The Business Impact of David Beckham's Injury
Yesterday British soccer superstar David Beckham tore his Achilles tendon during a match. The L.A. Galaxy player was on loan to A.C. Milan for the winter, keeping fit for the upcoming World Cup in June. Doctors say the injury will keep him out of soccer for up to eight months. That means no World Cup, and possibly the end of his storied soccer career.
While the impact on England's team won't be too severe (he is not considered an automatic starter for the national team these days), the companies that sponsor him will certainly feel the pain. Beckham is one of the world's most popular figures and many companies have invested millions to make him a spokesperson. As marketers prepare for the run-up to the World Cup, his injury may have a lasting business impact.
According to Beckham Magazine (yes, there is one), Adidas spends £3 million with Beckham for commercials, a line of clothing, and promotion of its popular Predator Precision cleats. Pepsi has invested another few million pounds for the footballer to appear in commercials, along with British department store Marks & Spencer, Vodafone, Gillette, Armani, and numerous other companies.
With the World Cup only months away, many ad campaigns and promotions have already begun. The injury only happened yesterday, and I haven't found any information on how it will affect business, but I'm sure it will. Companies like Adidas, who sponsor many athletes, should find it easy to replace him with someone else. But for companies with exclusive deals, it will be more difficult.
Using sponsorships and spokespeople for marketing and advertising efforts has many advantages, but it is a situation like this where a company can see the downside of investing so much in one person. An athletic injury, a celebrity scandal, or another unforeseen situation can put a company at the mercy of its spokesperson, to the detriment of the brand it was looking to build.
A long-term strategy built around customer value might not be as sexy as putting someone famous in a commercial, but it will provide a stronger foundation for your company's brand, built on the customer relationship.
As Beckham rehabilitates his injury, we'll keep an eye on how his sponsors rehabilitate their brands and strategies.
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