Feb 15, 2009
Split Second Decisions Costly
UPDATE – May 5, 2009: Suspension over – Phelps competitively races again. Good luck with the competition and all other future decisions.
Feb. 15, 2009 – Michael Phelps’s split second decision cost him a lot. That decision forced executives of a century-old company to evaluate their relationship that began only months ago. Some critics point to other sports figures, even presidents, in an effort for people to lighten up on the Olympic champion. But there’s a big difference when gobs of money and branding are involved.
The cost of partying to Michael Phelps was millions.
The 42nd president acknowledged his past experience with alcohol, the 43rd with marijuana, and the 44th with cocaine. The biggest difference is that when these men made the decision to partake, they weren’t under contracts that involved money, branding and sales. They didn’t sign something that likely had a morality clause in it to protect said money, branding and sales.
According to Mark Conrad, law professor at New York’s Fordam University, a moral clause is “an essential component of endorsement contracts in professional sports because the athlete is under constant scrutiny from the public and the media. Transgressions that may occur could cause embarrassment for the firm employing the services of the athlete.”
Phelps embarrassed Kellogg, so the food giant took the timely opportunity not to renew its sponsorship with the swimmer. The company didn’t say much except that Phelps’s “most recent behavior is not consistent with the image of Kellogg.” Of course it’s not. Using drugs doesn’t make branding sense at all for that sponsor.
As long as you’re in the public eye, you can’t be too careful. Every day is a new opportunity to positively or negatively contribute to your reputation.
I concur with Kellogg’s actions; they certainly have a right to protect their good name. What I don’t agree with is that they (and others) pay outrageous amounts of money to athletes to endorse their products. Michael’s picture on a box of Wheaties is not going to make me any more likely to buy their product. I think all pro athletes are put on too high a pedestal and paid way too much money for what I consider “playing”.