Darren Rovell has a very interesting piece on his blog that describes the development of Jack Marucci’s bat company, which has its products used by some of Major League Baseball’s best hitters.  Marucci’s clientele includes Pujols, Howard, Ibanez, and Teixeira…hitters who come to mind when you think of “power swing”.  I agree that it is interesting that Marucci has not paid any players to use his bats or endorse his product.  There is no stronger endorsement than a person using a product out of pure choice, with no monetary consideration involved in the equation.  It is also very rare that a professional would do this, and actually pay for the product (or have his team pay for it), instead of getting free product at a minimum (and possibly being paid to use the product, if it is a prominent player).

Not everyone has a product that players may willingly purchase, however.  With that statement in mind, I thought that this was a particularly telling part of Rovell’s piece:

As for whether big hits by players using his bats help out sales?

“We see it,” Marucci said. “Someone watches Jason Werth hit a home run last night. They see our logo in the paper or during the replay -– HD has helped us a ton -– and they find us.”

So while Marucci does not pay for this beneficial publicity, the quoted passage says a lot about endorsements, in general.  Players and fans have no idea whether Jayson Werth is paid to use the Marucci bat when he steps up to the plate, but they are paying attention to the equipment that successful players are using.  This should be of use to companies deciding whether it is worth it to supply free equipment to players and their agencies of record, in exchange for the use of such equipment in the hope that someone will notice it and possibly make a related purchase, or at least spread word about the company.  For the higher-end players, free equipment may not be enough, and actual payments to the player may be justified by the increase of exposure, especially in an era where practically everyone has an HD TV.

One benefit of going to law school is that you have the opportunity to take drafting classes, where you will learn tricks about terms to place in various types of contracts.  For instance, this past summer I took a class titled, Analysis and Drafting of Intellectual Property.  Our major project was a license agreement, with paragraph titles including, Payment of Royalties, Right of Appearance and Publicity, and Non-Endorsement of Competitors’ Products, all of which would normally be in any endorsement deal you strike for an athlete client.

Very rarely is a non-lawyer or law student exposed to a contract including these types of paragraphs, but today is your lucky day.  Dream Inc., a sports memorabilia company, terminated Brian Urlacher’s 4-year, $1.2 million contract just days after he suffered a season-ending wrist injury.  Urlacher’s attorneys filed suit against Dream Inc. last Thursday, hoping to get at least $600,000 in damages for Dream Inc. breaching the contract.

After a bit of scouring the web, I was able to find the actual complaint that Urlacher’s attorneys have filed, which may be read below.

The complaint is only 12 pages long, a breeze for any law student who is used to assignments six times that size.  Our main concern is looking at the terms of the contract he signed.  Unfortunately, I cannot get my hands on Exhibit A, which is the actual contract, but the complaint does tell a good portion of what is embodied in the personal appearances and authentic autographs agreement Urlacher signed.  Additionally, Darren Rovell provides a nice breakdown.

Why play in the MLS when you can play for Real Madrid?  Beckham joined the Los Angeles Galaxy in 2007, signing one of the biggest contracts in history. Beckham’s contract was worth $250 million dollars for 5 years, salary plus commercial endorsements. At the age of 31, he was earning $1million dollars a week playing in an inferior league where he was guaranteed playing time, plenty of media attention, and served as an icon for American soccer.

David Beckham’s priorities and commitments have been challenged by the media since his shaky return this summer. Despite being a member of the LA Galaxy, Real Madrid, and the England national team, he has remained poised. However, he has made it clear that his main objective at this point of his career is it to stay a part of the 2010 England World Cup squad.

J-Roll, former all-star and MVP, has been in a slump for the majority of the 2009 season. The Manager of the Phillies, Charlie Manuel, gave Jimmy six days off at the end of June so that he could physically and mentally rest. Jimmy took the time to work on his swing and mentally prepare himself for his return, which has worked out quite well for him. When Jimmy was inserted back in the starting lineup on June 30 against Atlanta, he went 0-5, trying to regain his timing. Two days later, on July 2, Jimmy signed with Red Bull.

Signing with Red Bull has rejuvenated Jimmy’s confidence in his swing and with his fans. Jimmy has gone 14 for 32 (.438), with 4 doubles, 1 homerun, 7 RBIS, and has an 8 game hit streak, his largest of the season. Much of this is attributed to Jimmy working on changing his swing to become more consistent and being more patient at the plate, with 7 walks since returning to the lineup. Jimmy is beginning to look more like the MVP player that he was in 2007, where he hit .296, with 38 doubles, 20 triples, 30 homeruns, 94 RBIS, and 41 stolen bases. J-Roll was a huge part of the Phillies’ success over the past few years and was an integral piece to the puzzle in the Phillies Championship run last season.

Jimmy’s first major and most publicized endorsement has also given him a huge confidence boost. J-Roll was welcomed into the Red Bull partnership by being driven in the Red Bull Military Extreme Truck to his rivalry game against the New York Mets on July 4. With the truck’s tinted windows, Jimmy stopped by fans’ tailgates at Citizen Banks Park, where he rolled down the window and surprised fans, signing autographs and chatting it up with them before being driven in the truck to the player’s entrance where he was greeted by more fans and media.

Rollins has always had love and respect for Phillies fans, and over the past few seasons he has become the spokesperson for the Philadelphia Phillies. In 2007, he declared the Phillies the team to beat in the NL East, receiving much criticism at the time from the media and reigning NL East champs, the NY Mets. But, boy did J-Roll and his Phitin’ Phills prove that criticism to be false, winning the NL East for the past two seasons, leaving the Mets in their dust, and bringing home the championship trophy last year. Rollins said: “[t]his is exactly what I was looking forward to when I signed with Red Bull. Not only am I a huge fan of the drink, the Red Bull world is never dull and constantly keeps me on my feet — I look forward to a great partnership with them.”

Jimmy joins a lineup of champions such as Olympic Beach Volleyball gold medalists Todd Rogers and Phil Dalhausser, the NFL’s Reggie Bush and Devin Hester, the NBA’s Rajon Rondo, Motocross Champion James Stewart, X Games Champion Shaun White, and World Record holder Robbie Maddison to name just a few. Red Bull has long been a loyal supporter of top-tier sports, such as NASCAR, Formula One, NFL, NBA and MLS, as well as action and adventure sports. Can J-Roll’s rejuvenation at the plate lead to more MLB players endorsing Red Bull? That is something that only time can tell, but if Jimmy’s new approach at the plate is any indication since signing with Red Bull, all signs point to YES.

This guest contribution was brought to you by Ryan Richman.  Ryan writes at the new EntertainmentAgentBlog.com.

Riddell, a current Rugby League player and Spriggs, a former AFL footballer took on the Australian Tax Office (ATO) arguing that the money that athletes pay to agents for their services should be tax deductible.

Riddell employed the services of SFX Management Group for his 2005-2007 contract, paying a 7% fee on his performance contract and 20% on his media and other contracts. Spriggs hired Connors Sports Management paying 3% of his performance contract and 20% of his other contracts.

In basic terms, under current taxation law, cost incurred by the payee in generating assessable income can be claimed as deductions on his/her tax paid. Riddell and Spriggs argued that their cases should apply due to employing a sports agent to handle their contract negotiation in regards to playing, media and sponsorship.

The conclusion was made that these costs were related to the players gaining assessable income and therefore should be able to be claimed as a deduction on their tax.

I am unsure of other countries’ tax laws, but this makes perfect sense. In other professions, if you undertake expenses directly related to the income you earn then you can claim these back. If a company hires a consultant to advise them on certain business decision,s that expense is tax deductible, so why should this be different?

So what are the implications for Athletes and Agents? Well, athletes will now have a few extra dollars in their pockets, resulting in a better lifestyle for them. As for Agents, it could be a selling point as their cut being justifiable. Not to mention, it may convince some players without an agent to start looking for one.

Stay tuned-prepare for SHAQ to “enlyten” you!!!

4:19 PM Mar 26th from TwitterBerry

Just like that, Phoenix Suns big man and social networking all-star Shaquille O’Neal made sports marketing history. By using Twitter, Shaq bypassed traditional media outlets to let his 500,000-plus followers know directly about his new endorsement deal with Enlyten, a maker of dissolvable mouth strips that provide athletes with electrolytes.

Shaq is one of the many celebrities to connect with his fan base via Twitter, the newest craze to sweep through cyberspace. The site allows its users to read and write a string of small updates (known as tweets) that, in turn, forms a mini-blog. For celebrities, Twitter can serve a higher purpose. It allows the stars to have genuine contact with their followers and offers greater control over their image. “People want to know about celebrities as people,” says O’Neal’s media consultant, Kathleen Hessert. “Those celebrities willing to share and do it authentically, those are the people who are going to engage fans in a way that builds their brand and perpetuates sponsors, and creates a kind of affinity that’s hard to beat.”

No one knows the impact social networking will ultimately have on the way we communicate. For now, Twitter remains the buzz of the internet community and has been a Shaqtastic way for one of the NBA’s biggest personalities to keep in touch with his fans.

Bryant, who already has deals with Coca-Cola Co. and Nike Inc., is now teaming up with Madrid-born watch-maker Ivan Castro to sell a Kobe-inspired line of Swiss watches for Nubeo, The Wall Street Journal reports.

A limited number of watches in The Black Mamba series will be produced with a reference to Bryant’s nickname. The high-end time pieces will range from $21,000 to $285,000 across three different versions: standard, ultimate, and MVP. There will be 810 standard version watches released, 240 of the ultimate, and 24 MVP watches with the two higher models adorned with a varying amount of black sapphires. The 810 release number is a reference to the 81 points Bryant scored against the Toronto Raptors in January 2006 and the 240 and 24 release numbers both allude to Bryant’s jersey number.

The line will hit the U.S. market in the fall, which will also be Nubeo’s first American appearance, coming at a time when global luxury consumption continues to drop. The company, though, is planning a series of print and TV ads that will run around the release date. The partnership between Bryant and Nubeo will extend until 2010, with the option to continue beyond that year.

Bryant, a watch enthusiast himself, has taken an involved stance in influencing the watch’s design. He feels that there are similarities between the watch and Bryant’s on-court play, in that there are many unseen intricacies.

Whether the line will find success remains to be seen, but Bryant’s partnership with a luxury item, which generally remains reserved for tennis and golf stars, proves his worth as a marketable athlete. Bryant has made a huge comeback following the trial of his accused felony sexual assault charge which saw Kobe lose many of his endorsements.

Bryant continues to make his mark as a trendsetter. How an NBA player’s influence will affect a declining luxury market is something to watch for and could dictate future deals for the international superstar.

Braun is quickly becoming a star and a fan favorite since entering the league in 2007.  He won the NL Rookie of the Year award in 2007, and came in third in the voting for the 2008 NL MVP.  Braun has kept his agent Nez Balelo (CAA) busy.  During the 2008 season Balelo negotiated an 8-year contract extension with the Brewers, allowing the potential superstar to earn between $45 and $51 million.  In addition to the recent AirTrain deal, Braun has been involved with several other off-the-field opportunities.  The slugger is currently working to develop his own line of aluminum bats, and is developing his own t-shirt line with Affliction Clothing, a company owned by a pair of his friends.  He also has an endorsement deal with Remington, which allowed him to shoot a viral video with supermodel Marisa Miller.

AirTran has recently been working to increase its presence in the Milwaukee region; General Mitchell International Airport has been made a focus city of the airline.  Part of their marketing push has been via the Milwaukee Brewers.  The company recently brokered a deal with Braun’s team for the naming rights for the right field picnic area.  This seating zone will be called the AirTran Airways Landing Zone for the 2009 season.  The airline also has endorsement deals with Donald Driver, Danica Patrick, and Matt Ryan.

In every generation, one athlete makes a bold move, laces up a new pair of shoes never seen before, and does something that turns the footwear industry on its head.  In 1936, Adi Dassler came to the Berlin Games with a suitcase of track spikes and persuaded Jesse Owens to give them a try.  When Owens won 4 gold medals, he was catapulted to superstar status along with the adidas shoes he was wearing.

32 years later, when Tommie Smith took the 200M gold in the 1968 Mexico City Olympics, he stood on the podium with a clenched fist high above his head and a pair of Puma suede shoes at his feet.  Walt Frazier would also don Puma shoes that year, triggering a fan base a million strong to follow “Clyde’s” impeccable style.

On the heels of Michael Jordan, basketball-newcomer Nike soared past the competition in 1985 with the release of the Air Jordan line.  As we approach the silver anniversary of MJ’s grand entrance into the NBA, Nike still reigns supreme in the sporting goods industry.  History tells us that can change instantly when a star athlete bucks the norm to begin a different movement.  The next seismic shift in the shoe landscape could be on the horizon, or overseas to be more exact.

Brandon Jennings has been a trendsetter since he skipped out on college hoops to play professionally in Italy for his “purgatory year” between high school and the NBA.  On the business side of the game, Jennings signed a deal to be Under Armour’s first basketball endorser.  The Maryland-based company is betting millions that Jennings can be a catalyst for a new generation of shoes and are promoting Brandon with his very own website (wheninrome.underarmour.com) and the “Young Money” prototype kicks that have all the sneaker blogs buzzing.

The Under Armour of today parallels the pre-Jordan Nike in many ways.  Both built strong brands in other markets (Under Armour in performance apparel and football, Nike in running) before breaking into hoops.  To gain entry into the lucrative basketball shoe market, they signed young standout players on the cusp of entering the league.  Both Jordan and Jennings were innovators mentored by the sneaker guru himself, Sonny Vaccaro.  Will the similarities end there?  We won’t know for some time, but the battle over the feet of ballplayers and the thousand of kids that follow their steps is overdue for the next big shoe craze.  Maybe the next big shoe tagline will read, “Be Like Brandon.”

Book to Read:  Sneaker Wars by Barbara Smith (http://www.amazon.com/Sneaker-Wars-Brothers-Founded-Business/dp/0061246573)

Article to Read: The Last Don by Ric Bucher (http://espn.go.com/magazine/vol5no23vaccaro.html)

But IMG and its clients might come away from this potential scandal unscathed.  A few Boras clients may have tougher obstacles to overcome.  Johnny Damon, Xavier Nady, and Mike Pelfrey have had their bank accounts frozen by the federal government as part of the investigation surrounding Stanford.  Damon can’t even pay his off-season trainer.  Matt Wieters and Jake Arrieta, two minor league Boras clients might also be affected.  But Scott Boras will take care of his boys in the meantime, so don’t get any hopes of catching Pelfrey on your neighborhood park bench anytime soon.

A struggling economy, a financial advisor engaged in fraud…what doesn’t have a resounding effect on the sports community now-a-days?