Generally, companies use this term to protect their reputation. This term prevents an athlete from saying anything negative about the company or engaging in behavior that could harm the company’s reputation. Most often, this term only protects the company and not the athlete.

For example, an Athlete who is sponsored by a protein bar company cannot go on social media and say that the protein bar tastes terrible and not to buy it.

Example Contract Language: 
Non-Disparagement: The Athlete shall not (a) knowingly make any damaging or harmful statements—spoken, written, or online—about Company and Company’s products; or (b) do anything which might reasonably be considered to be immoral, scandalous or obscene, or otherwise damage the reputation of the Company during the term of this agreement.

This clause is unfavorable to the athlete as it can limit what the athlete may post or say about the company. This clause also means that if you say or do anything while working with the company, even if it has nothing to do with your work with the company, the company has sole discretion to terminate the contract.

Scroll to highlighted section for example within a contract.