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Marketing and Sponsorship

Nike Leaving Door Open To Possible Sharapova Return; Head Gambles With Deal

Nike Brand President Trevor Edwards this week hinted that Maria Sharapova "could return to the Nike fold" after the company suspended its ties with the tennis star following her admission of failing a drug test after taking a banned substance, according to REUTERS. Edwards said, "Athletes are humans just like the rest of us, and they have the same frailties that the rest of us have. And sometimes those moments become teaching moments." Bringing Sharapova back as an endorser would be similar to Nike re-associating itself with U.S. sprinter Justin Gatlin "after he twice served doping suspensions" (REUTERS, 3/17). Nike CEO Mark Parker during an appearance on CNBC clarified the company's stance regarding Sharapova, saying, "It's a suspension, it's not a termination." Parker: "We take all those issues case by case. So we have to look at those on a case-by-case basis and try to make the right decision. In this case it's a suspension and we'll stay close to the situation, see how it plays out and make the right decision" ("Squawk on the Street, CNBC, 3/17).

CAUSING A RACKET: TENNIS magazine's Jon Levey noted tennis equipment manufacturer Head "practically went double down on their relationship with Sharapova" by announcing it would extend her contract "before any ruling on her suspension." The move "did raise a few eyebrows" in the industry. However, while female players "are not generally thought to move product," Sharapova has a "signature line of lifestyle and court bags" for Head. A source said, "Head really can't afford to lose Sharapova." Levey wrote there is "no doubt Head considered the potential backlash from consumers and endorsers" before announcing its stance. Fellow Head endorser Andy Murray "has been vociferous in his denouncement of PED use -- requesting additional player drug testing -- and not overly sympathetic to Sharapova’s plight." But in the end tennis players, recreational and pro alike, "tend to be fiercely loyal to their equipment." Head will "cross its fingers that Sharapova will be exonerated of intentional wrongdoing and her sentence light" (TENNIS.com, 3/16).

FROM RUSSIA WITH LOVE: NEWSWEEK's Damien Sharkov reported support for Sharapova in her home country of Russia "appears not to have wavered." The manufacturers of Kvass, Russia’s traditional soft drink, asked Sharapova to "become the face of their brand." Vladimir Mamatov, head of Kvass "conceded the company lacks the funds of Porsche or Nike but said they would 'wholeheartedly offer Maria Sharapova cooperation in any format acceptable for her.'" Russia’s Tinkoff bank last week "made a similar offer to Sharapova in an announcement on Moscow’s Govorit Moskva radio station." Rubis Cookies "even released a new line of lollipops this week with Sharapova’s face on them and the tagline '100 percent Sharapova, meldonium free.'" The Sharapova lollipops cost $0.70 each, and the company has "pledged to donate half of all proceedings to supporting Sharapova" (NEWSWEEK.com, 3/16).

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