Kellogg’s to Phelps — We’re going to (puff, puff) pass.

Bongger-gate continues!

If there is one thing I love, its the media completely beating a story into the ground.  Enter Olympic Swimmer/President of the Tommy Chong fan club, Michael Phelps!  Rather than re-hash the dilemma of how harshly a 23 year old should be disciplined for the “bongger-gate” picture (he’s only 23! But companies are paying him millions of dollars to be responsible! What to do?!?!?!), I think its more interesting to look at Phelps’ sponsorships deals.  The first, and apparently only, sponor to fall off the Phelps bandwagon?  Kelloggs cereal.  More info from Ad Age,

Kellogg will let the swimmer’s contract expire at the end of the month.

“We originally built the relationship with Michael, as well as the other Olympic athletes, to support our association with the U.S. Olympic team,” a Kellogg spokeswoman said in a statement. “Michael’s most recent behavior is not consistent with the image of Kellogg. His contract expires at the end of February and we have made a decision not to extend his contract.”

Ah, morals clause! You rear your ugly head again.  Of course, Kellogg’s never hinted that they were going to re-up their contract with Phelps in the first place, so its even easier for them to come off as “high and mighty” in this situation.  And I know what you’re saying…”Who wouldn’t want to re-up with Michael Phelps?”  The answer?  Probably a company who doesn’t want their major endorsers endorsing competiting products.

Those other products which use Michael Phelps, Speedo, Omega Watches, Subway, etc., will continue to work with the swimmer in the future (although Subway is putting Phelps’ newest nation-wide campaign on the backburner for the moment).  The lesson to be learned for those companies paying money to people?  They aren’t perfect;  never have been, never will be.  Even the most wholesome of characters has the potential to let you down at some point…especially when they’re only 23 years old.  Liquidated damages and morals clauses are, and should be commonplace in most deals involving nationwide product endorsement.  At the end of the day, it all comes down to whether or not the damaged party feels that the breaching party has materially breached the contract.  If nothing else, Kellogg’s wants the general public to know that 23-year old Olympic swimmers that smoke weed is not the image they want to use to promote cereal (again assuming that they were planning on re-upping with Phelps in the first place).  On the other hand, if Kelloggs is looking to change their marketing scheme, I could totally see someone photoshopping a picture of Tony the Tiger with a bong on a Frosted Flakes box.  “Frosted Leaves…They’re G-R-R-R-E-A-T!”

Eh, maybe the world isn’t quite ready for that after all.

Ad Age — Kellogg to drop olympian Phelps

Sports Business Digest — Slingo. The Morals Clause

1. 

   art says:

   September 14, 2009 at 1:15 pm

   any athlete, including serena williams should be dropped from all product endorsements by the respective companies. a fine is a slap on the wrist to these people and the lesson learned and sent to the kids who lookup and admired them should carry a heavier penalty.