Sunday, April 24, 2011

Olympic Athletes & Endorsements







Michael Phelps was dropped by Kellogg’s when it was revealed he had smoke marijuana at a college party.  The decision to drop Phelps came just about a week after the News of the World published the photo.  Kellogg’s had stated that it is "not consistent with the image of Kellogg's.”  I did some research and found out that this is hypocritical of Kellogg’s to reprimand him.  Phelps has had a DUI in the past and signed him anyways.  This offense is much more serious and could have potential killed someone.  How can they get rid of him for doing something that Presidents and members of the US Congress have done?  It doesn’t make any sense.  Kellogg’s got rid of him because of this so how does this make our nation look?  Kellogg’s is just a food producer and distributor and seems to be stricter than the President of the United States. 

Speedo on the other hand decided to keep Phelps as an endorser of their product.  This is a smart move seeing that he is the face of all swimming and will bring in tons of revenue for them.  Yes, he made a mistake that a very large portion of US citizen do as well.  Phelps has taken on some new endorsements since  the incident and it has benefited those companies.
There is a portion of implications that agreements and contracts have for “moral clauses”.  These agreements and/or contracts outline the behaviors that will breach the contract.  They put this section in there to ensure they are getting every penny worth when signing the athlete.  A company doesn’t want to sign someone that is constantly in trouble with the law or someone that is seen in a negative way in their sport.  The player is a representation of the company and anything the player does will affect that endorser, i.e. revenue or reputation. 



No comments:

Post a Comment