The star quarterback for the New England Patriots football team is not only facing a four-game suspension without pay and fines from the National Football League but could see a big cut in his annual endorsements.
Why? In a word, "Deflategate."
Brady and the Patriots were accused of deflating the footballs used in the AFC divisional championship game against the Colts back in January, which allowed the team to compete in, and win, the Super Bowl. The suspension and fine were upheld by Commissioner Roger Goodell after an appeal by Brady.
Weston Anson, chairman of Consor Intellectual Asset Management, said the scandal is lowering the value of both Brady and the team. Anson said nobody will offer the star player a new deal until he deals with the issue, and that, in turn, could lower his $8 million in endorsement income from last year by half.
Anson thinks there will be no effect on ticket sales or prices because Patriots fans see Brady as the perfect antihero. But Brady's existing endorsements with Movado Group (MOV - Get Report), Under Armour (UA - Get Report) and Deckers Outdoor's (DECK) Ugg brand could be in jeopardy. Anson said at least one of Brady's major endorsees or licensees is considering ending their relationship; he did not identify the company.
Anson said Deflategate will continue to a factor in Tom Brady's financial future as long as he drags it out by trying to deflect the issue without facing it head on.