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Nike has suspended its endorsement of Houston Texans quarterback
Deshaun Watson, the company told CNBC on Wednesday. Apple’s
Beats by Dre brand also said it has terminated its endorsement
deal with Watson.

“We are deeply concerned by the disturbing allegations and have
suspended Deshaun Watson. We will continue to closely monitor
the situation,” Nike said in a statement. A representative for
Beats did not provide a statement.

The first woman who accused Watson of sexual misconduct while
receiving private massages spoke publicly on Tuesday. Ashley
Solis said she suffers from “panic attacks, anxiety and
depression” due to Watson’s alleged sexual assault in March
2020. She requested that Watson be held accountable for his
alleged behavior.

Watson and lawyer Rusty Hardin have denied the allegations
saying the claims result from a failed blackmail attempt. The
National Football League quarterback has been accused of sexual
misconduct in lawsuits filed by 22 women, all represented by
lawyer Tony Buzbee.

The Houston Police Department tweeted on Friday that it has
opened a criminal investigation after a complaint was filed
against Watson.

“The brands are in a difficult situation right now,” said Scott
Rosner, academic director of the sports management program at
Columbia University. “There clearly will be public pressure as
there typically is in these types of cases to disassociate
themselves formally from the athlete. And some are likely to do
that. Others will make a statement expressing concern but
reiterating their belief in the legal process.”

Will race play a factor?
Rosner, an expert in brand strategies, concurred with
comparisons of Watson’s troubles to former NFL star Michael Vick
and Pittsburgh Steelers star Ben Roethlisberger.

Those top-tier NFL quarterbacks were in their prime but hurt by
off-the-field legal troubles. Brands reacted differently.

In Vick’s case, he pleaded guilty to dogfighting and endorsers
dropped him. But Roethlisberger was twice accused of sexual
misconduct in 2009 and 2010. He was never charged in either case
and settled with the victim who accused him of rape.

But brands, including Nike, remained with Roethlisberger despite
the allegations. Roethlisberger was suspended four games for
violation of the NFL’s personal conduct policy, something Watson
could also face even if he avoids criminal charges.

“It’s an appropriate and fair question to ask,” Rosner said of
race playing a factor in determining Watson’s situation with
brands. Roethlisberger is white and Watson is Black. But Watson
does face more accusers than Roethlisberger which brands will
need to consider, too.

“It’s hard to know the impact of race in this particular
instance or in Roethlisberger’s instance,” Rosner added. “But in
general, I think we can say that race is typically a factor
whether consciously or unconsciously considered. It’s an obvious
difference between the two cases. We’ll see if it leads to
different treatment.”

Another difference between the two cases is that Roethlisberger
faced allegations from one woman while Watson is accused by 22,
and those accusations come in the context of the #MeToo movement.

Marketability damaged?
Watson, 25, is scheduled to make $10 million for the upcoming
season. He signed a four-year extension worth $156 million ($73
million guaranteed), starting in 2022, increasing his salary to
$35 million that season. He’s represented by agency Athletes
First.

But whether he’ll be in Houston is the question. Watson
requested the be traded before his legal issues started. Rosner
said brands would also need to take this into account.

Like Roethlisberger, if Watson does overcome the bad publicity
and he gets traded to a bigger market club with more appeal,
brands who walk away could open up doors for competition.

“The difficulty with dropping – you score points immediately in
the court of public opinion, but if the allegations are proven
to be untrue, or if they are not substantiated, then it’s likely
a competitor will swoop in and sign the athlete to a deal that
you terminated. So there is some risk in that,” Rosner said.

But Watson’s marketability has taken a hit. And in a social
media climate, Rosner said brands looking to keep endorsements
with Watson should be concerned moving forward.

“I would have, as a brand, some apprehension about continuing
the relationship,” Rosner said. “But at a minimum, you’re
suspending any sort of relationship and coming out with a
strongly worded commentary – at a bare minimum.”

Correction: This story has been updated to reflect that Solis
alleged Watson’s sexual assault happened in March 2020.

https://www.cnbc.com/2021/04/07/nike-suspends-endorsement-of- deshaun-watson-over-sexual-misconduct-allegations.html
 

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