Maria Sharapova's sponsors "have taken action to suspend deals and even sever links with the former Wimbledon champion after she failed a drugs test at the Australian Open," according to Martyn Ziegler of the LONDON TIMES. Tag Heuer, the luxury watch manufacturer, said that it will not renew its sponsorship with the 28-year-old, while Nike has suspended its $70M contract "with the five-times grand slam champion after she tested positive for meldonium." Tag Heuer said, "Maria Sharapova was under contract with TAG Heuer until December 31st, 2015. We had been in talks to extend our collaboration. In view of the current situation, the Swiss watch brand has suspended negotiations, and has decided not to renew the contract with Ms Sharapova." Nike said that it had suspended the Russian with "immediate effect pending the outcome of the investigation into her positive test." Nike: "We are saddened and surprised by the news about Maria Sharapova. We have decided to suspend our relationship with Maria while the investigation continues. We will continue to monitor the situation." Another of Sharapova's sponsors, Porsche, said it would "postpone planned activities" with the player, adding, "We are saddened by the recent news announced by Maria Sharapova. Until further details are released and we can analyse the situation, we have chosen to postpone planned activities.” Sharapova revealed on Monday that she had tested positive for meldonium following her quarterfinal loss against Serena Williams in Melbourne in January. Sharapova claimed that she did not realize the substance was illegal, saying that she had being taking it for health reasons for the last 10 years, but took "full responsibility" for her actions (LONDON TIMES, 3/8). REUTERS' Thomasson & Shine reported the failed drug test "will be costly for her at a time when sports bodies and sponsors are taking a tough line following a series of corruption and doping scandals." Sharapova earned $29.7M last year, Forbes reported, and most of it "came from endorsements, appearances and royalties rather than her victories on court." She was "the world's highest-paid female athlete last year for the 11th consecutive year," and Forbes put her off-court career earnings at more than $200M. Sports sponsorship agency Generate co-Founder Rupert Pratt: "We're now entering a zero tolerance era for sponsors. It is now seen as not acceptable to 'stand by your man' because of the amount of scrutiny corporates are now under" (REUTERS, 3/8).
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Opinions
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SUSPENSION PENDING: In London, Harris & Murray Brown wrote the Int'l Tennis Federation said that it would "suspend" Sharapova with effect from Saturday, pending “determination” of the case.
Guidelines from the body "call for a four-year suspension in the event of a positive drug test, although this can be reduced for first-time offences or if the player bears no fault or negligence." Sharapova is also sponsored by Evian, owned by French group Danone, which also said it was “surprised” by the announcement. The tie-up with Evian began in '12 and Danone said that “until now, we have maintained a trustworthy, professional relationship." Danone added, "Evian attaches great importance to health, integrity and to transparency, and we will follow closely the development of the investigation.”
Avon, another sponsor, "declined to comment." Endorsement deals "gave the companies image rights for billboards and magazines," and also access to Sharapova’s "vast presence on social media." The tennis player has more than 15 million followers on Facebook and 2 million on Twitter, as well as having her own app. Sports marketing consultant Patrick Nally said that "he had been a little surprised at the speed with which some sponsors were dropping her." Nally: “She has taken the initiative and been upfront, holding a press conference. But it’s clearly a cheap way for a sponsor to get out of an arrangement. All companies and brands are nervous at the moment and I suppose they want to distance themselves from another drug scandal” (FINANCIAL TIMES, 3/8). MARKETING MAGAZINE's Daniel Farey-Jones reported other brands associated with Sharapova include "tennis racquet maker Head and sunscreen brand Supergoop." She also launched her own brand of high-end confectionery, Sugarpova, in '12. Two months ago Sugarpova "expanded into chocolate through a partnership with Polish confectioner Baron Chocolatier." According to various reports Sharapova's lawyer has said the punishment for a positive drugs test "could be up to a four-year ban from the sport but that he believes there are several mitigating circumstances that could result in lesser action" (MARKETING MAGAZINE, 3/8).
EXPERT OPINION: The BBC wrote independent sports consultant Nigel Currie said that brands "would not have responded so quickly five years ago, but they now have to react faster in the modern, social media environment." He said,
"They are paranoid about their image, and the slightest risk to their image, they run to the hills." Paul Swangaurd, from the Warsaw Sports Marketing Center at the University of Oregon, said Nike's decision reflected a "new era" for the way sponsors deal with these issues.
He said that Nike is taking a "very proactive approach," which resulted from "them being burned by a lot of athletes over the years, and growing impatient with putting so much investment behind athletes that potentially comes back to bite them in the court of public opinion" (BBC, 3/8).
