Speedo, three other sponsors drop Ryan Lochte

August 22, 2016

Speedo was the first, announcing early Monday it dropped its sponsorship of embattled U.S. swimmer Ryan Lochte. By the end of the day, three other companies also said they would cut ties with him.

The decisions to cut ties with Lochte come after a week-long saga that led to Lochte and three other swimmers to be questioned by Rio authorities after Lochte alleged they were robbed at gunpoint. Ralph Lauren and a laser hair removal company announced they would also sever their respective sponsor relationships with the 32-year-old swimmer.

“While we have enjoyed a winning relationship with Ryan for over a decade and he has been an important member of the Speedo team, we cannot condone the behavior that is counter to the values this brand has long stood for,” Speedo USA said in a statement.

“While we have enjoyed a winning relationship with Ryan for over a decade and he has been an important member of the Speedo team, we cannot condone the behavior that is counter to the values this brand has long stood for,” Speedo USA said in a statement.

Ralph Lauren, which outfitted Team USA for the opening and closing ceremonies, told CNBC on Monday that it would not renew its current deal with Lochte. Lochte was one of the highlighted athletes on Ralph Lauren's website modeling Team USA gear.

Syneron-Candela, the parent company of Gentle Hair Removal where Lochte served as a spokesperson, confirmed to USA TODAY Sports that it had cut Lochte loose. And, late Monday, airweave, a mattress company, said it had "ended its partnership" with Lochte.

"We hold our employees to high standards, and we expect the same of our business partners," Syneron-Candela said in a statement. "We wish Ryan well on his future endeavors and thank him for the time he spent supporting our brand.”

“In this day and age, there’s one pretty important rule that anybody in the public eye should think about: Don’t lie,” said Joe Favorito, a sports marketing expert and professor at Columbia, on Friday. “We live in a world where everything is going to be exposed. Brands are always looking for honest and authentic representatives because there’s so much competition. There are so many Olympic athletes who you can choose from. You don’t need any nonsense.

Bob Dorfman, a sports marketing expert and executive creative director for Baker Street Advertising, also pointed out that Lochte, 32, is on the back end of his swimming career. He won just one medal at the Rio Games, as part of the 4x200-meter freestyle relay.

“Lochte’s shelf life was already limited as an endorser,” Dorfman said of this week's controversy. “He’s now just fallen off the shelf.”

IOC Balks at Helping Rio de Janeiro With Olympic Debt

Rio organizers estimate debt at $35 million to $40 million

July 9, 2017

RIO DE JANEIRO—The International Olympic Committee has balked at helping Rio Olympic organizers pay a debt estimated at $35 million to $40 million.

The IOC’s executive board, which met Sunday in Lausanne, Switzerland, said it had already contributed a “record” $1.53 billion to last year’s Olympics and questioned giving more after meeting with the Rio de Janeiro Organizing Committee president, Carlos Nuzman.

“More detailed information” was needed, the IOC said, and it “deferred any further consideration at this stage.” It “has closed all its obligations with the organizing committee,” the IOC said.

Contractually, host cities and countries are obligated to pay Olympic debts. In Brazil’s case, the national government already is struggling with a heavy debt load just to make ends meet. As of April, public debt was equal to 71.7% of gross domestic product.

In addition, the state government of Rio de Janeiro had its credit ratings slashed as ratings firms pointed to a heightened risk of default due to the state’s fiscal woes.

The Rio Olympics opened just under a year ago and were plagued by organizational problems, spotty attendance, worries about the Zika virus and corruption scandals. At the last minute, organizers needed millions in a government bailout to hold the Paralympic Games.

Some infrastructure built for the Olympics has found uses—a subway line, a renovated port and high-speed bus lines. But sporting venues are mostly vacant, a $20 million Olympic golf course is struggling to find players, and less than 10% of the apartments in the 3,600-unit Athletes Village are reported to have found buyers.