Have you heard about the sports agent who obtained an endorsement for his pro athlete client, but the athlete had to pay money for the privilege of doing the endorsement, instead of the other way around?
A new mouth guard on the market, which retails for up to $800, is being presented as a performance boosting mouthguard. Among the endorsers of this product are All-Pro RB Adrian Peterson and NHL Hall of Famer Brett Hull. They not only endorse the product, they have invested in the company, Bite Tech, which manufactures the special mouthpiece.
The article raises two interesting points. First, should agents advise their clients to try new products if they are alleged to improve performance? (We will cover this in a future blog post; for now, consider whether a sports agent would be wise to recommend that his client try one of the new and improved hockey helmets)
Second, and more importantly, is this a good endorsement if the athlete is not paid anything? The article makes it sound like Hull, Peterson and the others who are involved aren't necessarily endorsing the product as much as investing in a business in which they believe. However, the article also contains this excerpt, which makes me think there is a little bit of a smoke-and-mirrors situation going on here:
But Bite Tech's biggest boost has come from its litany of athlete investors and users, a testament to Kittelsen's prodigious ability to work the room. For instance, Kittelsen first met Hull at Michael Jordan's golf tournament and later cornered him at a restaurant. Hull says it was his idea to invest in Bite Tech, which is precisely what Kittelsen wanted the hockey star to think.
"It has to be their idea," Kittelsen said. "If it's their idea, then they really believe" in the company.
So in other words, the founders of this company have essentially found a way to promote their product that is virtually revolutionary. Not only do they pay nothing to big-time athletes in exchange for an endorsement, they actually have convinced the athlete to pay the company for the privilege of endorsing! Brilliant marketing for the company, but for the agent and athlete, it may not be the smartest move. To be sure, if the product works and the business takes off, the athlete has made a good investment. But at what cost? A superstar such as Adrian Peterson has a brand to protect; he cannot be involved in just any random product. Now he is not only receiving nothing for an endorsement, he is actually paying this company for the privilege of serving as a spokesperson.