Nike bids so long to Livestrong
Says sales have not met expectations.
With 87 million distributed worldwide since 2004, Livestrong ’s yellow bracelet once was considered a cool thing to wear. Not anymore. After all that’s happened with the person who made those bracelets famous, the company that conceived them, Nike, soon will take its logo off their packaging.
The sporting goods titan has decided to cease production of all Livestrong products after the 2013 holiday season. Nike also has indicated it won’t renew its contract with the cancer-support organization after 2014, Livestrong foundation spokeswoman Katherine McLane said Tuesday.
“We are in a rebuilding year at the foundation. We expect and planned a shift in partner lineup,” she said.
Livestrong has produced and will continue to produce the $1 bracelets through a contractor in China; the Nike logo on the packaging will remain until the entire contract expires in December 2014.
Nike’s decision to stop other merchandise production — shirts, shorts,
“We are not the organization that we were a year ago, and we will likely never be again. But the important thing for the foundation is staying true to its mission and offering anyone in the United States affected by cancer the free services and support that they need.” Katherine McLane, Livestrong foundation spokeswoman
jackets — marks the latest blow to Livestrong, the charity founded by Lance Armstrong, the disgraced cyclist whose yellow Livestrong wristband once inspired hope. To help shelter the charity from fallout from his doping scandal, Armstrong dissociated himself from it last year. The foundation also changed its official name from the Lance Armstrong Foundation to Livestrong and removed his framed jerseys from its headquarters in Austin.
It’s a strategy that hasn’t been bulletproof for the foundation, but Livestrong has maintained its finances are still strong. The question is how it will do without Nike, which helped raise $100 million for the foundation since 2004, the year it conceived the wristbands.
“Sales of the product have not met our expectations,” said Nike spokesman KeJuan Wilkins, who said he didn’t have details to share on future plans with Livestrong.
McLane said Nike would continue to support Livestrong through the end of its contract. Because the Livestrong brand is owned by the charity, it could find other merchandise partners, although probably none bigger than Nike.
McLane said Livestrong was eager to partner with new organizations.
“We are not the organization that we were a year ago, and we will likely never be again. But the important thing for the foundation is staying true to its mission and offering anyone in the United States affected by cancer the free services and support that they need.”
McLane said she couldn’t immediately answer what percentage of Livestrong ’s revenue comes from Nike. She said there were no plans to downsize staff and the foundation’s revenue picture compared favorably to projections and last year’s performance.
Livestrong has generated about $16.5 million in revenue this year, McLane said, compared with $17 million at this point last year. “Given recent events, we feel this is a very strong performance,” she said.
The foundation also has cut ties with the Austin Marathon but recently announced a marathon event partnership with car service Car2go. Livestrong has partnerships with several companies, including sunglasses maker Oakley and the YMCA.
Last October, Nike, Oakley and several other sponsors cut ties with Armstrong after a huge file of doping evidence was released against him; Nike then said it would continue to partner with Livestrong. Armstrong, since confessing to doping in January, has been hit with several lawsuits accusing him of fraud.