When Derek Rose went down with a knee injury against Portland Trailblazers his fans, his team and his sponsors ADIDAS were all hoping things get better and it’s not a long-term injury but unfortunately their hopes were in vain as Derek is out for the full season in the process creating the biggest offseason for basketball shoe free agents in the history of the game.
ADIDAS have had a hard time with basketball endorsements having lost a big chunk of market share to Nike and after a masterstroke signing of Derek Rose $185 million for 13 years $200 million after royalty they possibly believed they will catch up with Nike but nothing in life is constant moreover every business is risk and uncertainty have struck with Derek limping off for the second time in two seasons albeit this injury sidelining Derek for the full season leading to a few questions:
What happens to ADIDAS and their heavy investment in Derek?
Having known Derek’s run in’s with injuries ADIDAS probably was facing a classic confrontation between Signing a superstar player vs Risks of past injuries. Injuries happen some are short term whilst some are long term and are not under any one’s control. Having said all this I am sure ADIDAS will feel the impact on the sales simply because the deal is enormous and ADIDAS need to recuperate the monies from sales and sales only happen when the athlete is playing. But since nothing can be done about it but some clever marketing on the lines of ‘STILL BASKETBALL IS EVERYTHING’ may help in marginally improving or balancing the sales.
What should ADIDAS do to support Derek and the brand of shoes?
Since ADIDAS has invested in Derek Rose they will have to extend their support to the injured Derek and concepts of the campaign around his recovery can be thought off and then converted into a 360-degree campaign and if it can be launched around Christmas time can be beneficial. Never the less supporting Derek and internally reworking the sales data can be the best thing ADIDAS can do in support of Derek.
Should such circumstances create a Brand pause?
Not really. ADIDAS with all their marketing might can surely re-jig the way Derek can be repositioned.
How important is insurance in endorsement deals?
Sports participation and risk go hand in hand. Brands realise that injuries, accidents can result in a slow down and to protect themselves insurance provisions must be made. In the case of Derek, I am not sure if it’s been done. Another way to protect brands in such unexpected situations is including a clause in the contract about protecting both parties from injuries.