Image rights for sports people: what they are and why they matter

Image rights refer to the commercial use of all or any of a sports person’s name, image, likeness, voice, signature or personal brand. In practice, image rights are most commonly exercised through sponsorship and endorsement arrangements, advertising campaigns, and social media promotions. They also extend to merchandise and licensing agreements, as well as appearances in video games, documentaries, and other forms of promotional material. Without proper legal protection, others may exploit image without agreement, and disputes could arise over who owns the rights and how they can be used.

Many professional athletes often grant their image rights to a variety of entities. They may allow their clubs to use their likeness for team promotion and marketing purposes. Sponsors frequently receive rights to feature the athlete in advertising campaigns and endorsements. Additionally, media partners and governing bodies are often granted permission to use the athlete’s image for coverage, events, and official communications
These rights are typically set out in image rights agreements or clauses within wider contracts, which define:

• Where and how the image can be used
• Whether use is exclusive or non-exclusive
• The duration of the agreement
• Payment terms and royalties
• Termination rights

Poorly drafted provisions can restrict future deals or allow wide use for little reward, something sports people often only realise too late.

Many sports people hold their image rights through a separate image rights company.

This type of structure can offer several advantages. It can promote tax efficiency by separating commercial income from employment income. It also provides clear delineation regarding ownership and licensing of intellectual property. Furthermore, it can support long-term brand management, helping to safeguard and strategically develop the individual’s image and reputation over time.

However, tax authorities (including HMRC) scrutinise these arrangements closely. The image rights must have genuine commercial value, and payments must reflect market reality. Specialist legal and tax advice is essential to avoid disputes and/or penalties.

Image rights disputes often arise where:

• A club uses a sports person’s image beyond what the contract allows
• A sponsor continues using an image after a contract ends
• Conflicts arise between club sponsorships and personal endorsements
• A sports person’s image is used without consent

Sports lawyers regularly act in negotiations, enforcement and litigation to protect the commercial interests and reputations of sport people.

Image rights are not just for elite or household-name athletes. Young professionals and emerging talent often sign early agreements without appreciating their long-term impact. Locking themselves into restrictive or undervalued image rights deals early on can limit future earnings just as their profile takes off. Early advice can preserve flexibility and protect future value.