Dive Brief:
- Previously top-ranked women’s tennis player Maria Sharapova admitted to failing a drug test at the recently-held Australian Open and immediately began losing sponsors.
- Both Nike and Porsche have suspended their relationship with the tennis star, and watchmaker TAG Heuer stopped negotiations to extend its contract with Sharapova, which expired in December. Water company Evian is one sponsor that is following the investigation before taking any action.
- So far, there’s been no dollar amount placed on Sharapova’s suspended sponsorships. According to Forbes, Sharapova made $23 million from endorsements and appearances last year. In 2010, the Tiger Woods sex scandal that cost the golf star $22 million in endorsements.
Dive Insight:
While Nike stood by Tiger Woods after his scandal, as a New York Times article pointed out, Sharapova was quickly and unceremoniously dropped by the athletic apparel brand. Nike similarly stood by Lance Armstrong while he faced questions about doping that ended up being true. More recently, however, Nike also quickly dropped boxer Manny Pacquiao after he made anti-gay comments in an interview.
The New York Times speculated that social media, and its power to quickly spread news that might negatively affect a brand far and wide, might have had something to do with what seems like a changed stance for Nike in distancing themselves from troubled celebrity endorsers.
“We are saddened and surprised by the news about Maria Sharapova,” Nike said, adding it would “continue to monitor the situation.”
Marketers using actual personalities as the face of a brand always run the risk of damaging their brand if that person gets into public trouble. Sharapova’s sponsors are just the latest brands having to conduct damage control.
