although Nike's co-founder and chairman Phil Knight declared that scandals surrounding its superstar endorsement athletes are "part of the game" its mar Knight strategy is not without risks.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 2o12, Nike terminated its long-term relationship with disgraced cyclist Lance Armstrong. Just before Armstrong’s public admission to doping in an interview with Oprah Wcinfrey, 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 public 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 in building its core competency of creating heroes is. 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.