Wednesday, January 16, 2013

Armstrong Brand Value Near Zero

Disgraced cyclist Lance Armstrong, who denied doping for more than a decade, admitted to using performance-enhancing drugs in an interview with Oprah Winfrey that will air in two parts Thursday and Friday, according to an NBC News source. The talk show queen characterized the interview as “forthcoming.”


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“Lance knows he’s poison as is, and my guess is he believes if he apologizes... and cries big crocodile tears it won’t solve his problems immediately, but it will at least start the process,” said Richard Burton, David Falk professor of sports management at Syracuse University told NBC News.

Although he earned millions in prize money from winning the Tour de France, Armstrong’s brand value lay in endorsements.

“His brand value during his yellow jersey days was almost immeasurable,” said Mark Serrano, CEO of ProActive Communications. “I think there were probably few brands in the world that were worth in excess of $20 million a year, and he was one of them.”

Armstrong had deals with numerous companies, including Nike, Anheuser-Busch, Radio Shack and bicycle manufacturer Trek, all of which ended their associations with him after he was banned for life from competing in Olympic sports and was the subject of a brutal report by the United States Anti-Doping Agency.

“Today we’re looking at a brand value of near zero,” Serrano said.

"He is starting to repair his own brand,'' New York Daily News columnist Mike Lupica told Matt Lauer on TODAY Tuesday morning. But Lupica characterized the expected admission as motivated by public relations and a desire for control, not heartfelt contrition.

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