Speculation Over: Slater Stays With Quiksilver
from Grindtv.com-link
Months of sponsorship speculation surrounding Kelly Slater, the world's
greatest surfer, ended yesterday after his longtime sponsor Quiksilver,
Inc. (NYSE:ZQK) announced that Slater had agreed to a new five year
deal with the company. The relationship between the 9-time world
champion and his longtime sponsor, which began in 1990, has been
strained of late, due to problems stemming from Quiksilver's massive
debt issues that have plagued the company for more than a year. To
industry insiders, Quiksilver's ability to keep Slater riding for their
label is the best sign yet that CEO Bob McKnight is making progress on
his efforts to pull the company out of what looked like a death spiral
just months ago. In early 2009, Quiksilver faced a debt problem of more
than a billion dollars after the sale of Rossignol netted them far less
than expected back in November of 2008, in the wake of the stock market
collapse. After stepping away from his leadership role years ago,
McKnight returned his role as President in early 2008 in order to help
navigate the apparel maker's sale of its troubled snow brands, which
proved to be ill timed acquisitions.
It's clear that
Slater, who is by all definitions the best surfer to ever set foot on a
surfboard, had his own doubts about whether or not this day would
arrive. "It might not come as a surprise to many people that I've
re-signed with them but there have been major transitions in my life
and many changes within Quiksilver," he said in a statement. "It's a
long relationship and things often alter over the course of time."
Indeed, several of Slater's close friends have either left the company
or been forced out during the recent house cleanings both in the U.S.
and abroad.
"We couldn't be more pleased than to continue
our long-standing relationship with the greatest surfer the sport has
ever known," said McKight. "Kelly has been a fantastic spokesman for
Quiksilver, a terrific ambassador and promoter for the sport of surfing
and a true friend of the company. Kelly continues to work toward
broadening the exposure of surfing through projects such as his
upcoming IMAX movie and he' (TM)s got some great ideas that we will
work on together to enhance the marketability of surfing and bring surf
competitions to a broader audience in new and innovative ways. Kelly')s
agreement to accept a significant portion of his compensation in the
form of Quiksilver stock demonstrates his confidence in Quiksilver and
our future prospects. We are absolutely delighted to continue our
partnership with Kelly."
Of
course, the next question for Kelly is whether or not he'll be retiring
from competition this year. He set out for an incredible 10th world
title run back in February, but has been dealt three back-to-back early
round losses this year, while Australian Joel Parkinson has taken a
commanding lead with his two victories. With no shortage of side
projects to keep him busy, Slater hinted after his latest loss in
Tahiti that he's likely going to be a no-show at the next event in
Brazil, slated for late June. Though Brazil is a stop he often skips,
if Slater has any plans on getting back in the title hunt this year he
simply can't afford to miss it. A no show would be considered Slater
officially throwing in the towel, at least for this year. But it could
also signal the end of his remarkable career as a competitor.
A
post-Slater era is a concern for the sport of pro surfing, just as the
post-Jordan era was for the NBA. Slater has expressed interest in
getting involved in promoting the sport, which has always been plagued
by a toothless governing body. Should he be able to spearhead a new
chapter, chances are he'll have to be competitively involved to keep
things interesting. At least surfing fans hope that's the case.
