Whether the incremental sales and profits contributed by a celebrity endorser are sufficient to cover the
contract fees paid will, of course, depend on how high you have to bid to win the celebrity’s endorsement
and the sizes of the celebrity’s consumer appeal index in each geographic region. There is credible
market research indicating that the value of celebrity endorsements in the athletic footwear business will
have a positive bottom-line payoff if the contract payments are not unreasonably high—the maximum bid
is a pretty outrageous $50 million per year. Companies may cancel the remaining years of the contract
of any celebrity they sign for any reason, subject to paying a 10% penalty fee for one year. Bids for
celebrities whose contracts are cancelled will be taken in the year immediately following any cancellation