Sunday, November 4, 2012

How Trust Impacted Lance Armstrong's Sponsorship Collapse


Note to Lance Armstrong – no matter what you might personally believe, perception is most definitely reality in the eyes of both the general public and especially Corporate America. In case you have been living under a rock the past few days, news and allegations recently surfaced that the seven-time Tour de France winner actually was involved in the use of performance enhancing drugs during the majority of his illustrious career. And although at this point it is only speculation, several of Lance Armstrong’s long-time corporate sponsors have simply stated in no uncertain terms – ‘we just can’t take the risk of trusting you Lance’. 

Before we dive into calling Lance Armstrong a liar or even worse label him as a cheater, let’s take a little look back on how all this unfolded in the first place.
In June of this year, the U.S. Anti-Doping Agency (USADA) formally charged (not sure how that works because there were no criminal charges filed) Armstrong with having used performance enhancing drugs during his seven-time Tour de France domination between the years of 1999-2005. In August of 2012, the USADA announced a life-time ban from any USADA certified competitions including Marathons or any other sporting events Armstrong could potentially enter. They also ‘officially’ (Again not sure they have the authority to do this) strip Lance Armstrong of winning any events in the past.

Lance has until Halloween to file any protest against these official allegations. Maybe he’ll dress up as a Needle and show up to court to contest these charges which have cost him multi-million dollar endorsement deals with Nike, Anheuser-Busch and Radio Shack in recent days. But, many people might question why Lance Armstrong was targeted here when athletes like Tiger Woods and Michael Vick still maintain the majority of their endorsement deals after their notorious and questionable personal behavior in the past.
In a word – it has everything to do with trust. 

Companies like Nike supported Tiger Woods during his highly-publicized sexual addiction because Tiger came out and stated that “I have a problem with sexual addiction.” Although the majority of people across the country thought this was a cop-out for cheating on his beautiful wife, Nike stood by their guy because at least he admitted to making a mistake.

Armstrong has done nothing of such. In fact – he’s flat out denied these charges until he and his lawyer are blue in the face. 
 
But, the opinion of the general public is that Lance Armstrong is lying based on recent testimony by several of his former teammates who have admitted to using PED’s during their time with Lance. And if he is lying, that makes him somebody that Corporate America can’t trust to represent their reliable brands. 

This has happened recently in the SSL Certificate world when Symantec replaced the reliable Verisign checkmark with the cheap and not-reliable Norton Secured Seal. This caused a huge shift in consumer confidence of all Symantec products and recently has caused them to back-pedal their decision and place the Verisign Checkmark back on the websites of some of their larger end customers like Walmart and Best Buy. 

In short, Lance Armstrong is guilty of only one thing – facing the truth and deceiving the public. History has shown that if you make a mistake in life, and admit it; the world is willing to give you a second chance – to an extent. And as a result, the companies who have supported him for years simply can’t trust him to represent their brands in a trustworthy manner. It’s a sad state of affairs when a company or person betrays the trust of the general public. And most of the time that trust is lost for good.

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