You’re…Not Just Talent (Part II): The Protein Bar Case Study

We told you in Part I that Cadet Legal is not a sports & entertainment law firm, but “a corporate transactional firm that deeply understands entertainment and how to build ecosystems.” Our approach flows from a true appreciation for the entertainer as both a creative talent and a rational business person. While we remain fans of the art, we apply a level of intellectual rigor, practical business sense, and sound corporate fundamentals that might surprise some in this space. For others, however, those special athletes, musicians, and other creatives who believe in entrepreneurship, owning assets, and building an empire (the ones we like to call, collectively, “Entertainment Entrepreneurs”), we may be just the right fit. The case study below illustrates the Cadet Legal Advantage for you.

Let’s say you're a collegiate or professional athlete that loves protein bars. Given your beastly performance on the field and your viral potential on social media,  you naturally get approached by an established protein bar brand, “Raizin-the-Bar,” to be their spokesperson 

A traditional entertainment law firm might draft an “endorsement agreement,” and a more modern entertainment boutique might propose a “brand ambassador agreement” or even an “influencer agreement” compliant with the latest FTC guidelines. Either approach will basically get you to the same place - Raizin-the-Bar will get to use your name, image, and likeness (“NIL”) on their protein bar packaging and ads. You also agree to post and promote their protein bar on your social media. 

In contrast, working with Cadet Legal, a firm that brings deeper corporate legal skills than an entertainment-only boutique, you have access to at least two additional options below. 

• OPTION A (“Start it from Scratch”) – Instead of just signing off on a deal to let Raizin-the-Bar slap your NIL on their protein bar, Cadet Legal could instead help you form your own protein bar startup (“FreshSupp”) from scratch (we've done it for other talented clients) OR

• OPTION B (“Buy and Build”) - Cadet Legal advises you in the acquisition of an established nutritional supplement company (“Mom ‘N Pop’s Supplements”) and helps you create a nutritional supplement Platform for yourself. To build your Platform, you start with that first Mom ‘N Pop’s acquisition, investing capital and adding on assets that will accelerate the growth of your business: personnel, technology, and even other complementary companies (e.g., a sports drink company). We’d still leverage your NIL in the deal, but it would be as part of a licensing arrangement between you and the Mom ‘N Pop’s Platform which you now majority own.

For the Entertainment Entrepreneur who finds Option A (Start it from Scratch) appealing, but is worried about how to staff and grow its FreshSupp startup, Cadet Legal has solutions. We are fortunate to count various skilled developers, designers, bankers, marketers, legal specialists, and experienced operators from the best schools and institutions among our friends and clients. We are also startup founders ourselves, so we guide you from a place of personal and professional experience. For select Entertainment Entrepreneurs choosing the Start it from Scratch option, Cadet Legal can connect you with the right operations team.

Similarly, if you are the kind of Entertainment Entrepreneur who likes Option B (Buy and Build), the unique Cadet Legal Advantage for you lies in our relationships with experienced asset managers. In addition, some of our team members acquire and invest in businesses ourselves. That means that we intimately understand the concerns that arise when you invest your hard-earned money into a Mom ‘N Pops Platform operated by someone else. For the right Entertainment Entrepreneurs, some of our asset management clients offer white label, bespoke investment vehicles where you can set the investment agenda, and they go out and execute it. 

Beyond the scenario above, Cadet Legal’s corporate legal skills and business experience allow us to support our Entertainment Entrepreneurs in various other contexts.

For our musically-gifted Entertainment Entrepreneurs, we not only are happy to review your production and feature agreements, but we can also help you start your own production company or studio entity and operate it as a business.

For Entertainment Entrepreneurs in film, TV, and other content creation, yes, that employment/independent contractor agreement is important. However, how much more protected would that director, producer, or podcaster be if their advisors also negotiated an equity stake with minority shareholder protections and a board seat so that producer/director position can’t be modified, reduced, or ripped away?

Which Are You?

If you (or the person you manage) is not just talent, but an Entertainment Entrepreneur, you need advisors that see, understand, and have the tools to build out the vision. Let’s talk and see how Cadet Legal and its ecosystem can support your empire.

Disclaimer. The contents of this article should not be construed as legal advice or a legal opinion on any specific facts or circumstances. Your viewing and/or use of the contents of this article do not create an attorney-client relationship with Cadet Legal. The contents are intended for general informational purposes only, and you are urged to consult with counsel concerning your situation and specific legal questions you may have.