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Marketing and Sponsorship

Nestle Terminates Sponsorship Program With IAAF Over Doping, Corruption Scandals

The crisis engulfing the IAAF "worsened on Wednesday when Nestle attempted to cut its ties with the sport" because of "negative public perception" brought about by doping and corruption scandals, according to Ben Bloom of the London TELEGRAPH. Nestle signed a five-year deal in '12 to sponsor the IAAF's Kids Athletics program, "which has seen them provide financial support for 15 million children to get involved with the sport." However, following a "disastrous year," Nestle has now announced that it "cannot cope with the bad publicity that comes with being associated with athletics and pulled out of their contract a year early." A Nestle statement said, "This decision was taken in light of negative publicity associated with allegations of corruption and doping in sport made against the IAAF. We believe this could negatively impact our reputation and image and will therefore terminate our existing agreement with the IAAF." Far from accepting Nestle’s decision lying down, the IAAF "has already consulted its lawyers and is prepared to launch a legal battle to retain the funding provided by the food and drink company." An IAAF source said, "The IAAF think Nestle’s claim is outrageous. If Nestle was a sponsor of the IAAF itself that would be one thing, but to claim that there is reputational damage over the sponsorship of a kids program is just crazy." An IAAF spokesperson confirmed the organization "is in discussions with Nestle over the final year of the contract" (TELEGRAPH, 2/10).

COE STRIKES BACK: In London, Rudd, Harris & MacArthur wrote IAAF President Sebastian Coe "came out fighting" after the announcement. Coe: “Angered and dismayed by today’s kids’ athletics announcement. We will not accept it. It’s the kids who will suffer” (LONDON TIMES, 2/11). The BBC reported the Swiss company said it had taken the decision with "immediate effect." However, the IAAF said it was still "in discussion." For its part, the IAAF emphasized the number of children "that would be affected by Nestle's decision." The IAAF said, "In 2016, IAAF Kids' Athletics plans to reach a further 15 countries, training 360 lecturers, instructing 8,640 physical education teachers, with three million children participating by the end of the activation" (BBC, 2/10).

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