Dive Brief:
- U.S swimmer Ryan Lochte has lost all four of his brand sponsors after a controversial incident at the Rio Olympics.
- Lochte initially claimed he and several other swimmers were robbed at gunpoint in Rio but later recanted details of the story after surveillance footage was released.
- The fallout caused swimwear brand Speedo, apparel retailer Ralph Lauren, mattress maker Airweave, and laser hair removal treatment Gentle Hair Removal to drop their sponsorship of Lochte, according to the Washington Post.
Dive Insight:
Decorated swimmer Ryan Lochte found himself in hot water at this year's Rio Olympic Games after telling a tall tale about a controversial incident that occurred at a Rio gas station. The ensuing backlash against Lochte caused all four of his corporate sponsors to drop him.
The outcome of the controversy was not difficult to predict after Brazilian authorities dismissed Lochte's account of what he claimed was a gas station robbery. The authorities said Lochte had vandalized the gas station and was then confronted by armed security guards who took payment for the damages before Lochte and three other swimmers were allowed to leave the premises. Controversies like this one don't reflect well on Lochte or the brands sponsoring him, ultimately leading all four sponsors to end their relationships with him.
Celebrity sponsorships can give brands a certain cachet — especially when sponsoring athletes during the popular Olympic games — but they can also cause public relations and image problems when endorsers create controversy, such as Lochte’s fictitious tale of a robbery.
Lochte's story is not unique in this regard: Earlier this year, automaker Mini dropped its sponsorship of Abby Wambach after a DUI arrest. And last year, Subway dropped its longtime endorser Jared after he was arrested and later convicted on child pornography charges.
