Lance Armstrong - Morality Clauses

Live strong foundation - Formally endorsed by cyclist Lance Armstrong

In this posting I will be looking into the ever more prevalent clause seen in professional sport, the morality clause. I will give a synopsis of what the clause entails and then go into the relevant case of Lance Armstrong and how they are related. 

What is a Morality Clause?

Essentially, in layman terms, it is a clause in a contract that controls ones behaviours. 

In Legalese: Contractual clause prohibiting a party's immoral, illegal or otherwise disparaging behaviour.

Why are they prevalent in the Sporting Industry?

Athletes are in spotlight almost 24/7. From the time they wake up to go to practice or play a game to their after parties or group gatherings at local restaurants. People recognize athletes much easier now because of social media and technological advances making them much bigger public figures than they ever have been before. Morality clauses are simple clauses that are placed in contracts to allow organizations to save their reputations if the athlete they are associated with does something that is deemed illegal, immoral or scandalous. 

Organizations/sponsors place a lot of advertising and sponsorship dollars into high profile athletes to enhance their brands. They use top athletes such as Lebron James to endorse Nike, so that when people think Lebron James they immediately associate Nike as being a top brand and want to purchase from them. If the general public has a different opinion on a top athlete, say Lebron James says something immoral on live television or through social media, than these companies that are endorsing these athletes want a way to terminate their contracts and no longer be associated. Morality clauses are one of the best ways to rectify this issue. 

A perfect example is the Lance Armstrong case with Nike and Livestrong. Lance Armstrong, was one of the best cyclists in the world winning 5 tour de France championships after returning from cancer treatments. Armstrong was heavily associated with Nike and cancer research foundation Livestrong. They endorsed Lance Armstrong  and advertised him as one of their athletes. Lance Armstrong would later admit on an airing of Oprah Winfrey that he was essentially a cheat and had been doping. All of his medals were stripped from him and he was no longer seen as this great athlete. Nike used their morality clause in the contract they had with Lance Armstrong to essentially cut ties and relations with him. This is an example of the Morality clause coming into play to disassociate with someone who they had contractual relations with.

Thanks,

Gavin