A ALTHOUGH NIKE’S CO-FOUNDER and chairman Phil
Knight declared that scandals surrounding its superstar
endorsement athletes are “part of the game,” its marketing
strategy is not without risks. 40 In some instances,
Nike continued to sponsor its athletes involved in various
scandals, while in others it terminated its lucrative
endorsement contracts. Nike continued to sponsor LA
Lakers’ Kobe Bryant who was cleared of alleged rape
charges. After Tiger Woods was engulfed in an infidelity
scandal, Nike continued to sponsor the golf superstar.
In 2007, Nike ended its endorsement deal contract
with NFL quarterback Michael Vick after a public outcry
and his subsequent felony conviction of running
a dog-fighting ring and engaging in animal cruelty. In
2011, after serving a prison sentence and restarting his
career at the Philadelphia Eagles, Nike signed a new
endorsement deal with Michael Vick. In 2012, Nike terminated
its long-term relationship with disgraced cyclist
Lance Armstrong. Just before Armstrong’s public admission
to doping in an interview with Oprah Winfrey, Phil
Knight answered “never say never” when asked if Nike
would sponsor Lance Armstrong again in the future. In
2013, Nike removed its ads with Oscar Pistorius and the
unfortunate tag line “I am the bullet in the chamber,”
after the alleged homicide charges against the South
African track-and-field athlete.
Time and time again Nike’s heroes have fallen from
grace. Clearly, Nike’s approach in building its corecompetency of creating heroes
is not without risks. Too many
of these public relations disasters
combined with too severe
shortcomings of some of Nike’s
most celebrated heroes could damage the company’s
reputation and lead to a loss of competitive advantage