He had held a press conference to confirm that he had tested positive for the use of cocaine.
This reminds us of the importance when entering into any form of sponsorship arrangement of making sure we have the right to withdraw if something happens which we think might damage our reputation.
This applies equally to sponsoring the local rugby club as it does to sponsoring a major celebrity. In fact it applies to all forms of brand endorsement. It takes a lot of effort to build value in your brand: but severe damage can be done to the brand by a single incident.
Some commentators say that all publicity is good publicity. But if something happens that is contrary to your brand values or might alienate your customer group, you need to be able to distance yourself from it as quickly as possible.
Sponsorship deals are exciting and can be very valuable. But don’t get yourselves committed to them without considering the terms and in particular your right to withdraw.
Greenwoods’ Corporate & Commercial and IP teams prepare Essentials to provide you with a summary of recent developments in company and intellectual property law that are likely to have an impact on your business. To talk through any legal issues that arise call David Woods on 01733 887793 or email firstname.lastname@example.org