In this part 2 of the NIL series, I will walk you through the nuts and bolts of endorsement contracts under Indian law. I will also draw parallels with international practices to give you a broader understanding, what happens in the United States with NIL, how the United Kingdom treats image rights, and how brands like Rolex build long-term ambassadorial partnerships. Whether you are advising a young sprinter or drafting a deal for an Olympic medalist, this guide will equip you with practical insight and legal clarity.
Table of Contents
Introduction
I used to be a big Roger Federer fan, and always made sure I watched all of his matches. I still remember that during all the matches, Roger Federer’s Rolex advert would flash across the screen. The one I remember the most was the one that they played during the Wimbledon broadcast.
It was not about a product demonstration in itself, and it did not speak of features. It was a moment frozen in time, Federer sitting calmly courtside, his Rolex peeking out under the wristband, as the tagline read, “It does not just tell time. It tells history.”
I was quick to associate Rolex with Federer, and I still do to this day.
I was a kid at that time, but now, when I think back, they managed to capture the essence of a well-drafted endorsement contract, subtle, powerful, and strategically aligned.
Endorsement contracts are no longer the domain of a few elite athletes. I would say it used to be. You would see only the most famous ones on the screen. And you would never see the underdogs.
But now, from cricket to kabaddi, Indian sports are deeply embedded in the commercial ecosystem. Brands do not just want players, they want personalities. Whether it is Neeraj Chopra representing global athletic brands or PV Sindhu endorsing everything from jewellery to electronics, Indian athletes today are walking portfolios of brand association.
Now it is time to look at it through a legal lens. With this booming landscape raises important legal questions arise: What governs these endorsement deals in India? How should you, as a lawyer or agent, structure one? What should an athlete know before signing? And how does India’s legal position compare with global practices?
If you have already read Part One on NIL rights, you will know how critical it is to recognise and protect an athlete’s personality, image, and public appeal. If you have not read that one yet, I urge you to do so. It would give you a good understanding of NIL and how, along with endorsement contracts, it would play an important role.
When you are done with NIL, endorsement contracts are the next logical step. These are the instruments that monetise NIL rights, transforming athletic performance into commercial equity.
Let us begin.
What is an endorsement contract?
So, at its core, an endorsement contract is a formal agreement between a brand and an individual. And this is usually a sports person. The scenario is that the individual agrees to promote or publicly associate with the brand in exchange for compensation. But in practice, it is much more than a transaction. It is a carefully crafted collaboration where the athlete’s image, reputation, and influence become tools of commercial storytelling.
I have come to realise that no two endorsement contracts are truly alike. A cricket star like Virat Kohli, whose reach spans across apparel, beverages, and insurance, requires a very different framework compared to a let’s say, a rising para-athlete entering their first endorsement. Your task, whether as counsel or advisor, is to tailor the terms to reflect the athlete’s persona and the brand’s objectives.
Types of endorsement contracts
Let us look at the types you are most likely to encounter:
1. Product endorsement
This is the most common type. The athlete appears in advertisements or uses the product publicly. Think of Neeraj Chopra with sports drink brands, visible, relatable, and aspirational.
2. Brand ambassador agreement
This is broader than a one-off advert. It involves a long-term association. This will often be covering multiple campaigns, appearances, and exclusivity. Roger Federer’s decades-long partnership with Rolex is the gold standard here. More than an endorsement, it became a quiet alliance of values: precision, longevity, elegance.
3. Event-based endorsements
These are seasonal or campaign-specific agreements. For instance, a footballer endorsing a brand during the Indian Super League season, but not beyond. You see a lot of ads during IPL that you would not see otherwise. It would be just for that particular season.
4. Digital or social media endorsements
With athletes commanding massive online followings, brands now insert digital obligations. This will include Instagram posts, Twitter shout-outs, and YouTube campaigns, into the contract itself. These carry their own legal sensitivities, particularly when compensation is performance-linked or geo-targeted.
The link with NIL rights
You may recall from Part One that NIL rights – Name, Image, and Likeness- are the building blocks of an athlete’s identity in the commercial world. Endorsement contracts are the vehicles that help monetise those rights. Globally, especially after the NCAA’s 2021 decision in the United States, athletes at the collegiate level are entering endorsement agreements in large numbers. While Indian sports law has yet to formalise NIL in the same way, courts have acknowledged the concept of personality rights through a combination of IP and privacy law.
Therefore, every endorsement contract you draft should begin with a deep understanding of what makes your client valuable. It should not be just in terms of medals or stats, but how their name, face, story, and behaviour influence consumer decisions. That is where the legal work begins.
Legal framework governing endorsements in India
Let us look at the legal aspect. When you begin drafting or reviewing an endorsement contract in India, you are not working in a legal vacuum. Multiple areas of Indian law intersect here. This will range from contracts and intellectual property to advertising codes and regulatory norms. Let us go through the key legal elements that every endorsement agreement must account for.
Contract law: the foundation
The Indian Contract Act, 1872, is your starting point. Every endorsement agreement must satisfy the essential ingredients of a valid contract: offer, acceptance, lawful consideration, capacity, and free consent.
Let me give you a quick example. Suppose a brand proposes that a badminton player should meet certain terms. They should appear in three video ads, attend two in-person events, and post ten branded updates on social media over six months. This will be done in exchange for a sum of ₹50 lakh. Now, if the player accepts these terms and both parties reduce them into writing with clear deliverables, you have the skeleton of a valid contract. But that is only the beginning.
You as a lawyer, should to go beyond the basics. You need to identify and anticipate risks, vagueness in deliverables, ambiguity in timelines, conflicting brand commitments, and poorly worded termination clauses. If your contract lacks specificity, even a minor dispute could derail the relationship or lead to legal proceedings.
Image rights and the rise of personality protection
So, like I mentioned in Part 1, Indian law does not yet have a standalone statute for image or personality rights. However, our courts have recognised and protected such rights through a combination of privacy jurisprudence and intellectual property principles.
We also looked at a landmark judgment in Part 1. The case of ICC Development (International) Ltd. v. Arvee Enterprises (2003). In this case, the Delhi High Court acknowledged the right to control the commercial use of one’s persona. This includes name, likeness, and voice. And all of these must be respected. The court drew from both Indian constitutional law (Article 21—right to privacy) and the idea of unfair commercial exploitation.
In practical terms, this means that any endorsement contract should clearly define what aspects of the athlete’s identity are being licensed. So, is it the name, image, voice, or signature? It can even be a catch phrase. It should also mention the limit of the scope of use. So what platforms, what geographies, and for what products?
You need to ensure that the brand does not claim ownership over the athlete’s identity itself.
Remember, the moment you blur the line between usage rights and personality ownership, you open the door to exploitation.
Regulatory and advertising norms
Endorsement contracts do not operate in a private silo. They are also subject to regulatory oversight.
The Advertising Standards Council of India (ASCI) has issued specific guidelines for celebrity endorsements, last updated in 2021. These guidelines require that endorsers exercise due diligence to verify the claims being made, avoid misleading or exaggerated statements and accept personal liability for false endorsements.
However, ASCI guidelines are self-regulatory, not legally binding. There are statutory obligations under the Consumer Protection Act, 2019, which hold endorsers liable for false or misleading claims unless they can prove due diligence.
If your client is an athlete being pitched a contract to promote a nutritional supplement, you must ask the hard questions: Has the product been clinically verified? Are the claims legitimate? If there is a misrepresentation, could the athlete be held liable?
Additionally, sports federations and the Ministry of Youth Affairs and Sports often include clauses in athlete agreements that restrict certain types of endorsements—for example, alcohol, gambling, or tobacco-related products.
If your client is under contract with the Sports Authority of India or a national federation, you must cross-check those terms before advising on an endorsement.
Taxation and foreign exchange considerations
Athletes often receive endorsement payments from foreign brands or in foreign currencies. In such cases, the Income Tax Act, 1961 and FEMA regulations must be kept in mind.
Some key considerations include the place of accrual of income and the residency status of the athlete and TDS (tax deducted at source) implications on endorsement earnings. It should also cover whether the remittance needs Reserve Bank of India (RBI) clearance under FEMA.
Mismanagement on this front can result in regulatory penalties or tax scrutiny. If you are advising an international brand engaging an Indian athlete, I recommend consulting a chartered accountant or tax counsel to structure the payments compliantly.
Case studies: what we can learn from Roger Federer, PV Sindhu, and Neeraj Chopra
To understand how endorsement contracts function in real life and how strategy varies depending on the sport, personality, and brand, I think we must examine three athletes who have built distinctive personal brands through careful endorsements.
Roger Federer and Rolex: timeless precision
Let us analyse Federer’s endorsement with Rolex a little more. Roger Federer’s partnership with Rolex is often described as the gold standard of long-term endorsement deals. It reportedly began in 2006 and was renewed for a reported USD 15 million over ten years. But beyond the numbers, it is the tone of the association that stands out.
What makes it work?
It works because of the alignment of values. Essentially, Rolex represents elegance, precision, and longevity and these qualities that Federer embodies both on and off the court. It also works because of non-intrusive visibility. Rolex does not overuse Federer. A tasteful placement of the watch during post-match interviews or awards ceremonies reinforces subtlety and class.
Then there is long-term structure. The deal is not focused on sales metrics alone. It reinforces brand ethos.
So, what is the lesson for Indian practitioners? If your client is a high-profile athlete with a strong personal brand (think Virat Kohli or Sania Mirza), negotiate for value alignment and long-term association, not just monetary rewards. Let the brand narrative flow naturally from the athlete’s persona.
PV Sindhu and Bridgestone: performance under pressure
Do you know about PV Sindhu’s endorsement with Bridgestone? So, Bridestone is a global tyre manufacturer. And this endorsement is a good example of crafting a deal around performance themes rather than direct product association. The campaign, titled “Chase Your Dream”, focused on resilience and training, rather than tyres.
What are the key aspects?
There is inspirational storytelling. The contract likely included approvals for campaign scripts and visuals that aligned with Sindhu’s story. There is also a global footprint. This particular campaign was launched in multiple countries, demanding careful negotiation of image rights across jurisdictions.
The contract might also have had performance clauses. Given Sindhu’s Olympic success, bonus triggers may have been built into the deal based on future medal wins or tournament rankings.
A drafting tip for you is that when you represent a sportsperson whose achievements are directly tied to the narrative of the endorsement, consider including a narrative alignment clause. This is a mechanism through which both parties agree on storytelling themes.
Neeraj Chopra and multiple brands: managing a portfolio
Neeraj Chopra’s historic Olympic gold in the javelin led to an explosion of brand interest. Unlike Federer or Sindhu, Chopra entered the endorsement market at a time when public appetite was peaking. From BYJU’S to Tata AIA, his deals covered a range of sectors, including education, insurance, beverages, and fitness.
In a situation like this, there will be challenges.
One of them is maintaining exclusivity. Multiple endorsements in overlapping categories must be clearly distinguished in contract language.
There should be content consistency: When one athlete appears in fifteen different campaigns, tone and messaging must still reflect authenticity.
You need to make sure that there is legal compliance, but this also becomes a challenge. As the number of deals grows, so does the need for strong internal compliance, taxation, brand approvals, and conflict checks.
Best practice is that when drafting contracts for athletes with multiple ongoing endorsements, insist on a conflict declaration schedule. You can have a table listing all existing brand deals and their categories, so that no future endorsement inadvertently violates a previous one.
Drafting tips: How to build a strong endorsement contract for athletes
If you are advising a sportsperson, brand, or sports agency in India, you must not treat an endorsement agreement as a generic celebrity contract. An athlete’s identity is bound up with performance, risk, and constant public scrutiny. A well-drafted contract must account for the unique nature of athletic fame. Its volatility, its moral dimensions, and its global reach. Here is a clause-by-clause guide.
1. Definitions and scope of endorsement
Do not assume the meaning of endorsement is universally understood. Spell it out.
Endorsement activities should be defined to include the 
Make sure that the deliverables include not only promotional materials but also timelines, script approvals, branding guidelines, and event obligations.
Keep an eye on the territory and platform. Specify if the endorsement covers only Indian markets, specific regions (e.g., South Asia), or is global. This matters particularly for digital endorsements that are accessible worldwide.
2. Duration, exclusivity, and blackout periods
These are very important in a contract. The term of the agreement must be precise. This means that the start date, end date, renewal mechanisms, and lock-in clauses all must be clearly put in the contract.
Keep in mind that category exclusivity is key. Athletes must not be commercially handcuffed. If a cricketer endorses one energy drink, they should be free to endorse unrelated products (e.g., shoes or headphones) unless there is an express block.
Remember that blackout periods may apply during tournaments. This is especially where governing bodies have competing sponsorship obligations. Account for BCCI, ISL, or Olympic Committee rules here.
3. Consideration: how and when the athlete gets paid
Consideration should not be left out of contracts. The base compensation should be broken down into fixed amounts and milestone-triggered bonuses. For example, a bonus if the athlete wins a medal, increases follower count by 20%, or participates in a viral campaign.
Also, the payment structure must be clearly specified. Will it be instalments, post-approval triggers, and will there be penalties for delay? The answers to these must be in the contract.
What about equity or stock options? High-value deals may involve shares in the brand. Protect your client by specifying vesting conditions and dilution protection.
4. Ownership and use of intellectual property
IP plays an important part in so many contracts. You need to clarify that the athlete retains ownership of their personality rights. Make sure to grant a limited, revocable licence to the brand to use these rights only for the purposes defined in the agreement.
Also, include expiry of usage rights post-termination. Many athletes forget to include this and find their image being used years later without their consent.
You need to prohibit generative AI use without express approval, especially where synthetic image or voice cloning is possible. This is a newer issue because of the high usage of AI. You need to be up to date with everything happening around you so your client is protected.
5. Approval rights and content control
Keep in mind that the athlete must have the right to approve scripts, taglines, visuals, and final edits. Clearly define timelines for approvals, e.g., 5 business days, so the brand is not indefinitely stalled.
You can also add cultural sensitivity clauses, especially if the campaign crosses into different linguistic or regional audiences.
6. Image protection and reverse clauses
Morality clauses are standard, but they should not be one-sided. Include specific triggers: criminal offence, social media scandal, doping violations, etc. Also include a reverse morality clause, allowing the athlete to exit if the brand is associated with political controversy, labour exploitation, or other scandals.
Specify whether a public apology, suspension, or corrective action is required before termination can be triggered.
7. Tax, GST, and financial planning
GST at 18% may apply if the athlete is registered and the endorsement exceeds ₹20 lakh per annum. TDS (Tax Deducted at Source) will apply on payments made by the brand; ensure this is accounted for in the total compensation. The ₹20 lakh threshold applies to the athlete’s total taxable turnover, not just endorsement income.
Add a gross-up clause where required. This is done so that tax burdens are fairly shared. If the athlete is a non-resident (e.g., playing in international leagues), include reference to double taxation avoidance treaties and Form 10F/15CB compliance.
8. Termination, force majeure, and disputes
Termination rights must balance brand and athlete protection. Allow cure periods for minor breaches. Include force majeure clauses tailored to the sports world, such as injury, postponement of tournaments, media bans, or national mourning can all disrupt endorsements.
Disputes should ideally go to arbitration, with the seat, venue, and applicable law clearly defined. For e.g., seated in Mumbai, governed by Indian law.
A comparative glimpse: How global jurisdictions approach athlete endorsement
Understanding foreign practices will help you borrow tested mechanisms and anticipate risks when drafting contracts for athletes with global appeal. Here is how major jurisdictions approach endorsement law.
United States: NIL rights and detailed morals clauses
The U.S. has robust legal recognition of Name, Image, and Likeness (NIL) rights, especially post the 2021 NCAA ruling. Most college athletes now sign NIL deals with local and national brands. These contracts include detailed compliance clauses with school policies, NCAA rules, and state NIL statutes.
Morality clauses are highly detailed and even tied to algorithmic triggers, such as follower drop, Twitter backlash, or trending hashtags.
Indian takeaway: NIL is emerging in India too, especially in college-level leagues. Be proactive in drafting clauses that anticipate eventual statutory codification.
United Kingdom: image rights companies and tax efficiency
Most British athletes form Image Rights Companies (IRCs). These are corporate vehicles that hold and license their personality rights. Endorsement fees are paid to the IRC, not the individual, allowing better control and tax planning.
UK contracts often distinguish between club appearances, personal commercial work, and non-sporting endorsements.
Indian takeaway: For high-earning athletes, advise them to consider forming a private limited company or LLP to hold their IP and route endorsement income.
European Union: data protection and collective bargaining
Under the GDPR, the use of biometric data, health data, or even location-based endorsement campaigns requires express consent and data protection. In countries like France and Germany, collective bargaining agreements in football and handball leagues may impose restrictions on individual endorsements.
Indian takeaway: As India’s data protection regime strengthens, expect similar restrictions. Draft data use clauses with consent, withdrawal, and storage limitations.
Australia and Canada: indigenous rights and cultural image protections
Endorsement deals with Aboriginal or First Nations athletes in Australia and Canada often include cultural sensitivity clauses that prevent misappropriation. There are specific protocols about using community names, symbols, or heritage items in campaigns.
Indian takeaway: With India’s growing focus on tribal athletes and traditional sports (e.g., Mallakhamb, Kho Kho), cultural identity protection may soon become contractually relevant.
Tips for lawyers and agents: How to protect your athlete’s brand
Whether you are advising an emerging kabaddi player from Haryana or a seasoned tennis star with international appeal, your role is not simply to negotiate payment—it is to protect and cultivate a brand. Endorsement contracts are powerful tools, but only if wielded with foresight and precision. Here is how you can do that.
1. Draft for personality rights, even when the law is vague
Indian courts have recognised personality rights under Article 21, but there is no standalone statute like in some foreign jurisdictions. Do not wait for legislation. Instead, include a clear definition of personality rights in the contract. Such as name, voice, signature, gestures, likeness, slogans. Also, add a warranty from the athlete that they own or control these rights. Make sure to insert a protective clause preventing unauthorised AI use or image recreation.
You are not just protecting the brand today, you are building a framework for tomorrow’s metaverse and digital avatars.
2. Control the narrative: approvals, scripts, and shoot content
The athlete must have veto power over how their image is used. Ensure the contract includes script and storyboard approvals, a clause for rejecting offensive or misleading edits. Make sure it also includes territory-specific localisation rights, especially for multilingual campaigns.
Let your client be more than a face; let them be a co-creator of the message.
3. Protect against overexposure and moral mismatch
Endorsement fatigue is real. Too many overlapping deals confuse the public and dilute value. To prevent this, include a category exclusivity clause. For example, if your athlete is endorsing one cola, they should not be seen sipping another. Insert a morals clause with nuance. Do not rely on vague terms like “immoral conduct”; specify examples and include a fair dispute mechanism.
Brands often want to terminate deals unilaterally when an athlete faces backlash—even if unproven. Your clause should balance brand reputation with athlete dignity.
4. Plan for GST, TDS, and international tax
In India, endorsement income attracts 18% GST if the athlete is registered. TDS obligations also apply. For cross-border deals, double taxation is a genuine risk.
As legal counsel, structure contracts to include GST-exclusive and inclusive price options and advise on PAN and TAN filings, especially for foreign remittances;
Also, include a gross-up clause if your athlete is receiving net pay post-tax. Work with accountants. Tax messes kill careers faster than scandals.
5. Think beyond money: legacy clauses
Good endorsement contracts are not just about payments. They are about legacy. Consider:
- Equity grants or performance shares, not just cash;
- Post-retirement clauses for continued brand ambassadorship;
- A foundation partnership clause if the athlete runs a charity.
Roger Federer is not just a Rolex model. He is Rolex in the eyes of many fans. Your job is to find your client’s equivalent.
Conclusion: A future-ready playbook for sports endorsement contracts
Athlete endorsements are no longer mere vanity deals. They are commercial powerhouses that influence markets, define identities, and inspire millions. As legal advisors, you and I hold the pen that can shape the narrative, protecting athletes from exploitation, enabling brands to scale with integrity, and ensuring that contracts reflect the speed and sophistication of modern sport.
Indian sports law is still finding its rhythm, but as we have seen, global practices, from NIL rights in the United States to image rights companies in the United Kingdom, offer valuable cues. The key lies in adapting them thoughtfully to the Indian context. Our contracts must evolve to accommodate generative AI risks, data protection norms, and the growing agency of athletes as entrepreneurs.
If you are advising a sports personality, a brand, or a league, now is the time to treat endorsement contracts with the rigour they deserve. Build in clarity. Centre consent. Anticipate risk. Draft as if your client’s next move is the Olympics, Wimbledon, or an IPL final. Because sometimes, it really is.
Frequently asked questions (FAQs)
- What is an endorsement contract in sports law?
An endorsement contract is a legally binding agreement between a sportsperson and a brand or company, where the athlete agrees to promote the brand’s products or services in exchange for compensation. It covers the use of the athlete’s name, image, likeness, social media, and public appearances.
- Are endorsement contracts enforceable under Indian law?
Yes. Endorsement contracts are governed by the Indian Contract Act, 1872. Depending on the terms, they may also invoke provisions of the Trade Marks Act, 1999, the Consumer Protection Act, 2019 (especially for false or misleading endorsements), and the Income Tax Act, 1961.
- What is the difference between a celebrity endorsement and a sports endorsement?
A sports endorsement typically involves performance-based metrics, morality clauses related to game conduct, and coordination with sports governing bodies. Unlike generic celebrity deals, these contracts often include terms linked to tournaments, injuries, or regulatory blackout periods.
- Can an Indian sportsperson endorse a foreign brand?
Yes, but the contract must specify the applicable law and ensure compliance with Indian tax laws, RBI’s foreign exchange regulations (especially under the Liberalised Remittance Scheme), and sports body restrictions. Athletes must also manage cross-border taxation and data transfer obligations.
- What are morality and reverse morality clauses?
A morality clause allows the brand to terminate the contract if the athlete is involved in conduct that may harm the brand’s reputation. A reverse morality clause protects the athlete if the brand is involved in controversies, political backlash, or unethical practices. Both are vital in Indian and international sports contracts.
- How is GST applicable to athlete endorsements in India?
Endorsements by registered sportspersons are considered a taxable supply under the CGST Act. If the total value exceeds ₹20 lakh in a year, GST at 18% applies. Athletes often overlook this and face compliance issues later. Proper invoicing and gross-up clauses are advisable.
- What are NIL rights and are they recognised in India?
NIL refers to Name, Image, and Likeness rights—terms commonly used in the U.S. to protect athletes’ identity and commercial usage. In India, while the legal framework does not explicitly use the term “NIL,” the right to publicity is protected under common law and Article 21 of the Constitution (as part of the right to privacy).
- How do image rights companies work, and can Indian athletes use them?
Image rights companies, common in the U.K., are corporate entities that hold and license a sportsperson’s intellectual property. Indian athletes can form a private limited company or LLP to manage their endorsement earnings, subject to compliance with tax and corporate governance norms. This can help with better financial planning and brand control.
- Can an athlete terminate the contract if injured or benched?
It depends on the terms. Most contracts contain force majeure or injury clauses. If the injury materially affects the athlete’s ability to fulfil endorsement obligations, a mutually agreed exit or suspension clause should be invoked. Absence of such a clause may lead to disputes.
- Is arbitration mandatory in endorsement disputes?
No, but it is highly recommended. Most Indian and international endorsement contracts now contain arbitration clauses to resolve disputes efficiently and privately. You should specify the seat (e.g., Mumbai), governing law (e.g., Indian law), and procedural rules (e.g., SIAC, ICC, or domestic ad hoc arbitration).
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