Michelle Kwan's endorsement power

The New York Times has an interesting take on celebrity endorsements, noting that Michelle Kwan has had unusual success in gathering endorsement deals for someone who has never come home with the gold.

As Ms. Kwan gears up for the 2006 Winter Olympics in Turin, Italy -probably the last chance for the 25-year-old figure skater - she has already lined up major deals with Coca-Cola, Visa and East West Bank. She will be the lead Olympian in Coke's 2006 Olympic advertising plans, which include commercials on network and cable television as well as a major in-store promotional effort by Coke. Her image will be stamped on promotions for 14 Coke brands, including Dasani and Minute Maid.

But the choice of Ms. Kwan is unusual. For most athletes, a winning performance at the Olympics is essential - turning gold into big money. After the 2002 Olympics in Salt Lake City, Sarah Hughes, the surprise gold-medal winner in women's figure skating, walked away with endorsement offers in the millions of dollars. Figure skaters like Kristi Yamaguchi and Dorothy Hamill have translated Olympic gold into long-term endorsements, opportunities generally unavailable to athletes who win a silver or bronze medal. Even for Ms. Kwan, sports marketers say, Turin may establish whether she can elevate her career to a new level of marketability.

It's noted that Nancy Kerrigan's star faded rapidly after she unexpectedly lost to Oksana Baiul (though Kerrigan didn't help her own cause any).

The Times also notes that Kwan's personality and clean reputation contribute to her endorsement value:

Part of Ms. Kwan's commercial success can be traced to a reputation rare among well-known women her age. Her name does not surface in gossip columns or police reports. Her picture has never appeared in Penthouse magazine, nor has she made an appearance on Celebrity Boxing, as the skater Tonya Harding has done. What most of her fans know of her personal life is usually limited to her supportive family and California background.

Or, as the sponsors put it:

For Ms. Kwan's employers, her sterling reputation makes her a solid investment during a time when many endorsement deals include "behavioral clauses" stipulating that if the athlete does anything to damage the brand, the company has the right to terminate the contract.

"I never have to worry about her making a bad decision that would embarrass us," said Dominic Ng, the chairman, president and chief executive of East West Bank.