There is a latent legal issue of fraud and misrepresentation.
A sports marketing agency approaches a prospective client lat’s say for example Takanashi Automotive, Ltd.
The agency represents to Takanashi that they have an athlete or group of athletes that will increase visibility for their brand in a competitive environment through specifically targeted media exposure to their specific customer demographic. They promise “X” number of media exposures on specific media outlets on telelvision, Intenet, print, etc. They characterize that the representation will be predominately healthy, constructive and positive.
Takanashi likes what they see and forks over $15 Million for the “Takanashi Pro Cycling Team”.
Fast forward 6 months. Takanashi has hit the jackpot. Their cycling team is winning frequently and as a bonus, one of the personalities on the team has become involved in a number of media-producing human interst stories. As a result, Takanashi’s fairly minor $15 Million investment has garnered media exposure estimated by ad agencies at worth over $200 Million, if it could be purchased through normal media outlets.
Then, one day, the primary personality is implicated in a scandal. The nature of the scandal is unimportant- it is illegal, and it was not what Takanashi paid $15 Million for. Takanashi is now incised by the other edge of the double edge media sword. The personality involved willfully engaged in the decision, knowing full well it had the potential to discredit and compromise the viability and effectiveness of the media that Takanashi paid good money for.
Takanashi had other media outlet options on the table. A Hollywood film producution company offered to make their cars the featured car in a major motion picture featuring an established action hero who is a fictional character and therefore always portrayed in a controlled, positive manner. but Takanashi took a risk and went with a real person to represent and promote their brand identity. Now it has all caved in.
In much the same way Martha Stewart was reverred by some as a modern day Betty Crocker but subsequently exposed as a alledged investment fraud conspirator, there has been willful misrepresentation and fraud.
Takanashi hires a firm skilled in media damage control and pays them a $5 Million retainer to undue the damage that has been done.
Word is on the street from Madison Avenue to Wall Street to Hollywood: Don’t touch sport marketing if you are trying to purchase positive brand identity.
The personality who willfully represented themselves as wholesome, healthy and respectible was in fact a cheater and a fraud. That is illegal.
Therein lies the problem.