The Essential Legal Guide for the Professional Wrestler

Like other professional athletes and entertainers, the career of a professional wrestler is relatively short. Therefore, a wrestler has a limited amount of time to capitalize on his visibility and popularity.

By definition, an endorsement contract is an agreement in which a wrestler licenses (i.e., gives) to another party the right to use the wrestler’s name, likeness, and/or image in connection with the advertisement of products or services.

There are numerous types of endorsement opportunities. Very few professional wrestlers achieve the level of stardom and public recognition necessary to attract endorsement offers from corporate giants such as McDonald’s, Ford Motor Company, Nike, Goodyear, and others. However, those few who reach this level can earn a lot of money (much more than they will ever earn wrestling). Still, regional and local endorsement opportunities exist for wrestlers with the right look, image, and appeal. Described below are just a few kinds of marketing opportunities and relationships which could be financially rewarding to professional wrestlers:

a. Cameo roles. These are advertisements where the wrestler endorses a product or service without any direct sales pitch or endorsement. The famous "Got milk?" ads featuring well-known personalities pictured with milk mustaches are examples of cameo roles.

b. Integrated Relationships. These are broader and longer-term contractual relationships where the wrestler acts a spokesperson for some or all of a company’s products or services.

c. Direct Product Licensing. These are contractual relationships where the wrestler endorses a product by lending his name or face to the product, e.g., Joe Montana autographed footballs.

d. Testimonial Endorsements. These are contractual relationships where the wrestler endorses a product or service by using it, either in commercials or during wrestling matches.

e. Merchandising. These are contractual relationships, typically with marketing firms or distributors, whereby the wrestler gives someone else the right to use his name and likeness on posters, T-shirts, action figures, etc.

f. Personal Appearances. These are contractual relationships whereby the wrestler agrees to attend a private party, grand opening, or other corporate event to greet fans, sign autographs, give a speech, etc.

g. Memorabilia Shows. Typically the domain of current and retired baseball and football players, sports card and memorabilia shows can be lucrative opportunities for professional wrestlers. Fixed fee or royalty arrangements based upon the number of autographs signed are two common compensation formulas for this kind of endorsement opportunity.

Making commercials and endorsing everything from athletic shoes to stock brokerage firms is not all fun and games. There are potential risks involved by endorsing products and services over which the professional wrestler has no control. The basic rule is that a professional athlete, entertainer, or other public figure who endorses a product or service must honestly believe what he is saying or he must actually use the product or service he is endorsing. The purpose of this requirement (which is codified in a federal regulation) is to protect consumers from false, deceptive, and misleading advertising. If you are found to have participated in a false or misleading advertisement, the offending ads could be pulled and/or you could be fined by the Federal Trade Commission or state authorities.

Described below are some important provisions of a typical endorsement agreement:

a. Endorsed Product or Service. The contract should clearly identify what product or service the wrestler is agreeing to endorse. The wrestler does not want to inadvertently prevent himself from entering into endorsement deals with other companies by agreeing to an overly broad exclusive arrangement with one company. In other words, it is always in the wrestler’s best interests for the contract to narrowly and specifically define the products or services involved.

b. Contract Territory. Because of the international nature of the wrestling business, endorsement contracts for purposes of exclusivity in a territory will likely cover the entire world. However, in some cases, a wrestler will only have a regional or local fan base and, therefore, geographic limitations need to be further restricted in the contract so as not to preclude other opportunities in other locations. A wrestler never knows what territory he will be working in from month to month or year to year, thus he should keep as many options open as possible.

c. Grant of Rights. As part of the contract, the wrestler will grant certain rights to the company concerning the right to use the wrestler’s name and image. Common language includes "the right to use the name, nickname, stage name, initials, autograph, facsimile, signature, likeness, photograph, and endorsement."

d. Warranty. As part of a typical endorsement contract, the wrestler will be asked to warrant or certify that he is not bound by any other agreement for the endorsement of products or services which would limit or prevent his performance of any of the obligations under the contract with the company. If a wrestler is under contract with either WCW or WWF, his ability to enter into an endorsement contract will likely be greatly limited without the prior written consent of WCW or WWF.

e. Non-Compete Clause. As part of a typical endorsement contract, the wrestler will be asked to agree not to endorse any competing products or services during the term of the contract, including products or services that would be contradictory to the endorsed products or services. For example, a contract whereby a wrestler acts as a spokesperson for the American Heart Association might prohibit the wrestler from endorsing a brand of cigarettes.