Friday, January 25, 2013

Lance Armstrong's reputation & the reaction of sponsors

Why corporate sponsors need to carefully manage the potential reputational risks involved in sponsoring athletes

Sponsorship is common in sport, and arguably indispensable to it. Without corporate sponsors most teams and athletes wouldn't be able to compete professionally at all. As consumers we are all too familiar with seeing corporate logos emblazoned on the uniforms and equipment of sporting teams and individual athletes. Inevitably, the reputations of both the sponsor and the athlete impact upon each other. All forms of conduct can potentially impact upon the reputation of an athlete's corporate sponsor, and it need not necessarily be illegal. Doping is an obvious example, but how would a corporate sponsor react to an athlete that publicly expresses racist views?