Summary: The Indian sports endorsement sector has evolved from informal handshake deals to sophisticated, legally enforced contracts, driven by exponential growth in sports fandom, digital rights, and player recognition. Modern endorsement agreements require careful negotiation of product categorisation, exclusivity terms, social media deliverables, and provisions governing players’ personal choices to create resilient, commercially meaningful partnerships.
The Indian sports sponsorship and endorsement sector has witnessed exponential growth, with skyrocketing commercial values. This is augmented by the passionate rise in sports fandom, arrival of new-age sports, diversified formats, growing player recognition, acknowledgement of sports as a viable career option, and a plethora of new, tech-related exploitation rights, including multi-platform broadcasting and digital rights. The rising opportunities in this sector have opened the doors for brands and talent, old and new, to play the advertising game.
As the industry matures, so does the legal ecosystem around it . From days of no-contracts, handshake deals or ‘sign as-is’ deals, we now see awareness of legal rights and well-negotiated documents being concluded.
From images of players being used by brands for congratulatory purposes, to players engaging agents to manage their rights, including commercialisation of their image, protection of player’s right and player brand management has truly evolved. Legal assistance is also readily accessible, with active enforcement of rights being pursued expeditiously. Misuse or unauthorised use of player images to capitalise on “moment marketing” triggered legal notices during the Paris Olympics 2024.[1] Instances of use of player imagery beyond the contract term has also resulted in legal disputes, leading to the takedown of content. From Yuvraj Singh contesting post-termination usage of his image on grounds of infringement of intellectual property and personality rights,[2] to Puma taking down all promotional content featuring Virat Kohli post-termination, the industry and contracts have evolved.[3]
Contract negotiations, therefore, cannot be left to the very last moment. Brands, endorsers, team owners, and advertisers should pay attention to their contracts and negotiate the commercial and legal clauses carefully.
First up should be product categorisation. Often, brands operate as umbrella brands, encompassing several products within the same brand identity or name. While one would expect the endorsement to run across products, players may insist on exemptions, refraining from the usage of their name, image, and likeness for certain categories of products. It is, therefore, important for the agreement to clarify if the endorsement is for multiple products, a single product, or if there exists a ‘no-go list’. This helps avoid any future confusion.
Exclusivity during the term of the agreement, territorial exclusivity, post-term cool-off periods, and permitted post-term usage of endorsement materials are all critical components of a well-structured commercial arrangement. This becomes particularly significant when a player holds territorial exclusivity for one region, but participates in a match held in another territory, where the player may be endorsing a competing brand. Conducting due diligence on existing player endorsements, particularly those involving the same or similar product categories, and delineating territorial restrictions are essential commercial discussions to be addressed during the early stages of negotiations. Similarly, the agreement should clearly address the post-termination or post-expiry usage of pre-existing or archival material, including the scope and manner of permitted use, and an understanding of whether such usage would trigger additional payment or consent obligations.
Timing is critical in today’s fast-paced, social media-driven world. Clearly identifying social media deliverables, including specific platforms for posting, frequency and number of posts, content clearance, tagging requirements, creative control, and disclaimers should be agreed on, at the outset. Additionally, incorporating explicit compliance representations, including disclosure requirements under consumer protection laws and the guidelines issued by the Advertising Standards Council of India (ASCI), in relation to social media posts,[4] is essential for mitigating liabilities and avoiding statutory penalties.
A notable concept that has emerged in recent times is one connected with the personal choices of the players, and their impact on the commercial deals. Players exert significant sway over their followers, who often adapt their choices/ habits in their everyday lives. Brands cash in on this to sell their products to fans. However, the same dynamic can also create risks. For example, if a player expresses an opinion on social media that doesn’t resonate well with their fans, it can lead to backlash towards the player and potentially impact the brand. Therefore, an immediate suspension or termination of rights in such cases might be an important agreement ask, in addition to breach related termination rights. Similarly, personal choices of a player can also impact the brand, whether intentional or not, and create issues. For instance, a sudden retirement announcement could unsettle brands who were banking on the player’s continued presence on field. Similarly, seemingly small or innocuous actions can have larger consequences — the act of choosing water over Coca-Cola by Cristiano Ronaldo at the UEFA Euro 2020 press conference event led to a sudden fall in share price of the company.[5] Such precedents underscore the need for incorporating provisions governing a player’s personal choice of brands.
While these appear to be small matters, they dilute a sponsor’s investment and raise questions on the genuineness of the endorsement itself.
Endorsement deals cannot be viewed as ‘plug-and-play’ anymore. They are complex, nuanced, require specificity, and a balanced approach. With multiple stakeholder priorities, overlapping rights and various digital touchpoints, ambiguity can snowball into disputes. The way to get ahead is through thoughtful structuring, planning and disciplined execution. After all, specificity in these contracts is not just to avoid disputes; it’s to enable partnerships that are resilient, commercially meaningful and future-proof.
For further information, please contact:
Aarushi Jain, Partner, Cyril Amarchand Mangaldas
aarushi.j@cyrilshroff.com
[1] Manu Bhaker’s team sends legal notice to brands over ‘illegal social media activity’ | The New Indian Express
[2] Yuvraj Singh sends legal notices to real estate firms for privacy violation and delayed possession | Off the field News | Times of India
[3] RCB star to end INR 110 Cr deal, set to join start-up in historic move | Hindustan Times
[4] Paragraph 1.8 of Chapter I of ASCI Code
[5] Cristiano Ronaldo | Euro 2020: Cristiano Ronaldo sips water, Coca-Cola lose $4 billion fall in share price | Telegraph India
