Tennis player Maria Sharapova during a press conference in Los Angeles
If advertisers go to break contracts with Russian tennis player Maria Sharapova in danger of losing tens of millions of dollars of income security
«I made a terrible mistake. I summed up the fans. I summed up the whole sport, “- he said on March 7 at the emergency press conference in Los Angeles, Maria Sharapova. Tennis and its PR-team from IMG sports agency decided to give public confession, without waiting for the formal charges. Athlete introduced his version of what happened: entered in the list of banned drugs from January 1, 2016 meldonium it due to health problems made use of the last ten years and supposedly just missed the news about the substance reclassification
According to the rules of the World Anti-Doping Agency. at worst tennis player faces suspension for four years. In April, Sharapova will celebrate 29 years, so long exclusion from $ 298 thousand to lose in the tournament of the International Tennis Federation could mean the end of the athlete’s career.
According to Bloomberg, because of the problem of doping test Sharapova soon . Such a sum she received as a prize for their participation in the Australian Open (Australian Open). At this tournament, the Russian has reached the quarterfinals, losing to American Serena Williams.
But it is much more than on the court, Sharapova earned on advertising. According to estimates of the American magazine Forbes, Sharapova – the highest paid athlete in the world. This status athlete held for 11 consecutive years. In 2015, its annual income was estimated at $ 29.7 million.
The Big Hurt
The fact that not all advertisers want to share reputational risks Sharapova, it became clear immediately: a few hours after the press conference the company for the production of sportswear, footwear and equipment Nike announced that it has suspended the contract with Sharapova
«We are saddened and surprised by the news of. Maria Sharapova. We have decided to suspend relations with Mary until the investigation is completed. We continue to monitor the situation “, – said in a statement, Nike (on CNBC quote)
For Sharapova business -. This is a serious blow. It is brand Nike has become the key to the commercial success of tennis players. The company with revenues of $ 31 billion was the technical sponsor of Sharapova when she still went to juniors. With the growing popularity of Nike athletes entrusted to oversee her own line of clothing and footwear – ballet flats from Sharapova at some point become a top seller “daughter” outfitter Cole Haan, goods brought millions of dollars in revenue to the manufacturer. In 2013, Cole Haan was sold, but the cooperation with Nike went on to the last row in 2010, the parties entered into a ten-year contract worth $ 70 million
It was probably the biggest. Sharapova agreement: for comparison, the partnership with Porsche and Head, according to unofficial information, bring it for $ 2 million a year. The amounts of the remaining contracts were not disclosed.
The margin of safety
All advertisers in the spring campaign of 2016 which involved Russian woman, at least, once again examine the advisability of continuing cooperation with the disgraced star, Forbes said analyst marketing firm Octagon David Schwab. Even tennis convince all that inadvertently used illicit drug – “in the Twitter era, few people read the headlines on that Sharapova failed a doping test, and delves into the details,” – says the expert. According to Schwab, the largest brand of justification athletes hardly seem convincing.
But the personal business empire Sharapova may survive the current stroke, writes Bloomberg agentsvo citing Paul Svongarda, former head of the Center for the Study of sports marketing at the University of Oregon . “Mary has a very large margin of safety that is called goodwill (goodwill) and the marketing demand, so it is unlikely it will share the fate of champions from other sports, which broke down reputational scandals. In the end, powerful supply has never been a major source of income for Mary “, – says expert
In 2015, the advertising contracts brought $ 23 million Sharapova, and its total advertising revenue for the years of career, passed for $ 200. million, Forbes reported. For comparison, the participation in the tournament has brought $ 6 million Sharapova in 2015 and $ 36.6 million in his career. Also of Nike, a major brand, put on a Russian woman at the beginning of her career, became a manufacturer of rackets Prince. After the victory of 17-year-old Mary at Wimbledon-2004 interest of advertisers has grown dramatically: Nike re-sign a contract with the tennis player to twice more favorable conditions for it, and new partners rising star became Canon, Motorola, Colgate-Palmolive and others. Just a year after the first resounding victory, Sharapova earned $ 18 million later in the pool of advertisers, cooperating with Russian, included giants such as Land Rover, PepsiCo, Samsung, Tiffany & amp.; Co. . And Sony
Among its current partners – American Express payment system (two-year agreement signed in 2015, the company launched a special website, where AE cardholders can play a virtual game with Sharapova), Avon (Sharapova – face brand Luck spirits 2014), Evian (manufacturer of mineral water Sharapova has been cooperating for more than ten years), Head (manufacturer rackets lured Sharapova competitor Prince in 2011), Tag Heuer (one of the oldest partners Sharapova, watchmaker trusts advertisement its products Russian woman since 2004), Porsche (Sharapova became the Ambassador of the German car brands in 2013 – an agreement is for three years) and – it is not clear whether there will be -. Nike
Under the threat of doping scandal and his own business tennis – manufacturer Sugarpova chewing sweets. Mary launched the brand in 2012 with the support of her agent Max Ayzenbada. The promotion of athlete invested $ 500 000. She wanted to turn Sugarpova in lifestyle-brand, with time to get outside of the confectionery segment. In January 2016, on the eve of the fateful for Sharapova tournament Australian Open, Ayzenbad once again confirmed the ambitious plans of sweets producer: by launching a chocolate line to the end of the year the company expects to triple increase revenue to $ 20 million
out of the race:
The iconic cyclist Lance Armstrong that the eyes of the whole world beat cancer and returned to the sport in 2012, he was found guilty of systematic doping. Athlete not only lost all won titles in 1998, but became a real outcast among advertisers. The contracts with athletes consistently broke outfitter Nike, brewery concern Anheuser-Busch, manufacturer Trek bikes and other major brands. When he assessed his damage from the scandal, at least $ 75 million in 2013, Armstrong finally confirmed the findings of the anti-doping agency broadcast the Oprah Winfrey show.
The famous golfer Tiger Woods in the 2000s have repeatedly led the ranking of the most highly paid athletes according to Forbes the world. The scandal broke out when an athlete has admitted in numerous adultery: getting rid of the reputation of exemplary family man, he was not able to save and sponsors. One after another from Woods turned away Nike, Accenture, AT & amp;. T, Gillette and others Revenues golfer declined by about $ 50 million per year
The Uruguayan footballer Luis Suarez. often at the center of the scandal because of the unrestrained character. After the striker at the World Cup in Brazil bitten defender Giorgio Chiellini during a match with Italy, he has not escaped alone disqualification of nine matches and suspension from football for four months, but lost his sponsorship deal with online poker 888Poker, which is considered koprometiruyuschim partnership with the player. The amount of the terminated agreement were not disclosed. The main technical sponsor Adidas Suarez to interrupt cooperation with did not.
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