brands under fire
Posted by Mark J. Miller on October 17, 2012 10:29 AM
A week after the United States Anti-Doping Agency let loose a thousand pages of painful details about how Lance Armstrong and pretty much every other top American bicycle pro of the last decade doped, Nike has finally released its own news on the matter.
Following a protest at its Beaverton, Ore., HQ yesterday, Nike this morning confirmed it's dropping the athlete with two terse paragraphs, serving up a serious financial blow to Armstrong even though still continuing to support the Livestrong philanthropic brand he founded. The sports giant just released a limited-edition collection to celebrate the 15th anniversary of Livestrong, which promotes cancer awareness and healthy living, as part of a licensing deal that will continue.
Just as Joe Paterno's name was scrubbed from the Nike campus, Armstrong will also see his name removed from the fitness center on the Nike campus in Oregon, as CNN is reporting that Nike will remove his name from the building. In tandem with Nike's news, the disgraced cyclist also announced this morning that he was stepping down from his role as chairman of Livestrong.
The news prompted a mass exodus from Team Armstrong. On the heels of Nike's announcement, sponsor Anheuser-Busch announced it's dropping the cyclist when his deal as a Michelob Ultra brand ambassador ends on Dec. 31st. The Giro brand, which produced a custom $15,000 bike helmet for Armstong's 2010 Tour de France race and a branded line of helmets, also quit Team Armstrong, along with the Honey Stinger brand and, as the Wall Street Journal reports, RadioShack .
In all, Bloomberg estimates that Armstrong stands to lose $30 million as his sponsors flee.Continue reading...
brands under fire
Posted by Shirley Brady on July 23, 2012 11:47 AM
Penn State players, alumni and other supports are in shock today following the NCAA's unprecedented actions in the wake of the Jerry Sandusky child abuse scandal: a $60 million fine, a four-year college bowl ban and 40 scholarships axed, in addition to erasing all 14 seasons of victories under late coach Joe Paterno. The move follows a damning report by former FBI director Louis Freeh that accused the university of enabling former Penn State football coach Sandusky's crimes.
The NCAA's executive committee chair Ed Ray stated at a press conference, "The historically unprecedented actions by the NCAA today are warranted by the conspiracy of silence that was maintained at the highest levels of the university in reckless and callous disregard for the children. There is incredible interest in what will happen to Penn State football. But, the fundamental story of this horrific chapter should focus on the innocent children and the powerful people who let them down." Are the NCAA sanctions excessive in your opinion? Post a comment below. (Update: Click here for Penn State president Rodney Erickson's response.)
brands under fire
Posted by Mark J. Miller on July 12, 2012 03:56 PM
The horrific actions of former Pennsylvania State University assistant football coach Jerry Sandusky have gripped a nation since he was arrested last fall and found guilty of 45 counts of child abuse a month ago. Now it is Penn State’s turn.
The release of former FBI Director Louis Freeh’s independent report Thursday morning is a major blow to the PSU brand, with one immediate fallout: Nike immediately reversed its November decision to stand by Sandusky's former boss, the late Joe Paterno, whose name graces a childcare center at its global HQ.
Before the report's release, even with the Sandusky talk swirling before his trial and conviction, the University managed to raise millions of dollars. In fact, the 2011-12 fiscal year had the school bringing in the second-highest annual fundraising tally in its history: a whopping $208.7 million.
It remains to be seen how much money comes PSU’s way now that its former leaders are more in the public eye than Sandusky, who has now been entered into American criminal lore as one of the most clued-out offenders of all time — and protected. As the Freeh report on Penn State's role states in one damning sentence, "In short, nothing was done and Sandusky was allowed to continue with impunity."Continue reading...
brands under fire
Posted by Mark J. Miller on June 26, 2012 03:15 PM
Now that former Penn State assistant football coach Jerry Sandusky is behind bars and listening to his fellow inmates serenade him with Pink Floyd (“Hey, Teacher, leave those kids alone!), all he has to do is sit and wait to see just how many hundreds of years he is sentenced to or if his lawyers can somehow pull off a modern legal miracle and get him out on some technicality.
As his image is erased from Penn State's property, Sandusky sits and waits and hopefully begins to realize what kind of complete turmoil he has left in the wake of a child sex abuse scandal. It's more likely that he will instead try to slow time down and have his legal team throw every possible barricade into the mix to keep him from being chucked into another prison’s general population just yet. However, Penn State University is on the opposite track, trying to speed things ahead, eager to get everyone over this massive PR hump, and back to thinking of Penn State as Happy Valley again.
In downtown State College this weekend, artist Michael Pilato replaced the image of Sandusky that once graced a mural there with “a blue ribbon — a symbol for awareness of child sexual abuse” – and “a depiction of Dora McQuaid, a poet and advocate for domestic and sexual violence victims and issues” as well as a PSU grad, according to the Associated Press. And in one small glimmer of a turnaround, Cars.com indicated today it would once again advertise during Penn State college football game broadcasts.Continue reading...
Posted by Dale Buss on June 25, 2012 08:55 AM
AB InBev closes in on buying remainder of Mexico's Grupo Modelo for more than $12 billion.
Apple adds Yelp check-ins to iPhone maps app, sees Motorola Mobility patent case shut down by federal judge and retail workers described by NYT as "loyal but short on pay."
Best Buy tries to regain edge before back-to-school season.
BlackBerry owner RIM reportedly considers a plan to split its company in two.
Cadillac surprises with integration of Apple's Siri voice.
Carl's Jr. and Hardee's set Spider-Man movie tie-in.
Dewar's announces three-year partnership with TED.
Dairy Queen gripes about New York menu restrictions as it enters the city.Continue reading...
Posted by Dale Buss on June 14, 2012 09:01 AM
LVMH acquires storied French luxury brand Arnys.
Nokia to cut 10,000 jobs, sells Vertu luxury brand.
GM plans to close Opel factory in Germany.
Amazon and Google rush to wrap up new gTLD domain-name suffixes with ICANN.
Applebees sees franchisee's new marketing campaign diverge controversially from corporate brand.
Aung San Suu Kyi warns investors off Myanmar's state oil and gas firm on historic visit to Europe.
Coca-Cola renews sponsorship of BET's 106 & Park.
Facebook launches real-time bidding for "Marketplace" ads.
GE promotes new refrigerator in online-only video.Continue reading...
brands under fire
Posted by Shirley Brady on December 8, 2011 09:45 AM
Still reeling from the Jerry Sandusky child abuse case, Penn State officials and fans groaned last night as the university's disgraced former football coach was arrested on fresh charges (which his lawyer says he's denying) ... while clearly wearing a Penn State jacket with the Nittany Lions logo as police hauled him off to jail, where he remains this morning. Above, a few of the responses on Twitter as the news broke.
brands under fire
Posted by Abe Sauer on December 1, 2011 04:06 PM
When two of the three news stories on your university's own homepage involve steps the university is taking to address sexual abuse, you know you have a PR problem on your hands. When your university's highlight video, allotted each school during football games, features your president talking candidly about the steps the university if taking to address sexual assault, you definitely have a PR problem. And what a problem Penn State has.
The ongoing Penn State scandal, in which the school is accused of covering up the long term sexual abuse of minors by then-assistant football coach Jerry Sandusky, is working its way to being a guaranteed case study in every PR, marketing, education and MBA program in the nation. But is the light at the end of the tunnel already appearing?Continue reading...