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Should Sponsors Forgive Lochte?

8/27/2016

6 Comments

 
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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence
To err is human, to forgive . . . is not something that most sponsors are willing to do.  That’s what defamed Olympian Ryan Lochte recently realized, as have many other deposed endorsers whose sponsors quickly dropped them because of bad behavior.  So, is one bold new sponsor right to give Lochte another lease on his endorsement life?
 
As companies have become increasingly skeptical of spokespersons’ abilities to keep their private lives under control, most endorsement contracts now include morals clauses, which offer advertisers an easy way out of their obligations when celebrities’ personal behavior tarnishes the reputations of their organizational underwriters.  Such contract additions are legally expedient, but should companies exercise them?  Doesn’t everyone deserve forgiveness?
 
Thanks to Lochte’s public drunkenness, vandalism, and deception involving the gas station incident in Rio, the twelve-time Olympic medalist has become a four-time released spokesperson.  Speedo, Ralph Lauren, Gentle Hair Removal, and Airweave have all dumped the scandal-struck swimmer.  Of course, Lochte is only the latest in a long line of celebrities who advertisers have dropped because of moral infractions.  Other notable castaways include Lance Armstrong, Paula Deen, Bill Cosby, Tiger Woods, and even Lochte’s Olympic teammate, Michael Phelps.
 
Yes, in the wake of his unbelievable Rio Olympic performance, some have forgotten that Phelps had more than one moral meltdown that put him at odds with the law and advertisers.  In 2009, the swimming legend was photographed using a marijuana pipe, which cost him the support of Kellogg’s.  Then, in just December of 2014, he pled guilty to driving under the influence for the second time in ten years.  Yet, despite these ethical issues, several sponsors have stuck by Phelps, including AT&T, Speedo, and Visa.
 
Maybe, then, it’s appropriate that a new sponsor has already decided to support Lochte, just a couple of weeks after his revelry in Rio.  Lochte plans to appear in a series of print ads for Pine Bros., maker of “softish” throat drops.  The campaign will be based on the theme of forgiveness, suggesting that Pine Bros. drops are “forgiving on your throat.”
 
What should we make of Lochte’s new endorsement deal?  First, it’s hard to know the motives of Pine Bros.  Perhaps the company is truly interested in encouraging compassion and helping Lochte bounce back from the bad behavior he has exhibited, not just in Rio, but also at other times.  According to CNN, in 2005 and 2010, Lochte was cited three times and arrested once for crimes that included trespassing, urinating in public, disorderly conduct, and fighting in public.
 
Yes, everyone deserves to be forgiven, but forgiveness doesn’t mean that: 1) people escape the consequences of their actions, 2) offenders are enabled to repeat their behavior, or 3) others are encouraged to commit the same acts.  Unfortunately, Pine Bros. sudden support of Lochte allows all three of these outcomes by: softening the financial hit on Lochte of the other lost endorsements, empowering him to continue illicit acts, and suggesting that such abhorrent behavior is acceptable for others.  In addition, Pine Bros.’ fast funding, while an investigation of the incident is still underway, shows little empathy or respect for the Olympics, the nation of Brazil, or the owners of the gas station that Lochte despoiled.
 
But, isn’t Pine Bros. bold move good marketing?  By linking with Lochte, the company is buying buzz that’s hard to match.  If it’s true that any publicity is good publicity, Pine Bros. may realize some benefit from the sponsorship, but more likely the advertising campaign will collapse.  The idea that the drops are “forgiving on your throat” is a weak unique selling proposition expressed in an awkward theme.  In terms of AIDA, the use of Lochte may generate some attention and interest for Pine Bros., but the illogical pairing of throat drops and a scandal-ridden swimmer is unlikely to produce much desire for the product or action. 
 
On the surface, Pine Bros.’ attempt to forgive Lochte seems commendable, but diving deeper into the sponsorship implications reveals weak values propelled by poor promotional strategy.  As a result, Pine Bros. and Lochte have sunk to the level of “Mindless Marketing.”


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6 Comments
Ethan Urey
9/21/2016 10:37:18 am

I strongly believe Lochte deserved to be dropped by his sponsors and not be given a second chance by those sponsors. Especially due to the seriousness of his actions, he was an American on foreign soil representing the United States and he put a negative spotlight on the U.S. Olympic team and the country.

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Ryan Kornacki
9/21/2016 06:47:40 pm

What Lochte did that night in Brazil was wrong and the sponsors who did drop him were wise to do so. This is a man who has repeatedly been caught drunk and acting disorderly and now since his big scandal will never be an appropriate athlete to sponsor again. He not only committed vandalism he lied repeatedly and got out of the country free of any legal consequences. The Pine Bros are attempting to market their product based on his unpopularity which doesn't make much sense to begin with, and neither does their slogan. I know at least when I take a throat lozenge I'm not forgiving my throat I just want it to stop hurting thus making the ads wording awkward and forced.

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Dan Wiederrecht
9/22/2016 08:09:12 pm

I believe that Lochte should be dropped completely from all his sponsors and not be given another chance by any sponsors he once was a part of or given any chance by any sponsors worldwide. There was no reason to try and lie and make up a story that would eventually bring out the truth. Americans now despise him greatly for the act that made on foreign soil while representing the United States. It was a selfish act and extremely uncalled for. He has been given many chances on numerous accounts for his sponsorships to keep him even when he would go out and get drunk or was in the trouble with the law earlier in his career. Finally, sponsors had enough. Sponsorships finally have grown tired of his childish actions and laid their foot down and got rid of him.
Pine Bros are trying to use Lochte as a character with their cough drop product which does not make any sense at all. Is this a company that is trying to get Lochte his sponsorships back? If so, I am pretty sure that a small company like them will not win back his speedo sponsorship back or any sponsors that he once had. Sure, Lochte can go join all the washed out athletes that do Subway and McDonald’s and what not. Not all athletes that do these sponsorships are washed away, just most of them, but go ahead and join them. Pine Bros is making an awful attempt at trying to use an awful athlete that made Americans hate him forever because of his actions. It is mindless to use Lochte in a Pine Bros commercial and it is extremely mindless in him trying to get his sponsorships back. It will never be done.

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Madison Corbin
10/18/2016 02:42:41 pm

When you think about it, it is very hard for celebrities to keep their personal lives under control. I think fame has something to do with this, in that, it often causes them to act out. Now, not all athletes are like this, but some fall to the pressure of having all eyes on them. I believe in second chances because no one is perfect; we all make mistakes, not matter how moral we are. However, while there are some people capable of a complete 180 change in lifestyle, there are also people who will never change. With that said, I think that companies should only exercise these contract additions to a certain extent.

If the celebrity is someone who has a history of immoral actions, then it is less likely (though still possible) the person will change and the company should not offer this contract. Lochte falls into this category of people. He has been dropped by four companies already. If Lochte really wants things to turn around for him, then he must take full responsibility for his errors and own up to the consequences. I do not think Pine Bros will provide him with this needed change. Lochte should not be given another chance, because he has already squandered the three chances he has had.

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Samantha Celia
10/19/2016 03:05:34 pm

This is a great post. I highly agree that Pine Bros pairing with Lochte is a weak alliance. While I can appreciate puns and wit as much as the next person, "forgiveness" of throats and the famed Olympian seems disjointed and slightly pathetic. Lochte shouldn't be rewarded for his illicit behavior with more endorsements that make a joke of his thoughtless actions. Like the post said, this is disrespectful to Brazil, the Olympics, and the people that Lochte's actions affected.

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Jessica Burton
10/22/2016 12:32:11 am

This post makes a lot of great points about this situation with Lochte and his endorsements. I think that Lochte deserved to lose the endorsements that he lost. His behavior was not acceptable and was highly dangerous especially being in a foreign country. His behavior made the US look bad in several ways. i think that the many endorsements needed to protect themselves from Locate's behavior. I think that the companies that partnered with Lochte might not have been the most strategic move on the companies part. I would like to know though that the companies that partnered with him after his incident, did they show any decline in their sales, etc.

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