Ryan Lochte's Endorsement Potential Could Take a Hit After Rio Robbery Scandal
August 18 2016 - 11:30PM
Dow Jones News
Ryan Lochte's antics outside of the pool may damage the Olympic
swimmer's ability to land new sponsors.
Brazilian police are saying that Mr. Lochte fabricated a story
about himself and three teammates being robbed at gunpoint over the
weekend by assailants who were posing as police officers.
Footage from a Rio gas station recorded the morning that the
U.S. swimmers were allegedly robbed at gunpoint appeared to
undermine their story. On Thursday, the head of Rio's state
investigative police said Mr. Lochte, along with fellow gold
medalists James Feigen, Gunnar Bentz and Jack Conger, damaged
property at a gas station Sunday morning and were kept there by
armed security guards until they paid for the damage. He rejected
Mr. Lochte's account and said the incident remains under
investigation.
The controversy has made international headlines and raises
questions about the ramifications the incident will have on Mr.
Lochte's ability to cash in on his storied career that now includes
12 Olympic medals.
If it's true that Mr. Lochte lied, "it will virtually eliminate
him from future endorsements," said Bob Williams, chief executive
of Burns Entertainment & Sports Marketing, a firm that
represents advertisers who hire celebrities for endorsement deals.
"Advertisers have become far less tolerant of controversial
behavior of any type, and this is yet another type of controversial
behavior that doesn't reflect well on a brand."
Mr. Lochte has had plenty of success over the years with
corporate America including an endorsement pact with Procter &
Gamble's Gillette brand during the London Olympics. He also had a
sponsorship deals with companies such as Mutual of Omaha, Nissan,
AT&T and PepsiCo's Gatorade but those deals had expired several
years ago, the companies said.
In a statement, Ralph Lauren, one of Mr. Lochte's current
sponsors, said: "We are working closely with the USOC on the
developments in Rio and are reviewing the situation."
Speedo, another sponsor, suggested contacting Mr. Lochte's team
for more information. "Speedo is following the situation, and has a
policy not to comment on ongoing legal investigations," the company
said in a statement.
Mattress manufacturer Airweave confirmed it has an endorsement
deal with Mr. Lochte, but declined to comment on the Rio
incident.
Some marketing experts suggest that even before the incident,
Mr. Lochte didn't have a lot of endorsement buzz.
"Mr. Lochte had high performance expectations heading into
London and that's when his potential for endorsements was at its
highest," said Matt Fleming, director of celebrity acquisition at
Marketing Arm, a unit of Omnicom Group that ranks perceptions of
athletes based on online polls.
"The same hype did not exist leading up to Rio and he was not as
coveted by brands," he added.
In Rio, Mr. Lochte was part of the U.S. team that won the gold
medal for the 4x200 freestyle relay.
Steven Perlberg contributed to this article.
Write to Suzanne Vranica at suzanne.vranica@wsj.com
(END) Dow Jones Newswires
August 18, 2016 23:15 ET (03:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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