So, Lance Armstrong doesn’t have nine lives after all. The US Anti-Doping Agency report released last week implicates Armstrong yet again in using banned substances. Previously, he’s denied everything; recently, he gave up all seven of his Tour de France medals, and yesterday, Armstrong announced that he would stand down as Chairman of his Livestrong cancer charity. Yet the rumbles continue.
With a net worth estimated at $125 million, Armstrong is one of the world’s best-paid athletes, pulling in over $15 million in endorsements a year. Despite years of allegations, his sponsors stuck with him. His agent recently told the media that Armstong’s primary sponsors have been “incredibly supportive,” with Nike confirming its endorsement, given that Armstrong had been “unwavering” regarding his innocence.
That all changed yesterday. Less than a week after pledging support, Nike has had a volte face. “Due to the seemingly insurmountable evidence that Lance Armstrong participated in doping and misled Nike for more than a decade, it is with great sadness that we have terminated our contract with him,” said a spokesperson. Anheuser-Busch, another sponsor, immediately fell into line, as have others, including RadioShack, Trek bicycles, and Oakley sunglasses. Nothing can change the direction in which this train is headed.
The PR Verdict: “F” (Full Fiasco) for Lance Armstrong; with each sponsor that falls away, the USADA report gains in credibility. Is there a Plan B?
The PR Takeaway: When one domino falls, they ALL do. Having to hand back his awards and stand down from his charity as Chairman, Armstrong is hoping to avoid the complete collapse of the Armstrong brand. Now that his sponsorship deals are null and void, he may want to think about a radical rethink and complete change of his legal strategy and start afresh from there. Next step: start studying how fallen heroes rehabilitate their reputations. Livestrong may hold the key to his ultimate PR salvation. What Lance Armstrong now needs most urgently is time out of the public spotlight to regroup and think what a new legal and PR strategy might bring him.
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Is there any way Lance Armstrong can save his reputation? Give us your PR Verdict!