Another Nike Endorsement Disaster

This just doesn’t seem to be Nike’s year for sports endorsements. In the UK it has problems because soccer star Wayne Rooney got injured wearing Nike soccer boots and it has opened a debate whether the new light boots offer the necessary protection when someone steps on a foot, and now in the US it has the Michael Vicks debacle.

Vicks, the star quarterback for the Atlanta Falcons, and star endorser for Nike, has entered a plea agreement in Federal Court on dog fighting charges.  He has been suspended indefinitely by the National Football League and now Nike says it has terminated his endorsement contract.

When the charges first surfaced Vicks basically lied and said, “Not me.” Nike hung onto that hope and while it suspended Vicks it didn’t cut him off saying that everyone is innocent until proven guilty. Now that he has entered his guilty plea to charges that include financing dogfights, and killing dogs that weren’t up to snuff in the dog pit, the game is up.

“Nike has terminated our contract with Michael Vick following (last week’s) release of details of his plea. As we have said in previous statements, we consider any cruelty to animals inhumane, abhorrent and unacceptable.”

Nike said last month that items carrying Vick’s name would no longer be on sale in its owned  stores and it has made the decision not to launch a fifth signature shoe, Air Zoom Vick V. But the four shoe lines already out there and three shirts with his name will remain on sale.

The Atlanta Falcons are none too happy with the turn of events either but for financial/legal reasons they have not tossed Vicks off the team yet. They are, however, looking for ways to recover the $22 million bonus already paid on his $130 million contract. - August 28, 2007

Keywords:sports marketing

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