What Will Happen to Tom Brady Endorsement Deals?

Media

Published: May 7, 2015 6:50 am

Depending on the source, Tom Brady has as many as a half a dozen huge endorsement deals. Will he face the same problem Tiger Woods did after his scandal? Woods lost high-profile deals with AT&T Inc. (NYSE: T) and management consulting firm Accenture PLC (NYSE: ACN). The losses cost him millions. Brady’s “deflategate” scandal could put him in the same position as the world’s great golfer.

Brady’s endorsements include Uggs, Under Armour Inc. (NYSE: UA), Wheaties and Movado Group Inc. (NYSE: MOV), according to the TSM Plug sports site and other sources. Depending on the contracts, some may have morals clauses, and punishment by the NFL may allow the sponsors to walk away.

Woods has picked up several new endorsements, which include Rolex. He never lost Nike Inc. (NYSE: NKE), which stood behind him through his difficulties. Nike has to be considered an outliner when it comes to disgraced athletes. However, Woods’s career could last another decade or more, which gives him time to regain public confidence. In the brutal sport of football, Brady may have another two or three years left. That may not be enough time to pass since the scandal. In other words, endorsements may no longer be a part of Brady’s income.

ALSO READ: Companies With the Best (and Worst) Reputations

A Fortune study from last year showed the toll a scandal can take on endorsements. Some of the athletes who suffered most financially from bad behavior include football players Ray Rice and Adrian Peterson. Lance Armstrong not only lost his sponsors because of doping, but some of them may sue him to get their money back

Brady may have saved most of his income, or invested it in real estate. He has more than one mansion. And his wife, supermodel Gisele Bündchen, earns tens of millions of dollars on her own.

It is too early to know how hard the NFL will come down on Brady. It could give him a pass because deflating balls is not considered a bad case of cheating. Or, it could force him to sit out a number of games in the next season, which most observers think is more likely.

Brady has lost some of his reputation, and now he is likely to lose a lot of his money.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps