Communicators Should Take Proactive Role in Celebrity Endorsement Contracts

The recent allegations against NBC sports broadcaster Marv Albert underscore the importance of linking legal and communications interests at the early stages of choosing a celebrity spokesperson.

In the case of Albert, who last week was accused by a Virginia woman of sodomy and assault, it's too early to tell what the ramifications are for the network, not to mention for the reputation of the long-time broadcaster.

Nevertheless, this case shines a bright light on an often darker part of the PR role: cleaning up the mess while lawyers consult from the background.

But as companies begin to focus more and more (given the countless incidents that have cropped up in recent years) on how a celebrity's image impacts a company's reputation, it's certain that strategic communicators will be among those counseling company execs on making sound business decisions and avoiding potential crises.

Experts say that will be done by exploring the resurgence of morals clauses and making sure that companies don't have to pay off celebrities to have an out.

Bad Timing

A day before the Albert story got legs, Acclaim Entertainment Inc., a multimedia game company based in Glen Cove, N.Y., announced that Albert would provide play-by-play commentary for NFL Quarterback Club '98, which will be available for the PC and Sony PlayStation in August 1997 and for Nintendo 64 in the fall.

And so far, Acclaim has said it doesn't know what it will do. "We've had a long standing relationship with Marv for several years and no decision has been made," Acclaim spokeswoman Nancy Tully told PR NEWS on May 21. "Basically, we're taking a wait-and-see attitude."

But who knows whether that attitude will surface as merely the preliminary reaction Acclaim took while it decided whether it would terminate its relationship with Albert (based on whether there is an escape clause in its contract with the now-infamous celebrity). There's also the chance it will stand as the company's ultimate communications decision for handling this crisis, which Dow Jones seized on hours after the news broke when it contacted Acclaim for an explanation and plan of action.

"Companies can't ignore incidents like this simply because of the economic impact they can have," said Frank Corrado, president of Communications For Management Inc. International, a Chicago-based crisis communications consultancy. "What's going to end up happening is legal and PR teams are going to have to meet to make sure that there is a kind of PR insurance policy" - in other words, a clear examination of the possible risks and effects.

The Albert incident is just one in a long line of controversies over celebrity spokespeople which have played front and center in the media limelight. The most notable was Hertz's decision to nix O.J. Simpson as it spokesperson and one of the most recent was Kmart's decision to rid itself of Fuzzy Zoeller because of racist remarks he made about Tiger Woods.

What is beginning to evolve, according to an entertainment lawyer in the Los Angeles market who wished to remain anonymous, is a re-examination of morals clauses, which haven't been common in companies' contracts with celebrities in recent decades. In the last 15 to 20 years, because of the power celebrities wield, there's been a departure from standard morals clauses. But our source said that's a practice which may soon be challenged as businesses become more cautious.

"A good PR person will follow these kinds of cases and conduct research which proves to their CEOs what the impact is in dollars and cents. This is a perfect example of trying to strike an accord between tort lawyers who are saying, 'Keep your mouths shut' and PR professionals who are saying 'We've got to get out front with the information.'"

For those who have relegated communications to flackery, Corrado points out that cases like the Albert controversy provide a window into how important communications should be for a company. In fact, Corrado said although most corporations aren't doing this today, in-house PR professionals or consultants need to have input - in essence, bringing up the "what ifs?" - when celebrity endorsements are being negotiated. (Acclaim, 516/656-5000; Communication for Management, 312/641-0570)