Companies Distance Themselves from Michael Vick

Just one day after Atlanta Falcons quarterback Michael Vick pleaded not guilty to federal dogfighting charges, companies began distancing themselves from the controversy. Nike suspended its contract with him, Reebok stopped selling Vick jerseys and trading card companies Donruss and Upper Deck removed Vick's card from the rest of their 2007 card pack releases. The NFL also pulled all Vick jerseys, autographed items and other memorabilia from its NFL Shop site.

Reebok is not one of Vick's endorsement deals but is the NFL's supplier of apparel. This is the first time Reebok has stopped the sale of a particular player's merchandise since becoming the league's official supplier in 2001.

Nike, on the other hand, is one of Vick's most prominent endorsement deals. The company's original response postponed the release date of the Vick-endorsed Air Zoom Vick V shoe from August 23 to a date unknown. Eight days later, Nike announced it had decided to suspend its endorsement deal with the quarterback and stop selling Vick merchandise at all of its Nike owned retail stores. The decision came just days before the People for the Ethical Treatment of Animals (PETA) planned to protest outside NikeTown stores across the country.

Vick's past endorsement deals have included Coca-Cola's Powerade, EA Sports, Hasbro, Kraft Foods and Rawlings. Those deals expired before the dogfighting allegations became public.

AirTran also held a contract with Vick but the company ended that deal in May 2007. The company has not made a public announcement over why the deal was nixed but sports marketers say the contract was axed because of Vick's bad press from flipping off Falcons fans, the police search on his home in Fairfield, Virginia, and Vick's publicist blaming AirTran for Vick's missed appearance in Washington to speak before Congress.

Of course, Vick is not the first celebrity to find his endorsement power quickly fading. Kobe Bryant, Magic Johnson and Madonna are just a few celebrities to find their endorsements gone astray.

Companies around the globe take a risk when they choose a celebrity to endorse their products. That's why a lot of companies have started looking at other ways to advertise their products and have ditched celebrity endorsements altogether.

Many companies have learned the hard way that their celebrity endorsers are a reflection on them too. Nike, a company that has stood by its endorsers in trouble before, has started backing away from its celebrity endorsers in a negative spotlight. For example, in 2003, Nike stood by its newly-signed celebrity endorser Kobe Bryant when he was accused of sexual assault. But in 2006, Nike suspended its deal with Olympic athlete Justin Gatlin when he was accused of using an anabolic agent.

Companies pulling the Vick products, including Nike, say they believe he is innocent until proven guilty and that he deserves a fair trial. They also add that the allegations are simply too "disturbing" to ignore.

However, companies can't afford to back the quarterback even if he's acquitted. Nike's use of the word "suspended" leaves the door open for Nike to continue its contract with him but, ultimately, Michael Vick is a product. And this product is simply damaged goods.