Endorsement Agreements and the Morals Clause

By Brian Socolow, Loeb & Loeb   Most endorsement agreements in which a company pays an athlete (or celebrity) to promote its products or services contain a “morals clause.” A morals clause allows a company to terminate, or otherwise take some corrective action against, an endorser who is tarnishing the company’s reputation based on some “immoral” conduct. This type of protection seems reasonable considering what a company invests and its goals in entering into an endorsement agree