Nike is calling it quits on a 20-year relationship with Hockey Canada.
What happened: Nike has permanently ended its sponsorship of Hockey Canada. The organization is still trying to save its reputation (and bank balance) following blowback from corporations and fans over its mishandling of a sexual assault scandal last year.
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An investigation by The Globe and Mail revealed Hockey Canada used player fees from across the organization to create a fund for settling sexual assault claims.
Catch up: Nike suspended its sponsorship when Hockey Canada initially came under fire last summer. Esso, Tim Hortons, and Telus also decided to pause their sponsorships, while companies like Canadian Tire and Sobeys headed for the exits.
Why it matters: Hockey Canada depends on corporate sponsors for almost half of its revenue and would quickly feel the financial pinch if more companies decide to follow suit.
Yes, but: Bauer Hockey reinstated its partnership with Hockey Canada earlier this month after the organization named Katherine Henderson as its new President and CEO.
Bottom line: In a hyper-competitive sports sponsorship market worth about US$63.74 billion globally, brands that aren’t directly affiliated with hockey might be harder to bring back.—LA