Upon a change in ownership of malt beverage giant Pabst, the monetary agreements of rapper Snoop Dogg's endorsement got lost in translation, and he is suing. While several parties on the brand's side are investigating the matter, this legal matter of celebrity endorsements is one in a growing field.
What This Means For The Celebrity And Brand
When the endorsement deal was initially inked, the rapper was to receive a 10% cut of the profits for Colt 45 beer, among other conditional benefits.
The issue at hand is a conditional clause in the contract, in which the rapper hoped to collect dues upon the sale of Pabst to the new owner. He claims he has not been paid his dues, although similar cases have shown celebrities negotiating loopholes in a deal to gain a higher cut in an unexpectedly successful brand campaign. The outcome remains to be seen.
The Future Of Endorsement Deals
Endorsement deals are becoming an increasingly attractive option for not just brands, but celebrities as well - especially in the music industry.
As the entertainment world is changing and record sales, box office sales, and traditional cable subscriptions drop, the entertainers look for alternative engaging ways to maintain their monetary worth and fan bases.
Owning a partial stake or getting an endorsement commission rate for a big brand is not uncommon, as opposed to a one-time fee for an ad campaign. Therefore, many marketing legal experts foresee a rise in money-based (more than scandal-based) celebrity endorsement disputes as deals grow more complex.
More From Hollywood Branded
Celebrity endorsements are a huge value to a brand's image because the celebrity is what the fans will follow and stay loyal to, with or without the brand. There are many challenges that can arise when connecting with a celebrity through an endorsement deal, so be sure to keep up with our blog as we provide tips on how to protect your brand's image and make everything run as smoothly as possible.
Before you spend another dollar on traditional advertising, consider how you can leverage the power of celebrities as part of your marketing campaigns. Our video provides answers to combat common advertising challenges marketers face daily!