Friday, October 19, 2012

After a celebrity scandal like Armstrong's, sponsors like Nike weigh their options

After a celebrity scandal like Armstrong's, sponsors like Nike weigh their options: What's the difference? A marketer's prerogative.

The world's largest clothing and footwear maker has stood by athletes through a number of scandals over the years, but this week it became the first company to sever ties with Armstrong in the wake of allegations that he used illegal drugs to boost his performance during his 20-plus year racing career.

At least five other companies followed Nike's lead, highlighting the tricky relationship that evolves when marketers sign multimillion-dollar deals with celebrities and athletes to endorse their products. Everything a celebrity endorser says and does could negatively impact the company he or she represents.

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