Disgraced U.S. swimmer Ryan Lochte lost two sponsorship deals Monday, hours after the end of the Rio 2016 games. Speedo USA said on Twitter that it plans to donate $50,000 of Lochte’s sponsorship fee to Save the Children, a charity that helps children in Brazil.
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Speedo said the company made the decision because they can not condone the behavior of the American athlete, despite enjoying a profitable relationship with him for over a decade.
Police said Lochte and three of his swimming teammates – all gold medalists – vandalized a bathroom after a night of partying and armed guards confronted them and asked them to pay for the damage.
Lochte made it back to the US on Wednesday, while Conger, Bentz and Feigen remained in Brazil to face questions about what exactly occurred at the gas station where the incident took place.
Paul Swangard, managing director of the Warsaw Sports Marketing Center at the University of OR, said he wasn’t surprised by the decision since most of Lochte’s marketing value was tied to campaigns prior to the Olympics.
“I respect Speedo’s decision and am grateful for the opportunities that our partnership has afforded me over the years”, he said.
Another major sponsor, luxury retailer Ralph Lauren Corp, also said it would not be renewing its contract with the swimmer.
The trouble began when media reports emerged on August 14 that Lochte and three other US swimmers – Jack Conger, Gunnar Bentz and Jimmy Feigen – were robbed at gunpoint when their cab was pulled over by men posing as police.
Lochte issued a brief statement Monday through his public relations firm on his long relationship with Speedo.
It made a decision to end its partnership with Lochte “after careful consideration”, but will continue supporting Team USA, according to a statement on its Twitter account.
Feigen wound up donating just under $11,000 to a Brazilian nonprofit sports organization to settle any potential legal action.
Last week, Speedo said it was following the incident and would not comment on an ongoing investigation. It was a story that took many twists and turns over the course of a week, and ended with both the Brazilian police and Lochte admitting it wasn’t entirely true. He also apologized in an interview with Brazil’s main broadcaster, Globo.
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“I over-exaggerated the story”, he told NBC. “If I had never done that, we wouldn’t be in this mess”. In April, the company had named the Olympic swimmer as the global brand ambassador for its Gentle Laser Hair Removal system. He was the breakout star of the 2012 London Olympics, landing a short-lived reality TV series called “What Would Ryan Lochte Do?” and appearing, as himself, on top shows like “30 Rock” and “90210”.
