Dive Brief:

• While Brazilian police allege that U.S. Olympic swimmer Ryan Lochte's claims of having been robbed at gunpoint are false, one thing is becoming increasingly clear: The scandal will likely cost Lochte in brand sponsorships, regardless of the outcome, according to the Wall Street Journal.
• If it turns out Lochte was fabricating the robbery, “it will virtually eliminate him from future endorsements," ​Bob Williams, chief executive of Burns Entertainment & Sports Marketing, told the Wall Street Journal. "Advertisers have become far less tolerant of controversial behavior of any type, and this is yet another type of controversial behavior that doesn’t reflect well on a brand.”
• Three of Lochte's sponsors—Speedo, Ralph Lauren and mattress maker Airweave—told the Journal they are monitoring the situation. 

Dive Insight:

Brands may be quick to take advantage of Olympic stars’ fame, but they are equally quick in dropping endorsers at the first hint of trouble. A recent example was Mini cutting soccer star Abby Wambach from its ads after her arrest for allegedly driving under the influence.

The Lochte controversy highlights the risks of associating a brand too closely with any individual. After Subway spokesman Jared was found guilty of child pornography charges and seeking sex acts with minors, the sandwich chain struggle to disassociate its brand from its longtime endorser. Cases like these are why some brand experts advise their clients against anchoring their brand to any single personality.