Form baseball to hockey, it's considered common knowledge that if you select an athletic career, you will only have a certain number of years before you "age out" of the sport. After this point, your career as a professional athlete is often considered over, meaning you will have to find alternative ways of making an income.
One way many professional athletes avoid the financial crash after retiring from their sport is to make endorsement deals during the height of their career. Also covered in one of our August posts, an endorsement tries to convince consumers to buy a product by using the athlete's image and popularity. If an athlete's public image changes negatively though, a company may be less inclined to continue an endorsement deal, as that athlete may reflect poorly on their company.
Such was the case back in August for UFC fighter Jon Jones who lost a potential six-figure endorsement deal with Nike after getting into a fight with another UFC fighter outside of a Las Vegas hotel. On top of losing his endorsement, the light heavyweight champion was also fined $50,000 for his actions.
Just like with any contractual agreement, there are usually terms within an endorsement deal that will allow a company to terminate an agreement before the contract is up. This appears to have been the case with Jones, who has not specified what the exact terms were for his endorsement.
To avoid the problem of losing an endorsement deal, it's important to understand all of the terms you are agreeing to before you sign a contract. This may be difficult to do without the help of a knowledgeable lawyer, which is why obtaining legal counsel before making a deal is generally considered a good idea.
Source: Fox Sports, "Jon Jones lost Nike endorsement as a result of brawl with Daniel Cormier," Damon Martin, Sept. 23, 2014