Morals Clause

Sportslaw Jargon: Morals Clause

The morals clause is an essential component of endorsement contracts in professional sports. It is a form of termination clause, whereby it enumerates a variety of specific reasons for termination to protect the endorser's interest in its image or the image of its products that are affiliated with the athlete.

These clauses are justified because the athlete is under constant scrutiny from the public and the media. Transgressions that may occur could cause embarassment for the firm empoying the services of the athlete, especially when the athlete is convicted of a crime or engages in acts of "moral turpitude."

In addition to convictions, frequent morals clauses prohibitions include the use of drugs (illegal substances or steroids), acts of public disrepute (exposing himself in a public place), suspensions due to poor sportsmanship and public criticisms of the product the athlete is supposed to endorse.

Although rare, an athlete may impose a morals clause on the firm he or she represents. In such a case, the athlete could cancel the contract if , for example, the company engages in controversial activities such as environmental hazards, tobacco production or refusing to back gun control regulations.

Often, the moral clause involves some of the most important negotiations of the entire endorsement contract. Because it gives one side the right to terminate the entire deal with no penalty, the drafting of the language of the moral clause is extremely important.