilities. More importantly, the ad doesn't use any professional athletes, which highlights the wide reach of this tech trend.  

I admit, I love my Nike Fuelband. It loosely keeps track of my movement throughout the day to lets me know if I've been sitting at my desk for too long and need to hit the heavybag. And although I like to box, I'm not training to be heavyweight champion of the world. That's why this story caught my eye. 

A tennis racket has now been developed by Babolat which transfers to an app the strength of the racket's impact on the ball, the spin, and also counts the number of forehands, backhands, serves and overhands. More importantly, this racket was recently used by Julia Gorges during the French Open.

The tennis player, currently ranked 107th in the world, stated in the article that she is using the new racket because "sometimes you are in the emotions...and you sometimes lose the vision [to see] things." She is hopeful that her new tech will allow her to analyze and improve her game, and ultimately, her ranking. 

This kind of tech is exciting, as its entire purpose is to develop its users' abilities. It is easy to see that widespread accessibility to this 'athletic development' tech can potentially increase the level of competition in a sport. Athletes are continuously looking for an edge over their competition, and similar tech can help them achieve that. On the developer side, tech for athletes can be utilized by a large market, and opens up the possibility of high-profile endorsement with multiple methods of activation. Athlete tech is here to stay, and some of the companies involved in its development could find the area particularly lucrative.

Companies developing tech for athletes could engage professional athletes for endorsement opportunities, as Babolat has with Gorges. Such endorsement frequently occurs with products manufactured for athletes' use. For example, Major League Baseball players generally have endorsement agreements with their bat manufacturers. These professional athlete endorsements can have a marketing trickle-down effect to the athletes' fans.

Athlete tech can allow professional athletes to engage with consumers in new ways. For instance, Babolat's app that works in conjunction with the smart-racket could have a leaderboard for hardest swing or most revolutions on a ball. Or, even a way for people to send challenges or encouragement to one another, utilizing the racket's measurables. 

However, the more professional athlete involvement with the tech desired, the tighter the contract must be. Some things to consider include:
  • How frequently must the athlete post content about the tech (whether in an app or social media platform)
  • How frequently must the athlete interact with other users through the tech
  • The duration of the endorsement
  • Whether or not the athlete gets paid per content post
  • Whether the athlete receives any commission from the purchase of the tech during promotions under their name
  • Whether the athlete must utilize the tech in public

Of course, any time a company utilizes athlete endorsements, the contract should also have a broad morals clause for all the reasons outlined here. 

There have been many exciting developments in tech for athletes, and I expect the trend to continue.  Businesses in this niche industry could find professional athlete endorsements lucrative, but they must be specific in drafting such agreements. 



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