Major Sponsors Cut Ties With Sharapova After Failed Drug Test

Nike, Porsche and Tag Heuer have all suspended their ties with Russian tennis star Maria Sharapova after she admitted to failing a drug test.

The 28-year-old five-time Grand Slam winner made the announcement at a specially arranged press conference in Los Angeles on Monday.

The drug test was taken after her Australian Open quarter-final defeat to Serena Williams in January.

She tested positive for Meldonium which is a substance that was banned by the World Anti-Doping Agency (WADA) on 1st January.

The International Tennis Federation (ITF) has confirmed that Sharapova will be provisionally suspended from March 12.

Sharapova’s admission has already had a huge impact on her sponsorship deals with her major sponsors, such as sportswear giant Nike who have been associated with her since she was 11, deciding to take swift action.

In a statement, Nike said: “We are saddened and surprised by the news about Maria Sharapova.

“We have decided to suspend our relationship with Maria while the investigation continues.

“We will continue to monitor the situation.”

Swiss watchmaker Tag Heuer also released a statement which read: “Maria Sharapova was under contract with TAG Heuer until December 31, 2015. We had been in talks to extend our collaboration.

“In view of the current situation, the Swiss watch brand has suspended negotiations, and has decided not to renew the contract with Ms Sharapova.”

Her earnings of £26m last year made her the highest-earning female athlete for each of the past 11 years, and her total money earned off the court is estimated at around $200m.

Forbes believe the loss of Nike could have the biggest impact on Sharapova financially.

“Nike has been Sharapova’s biggest backer since she was a teen and her world-rank was in the 200s,” said Forbes writer Kurt Badenhausen.

“She has her own line of clothing at the $31-billion sportswear giant. She reaped millions of dollars with her ballet flat, which was the No. 1 female shoe at Nike subsidiary Cole Haan (Nike sold Cole Haan in 2013 and the royalty deal ended for Sharapova). She extended her Nike deal at the start of 2010. The eight-year pact could be worth as much as $70 million, including royalties.”

Rupert Pratt, managing partner of sport and entertainment agency Generate says the prompt response and action taken by the sponsors is a mark of how their approach has changed in regards to issues.

“The speed at which Nike suspended their contract was clever as it gives them the option to come back to the subject to how the story unfolds and then there was the swift follow up from Tag Heuer and Porsche.

“This signals a marked change to me on how sponsors approach issues or disrepute. For a long time the standard approach to crisis communications was to say nothing, don’t get dragged into the story and disappear into the background.

“As I have said before, we are entering  a zero tolerance era and quite rightly so. A new line has been drawn and one which will help clean up sport.”

Steven Falk, founder of sports marketing consultancy firm Star Sports Marketing and former director of marketing at Manchester United, believes this is the end of Sharapova in terms of marketing and sponsorship and no brand will want to be associated with her following her revelation.

“From a marketing and sponsorship perspective Maria Sharapova is finished,” Falk said.

“No brand with any shred of integrity would willingly wish to be associated with an athlete who by her own admission, has been taking a performance enhancing drug for the past ten years.

“But irrespective of whether she eventually returns to the court, the Sharapova brand image will remain as toxic to commercial endorsement as the cancer of doping is to fair sporting achievement.”

Misha Sher, Head of Sport, EMEA at sport agency MediaCom, feels it won’t be so difficult for Sharapova to rebuild her career and will be able to attract different brands.

“While I can understand why various sponsors have distanced themselves or cut ties with Maria Sharapova, I don’t believe that it will be difficult for her to rebuild her career,” Sher said.

“The reason being is that the substance in question was taken for genuine reasons, which Sharapova has not hidden.  It’s a substance used by many people in general population in Russia to treat lack of blood flow to parts of the body, which is not uncommon.

“Brands need to be seen as taking a zero-tolerence approach to doping, so I understand the reaction. 

“However, Sharapova has built up a very strong personal brand that is not linked to her performances on the tennis court.  As such, I can see her rebuilding with different type brands that are more in line with her career as a model.”

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