Where: 14 Vesey Street, New York, NY.  See map.

When: Wednesday, March 11, 2009 – 6:30 p.m

Subject:

A forum on the representation of athletes in individualized (as opposed to team) sports in negotiations and maintenance of endorsement and sponsorship deals will take place.  Among the topics to be covered are the recent Michael Phelps and Alex Rodriguez scandals and how to handle such matters as they pertain to endorsements and sponsorships, as their attorneys.

Moderator: Paul Stuart Haberman, associate, Heidell, Pittoni, Murphy & Bach, L.L.P.

Speakers:

• Elizabeth Durkin, partner, Durkin & Durkin, LLP
• Mike DiMaggio, associate, Collins, McDonald & Gann, P.C. and former executive director of the United Supplement Freedom Association
• Christopher Chase, associate, Frankfurt, Kurnit, Klein & Selz, P.C.
• Scott Shaffer, member, The Lustigman Firm, P.C.
• Keven Davis, partner at Garvey Schubert & Barer and attorney for the Williams’ sisters

Cost: Must register.  Email dlamb@nycla.org and write ‘March 11 forum’ in the Subject line.

That his image was hurt beyond repair?  Probably not.  Sullivan is a pro at damage control and mentioned that Michael Vick is a prime example of what not to do when faced with an accusation that cannot be avoided.  Instead of deny, deny, deny or totally keep your mouth should, admit that you did something wrong, apologize for the action, and promise (and follow through with the promise) that it will not happen again.  Do this as soon as possible.  While all of us think that Phelps is an idiot for allowing a periodical to take a photo of him smoking marijuana (I’ll leave it up to you to decide if he should or should not be smoking marijuana in the first place), he and his advisors were smart enough to institute strong damage control measures immediately after the pictures hit the newsstands, airwaves, and the blogosphere.  Here is the official apology from Phelps:

“I engaged in behavior which was regrettable and demonstrated bad judgment. I’m 23-years-old, and despite the successes I have had in the pool, I acted in a youthful and inappropriate way, not in a manner that people have come to expect from me. For this, I am sorry. I promise my fans and the public – it will not happen again.”

Because of the quick response by Phelps, I believe that he will still be marketable for years to come.  He will also benefit from instituting corrective measures like reaching out to troubled youths who smoke marijuana regularly, donating to charities, performing philanthropic work, etc.

My intention in this post is not to give athletes a Don’t Go To Jail card, allowing them to participate in illegal and immoral conduct and escape any negative ramifications.  Instead, it is to inform athletes and their advisors that people slip up, all of us make mistakes, and it is important to prepare for those potential mishaps before they happen.  Phelps and his team were well prepared for this potential image ruiner, and seem to have attacked the situation as best as they possibly could.

Phelps will also be helped out by the fact that the photos broke a couple of days before the Super Bowl.  It got a couple of days of press over the weekend, but now everyone has moved on to the amazing game between the Steelers and Cardinals, Kobe’s miraculous performance vs. the Knicks, etc.  Phelps and his team should be very happy and realize that they got lucky as well.  Most importantly, Phelps needs to use this as a learning experience.  One stupid move means a lot more to Phelps than it does to most of us.  It is nice to see the IOC and many of his sponsors sticking behind Phelps after his comments.  Phelps may no longer be projected to make $100 million in endorsements.  Maybe now it will be $80 million.  It is still better than the huge decrease that could have resulted had his team acted improperly after the images of Phelps smoking marijuana hit the general public.

PureSport was not only smart enough to snag Phelps as an endorser of its product prior to the 2008 Olympic Games, but additionally gave him and three of his swimming teammates a five-percent share in the company.  Want an athlete to truly care about the product?  Give him a stake in it!  Sports Authority now carries PureSport products, and a big reason for that is the exposure that the sports drink company gets by being aligned with Phelps.  Smart move by a smaller, new company looking to make a name for itself.  So which company is going to be the first to jump on an opportunity to have its large logo right in the middle of a guy like Norm Duke or Robert Smith as they bowl in championship after championship on ESPN?

Football

• Clark Judge of CBSSports.com thinks that Tom Condon has a chance at being the next NFLPA Executive Director [Next union leader would be wise to learn from Upshaw's legacy].
• Matt Ryan leads the list in terms of guaranteed money [2008 NFL Draft - First-Round Selections - Contract Terms].
• The 33-day holdout is over [Harvey's deal with Jaguars could be worth $30 million].

Basketball

• New Carnival of the NBA with lots of pics of the Joker [Carnival of the NBA #59 : We're all Jokers].
• Another player jumps overseas…for his shoe deal [Jason Kidd Leaves Nike - Signs with Peak].
• Something just seems awfully wrong with looking at Marbury’s name sitting at #2 [NBA - Top Player Salaries For 2008-09 Season].

Olympics

• I would have put Lezak higher than #25 [Beijing Wrap-Up: The 25 Most Marketable Olympians].
• Michael Phelps will be making a cameo appearance on Entourage [My Michael Phelps All-Access Day].

Baseball

• True Religion is TOTALLY cooler than Seiko [Giants' Zito has new role: male fashion model].

Bolt astonished everyone breaking world records in both events. Usain is doing in the second week of the Olympics what Michael Phelps was doing during the first week, dominating and making a name for himself. Usain become the first man since Carl Lewis in 1984 to sweep the 100 and 200 golds at an Olympics. Bolt also broke another American’s record (Michael Johnson’s) in the 200m from the 1996 games. Usain seems confident and has a great attitude with the media, saying, “Michael Johnson is a great athlete, and he revolutionized the sport. I just changed it a little bit.”

Bolt changed the sport, simply by winning both races in world record times. Some call the sight of him running, poetry in motion, and believe he is extremely elegant to watch. At 6′5 he is a rather tall sprinter but has none of the awkwardness of other taller sprinters of the past. He uses his huge 9-foot strides for his benefit much like Michael Phelps, Darren Heitner’s man crush (hahah), uses his long strides and perfect turns to his advantage. He really is a bolt of lightning, with a badass attitude.

Even though there is a small window for swimming to catch mainstream America and the rest of the world’s attention, many, including myself, believe that Phelps will be one of the highest paid athletes in terms of endorsements for at least the next five years. Personally, I think Carlisle needs to forego sleep and start racking up the deals right now, while Phelps still holds the spotlight. He still has about another two weeks before he begins to fade a little. Phelps will go to England to help “begin” preparations for the next Summer Olympics at the conclusion of the Beijing Games and then will hit the late night and early morning TV circuit. Now is when Phelps will receive his largest endorsements.

Phelps automatically will receive $1 million for winning more than seven gold medals. Speedo guaranteed the prize money prior to the Games. Phelps ended up adding one more to his belt just for fun, finishing with eight golds. Tiger Woods makes about $100 million annually from prize money and endorsements. Phelps will never see that kind of money, but his agent says that over Phelps’ lifetime, the swimmer will receive roughly what Tiger makes in one-year, which is extremely impressive for a guy who makes his living in a pool. Some say $100 million is an aggressive number for Carlisle to put out there. I think that it is rather modest. Phelps was making about $5 million per year before he completely took the world under his broad shoulders this summer. Within the next year alone, his income from endorsements should at least triple, especially if a bidding war erupts between Speedo and Nike. Even Phelps’ mom is getting endorsement opportunities.

Cash in now, young man, but play it smart. You have many years ahead of you where you have potential to make big money. If Carlisle aligns his client with the right sponsors, he will undoubtedly makes Phelps a nine-figure swimmer.

If Phelps does capture 8 gold medals and breaks the record for the most gold medals in a single Olympics, he will undoubtedly become one of the most sought after athletes from a marketing standpoint.

Now, some may say there is no way an Olympic athlete who is only in the limelight every 4 years will receive endorsement deals equal to the main stream superstars. Well those people are very wrong. Phelps has two unique factors that separate him from most of the stars in Nascar, the NBA, NHL, MLB, NFL, golf, and tennis. Phelps is not only backed by an entire country, but he is also known worldwide. He is a symbol of dedication, success and dominance.

Athletes that have worldwide recognition are few and far between. Tiger, Beckham, Lebron, and Federer are certainly the cream of the crop. But I wouldn’t be surprised if Phelps soon finds himself among that company. The $5 million a year that he currently receives certainly can double when these Olympics conclude and the countdown to 2012 begins. When Michael Phelps calls it a career, he will go down as of the highest endorsed athletes in sports history.

The endorsement industry has certainly come a long way when you have an Olympic swimmer making a splash. His agent, Peter Carlisle, has made a name for himself in the niche market of action sports. Some of his other clients include Kelly Clark, Ross Powers, Danny Kass and Chris Klug.

Mr. Carlisle will certainly be a very busy man in the near future.

Basketball

• Shawn Kemp sits down for a one-on-one interview.  Discusses everything from loving the feeling of slamming on opponents to dealing with drugs [Shawn Kemp: Confirms Rumors].
• CAA would make a cool $5 million per year if this ever happened [Source: LeBron would consider European offer of $50 million a year or more].
• And Rob Pelinka would make the same type of commission on this deal [NBA’s Worst Fears Realized: Kobe Would Leave to Play in Italy for $50 Million a Year].
• This should be a big signing if the 76ers are also able to lock up Andre Iguodala [76ers re-sign free agent guard Louis Williams].
• I find it interesting that Self’s base salary is only $229,900, but in actually, he should earn so much more [Kansas signs Self to new 10-year, $30 million contract].
• The Chinese continue to show love for Kobe Bryant [Best Selling NBA Jerseys In China].

Football

• An example of why an agent is so important in the negotiation process [Grant ends holdout, agrees to terms on 4-year deal with Pack].
• Former NFL player and future 1L law student, Courtney Van Buren, has a blog.  I suggest you check it out [Country As Cotton].

Baseball

• He is the only reason my fantasy team is not in dead last [D-Backs sign Haren through 2012].

Olympics

• Speedo should give Phelps $1 million just for shaving off the handlebars [It's All Speedo's Cash For Michael Phelps].

Since the LZR hit the market, 48 of 52 world records have come in the suit. All nine-world records set at the U.S. Olympic Trials were from swimmers wearing the Speedo LZR.  Many of the top athletes around the world are wearing the LZR racer or have switched to it.  This swimsuit is the equivalent to steroids in baseball, however the suit is legal.  Athletes that do not wear the suit have stated that they feel at a disadvantage.  The record times by athletes wearing the suit only prove these statements to be true.

The fact that the worldwide leader in sport shoes and apparel is allowing its sponsored athletes to don the Speedo brand at the Olympics is a big deal.  Nike pays its athletes millions of dollars (LeBron James was paid $90 million before he even played a game in the NBA).  The Olympics are a HUGE stage for all athletes and companies like NIKE.  The fact that Nike is giving sponsored athletes the choice to wear another brand shows the humane side of the billion-dollar big business.  Nike is putting aside its high priced contracts and will be losing plenty of airtime for the swoosh, but will be allowing many athletes the opportunity to creep closer to their Olympic dreams.

Nike spokesman Dean Stoyer said, ”Nike is a company that exists to serve athletes – hence this limited exception to allow Nike swimmers to compete without distractions was the correct thing to do given the very unique circumstances.  No one believes more than Nike that innovation is integral to helping athletes realize their full potential.”

The fact that the athletes are giving the Speedo suit such high praise is rather alarming, even though the world’s records are backing it up.  Usually athletes are the first ones to claim that it is their training or their bodies that break these world records, not a newly designed piece of fabric.  If this suit really gives that much of an advantage to athletes in the water, how is it fair to the athletes who do not wear the LZR racer?  Will we be looking back at swimming in the Beijing Olympics like we look back at the steroid area in baseball?

The Speedo LZR racer costs anywhere from $550-$850 dollars, but it is not out on the market yet to the American public.  With the results that individuals wearing the suit have posted so far, it is likely that we will see an entire field of racers wearing the suit.  The Olympics are only days away and I am excited to see how many swimmers wearing this suit will win gold.  Michael Phelps will be wearing the LZR racer in his attempt to win 6 Gold Medals.  If Nike is letting its athletes switch, I can only guess other sponsors will do the same.

Also known as “doping on a hangar” and the “Speedo surfboard,” the Speedo LZR was first introduced in February.  Within four months, individuals wearing the new suit had broken over 38 records causing other swimsuit companies to immediately complain about its fairness. The International Swimming Federation (FINA) scheduled a meeting with Speedo to review this complaint.  After showing the Federation the suit’s design and explaining its physics, FINA dismissed rivals’ claims and even endorsed the suit to athletes as the future of swimwear.  Could this be swimming’s version of “steroids?”

Since this ruling, more swimmers have taken FINA’s advice.  Last week’s Olympics Trials saw 9 swimmers break American records, all of whom wore the LZR Racer.  Michael Phelps, who could win a record eight Olympic medals in China, stated that Speedo’s LZR Racer makes him “feel like a rocket.”   Katie Hoff, a world champion in individual medleys, said wearing the suit is like “flying in the water.”  US national team coach Mark Schubert commented, “I think you’ll see not only multiple world records broken, but also multiple swimmers breaking world records in an event.”  Everyone is giving this new innovative suit the credit.

Nike was so impressed by the LZR suit that it allowed its contract swimmers to wear the LZR in trials to keep up with other competitors.  Nike sponsored World champions like backstroker Aaron Peirsol and breaststroker Brendan Hansen, did exactly that, and set American records.

“It’s a bit unprecedented,” said Nike spokesperson Dean Stoyer, “But we want our athletes to be comfortable and prepared, and we don’t want to get in the way of that.”  Nike makes the rival Swift Amp’d swimsuit and is looking to copy the LZR suit and its effectiveness to compete with Speedo in the future.

The suit is made of woven fabric, which is extremely light and water-repellent.  It is ultrasonically welded together rather than sewn, with compression panels placed along the chest, thighs, and buttocks, plus a corset-like “core stabilizer” to minimize drag and maximize streamlining.  This new design features minimal pieces to be sewn together, which is a huge attribute to its speed and lightweight design.  Instead of 30 pieces or so, the LZR features 3.

While watching the Olympic trials I heard an announcer say that it takes 2 other people to help an athlete fit into the skintight suit.  The athlete must get completely naked and then force on the suit one piece at a time, with help from others. That seems to be the only controversy this suit is getting.  The athletes are complaining that it is an uncomfortable situation needing others to put on the suit, but wearing it is a must if they want to be competitive this August.

I am happy that technology has advanced to the point that we can take milliseconds off our athletes times.  However, I would like to question if this is really the swimwear or if it is the athletes. I have heard of cases where the athlete claims their clothing is the reason for his/her poor performance, but I believe that in this case it is exactly the opposite.  I’m sure the advanced swimsuit is great and makes a big difference, but shouldn’t the athletes be getting the credit, not the $800 dollar swimsuit?