Yes. If you enter the contest you give them the right to use your name and likeness. Which means, in the off chance that you become wildly successful, they could very much use those rights to name a beer after you, without your permission and with no royalties.
That being said, they'd really need a reason to do something to tarnish ones likeness. I'd be more concerned about the one-time royalty. If you're beer is really killer, they could make it year-round and you get nothing for it.
That being said, the fine print isn't in there to destroy the homebrewer, it's in there to protect them from potential suits in the future. I think it's cool that they're giving homebrewers the opportunity to gain some exposure. I think there's good intention at the core of it.