The controversy over the U.S. Speedskating team's struggles in Sochi after adopting the new Under Armour Mach 39 suit has "hit the company where it hurt most -- its credibility in high quality athletic apparel -- exactly when it needed to shine on the world stage," according to a front-page piece by Robinson & Germano of the WALL STREET JOURNAL. With more than 90% of UA's revenues coming from North America, its partnership with U.S. Speedskating was "supposed to help the company vault into new international markets." Team USA "pored over a multitude of other factors that could have contributed to their poor showing: race tactics, skate blades and the decision to hold their pre-Olympic camp at high altitude." The situation also has "created a crisis" for UA, which worked with skaters to produce "dozens of prototypes." A source said that the "resources poured into the effort totaled" nearly $1M. Meanwhile, the question of whether U.S. Speedskating could "really afford to offend" UA "hung over the discussion" on Friday. U.S. coach Matt Kooreman said, "We were super concerned about upsetting Under Armour. They've been a great partner and we need them." UA "stood by the Mach 39 but deferred to the skaters' preference as it became clear a change was coming." UA Senior VP/Innovation Kevin Haley said, "The focus is on the athlete, putting them on the ice in a suit they're confident in." UA Senior VP/Brand & Sports Marketing Matt Mirchin yesterday said that the company "still believes the skinsuit" gave the skaters "the strongest chance of winning." Neither UA nor U.S. Speedskating "would comment on whether the contract with Under Armour would continue beyond these Olympics." There also are financial concerns "compounding U.S. Speedskating problems." Records show that the NGB was $785,000 in debt for the FY ending May 31, 2013 (WALL STREET JOURNAL, 2/18).
WHERE TO GO FROM HERE: USA TODAY's Paul Myerberg reports U.S. speedskaters "didn't use the Mach 39 in competition" before the Games, but they "did test the suit in practice, and several skaters -- including Shani Davis -- played roles in its production, if only for fitting purposes." But something is "clearly wrong" in Sochi, as the U.S. won four medals in '10 and a combined 19 over the past three Winter Games "but have failed to put a skater inside the top six of any event with four races left." UA also "sponsors members of the U.S. bobsled team, Canadian snowboard team, U.S. freestyle skiing team and members of the U.S. and Canadian hockey teams" while maintaining "a deep and meaningful relationship" with skier Lindsey Vonn. USOC CEO Scott Blackmun said that the governing body was "grateful to Under Armour for lending its support to U.S. Speedskating." He added he would be "very surprised if U.S. Speedskating and Under Armour don't continue their relationship" (USA TODAY, 2/18). USA TODAY's Bruce Horovitz in a Money section front-page piece writes, "If this were Summer Olympics -- not the Winter Games -- you might say that the Under Armour brand image was teetering on the balance beam right now." But the "consensus from four crisis-management gurus suggests that while any damage to the Under Armour brand remains up in the air, it seems to be making many -- though not all -- of the right PR moves" (USA TODAY, 2/18).
