Legendary Swimmer Michael Phelps Lost Deal With a Billion-Dollar Company After His Infamous Act

The sports world has its list of banned substances regulated by the World Anti-Doping Agency (WADA). Athletes promoting or testing positive for using such a substance are banned from competing for a certain period. Michael Phelps faced a similar situation a year after his 8-medal victory at the 2008 Games.

However, there are other consequences for testing positive for banned substances. Prominent athletes have numerous endorsements under them, and these deals take a hit when such incidents occur.

Which company cancelled its contract with Michael Phelps?

Phelps keeps making the headlines time and again. But when he did in early 2009, it was for a whole different reason. In February of that year, a British tabloid printed a photo of the five-time Olympian. The picture featured Phelps holding a bong, a water pipe that cannabis smokers use to smoke the drug.

Following the incident, Phelps found himself amidst the center of the storm. Although some of his associated brands came to his support, others maintained their silence. However, one of Michael’s sponsors dropped the athlete altogether following the controversy.

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The 28-time Olympic medalist was signed by the cereal company Kellogg’s after his momentous eight gold wins at the 2008 Beijing Olympics. Phelps started featuring on the brand’s cereal containers soon after the deal.

After the news surfaced, Kellogg’s announced its decision to drop Phelps’ endorsement deal after the contract expired due that month.

On this matter, a Kellogg’s spokesperson said in a statement, “Michael’s most recent behavior is not consistent with the image of Kellogg. His contract expires at the end of February and we have made a decision not to extend his contract.”

Furthermore, USA Swimming issued a three-month suspension on the swimmer from the sport and also withdrew financial support. Soon after, the governing body announced its decision to reprimand Phelps under its Code of Conduct.

“This is not a situation where any anti-doping rule was violated, but we decided to send a strong message to Michael because he disappointed so many people, particularly the hundreds of thousands of USA Swimming member kids who look up to him as a role model and a hero. Michael has voluntarily accepted this reprimand and has committed to earn back our trust,” read the statement.

Which governing body sets the rules?

Last year, Sha’Carri Richardson faced a one-month suspension after a post-race urine test detected THC(Tetrahydrocannabinol) in her system. As a result, the US sprinter could not compete in the 100m event at the Tokyo Olympics.

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WADA sets the rules and standards on the duration of the ban, among other formalities, but USADA(United States Anti-Doping Agency) regulates these rules for US athletes.