The wrongful termination in an endorsement deal can lead to serious litigation battles and consequences before a competent court. It is therefore imperative that the termination provision in an endorsement contract should clearly describe the situations in which either side can walk away from the relationship.
These may involve a breach of the agreement or contract or a simple decision not to renew the contract when it expires.
It is important that the termination clause should clearly define the notice that either party must provide to the other for terminating or extending the endorsement deal.
The termination clause should also provide for final payments owed to the athlete after a notice of termination is issued.
It is important for the sponsor to carefully monitor the compliance with the contract and address any issues with the athlete as soon as they arise because if the athlete has breached his terms severally through bad behaviour without the action of the sponsor to terminate the contract, it will become impossible for the sponsor going forward to suddenly terminate the agreement for reason of bad behavior for he has tolerated same behavior multiple times before.