Source: https://www.pexels.com/photo/person-swimming-in-body-of-water-1263348/

From Michael Jordan to LeBron James, sports stars always seem to have some kind of affiliation with a brand, or multiple brands. But how do these marketing and endorsement deals actually work? And why is this such a popular thing to do? If you've ever been curious about these partnerships between the sports industry and corporates, here's the lowdown on how it all works.

In order to become a professional athlete, there are many sacrifices that must be made. In addition to dedicating countless hours to training and practicing, athletes must also agree to various marketing commitments. This is either because they are contracted to do so, or because they need the additional income to pay for their training and team. These deals can take many different forms, but the goal is always the same: to create exposure for the product or company.

Marketing deals and endorsements are just one part of the complex ecosystem of the sports industry. Sport simply couldn't exist without a corporate backbone, and generating income within the industry is all helpful to keep the sports we love continuing. Everything from the sale of sport merchandise to online NFL betting contribute to the wider industry. So although some people might be confused by the partnerships that spring up between sports professionals and companies, it really is a modern day necessity of the sports world.

So what are some of the different types of marketing deals for sports players?

Product Endorsement

The most common is probably product endorsement, where the athlete agrees to promote a product in some way. This could involve wearing a company's clothes during games, using their equipment, or simply talking about how much they love a product. Product endorsement is effective because it creates a connection between the athlete and the product, which can then be transferred to the consumer. An example of a product endorsement in the sports world is LeBron James' partnership with Nike.

Brand Ambassadorship

Another common type of marketing deal is brand ambassadorship. This is where the athlete agrees to represent the company in a positive light, and often involves attending events or making public appearances on behalf of the brand. Brand ambassadorships are often used to target a specific demographic, and can be very effective in raising awareness for the company. An example of a brand ambassador in the sports world is tennis player Rafael Nadal's partnership with Tommy Hilfiger.

Sponsorship

Sponsorship is another type of marketing deal that is common in the sports world. This is where a company pays to have their name or logo associated with a team or athlete. This type of deal is usually done at the team level, but can also be done with individual athletes. Sponsorship is a great way for companies to get their name out there, and to associate themselves with a particular sport or team. An example of sponsorship in the sports world is the partnership between Adidas and Manchester United.

Sponsorship Bonuses

In some cases, athletes may also receive sponsorship bonuses. These are usually given to athletes who achieve a certain goal, such as winning a championship or setting a new record. This type of bonus is a great way for companies to show their support for the athlete, and to encourage them to keep up the good work. An example of a sponsorship bonus in the sports world is the bonus that Michael Phelps received from Speedo for setting the world record in the 100 meter butterfly.

Speaking Engagements

Many athletes also make money from speaking engagements, where they are paid to give a talk or presentation to a group of people. This is usually done in conjunction with promoting a product or company, but it can also be done simply to motivate and inspire people. Speaking engagements are a great way for athletes to connect with their fans, and to make some extra money. An example of a speaking engagement in the sports world is when Olympic gold medalist Michael Phelps spoke at a conference for Under Armour.

Appearance Fees

Appearance fees are another way that athletes can make money from marketing deals. This is where an athlete is paid to appear at an event or function they wouldn’t normally go to. An appearance can last for a few hours, days or weeks. Appearance fees can be a great way to generate income, but they often require the athlete to be away from home for long periods of time. An example of an appearance fee in the sports world is when Tiger Woods was paid to play in a golf tournament in Dubai.

Exhibition Match

An exhibition match is a type of marketing deal where two athletes or teams play each other in a match that is not part of a regular season or tournament. Exhibition matches are often used to promote a product or company, and can be a great way to generate interest in a particular sport. An example of an exhibition match in the sports world is when the US Men's National Soccer team played an exhibition match against Argentina.

As you can see, there are many different types of marketing deals that sports players can enter into with companies. These deals can be very beneficial for both parties, and help to create exposure for the product or company.