Real Money Decided on Court of Public Opinion

Over the past month, we have seen two star athletes stripped of endorsement deals.

For very different reasons, brands have turned their backs on both Aaron Hernandez and Ryan Braun.

Just days after he was handcuffed by federal agents, Hernandez lost deals with Puma and Cytosport. Although exercise is one of the few freedoms that Hernandez still has, he will have little purpose for protein shakes or athletic wear. He now spends his days in an orange uniform --- and not the kind that Puma endorser Rickie Fowler has made popular.

Ironically, an endorsement deal with Cytosport --- a legal sports supplement --- likely could have prevented Ryan Braun from losing marketing dollars from brands such as Kwik Trip. As a result of his 65-game suspension from the MLB due to PEDS, Braun will not only lose out on paychecks from the Brewers, but also from some of his commercial deals.

The recent troubles of Hernandez and Braun are examples of why brands must choose their endorsers very carefully. While struggles on the field of play may ultimately result in lower returns on investment, it is tribulations off the field that often doom endorsement deals.

It is for this reason that good-guys such as Kevin Durant, Phil Mickelson, Derek Jeter, and Peyton Manning are so often the recipients of huge endorsement dollars. These individuals have not only excelled with their performance in their respective sports, but they have also handled themselves as superstars in the press, in the locker room, and in their personal lives. These athletes represent far smaller risks than do many of their peers.

Yes, Floyd Mayweather Jr., Kobe Bryant, and Tiger Woods still rank atop the 50 highest-earning athletes. While the court of public opinion is still mixed with these athletes, their dominance has still reigned through. However, for athletes not atop their respective sports, even the smallest of blunders can damage their reputations permanently.

The recent troubles of Aaron Hernandez and Ryan Braun are clearly of different magnitude. Nevertheless, both have seen their reputations irreparably shattered. However, the effect of their mistakes is much more far-reaching than their individual careers.

Instead, their mistakes, and the inherent risk of investing millions in a single person, are reasons to why brands are now shifting many of their funds to teams, leagues, and properties. These investments are far less risky and offer more activation opportunities. Proof of such is the cost of naming rights at stadiums throughout the world. It is not only the New York Giants (Quest Diagnostics) and the Dallas Cowboys (AT&T) making enormous naming rights deals, it is also small CFL franchises such as the Hamilton Tiger-Cats, who just yesterday came to a 7-figure deal with Tim Hortons.

Though some brands, such as Gatorade and Subway, have seemingly perfected the process of selecting good-guy endorsers, the mistakes of others will result in smaller deals moving forward, and for a far smaller portion of the league's stars.