Final Communication

Team Presentation

ADIDAS
CREATING THE NEW
Damage from the NCAA Scandal

Employees

Investors

Schools and Coaches

Scandal Recap
James Gatto
Merl Code
Jonathan Augustine
University of Louisville/Rick Pitino
Brian Bowen
University of Miami
$250,000

https://www.vanityfair.com/news/2017/09/behind-the-ncaa-scandal-shaking-up-college-sports
Damage Control Options
1. Distraction

1. Silence

1. Separation and
Reconstruction
What are other companies doing?
Nike believes in fair and ethical play -- both in business and
sports - Greg Rossiter (per Bloomberg)
At that point Nike had not been implicated in any wrongdoing
Former employee Merl Code arrested
Nike has since been subpoenaed
They have not commented on this subpoena
What have schools done?
We are cooperating fully with officials,"
Louisville Representative

We are committed to
playing by the rules, and
thats what we expect
from our coaches,
Arizona Representative
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Separation and Reconstruction - The Net Effect
Goal: Manage both internal and external company relations, while reinforcing the ideals of
the Adidas brand.

Increase
in employee trust

Increase
in investor confidence

Stabilize
the consumer outlook
Regaining Our Employee's Trust
Some of the employees believe that we
are now working for a company that does
not stand by its mission statement and it
may hurt our reputation
(Adidas Employee)

Google Images
Repairing our relationship with investors
The effect on our investors is that they have lost faith in us as an organization that
can be profitable for them.

Adidas invested tens of millions of dollars in college athletics in recent years. On

Tuesday (September 26, 2017), that effort suffered a potentially devastating blow.
(Dow Jones)
Reaching out to Consumers - Schools and Coaches

Reassure schools and coaches that Adidas is as always committed to fair

and ethical play.

Rebuilding our current relationships

Restructuring sponsorship
deals

Replacing implicated individuals

 Estimate Loss:
Loss Number of shares outstanding: 202.66M
Categories: The decrease in stock price from
Lost contracts Sep 15th to Sep 26th:
Dropped investors
Damaged brand reputation $198.01 to $187.68
$198.01 - $187.68 $10

$10 x 202.66M = 2026.6M

Dip in company valuation: 2022.6M

https://finance.google.com/finance?q=ETR:ADS
 Communication Plan

Damage control route through separation and reconstruction

Need company wide support

Mon
Rebuild relationships with employees and investors

Stabilize relationships with universities and coaches

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