NationStates Jolt Archive

I have a good friend of mine approached by a agent of a local sports player with an interesting business proposition. The business in question is a nice restaurant in the area next to the MLB and NFL stadiums in Seattle. The restuarant does decent but should be doing better considering their outstanding food. The agent proposed that my friend give up a 20% stake in his restaurant that he owns 50/50 with another business partner. The catch would be that he wouldn't be paid to turn over this 20% but be paid with a sports celebrity endorsement of his restaurant. He also suggested that this player would come to the restaurant after home games to give his presence and make it his "favorite" restaurant of choice. He also mentioned that he would drop the name in interviews after games and the like.

The question he had to me and I will pose to you all is what do you think?
I told him it may be worth it due to the increased traffic of having this players name attached to his restaurant. After all publicity and advertising can be very expensive.

How locked in is the player to that team? It won't do him much good if the player leaves for another team in the next few months.

How locked in is the player to that team? It won't do him much good if the player leaves for another team in the next few months.

I know who the player is and he is on a long term contract and is very well known throughout the league. I just don't want to say who it is here because of the obvious reason.

I have never heard of this type of arrangement before. I do not know how common it is for this type of deal. Anyone heard of this before?

I know who the player is and he is on a long term contract and is very well known throughout the league. I just don't want to say who it is here because of the obvious reason.

I have never heard of this type of arrangement before. I do not know how common it is for this type of deal. Anyone heard of this before?

Is it Ichiro?

Talk to the other business partner, try to give up 10% each etc. Otherwise seems like a good deal (though I can see problems regarding people constantly bothering the player when he does turn up).

I've worked on endorsements before and I'd say you need to be careful about guaranteeing the amount of times the endorser appears at your restaurant and/or makes comments to the media.

Celebrities can be notoriously fickle and short-term in their interests and you're essentially giving away a concrete 20% indefinitely for a potential load of trouble.

It's easy for an agent to assert that they'll appear regularly, but what does that mean in concrete terms and what is your get-out should those terms not be met?

Do not give up equity in the business in exchange for a little advertising. That is just silly. Pay for advertising certainly, but giving the player 20% of the business is just foolish.

Talk to the other business partner, try to give up 10% each etc. Otherwise seems like a good deal (though I can see problems regarding people constantly bothering the player when he does turn up).

That was the idea. Each business partner to give up 10%

I've worked on endorsements before and I'd say you need to be careful about guaranteeing the amount of times the endorser appears at your restaurant and/or makes comments to the media.

Celebrities can be notoriously fickle and short-term in their interests and you're essentially giving away a concrete 20% indefinitely for a potential load of trouble.

It's easy for an agent to assert that they'll appear regularly, but what does that mean in concrete terms and what is your get-out should those terms not be met?

If it were to me I would add some clauses in case the player is a no show or was for some reason traded out of town. However I don't see this player leaving anytime soon.

Besides the good ideas already given above, ensure that the 20% cannot be sold to anyone else without the consent of you two.