Swoosh Out

There's no denying that Hockey Canada has done some damage to its reputation and image over the last few years with various missteps marking that damage. The emergence of the vast amount of funds used to cover up scandals and the ongoing scandals that have yet to be resolved saw a number of key partners and sponsors step back from their commitments to Hockey Canada in an effort to minimize damage to their own brands. One of those brands was Nike who made the decision to pause its marketing support after watching a series of self-inflicted wounds suffered by Hockey Canada, and, today, they dropped the hammer on Hockey Canada, informing the Canada's governing hockey body that it will permanently end its sponsorship of the organization.

With the story reported by Susan Krashinsky Robinson in The Globe & Mail today, she wrote, "In a statement provided to The Globe and Mail, Nike confirmed that it is no longer a sponsor. Spokespeople for Nike and Hockey Canada both declined to answer questions about when the relationship ended, or the reason for the change."

It should be noted that Team Canada's on-ice apparel will still feature the Nike Swoosh logo thanks to an IIHF agreement, but the future of Hockey Canada merchandise will move to a new partner with Nike walking away from Hockey Canada. T-shirts, hats, hoodies, and more that once were made by Nike will now need a new manufacturer if more are to be produced, and Hockey Canada will have to convince another company that they've learned from their mistakes and are willing to make amends as they move forward. In saying that, they should avoid Fanatics.

My dislike of Fanatics aside, seeing one "premier marketing partner" should worry Hockey Canada when it comes to other major partners and their commitments. Esso, Telus and Tim Hortons are all in the same "premier marketing partner" tier of sponsors, and they've all paused their support. Would a company like Telus, who supports 500 local charities across Canada that provide youth with the support and resources they need, pull their support permanently if Hockey Canada doesn't clean up its remaining issues? It could be very possible to see another chunk of major sponsor money walk.

Bank of Nova Scotia, Nike, Tim Hortons, Telus, Esso, and BFL Canada all pulled their sponsorships for men's events last year as the Hockey Canada fiasco blew up. Recipe Unlimited Corp. - aka Swiss Chalet and The Keg - followed suit, but continued supporting women’s hockey for the remainder of the year. Both Canadian Tire and Hankook Tire Canada ended their respective sponsorships with Hockey Canada altogether while Empire Co. Ltd. - Sobeys and Safeway - allowed its sponsorship contract to run out in June 2022 without renewal. That's a lot of money that walked out the door with virtually no companies there to replace the outgoing revenue.

Obviously, the loss of Nike as a partner isn't going to break Hockey Canada financially, but it does sting initially if this is the first domino to fall. With new leadership, it was expected that Hockey Canada could bring some partners back and they succeeded in having Bauer return as a partner recently, but this top-tier sponsorship loss in Nike won't be easily replaced with respect to the dollars they invested and the quality of the merchandise they produced.

One has to wonder if the previous leadership's inability to take ownership of a snowballing problem was the catalyst for Nike's decision, but we may never know what prompted Nike to walk away from their deal. Their decision, though, will send ripples through the sponsorship world when it comes to the other sponsors who suspended Hockey Canada's support. Will they reconsider with new leadership coming aboard in September? Will they take a lesser deal to reduce their exposure as a partner? Will they walk away altogether, leaving Hockey Canada with another revenue void?

Today's announcement should be a stark reminder that actions have consequences, and it seems that one of the biggest players in the hockey world isn't immune from that fact. It's a major setback for a new president and chief executive officer in Katherine Henderson, but she's seen dark days in her previous position with Curling Canada. While her appointment came after the darkest days, she was still responsible for making sure that good governance led to financial stability, and that's precisely the same leadership that Hockey Canada desperately needs after today's news.

The initial shock of hearing that Nike walked away from Hockey Canada was fairly big this morning, but the more that I've thought about it has led me to believe that Hockey Canada will be fine. Sure, they lost a chunk of sponsorship dollars and a merchandise manufacturer who makes quality items, but the door is open for Hockey Canada to explore new avenues of revenue when it comes to filling Nike's spot as a "premier marketing partner" and potentially having new merchandise. The short-term loss could eventually be recovered by long-term gain, but we'll have to see how Hockey Canada navigates this latest setback.

If Hockey Canada wanted to start over, they may very well get a chance to do so by finding new partners and sponsors. They likely will welcome some of their previous partners back, but we could be seeing a complete restart when it comes to Hockey Canada's new leadership and new direction. It's not quite a do-over or starting over, but more like a corporate makeover for an organization that desperately needs a new look.

And every good makeover always includes new clothes.

Until next time, keep your sticks on the ice!