Ryan Lochte Scandal: 4 Major Sponsors Drop Olympic Swimmer After False Robbery Claims at Rio 2016
American competitive swimmer Ryan Lochte continues to suffer the wrath of his false robbery claims at the Rio 2016 Olympics. Following the controversy, four major sponsors recently announced their decisions to sever ties with the 12-time Olympic medalist.
Speedo
Speedo was the first major sponsor to announce on Monday that it will cut ties with Lochte. The decision to suddenly drop the sponsorship of the embattled swimmer came after Rio authorities discovered loopholes on the robbery claims of Lochte and three other swimming Olympians, Gunnar Bentz, Jack Conger and Jimmy Feigen.
Get Our Latest News for FREE
Speedo USA said that Lochte has been an important member of the Speedo Team for over a decade. However, it asserted that it cannot tolerate the swimming champ's behavior during the Rio 2016 Olympics because it defies the brand's longtime values.
The company also stated that it will donate a percentage of Lochte's $50,000 fee to its global charity partner in Brazil.
Syneron Candela
Following Speedo's move, Syneron Candela, the parent company of Gentle Hair Removal that signed Lochte as a spokesperson, announced on Monday that it will bring a sudden stop to its contract with Lochte. Per USA Today, the company stated that as a business partner, the professional swimmer is expected to uphold high standards.
Airweave
Airweave, a Japanese mattress company, also abruptly ended its endorsement deal with Lochte. According to Fox News, the company stated that it decided to end ties with the controversial American swimmer after careful consideration. Airweave, however, stressed that it will continue to sponsor the other Olympic and Paralympic athletes in the US.
Ralph Lauren
Ralph Lauren, the clothing company that sponsored that outfits of Team USA during the Rio Games' opening and closing ceremonies, confirmed to CNBC that it will not renew Lochte's deal. The 32-year-old swimmer was among the athletes featured by Ralph Lauren on its website, donning Team USA gear.
Irreparable Reputation & Marketability
Ray Katz, Columbia University professor and managing partner of ROI Sports Marketing Group, told Fox Business that Lochte's brand value diminished following the false robbery claims. He explained that regardless of the outcome of the final investigation, Lochte will continue to suffer the irreversible damage to his reputation and marketability.
In the wake of the Rio de Janeiro scandal, Lochte already lost an estimated of $1 million worth of contracts. Aside from losing endorsement deals, he may also face sanctions from the USA Swimming Committee and the International Olympic Committee, and may not be allowed to compete again.
