What happens when you sponsor a major sports star or celebrity and they go and do something stupid that then reflects badly on you? We’ve had some great examples of late – think Tiger Woods and countless examples within the Australian Rugby League.
Last weekend, Gatorade became the third sponsor involved with Tiger Woods to drop him following revelations of his extra-marital affairs. A Gatorade spokesperson reportedly said: "We no longer see a role for Tiger in our marketing efforts and have ended our relationship...we wish him all the best."
Assessment of risk to your company’s brand should be at the forefront of your mind when sponsoring a person, event or venue. This is called reputation risk management. When undertaking risk assessment it is often useful to not only assess risks based upon financial or injury impacts, but also to the image and reputation of the business.