SCC Blog
Dog Days Ahead for Michael Vick & His Sponsors
July 24th, 2007Amid swirling accusations of animal cruelty and an indictment on dog fighting charges, Atlanta Falcons superstar quarterback Michael Vick’s endorsement potential is dropping faster than Enron’s stock price in 2001. Any sports marketing executive can tell you that Vick’s existing sponsors are in for a rough ride as the controversy continues to escalate while Vick’s name remains under scrutiny in the public eye.
As for Vick himself, his 2005 ranking as the 33rd most powerful celebrity in America by Forbes’ magazine seems nothing more than a fading memory at this point. Any prospective new sponsors wouldn’t touch this guy if they were wearing full pads and a helmet. His sponsors are understandably unsure how to proceed, given the speculative nature of today’s media and the impact the court of public opinion can have on a brand. Vick’s deals with EA Sports, Kraft Foods, Hasbro and Coke have all recently expired and were not renewed. AirTrain, a Florida based airline, released Vick as a company spokesman in May.
Given the scope of the charges, Vick is certainly not endearing himself to his fans. The fallout could have long lasting implications from a sports business and sports marketing perspective. The question becomes, to what degree? How does the set of circumstances surrounding Vick compare to, say, Kobe Bryant’s situation after facing charges of sexual assault? David Carter, executive director of the Marshall Sports Business Institute at the University of Southern California, offers this analysis: “We’ve seen many of those sexual assault allegations. I’m not being judgmental as to which is worse. I’m saying this one is the first of this kind. Many of us have become tone deaf when we hear of a DUI, steroid(s) or sexual assault accusation involving an athlete. This will get the kind of special attention that so many other things don’t.” It certainly doesn’t help Vick’s cause that an estimated 73 million people qualify as dog owners in the United States.
Nike at this point has not given any indication as to whether Vick’s contract is in jeopardy. A spokesman for the shoe giant said, “We’re aware of the indictment and we’re monitoring the situation.” Initially, Nike had planned to launch the new Vick shoe in late August. They have since curbed that plan in favor of taking a wait-and-see approach to Vick’s situation, an expensive stance for the company to be sure.
The headline in last week’s Kansas City Star read “Vick’s Endorsement Days May Be Over”, stating “at worst, Vick…could face up to six years in prison. At best, Vick has lost the magnetism as one of sports’ most marketable and popular figures in the most precipitous fall from the NFL’s pedestal since Green Bay running back Paul Hornung, the Packers’ Golden Boy, was suspended for the 1963 season for betting.” In the article, former Dallas Cowboys executive Gil Brandt says “I don’t think there has been a guy in modern times that has fallen so far.” Bill Sutton, professor of sports business at the University of Central Florida predicts “He’s going to disappear, like a magic act. You won’t find him anywhere in advertising or marketing in the near future.”
The Oregonian ran a great comparison of athletes who have collided with controversy in the past, analyzing its impact on endorsement deals. If past is any indication, Vick’s relationship with Nike and other sponsors is clearly on shaky ground. Here is a sampling of how past off-field/off-court issues have impacted athlete endorsement deals:
* Justin Gatlin, former all-world sprinter, who tested positive for steroids in 2006, accepted an eight-year competition ban. He was sponsored by Nike who suspended his contract and terminated its contract with his coach.
* Marion Jones, former world-class sprinter, was linked to a performance enhancing drug scandal and later failed a drug test in 2005. Nike stood by her for some time but eventually severed ties once her contract was up.
* Kobe Bryant, NBA superstar, was arrested on highly publicized charges of sexual assault. Charges were dropped but Bryant admitted to an affair. Nike stopped using his likeness in any advertising during the legal process but resumed in 2005. By 2006, Nike introduced a Bryant signature shoe and apparel line.
* Jason Giambi, MLB slugger, admitted to using steroids to a grand jury. Although he apologized in 2005, Nike released him from a contract in 2005. Reebok signed him to a multi-million dollar deal just four months later.
* Lance Armstrong, seven-time winner of the Tour-de-France, has long faced allegations of doping by cycling enthusiasts and competitors alike. Armstrong has vehemently denied allegations, never tested positive or faced any charges. Nike has not only remained by the side of the superstar cyclist, but has featured Armstrong as one of the prominent athlete endorsers for the brand.
* Randy Moss, star NFL receiver, has frequently remained in the public’s crosshairs for off-field issues and a perceived poor attitude. In 2002, he ran into a traffic cop with his automobile and faced misdemeanor drug possession charges. Nike did not renew Moss’ contract with the Jordan-brand in 2004.
* Dennis Rodman, embattled former NBA player, known as much for his off-court theatrics (dressing up in a wedding gown for a book release) as his on-court antics (kicking a photographer in the groin). Rodman served numerous suspensions and sacrificed nearly $1 million in fines and lost salary due to suspensions throughout his playing career. Nike severed ties with Rodman in 1997, was later signed by Converse, and dropped after his playing career fell apart.
* Latrell Sprewell, former NBA player and self proclaimed “American Dream”, choked his coach in a 1997 practice and was later traded to another team. His sponsor (Converse), would eventually drop him from their endorsement roster.
The uphill battle for Vick seems to be getting steeper by the day. Today, the news broke that NFL Commissioner Roger Goodell has ordered Vick to stay away from the Falcon’s training camp. It is expected that their backup QB (Joey Harrington) will be named the starter by the end of the week. Ultimately, this case could result in the Falcons’ releasing the uber-talented quarterback, rendering his services available to the highest bidder…or perhaps ANY bidder. Will any other NFL team roll the dice and add him to their roster?
That said, sports and entertainment marketing executives would be remiss to not look at the big picture during this tumultuous time as it relates to Michael Vick. Kobe Bryant faced two years of endorsement purgatory after the case in Eagle, Colorado for sexual assault. Kobe now has the #1 selling jersey in America AND China. Ray Lewis, NFL star (and former MVP of the Super Bowl), was involved in a murder case. After two years of public persecution and sponsors avoiding him like the plague, Lewis reconnected with the corporate community, becoming one of the prominent faces of the NFL. Lewis appeared in numerous television spots, graced the cover of EA Sports wildly popular “Madden” video game and has since racked up endorsement deals reportedly worth over $1 million. So the question begs, will Vick follow the destructive path of so many other high profile athletes and fade off into obscurity, or will he rebound like Kobe Bryant? The jury is out…
*** Teacher’s Note ***
This is a case with potentially far reaching implications. The conversation in your class is likely to be very lively, with a number of factors evident in Vick’s situation.
1) Ask your students how they think this particular case may be relevant when discussing social issues in sports and entertainment. Is this a cultural issue? Race issue?
2) Ask students to play the role of an executive for Nike. How would they handle the release of the new Michael Vick sneaker?
3) Ask students to perform a SWOT analysis for this particular situation from Nike’s perspective.
4) Ask students to perform a SWOT analysis for this situation from the perspective of Michael Vick’s agent.
5) Ask students how they think the public will react to Vick in the future. Will he be a viable product endorser ever again or is his image and reputation damaged to the point where he will never represent a product again?
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