Peter Shankman was interviewed on CNN International about Nestle pulling out of the IAAF sponsorship deal due to corruption and doping allegations. He weighs in on possible motives and Nestle’s ROI in IAAF sponsorship deals.
CNN: Nestle is ending a sponsorship deal with the world obstetrics governing body. And they say it’s because of corruption and doping allegations, which they believe have tarnished the image of the sport. And by them, of course their reputation. Now Nestle’s axing its financial involvement with the kids program at the The International Association of Athletics, federations referring to the recent scandal, Nestle, they, and I’m quoting now you “believe that this could negatively impact our reputation and image and will therefore terminate our agreement with the IAAF.” Just last month, the world anti-doping agency say corruption was embedded at the Federation. It’s a huge blow for the association and its president. Lord Sebastian. They’re already struggling to hold on to sponsors the rounding of social media consultant. Peter Shankman joins me now from New York, Peter. Um, back when I knocked Peter, when I look, when I see. How much scandal surrounding FIFA and the sponsors stayed on and have continued to stay on through thick and thin. Why do you think Nestle’s decided to bail relatively soon?
Peter Shankman: I don’t see this, obviously as a problem. Nestle’s not bailing because there’s doping allegations, you know, Nestle bailing because there’s doping allegations. He’s the equivalent of, of, uh, saving global warming by removing one car. You know, this is not something that they’re doing. They’re doing this as a financial play and they’re using the excuse of doping allegations as a way to get out of their contract. They’re leaving the kid’s program, not the, the main program they’re leaving the kids program and let’s face it. This is Nestle. This is a company that doesn’t have them stellar track record on human rights or any kind of violations or ethics just to begin with, uh, this, is there a company whose CEO, Oh, said that water, isn’t a human right. Ah, I’m pretty sure you need water to mix the stuff that you dope with. So it’s a, it’s, uh, they’re doing this as a financial play and they’re just using [00:02:00] the excuse of, Oh, we don’t want to be associated with this. It’s it’s I don’t like it.
CNN: Right now, of course they got in a lot of, they are getting a lot of flack if you like on Twitter and on social media, for the very point that you’re saying that they do seem to be visiting the sins of the parents on the children of, by of course, stopping a kid’s program rather than the main one. Oh, which of course that doesn’t necessarily involved in. Um, but, but here’s the point though? Nestle seemed to be wanting to weather this storm. When many companies wouldn’t.
Peter Shankman: Right. So then what that tells me is that they’re leaving the kids’ program because there’s no financial bang for the buck, right? If you’re in, if you’re investing as a sponsorship, any sort of brand, whether it’s FIFA, whether it’s a soccer with football, baseball, you’re doing it to get the reward of people, seeing your brand of getting eyeballs of generating buzz, and eventually. Increasing sales. So I guarantee you that the bean counters at Nestle saw this. They said, this is not making us any money. This is the thing we need most likely cut to save a few bucks because it’s not helping us. Let’s figure out a way to do it. They gave it to the marketing and PR people, the marketing PR people said, Oh yeah, well, we’ll just say that, you know, we don’t want to be associated with doping except for the fact that, you know, they already are, and this, this doesn’t, this doesn’t kill anything. This doesn’t take them away from that in the flower.
CNN: Right. But if we, again, if we come back to FIFA, you do have a situation where companies have wanted to stay associated because of the popularity of football. They’ve wanted to stay with FIFA, despite. Everything.
Peter Shankman: Yeah, because of the popularity of that sport and the popularity of FIFA in many ways, trumped the concept of ethics or the concept of, of good versus bad. There was eyeballs. There was money there. That’s my whole point is that they’re not seeing that in the IAAF. And so they’re saying, well, let’s call it that we’re doing this for the betterment of society by not wanting to be involved with ethical violations, but there it’s for them. It’s a way for them to save money because they’re not getting the return on investment. They want it.
CNN: Okay. Good to have you at the program. Set up. Thank you very much, indeed. Thank you, sir. Talk more about this in the future.
About Peter Shankman
Peter Shankman is a worldwide influencer and spokesperson for brands across the globe. He is a 5x best selling author, entrepreneur and corporate in-person and digital keynote speaker, focusing on customer service and the new and emerging customer and neuroatypical economy. He is available now for virtual keynote speaking opportunities. Peter’s virtual keynote talks are engaging, inspiring, and full of real-world ideas and practices that companies can immediately implement to build their business and increase their revenue. Take a look at his speaking reel, and then reach out to find out how he can skyrocket your next event.