Marketers stick with Armstrong after new doping allegations

ByABC News
June 14, 2012, 4:48 PM

— -- Lance Armstrong's sponsors aren't budging — so far.

And well they shouldn't, say four sports marketing experts interviewed the day after the U.S. Anti-Doping Agency brought formal charges against the seven-time Tour de France winner. Never mind that, due to these charges, Armstrong also has been banned from competing in the Ironman triathlons, which he took up in 2011, after retiring from cycling.

"Lance has proven that his marketability is Teflon-coated," says Paul Swangard, managing director at the Warsaw Sports Marketing Center at the University of Oregon. "Most of his fans will look at this news with a degree of indifference, and sponsors shouldn't be too worried."

For top athletes like Armstong, reputation and performance directly translate into marketing value. Since Armstrong has retired from cycling, his value is linked mostly to past perfomance and his unique story of battling back from deadly testicular cancer to become a cycling icon.

If Armstrong is found guilty of the doping charges, sponsors will all "run like rabbits," says John Bevilaqua, a sports marketing consultant.

But Armstrong's many fans may feel differently. "Even if he is guilty, people are inherently willing to forgive him because his is such a tremendous story," says Swangard.

That story earned Armstrong an estimated $20 million in income back in 2010, when he was ranked No. 65 on the Forbes list of top-paid celebrities. He's no longer ranked on Forbes' Top 100 list of most powerful celebrities and his income has surely fallen since his retirement. But his compelling story of overcoming all odds hasn't changed.

And that may be why none of his top sponsors — including Nike, Oakley, 24-Hour Fitness and Trek — have bailed, nor are they flashing early warning signs that they might.

"Our relationship with Lance remains as strong as ever," Nike said in a statement. "As always we believe in Lance," said an Oakley statement.

Armstrong has been a spokesman for the Anheuser-Busch Michelob Ultra line since late 2009. It's sticking by him, too. "Our partnership with Lance remains unchanged," says Paul Chibe, the company's vice president of U.S. marketing.

Among other reasons sports marketers say sponsors are sticking with Armstrong:

• Consumers believe him. Marketers recognize that many consumers decided a long time ago that they "believe Lance," says David Carter, executive director of the University of Southern California Sports business Institute.

• His status as a sports hero. "He's an individual who has accomplished superhuman feats," says Tony Ponturo, CEO of Ponturo Management, a sports consulting company. Nike sold 70 million Livestrong bracelets because consumers are enamored with Armstrong's cancer comeback..

• Some suspect the accusers. "People are wondering: Why is this doping agency bringing the charges now?" says Bevilaqua. "If I'm a sponsor, I want to know if someone has an ax to grind."