When an athlete’s image is tarnished by controversy, endorsed companies explore whether they can, and should, terminate the relationship. After all, a company doesn’t want to be associated with—let alone pay—an athlete whom the public no longer admires.
As we’ve seen, fans can swiftly turn on athletes who are accused of wrongful acts, be it organizing a dogfighting ring, committing serial adultery or embellishing a gas station robbery while in Rio de Janeiro. Athletes stained by allegations stand to lose millions of dollars if companies they endorse cut ties.
A newly reported federal investigation into Under Armour’s accounting practices flips this discussion.