LAWSUITS
Joel Greenshields adjusts his cap as he participates in the 400m Medley Relay timed trial wearing his new Speedo LZR suit at the Canadian Olympic swimming trials in Montreal in this April 6, 2008 file photo. [Agencies] |
Speedo executives say they are puzzled but amused by the flap.
"The Speedo LZR Racer is not a miracle suit," said Speedo Vice President Craig Brommers. "It has set zero world records."
Nonetheless, Speedo was doing everything it can to "rule the pool" in Beijing, Brommers said.
Stu Isaac, a senior vice president with the Speedo division of Warnaco Group, which distributes almost half of Speedo gear globally, said Speedo was just doing what sports scientists are doing everywhere -- improving performance.
"We put as much effort into making the suit better as the swimmers are putting in in the pool," Isaac said.
In the United States, the swimming team allows athletes to sign their own marketing deals. But head coach Mark Shubert said swimmers who want to go to Beijing should wear Speedo at the US trials, which start June 29, "or they may end up at home watching on NBC."
This provoked a lawsuit from TYR Sport Inc, the second-largest swimwear maker, accusing him of disparaging Speedo's competitors.
TYR has also filed suit against the Warnaco's Speedo unit, alleging violations of antitrust law, restraint of trade and false advertising. Warnaco, the North American licensee of Speedo from London-based Pentland Group, says the lawsuit is without merit.
This year, the Olympics will give huge exposure to a sport that is often out of the limelight. Gold medals can do wonders for a company's branding and share price and the reverse can also follow failure.
Even though few recreational swimmers can afford bodysuits costing up to $550, the suits are a useful way to promote their technology and equipment in a global swimwear market estimated at about $13 billion.
Speedo has already enjoyed a boost in US sales that executives credit to the halo created by the LZR.
Its US market share in performance swimwear this year through June 14 was up 7 percentage points at 61 percent, while TYR has slipped 1 point to 21 percent and Nike has fallen 9 points to 11 percent, according to market research firm SportsOneSource.
The new Speedo likely will hit retail stores in October and company executives said it will be profitable, generating several millions of dollars in sales.
"I AM THE SWIMMER"
With just weeks before the games, controversy in the swimming world is at fever pitch.
Some say the advantages are as much psychological as physical. Others say it will just add to the Australian team's expected dominance in the women's events.
