Papa John’s says Anthem protests are hurting deal with NFL

(THIS ARTICLE IS COURTESY OF ESPN)

 

Papa John’s says anthem protests are hurting deal with NFL

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Executives from Papa John’s, the official pizza company of the NFL, expressed disappointment on a conference call Wednesday about the league’s ongoing player protests during the national anthem.

“The NFL has hurt us,” company founder and CEO John Schnatter said. “We are disappointed the NFL and its leadership did not resolve this.”

Executives said the company has pulled much of its NFL television advertising and that the NFL has responded by giving the company additional future spots.

“Leadership starts at the top, and this is an example of poor leadership,” Schnatter said, noting he thought the issue had been “nipped in the bud” a year and a half ago.

In revising sales estimates for the next quarter, Papa John’s president and chief operating officer Steve Ritchie said on the call that the NFL deal was the primary suspect behind the decline and that “we expect it to persist unless a solution is put in place.”

Ritchie said that research has found that Papa John’s has been the most recognized sponsor associated with the NFL for two years running, which he said means the company’s performance can track with that of the league.

Papa John’s has a deal with not only the NFL, but also with 23 individual teams.

Company executives declined to disclose exactly how much money in projected sales Papa John’s lost from its association with the NFL and declining ratings, which mean fewer people are ordering their product for game days, they said.

ESPN reached out to 18 NFL official sponsors in the last few days and asked the companies about its current relationship with the league and if any marketing programs had been changed due to the turmoil. Only five sponsors responded with a comment.

Verizon spokesperson Jim Gerace wrote via email that “our discussions with any partner are between us and while we haven’t done anything different, we don’t discuss future plans.”

“We are not going to critique their performance in public just as I wouldn’t expect them to critique ours,” Gerace added.

A Hyundai spokesperson said in a statement, “Hyundai participated in constant dialogue with the league to discuss all aspects of our partnership, including national anthem protests. We’ve been pleased with the frequency and openness of those conversations.”

A spokesperson for Dannon, whose Oikos brand has an official NFL deal, said: “We continue to monitor the situation carefully and have not made changes to our advertising or related plans.”

Nike and Anheuser-Busch referred to previously issued statements.

League sponsors that either didn’t return a message after 24 hours or declined comment included: PepsiCo, Mars, Visa, Campbell’s Soup, Procter & Gamble, Castrol, Bose, McDonald’s, Nationwide, Microsoft, USAA, Marriott and Bridgestone.

Nike Blasted For Fraud In Advertising Forced To Pay Triple Compensation By China Law

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

Nike offers to pay triple compensation after CCTV report blasted it of fraud

SPORTSWEAR manufacturing giant Nike has agreed to pay triple compensation for its Hyperdunk 2008 FTB basketball shoes after it came under fire in a CCTV report on Wednesday.

Nike China issued a statement today, saying it will pay 4,500 yuan (US$1,861) to consumers who want a refund. The shoes cost 1,499 yuan.

The statement said Nike would start refunding from April 4 for 90 days. Consumers can call 800-820-8865 or 400-880-6453 for further inquiry.

Nike China claimed it had mistakenly used the promotion materials of Zoom air cushion and apologized for that.

Nike Hyperdunk 08 FTB was found to be of lower quality, CCTV reported, and accused Nike of false promotion. The shoes, sold as a limited edition, did not incorporate the patented Zoom air cushion, as the sportswear manufacturing giant claimed on its Chinese website, China Central Television’s annual “3.15” quality investigation program said.

The shoes were advertised as copies of those worn by basketball legend Kobe Bryant at the Beijing Olympic Games in 2008.

Nike had earlier offered a full refund to customers, but refused their demand for triple compensation, CCTV reported.

According to China’s consumer rights law, businesses should honestly describe the quality, property and use of product, failing which, they have to pay triple compensation.

A total of 300 Hyperdunk shoes were up for sale in China, according to Shanghai Yangpu Market Supervision and Management Administrative Bureau. All of them were sold out.

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