Rice Unconventional Wisdom

Sport Management
Casey Michel's '10 article appears on Sports Illustrated's website

Casey Michel's '10 article appears on Sports Illustrated's website

7/14/2009
Casey Michel ‘10, an intern with Sports Illustrated, wrote an article previewing the 2009 Major League Baseball All-Star Game which appeared on the front page of the magazine’s website.

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Question

Why is it that some companies have dropped their endorsement contracts with Michael Phelps and some haven't? (Doug from Houston, TX on 2-7-2009)

Answer

Dr. Clark Haptonstall:  As of right now, Kellogg's appears to be the only company that is dropping Phelps (in reality, the contract was about to expire anyway and there were no plans to renew it). Because Kellogg's placed Phelps on its Frosted Flakes box, a cereal targeted to children, Kellogg's likely felt that it needed to distance itself from Phelps based on his behavior.

Conversely, Subway, who wants fit athletes to endorse its sandwiches (Reggie Bush, Carl Edwards, etc.), has decided to stick with Phelps after he received a public scolding from the company. I have a feeling that if Phelps would have made a stink out of his three-month suspension from USA Swimming, Subway may have gone a different direction.

Phelps has owned up to his mistake which generally allows the public to forgive and forget. With that said, Phelps has two strikes against him right now because of his DUI arrest in 2004. Any more mistakes like this will end his endorsement career.

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