Reebok Ends Deal With O’Neal as It Cuts Endorsement Spending
BOSTON — Reebok International Ltd., which has cut its spending on high-priced endorsement contracts with star athletes, ended its relationship with basketball star Shaquille O’Neal on Tuesday.
Reebok and O’Neal’s agent said in a joint statement that the six-year deal, which made the Los Angeles Laker center one of the game’s highest-paid stars, has benefited both parties, but that the two are parting ways.
Reebok critics have said that the high-priced O’Neal endorsements helped sell few shoes.
Stoughton, Mass.-based Reebok said in December that it would renegotiate its star endorsement contracts, at a cost of $15 million to $20 million, and use fewer athletes and teams in advertisements.
“I think probably what this deal signifies . . . is that within the industry paying massive amounts for a hero-athlete . . . is on the wane,” said Michael Atmore, editor in chief of Footwear News, a weekly trade magazine.
“You might see more of this in the industry in the next year or two,” he said.
Reebok’s stock rose 50 cents to close at $27.69 on the New York Stock Exchange.
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