Hugo Boss will stand by star, who has to ‘fix it’

German luxury fashion house Hugo Boss said on Wednesday its partnership and support for Joseph Schooling remains “strong and unwavered” despite revelations that the swimmer has confessed to consuming cannabis.

Schooling, 27, became the brand’s first Singaporean ambassador in 2018. The tie-up is a mix of cash and kind.

Managing director of Hugo Boss South-east Asia Steven Lam acknowledged that the 2016 Rio Olympic champion made a mistake “but what’s important is that he has taken ownership of it”.

He told The Straits Times: “Over the years, he has always been a positive influence in and out of the pool. He has inspired many kids to believe in themselves, to work hard and to chase their dreams.

“We have taught future generations that it is okay to make mistakes, to own up, but you will have to take responsibility and more importantly, fix it. It will be a long road ahead for Joseph but we believe he will now show us how he will make good his promise to rebuild the trust with the people who believe in him.”

Following Schooling’s drug admission, the Ministry of Defence has placed him on a Singapore Armed Forces-supervised urine test regime as part of the treatment and rehabilitation process. He was also issued a formal letter of warning.

Schooling, who is currently undergoing national service, has apologised for his actions.

After his win in the 100m butterfly in Brazil, sponsors lined up to court him, with Hugo Boss, probiotic drink Yakult and imaging and optical products manufacturer Canon, watch maker TAG Heuer and Milo inking deals. Most of the deals are valued at at least six figures each.

Nestle’s contract ended in 2020 while TAG Heuer and Canon’s tieups concluded in 2021.

In 2018, Toyota distributor Borneo Motors struck a three-year deal with Schooling to be its brand ambassador. Over the years, he was first given a Toyota RAV4, a compact SUV retailing at around $142,000, a 2019 RAV4 that cost around $150,000 to $160,000 and eventually a Toyota Supra that was estimated to cost between $200,000 and $300,000.

All three cars bore the number plates bearing the figures 5039 – in honour of Schooling’s 50.39-second swim in the historic final.

The carmaker’s sponsorship with Schooling ended in June.

His three-year deal with DBS Bank which was inked in 2018 and ended before Schooling’s enlistment in January, netted him a seven-figure sum, which put him in a select group of local athletes with more than $1 million in career earnings, including footballer Fandi Ahmad, golfer Mardan Mamat, and table tennis players Li Jiawei and Feng Tianwei.

Marketing experts have noted what sponsors do following the drug revelations will depend on what Schooling does in the aftermath and how Singaporeans react.

Dr Seshan Ramaswami, associate professor of marketing education at the Singapore Management University, felt that the incident’s impact on the Schooling brand is likely temporary.

He said: “Thus far, he has shown contrition, and explained that he gave in to the temptation in a moment of high stress. He is still young, and given his outstanding sporting accomplishments, which are unique in Singapore’s sporting history, the public at large will likely forgive this trespass.

“That is the key to what sponsors do – their understanding of what they think the average Singaporean’s reaction would be.”

However, Schooling’s likely prolonged absence from the competitive stage – his NS ends in early 2024 and Mindef has revoked his disruption and leave privileges – could prove more damaging.

That is because active athletes stay in the news, which is of huge benefit to sponsors given the amount of media exposure they get. These brands also stay in the memories of consumers by association automatically. That, more than just his drug use, will be on sponsors’ minds.

“After his return to sports, what will continue to making him attractive to sponsors is his continuing to be a serious contestant in regional and global swimming competitions,” said Dr Ramaswami.

“If he trains hard and does well, this incident will be just a little blip in his sponsorship career.”

James Walton, sports business group leader for Deloitte Southeast Asia, added:“It may be easier for the more adult-focused sponsors like Hugo Boss rather than a family-oriented one. I hope they recognise people do make mistakes and that he was going through a lot of challenges in the last year and he has owned up, confessed and apologised.”

Several of sport’s biggest stars have survived scandals that could have derailed their careers and bank balances.

Schooling’s idol, American swimmer Michael Phelps, pleaded guilty to a drink driving charge in 2004, and was pictured smoking a marijuana pipe barely a year after the 2008 Beijing Olympics, where he won a record eight golds.

On both occasions, he issued a public apology. He lost a major sponsorship deal with Kellogg. But in the following years, he regained sponsors and added Mazda and Subway, among others, to his endorsement portfolio.

Walton believes that “this incident will not change Schooling’s sporting legacy”.

“Someone like Tiger Woods is still remembered as a golf icon despite what happened (the American former world No. 1 was engulfed in an infamous sex scandal in 2009),” he said. “The bigger challenge will be whether Schooling comes back into swimming.

“It will be easier for his brand to be rehabilitated if he continues swimming and goes to another major Games and wins medals.

“That would be a story of redemption. There will definitely always be a brand for Joseph because he will always be our first Olympic gold-medal winner.”