Why Nike suspended Deshaun Watson’s endorsement agreement instead of terminating it


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Nike has suspended its endorsement contract with Houston Texans quarterback Deshaun Watson, each CNBC. Before the suspension, 22 women filed lawsuits, and each woman accused Watson of sexual misconduct.

And so is Watson Under criminal investigation The Houston Police Department has not yet arrested or convicted him. However, it may not be important for a company like Nike to suspend its endorsement relationship with professional athletes.

Details of Watson’s contract have not been disclosed. In other words, Nike rarely negotiates the standard terms and conditions attached to its athlete recognition transactions. If the commercial value of athlete recognition and related services greatly weakens the athlete’s recognition, Nike can usually terminate the relationship between the brand and the athlete’s recognizer. Any behavior that shocks or offends the community, or shows contempt or disregard for diversity, public morals, or decent behavior.

To be clear, Nike has not announced the termination of the agreement with Watson. This may be because it has not been shown that Watson has done anything. In addition, if all the claims that have been made are cleared, the brand may still see the future value associated with Watson.

Nike said in a statement: “We are deeply concerned about the disturbing allegations and suspended Deshaun Watson. We will continue to monitor the situation closely.” As Nike pointed out, at present The claims against Watson are merely accusations. Therefore, during the suspension, Watson is likely to continue to be compensated by Nike. If Nike determines that Watson has implemented any alleged actions, the compensation may come to an end, which is likely to lead to the actual termination of their endorsement contract.


Darren Heitner is Heitner Law.He is the author How to play games: what every sports lawyer needs to knowPublished by the American Bar Association, he is an adjunct professor at the Levin School of Law at the University of Florida.You can contact him by email heitner@gmail.com And follow him on Twitter @达伦·海特纳(DarrenHeitner).


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