Armstrong’s Brand at the Finish Line

 Armstrongs Brand at the Finish Line

The PR Verdict: “F” (Full Fiasco) for Lance Armstrong

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!

Bob Diamond: Was It Something I Said?

BobDiamondresignation 300x194 Bob Diamond: Was It Something I Said?

The PR Verdict:”F” (Full Fiasco) for Bob Diamond, resigning CEO of Barclays.

One down and another just gone. Monday morning saw the resignation of Barclays Chairman Marcus Agius, following news of the Libor rate scandal. “The buck stops here” Agius said.  Exit stage right.  Oddly enough, his number two, CEO Bob Diamond, remained standing. By Tuesday, Diamond’s resignation had been accepted.

Up until then, Diamond apparently felt the buck didn’t really stop with him. While suitably contrite, with public apologies and regrets that made it clear that rate fixing failed to meet Barclays’ standards, there was no hint of a resignation. Hell no! Dismissing any suggestion that he was about to lose his position, Diamond told the media he wasn’t going anywhere. Two days later, he was out of a job.

Diamond’s headstrong comments over the weekend pushed forward the likelihood of a resignation. After all, if the Chairman had resigned, why didn’t the CEO, who is in charge of day-to-day business? Given that Diamond has previously fought PR clouds over his compensation and autocratic style, this unlucky third strike was bound to have him preparing the cardboard box for his belongings.

The PR Verdict: “F” (Full Fiasco) for Bob Diamond. Telling the media and staff he had no intention of leaving his post wasn’t his call. An oddly cavalier declaration when his Chairman had decided to take his public lumps.

PR Takeaway: Is it the role of a CEO to decide if he should keep his job or not?  Remember, each person is only a guest in his or her position, and the invitation can be pulled at any time. Better to have deferred the issue to the Board and say that the matter of continued service was a decision for them. Diamond unwittingly gave everyone from the UK Prime Minister on down the opportunity to cry foul. With little incentive for powerful stakeholders to come out in support of Diamond’s tenure, his remaining days were nothing more than a countdown to the inevitable.

Should Agius and Diamond have resigned simultaneously? Would that have been the better PR tactic? Give us your PR Verdict below.

We will be back July 5 with a new PRV. Happy July 4 to all our readers

 

Did Warren Buffett Have To Say Anything?

warren buffett2 300x203 Did Warren Buffett Have To Say Anything?

The PR Verdict: “A” for Buffett's consistently smart PR.

So, Warren Buffett has stage one prostate cancer.  The famous investor isn’t worried and nor are his doctors.  Investors are sanguine and the media says unanimously it isn’t life threatening.  In a statement issued by his firm Berkshire Hathaway, Buffett, Chairman and CEO, said the news “is not remotely life-threatening or even debilitating in any meaningful way…I feel great.”

What then were the obligations to disclose the news?  Particularly given Buffett is already 81 years old.   Might it have been easier to sit tight and not mention it?

Buffett’s genial PR profile has long been associated with transparency.  He routinely tells investors when he gets things wrong and has often been his own harshest critic.  Making the announcement makes no difference to the day-to-day running of the firm.  But it does put him firmly in control of his own PR and keeps his reputation consistent with his public persona.  Smart move.

The PR Verdict: “A” for Warren Buffett’s consistently smart PR.  By making the announcement himself he was always in control of the message.

PR Takeaway:  Always better to make the announcement yourself than have someone else make it a scoop, and do it for you.  Buffett was in tight control of the agenda and was presumably pointing journalists to medics who were giving informed and on-message analysis of his prognosis.  With talk of who will be Buffett’s successor still ongoing, this could have been a gateway into a far more destabilizing media controversy for Berkshire.  No wonder he chose to go public.

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