It seems unusual to most people that an athlete could earn more from endorsement, advertising and sponsorship deals than they actually get paid for doing the very thing that has made them so famous, but the reality is that it far from a rare occurrence. The greatest sporting figures are recognizable faces across the globe, as well known as the biggest movie or pop stars, and therefore it is not surprising that they are targeted by major companies and brands.
Furthermore, some sports do not pay their athletes as lucratively as you may think. Of course, the likes of soccer, football, basketball and boxing all pay their top athletes huge fees, but many of the athletes on show at the Olympics who compete in less watched sports which are not awash with cash do not always earn a great deal. As such, these athletes often rely on endorsement deals for a hefty chunk of their income.
It is interesting you say that because a lot of clubs now days actually get a portion of sponsorship deals that players are receiving, via their contracts. It is slowly become lucrative for the clubs as well. -Tyler W
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ResponderEliminarThis is very interesting because my favorite sport is golf. My favorite golfer is Phil Mickelson and I always see his KPMG sponsorship on his golf shirt. In addition, Phil always talks about his sponsorship with KPMG in interviews after his round. Also, Phil is often in many commercials, which is why 90% of his earnings come from sponsorship. Phil is currently sponsored by many companies including KPMG, Rolex, Callaway, and Enbrel. Attached is an interesting article that shows the difference between Phil Mickelson's salary/winnings and endorsements. Phil made $2.8 million in salary and $48 million in endorsements in 2015.
ResponderEliminarhttp://www.forbes.com/profile/phil-mickelson/
- Justin Conway
I do as well at first glance think it is ironic that many athletes make most of their money indirectly from their contracts with their respective clubs. The reality is that associating these players with certain brands can subconsciously make consumers decide what they are going to buy. If no one represents sierra mist but neymar represents 7 up, many consumers will buy the 7 up just because of neymar. The power of association and being comfortable with a brand is an interesting psychological matter to look into. The consumer market gives athletes so many opportunities to be exposed that it almost makes sense they can be more financially successful in that field rather than on the actual field of play.
ResponderEliminarI do as well at first glance think it is ironic that many athletes make most of their money indirectly from their contracts with their respective clubs. The reality is that associating these players with certain brands can subconsciously make consumers decide what they are going to buy. If no one represents sierra mist but neymar represents 7 up, many consumers will buy the 7 up just because of neymar. The power of association and being comfortable with a brand is an interesting psychological matter to look into. The consumer market gives athletes so many opportunities to be exposed that it almost makes sense they can be more financially successful in that field rather than on the actual field of play.
ResponderEliminarThe reason players can make more money off endorsements than their actually salary is due to certain sports having salary caps which ultimately limits the amount of money teams can spend on players. In addition, Huge companies like Nike and Adidas have a much larger revenue than football clubs and most sports teams which means they are able to pay athletes more and aren't restricted by things such as salary cap or spending limits and Financial Fair Play. In addition these companies are more willing to pay due to the revenue produced from associating themselves with top athletes. For example, Nike made $340 million dollars of Lebron James signature shoes alone.
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ResponderEliminarThis blog allowed me to start thinking critically about how these star players are commoditized by the brands that sponsor them. Although these players are the best at what they do, they are not simply reaping the benefits from their sport, but from stardom as well. Brands like Nike, Adidas, and Puma capitalize on the popularity of football stars like Cristiano Ronaldo, Lionel Messi, and Mario Balotelli respectively. The return on the investment of sponsoring such athletes is huge, as the market of fans of these players is massive. It is no wonder to me that these players make more from their sponsors than their performances on the pitch.
ResponderEliminar-Colin Zaccagnio
It is not surprising to me that top tier athletes make way more money from endorsements compared to their salary from their respective sport. It does not surprise me because in most sports there is some sort of salary limitation (salary cap or FFP). With regards to endorsements, the companies handing out the highest contracts have no restrictions and are making way more money than any sport team, which allows them to have a larger budget for sponsorships. Also, companies know that people feel more comfortable buying products or services from stars, so they use the on-field/on-court success to parlay these athletes into even bigger personal brands.
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