Nike has opted to end its partnership with the Livestrong Foundation –the latest repercussion the cancer charity has suffered following the emergence of controversies surrounding its founder, disgraced cyclist Lance Armstrong.
The sportswear giant confirmed it will halt production of Livestrong apparel and gear after the “holiday 2013 line” – a move that will conclude a longstanding licensing agreement between the two that helped Livestrong raise $100m (€77.6m) over the course of the partnership. Nike also distributed the iconic yellow Livestrong wristbands, of which 87 million were sold.
Armstrong, who won the Tour de France seven times in his cycling career, founded the charity in 1997 after being diagnosed with testicular cancer. Following years of doping accusations, Armstrong was handed a lifetime ban from the sport last August by the United States Anti-Doping Agency – a decision that led the American to resign from the Livestrong board in October, before he admitted to doping earlier this year.
Nike originally said it would continue to back the charity following Armstrong’s departure from the board, but company spokeswoman Mary Remuzzi told Reuters the decision to drop the partnership was taken as sales of the products had not met Nike’s expectations.
Katherine McLane, a Livestrong spokeswoman, said: “We expected changes like this. Could there be fallout? Of course. We remain enormously confident…we are in strong fiscal shape.”
Despite the move, Livestrong has a budget for 2013 of $38.4m– a 10.9% reduction on 2012, but with revenue predictions ahead by 2.5%. It also retains similar licensing deals with the likes of sports eyewear maker Oakley.