Adding to the woes are pending legal matters. Scores of gymnasts who were abused by former sports doctor Larry Nassar are suing USA Gymnastics, Nassar and Michigan State University, where he also worked.
“USA Gymnastics is facing a crisis, one that will influence sponsor decision-making for years,” said Professor T. Bettina Cornwell, academic director of Warsaw Sports Marketing Center at the University of Oregon. “Partnerships in sport are all about sharing valued associations. Brands want to associate with things like ruggedness, grace, passion, joy, success and even trying hard in the face of failure. They are fearful to associate with an organization tied to the horrific Larry Nassar.”
The 54-year-old Nassar was sentenced Wednesday to 40 to 175 years in prison, capping a seven-day hearing in a Michigan courtroom that featured several of his victims.
The list of companies that have dropped sponsorship includes Under Armour, AT&T, Kellogg, Proctor & Gamble, and Hershey.
A statement from AT&T on Tuesday said the company was suspending its ties “until it (USA Gymnastics) is re-built and we know that the athletes are in a safe environment.” The company said it remained committed to helping the athletes and hoped to find other ways to accomplish that, adding that it was ready to return as a sponsor once USA Gymnastics has fully addressed the crisis.
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Ronald Goodstein, associate professor of marketing at Georgetown University’s McDonough School of Business, said USA Gymnastics can rebuild, but more change is needed and recovering won't happen quickly.
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