Nike has experienced some bumps in recent months. The company dropped Kyrie Irving, Ja Morant is going to counseling after waving a gun on his Instagram Live account, and Curbed recently published an expose on Nike collaborator Tom Sachs.
But none of this is new. When companies give endorsement deals to celebrities, there is a chance the deal will end on bad terms.
Coresight Research CEO and founder Deborah Weinswig spoke about celebrity endorsement deals during an interview with Insider.
“I’ve always not been a fan of celebrity deals. You do need that halo, but don’t bet the ranch on one athlete.”
Weinswig added that companies should also include employees in their endorsement deals.
“It has to be a mixture of your own employees and celebrities,” she told Insider. “Every brand will find its own balance. That’s the right model for the future.”
Hitha Herzog, the chief retail analyst for Doneger Tobe, said that because social media makes peoples’ lives transparent, endorsement deals are now complicated.
“What the brands are not doing well is vetting who they are partnering with,” she told Insider. “You’re not just aligning on what two people do in terms of professional jobs,” she said. “In...