Chapter 332: Moral Clauses

Vote for monthly and recommendation tickets! Three updates today!

After the Christmas holidays, Helen Herman began formal negotiations with representatives from Mercedes-Benz, which lasted nearly three weeks until all sides reached an agreement.

In mid-January 2005, Matthew Horner attended the contract signing press conference organized by Mercedes-Benz at their headquarters in Stuttgart, Germany.

Previously, his contract signings were confined within the entertainment industry, and the media present were mostly entertainment journalists. However, this time, in addition to entertainment journalists from around the world, there were many financial and social affairs reporters.

For Matthew, this was a novel experience.

Facing numerous media journalists, he picked up the pen and signed his name on the "contract," then exchanged contracts with a senior executive from Mercedes-Benz.

The two shook hands in front of the cameras, and flashes lit up the scene.

"Mr. Matthew Horner has always presented himself as a tough guy on the big screen, and he is recognized globally as a tough-guy icon. This partnership with Mercedes-Benz is sure to be a win-win situation," said the executive from Mercedes-Benz briefly before leaving the stage to Matthew, the spokesperson.

Then, the reporters' questions began to target Matthew.

A journalist from Germany's "Bild" newspaper stood up first and asked, "Mr. Matthew Horner, what do you think about endorsing the Mercedes-Benz G-Class SUV?"

Previously, when shooting "National Treasure," Matthew learned a few simple German phrases from Diane Kruger, but it was far from sufficient for a normal conversation.

He had put on headphones earlier, and the interpreter was providing real-time translation.

After listening to the translation, Matthew responded without much thought, "A man drives up, and you can tell his personality by the car he drives. I like the feeling of conquering the road, so I only drive SUVs, that's my style. And the Mercedes-Benz G-Class SUV is exactly the kind of SUV I favor."

Already in Los Angeles, Mercedes-Benz had provided Matthew with two G-Class SUVs, one black and one white, as per the contract stipulations. He must use a Mercedes-Benz G-Class for driving unless under special circumstances where communication with Mercedes-Benz is necessary.

Of course, when Matthew participates in film crew activities or premieres, riding in official vehicles is not covered by this rule.

Even without such contract clauses from Mercedes-Benz, Matthew would frequently use this series of vehicles. American regulations can be overly complicated, such as the advertising law that treats celebrity endorsements as "testimonial advertising," where the product's spokesperson must be a real user of the product, otherwise facing hefty fines.

The fines are substantial enough to completely erase the income from such endorsements.

This is one reason why stars prefer high-end brand endorsements. Consider the two junk food brands that Matthew declined; how many scandals do they churn out each year? By then, it wouldn't just damage his reputation; he might also face legal troubles.

Another journalist from the "Munich Daily" then stood up and asked, "Could you comment on this vehicle?"

"The unique design and powerful off-road capability of the Mercedes-Benz G-Class SUV perfectly match my hobbies and style," Matthew said.

He added humorously, "Maybe soon, you'll see me driving a Mercedes-Benz G-Class SUV through a barrage of bullets to save the world."

Laughter filled the newsroom.

Matthew spread his hands and joked again, "A tough guy like me doesn't suit those delicate cars."

Perhaps due to good communication by Mercedes-Benz, the journalists' questions were generally polite, and Matthew handled them easily. After answering about a dozen questions, the press conference came to an end.

Afterward, Matthew went backstage and handed the contract to Helen Herman.

After evaluating the situation, Mercedes-Benz signed a three-year advertising endorsement contract with Matthew for the G-Class series, with a base endorsement fee of $5 million, $6 million, and $7 million, increasing each year.

There were also incentives, such as additional bonuses if the G-Series sales significantly increased during his endorsement period, and if a film starring him as the lead surpassed $500 million globally, he would receive an additional $2 million, and $5 million for $1 billion.

Furthermore, Mercedes-Benz would actively sponsor films starring Matthew. If he competes for a lead role in a film suitable for promoting this series of vehicles, Mercedes-Benz would support him.

This means the film would receive sponsorship from Mercedes-Benz if he starred as the lead, greatly enhancing Matthew's leverage in securing lead roles.

This is also a win-win situation as Mercedes-Benz frequently places ads in Hollywood movies.

The G-Class SUV series is not particularly expensive in North America, starting at $70,000, making it accessible to many middle-class families.

Enjoying these benefits, Matthew naturally had obligations in many respects.

Driving only the Mercedes-Benz G-Class is just the basic rule; the contract contains a series of clauses.

By June of this year, he must cooperate with Mercedes-Benz to complete the advertisement shooting, and for the next

 two years, he is obligated to participate in an advertisement shooting annually if Mercedes-Benz requires.

In terms of business promotions, he must participate in at least one major promotional event for the G-Series each year.

Additionally, the contract contains many restrictive clauses.

The strict confidentiality and moral clauses specified by Mercedes-Benz include prohibiting Matthew from taking roles portraying homosexuality or effeminate characters during his tenure as a spokesperson for the G-Series. If scandals involving drugs or homosexuality arise, it would be considered a breach of contract, allowing Mercedes-Benz to unilaterally terminate the contract and pursue damages.

However, these regulations do not involve heterosexual relations.

This is partly the result of Helen Herman's negotiations; she understands Matthew and knows that after Britney, he changed significantly, unlikely to stay long with one woman.

Moreover, a man driving such a rugged, wild vehicle and attracting more women only enhances its appeal.

In Matthew's own words, this vehicle is absolutely a tool for showing off.

Regarding restrictions on the spokesperson, they mainly come from moral clauses.

Although the endorsement contract was signed in Germany, it is also recorded in the USA and must comply with relevant American regulations. The advertising law's moral clauses must be adhered to even by Hollywood stars.

Moral clauses are valuable to advertisers as celebrity-endorsed ads generally have more impact, especially on young consumers.

When a product, particularly one with only a vague image, is associated with a celebrity endorsement, it can transfer the celebrity's public image to the product's meaning, enabling the product to inherit the celebrity's affinity and credibility, thereby enhancing its competitiveness.

However, "meaning transfer" can also be a double-edged sword. If an advertiser selects an inappropriate spokesperson, it could impart a negative meaning to the product.

Thus, advertisers emphasizing the reliability, value, image, reputation, and promotional risk of celebrities in endorsements are significant because once a celebrity's image is damaged by improper behavior, the product image also suffers severely.

Hence, advertisers can use moral clauses to terminate a contract when necessary, quickly severing the connection between the celebrity and the product in consumers' minds.

Violating moral clauses can be a legitimate reason for terminating a celebrity endorsement contract.

In essence, this is similar to a basic employment contract; taking substantial income from a company naturally entails not engaging in activities that harm the company's interests.

With high penalties at stake, Matthew is very contract-conscious, definitely not taking roles portraying homosexuality or effeminacy, and even less likely engaging in such behavior in reality—it would be more tolerable to take his life. As for drug use, he has no interest at all.

The advertisement for this car is still in planning and won't be shot immediately. If needed, Mercedes-Benz will notify him a month in advance. After signing the endorsement contract with Mercedes-Benz and participating in two business promotion events, Matthew's work in Germany was essentially concluded.

However, he did not immediately return to Los Angeles with Helen Herman but went to Munich, the central city in southern Germany.

Munich was hosting some major promotional events for the 2006 FIFA World Cup. As the host of the 2010 World Cup, South Africa also sent a delegation for preliminary promotions.

Charlize Theron, after winning the Oscar for Best Actress, shifted from her previously unnoticed status to being used as a national emblem by South Africa, participating in many business promotion activities.

Currently, Charlize Theron was in Munich.

Matthew well understood that representing a country in global events greatly benefits a star's prestige, arguably the best way to elevate one's status.

However, this doesn't apply much to domestic Hollywood stars in the USA; those who don't oppose Washington's policies are considered low-status.

After all, the USA is a peculiar country, and its absurd behaviors are often incomprehensible.

Arriving in Munich, Matthew first called Charlize Theron, having participated in activities in Germany for two days, and directly informed her of his presence in Munich.

Charlize Theron was busy, but they eventually agreed to meet and attend a party hosted by the German Football Association that evening.

___________________

(Support with power stones, comments or reviews)

If you guys enjoy this story, In support me on Patreon and get access to +200 advance Chapters

Read Ahead

Patreon.com/INNIT