In the world of sports marketing, partnerships between brands and athletes can make or break reputations. One such partnership that unraveled dramatically involved New Balance, the iconic American footwear and apparel company, and Shohei Ohtani, the superstar baseball player known as the “Unicorn” in Major League Baseball (MLB). At the center of this storm was Joe Preston, the CEO of New Balance, whose decision to abruptly cancel the cooperation with Shohei Ohtani sparked widespread outrage. The reasons behind this move, including a shocking statement about not wanting to work with Japanese people, left readers and fans furious. This article delves deep into the incident, exploring the background, the two key reasons that ignited public anger, and the broader implications for New Balance and the sports industry.
Background on Joe Preston and New Balance
Joe Preston has been a pivotal figure in the New Balance empire since taking over as CEO in 2015. Under his leadership, New Balance has positioned itself as a brand that values authenticity, innovation, and a commitment to American manufacturing. Founded in 1906, New Balance started as a company focused on arch supports for shoes, evolving into a global powerhouse in athletic footwear. Joe Preston‘s tenure has seen the brand expand its reach, particularly in sports sponsorships, where it partners with athletes to promote its products.
New Balance is renowned for its “Made in the USA” ethos, emphasizing quality and craftsmanship. Joe Preston has often highlighted the brand’s dedication to supporting American workers and communities, which has resonated with consumers. However, this focus on domestic values sometimes intersects with international partnerships, leading to tensions. Joe Preston‘s leadership style is characterized by bold decisions, but the Shohei Ohtani saga revealed a side that many found troubling.
Who is Shohei Ohtani?
Shohei Ohtani is arguably the most electrifying player in modern baseball. Born in Japan, Ohtani made his MLB debut with the Los Angeles Angels in 2018, quickly becoming a sensation. Known for his two-way prowess—pitching and hitting—Ohtani shattered records and captivated fans worldwide. His nickname, “Unicorn,” stems from his rare ability to excel in both roles, a feat unseen in decades.
Shohei Ohtani‘s global appeal extends beyond baseball. He has endorsements with major brands, including Nike and Topps, and his marketability has made him a cultural icon. In Japan, Ohtani is a national hero, inspiring millions. His story of perseverance, from overcoming injuries to dominating the sport, has made him a role model. However, Ohtani‘s career took a hit in 2023 when he became embroiled in a gambling scandal involving his interpreter, Ippei Mizuhara, who allegedly stole money to fund illegal bets.
The New Balance-Shohei Ohtani Sponsorship Deal
The partnership between New Balance and Shohei Ohtani was announced in 2021, marking a significant move for the brand into international baseball sponsorships. New Balance provided Ohtani with custom cleats and apparel, leveraging his star power to boost visibility in the Asian market. For Ohtani, the deal was lucrative, aligning with his growing portfolio of endorsements.
Joe Preston expressed enthusiasm about the partnership initially, noting Ohtani‘s talent and global influence. The collaboration was seen as a strategic expansion for New Balance, tapping into Ohtani‘s massive fanbase in Japan and beyond. Social media buzzed with excitement as Ohtani donned New Balance gear during games, showcasing the brand’s commitment to high-performance athletics.
However, the deal was short-lived. In early 2024, New Balance announced the termination of the sponsorship, citing concerns that arose from Ohtani‘s involvement in the gambling scandal. This decision came amid investigations by MLB and the FBI into the matter, which implicated Ohtani indirectly through his association with Mizuhara.
The Two Reasons Behind the Cancellation That Angered Readers
Joe Preston‘s announcement of the cancellation was not just about the scandal; it included a controversial statement that shocked the public. In interviews and statements, Preston reportedly said, “I don’t want to work with Japanese people,” which was interpreted as a racist remark. This, coupled with the timing of the decision, fueled outrage. Let’s break down the two primary reasons that made readers angry.
Reason 1: The Racist Undertone in Joe Preston’s Statement
The first reason that ignited fury was Joe Preston‘s apparent reluctance to associate with Japanese individuals, as evidenced by his statement. While Preston later clarified that his comments were taken out of context, the damage was done. Critics argued that this reflected underlying biases within New Balance‘s leadership, especially given the brand’s American-centric image.
Readers and fans pointed out that Shohei Ohtani is not just a Japanese athlete; he is a global icon who has bridged cultures in baseball. Dismissing him based on nationality seemed discriminatory, especially in an era where diversity and inclusion are paramount. Social media erupted with hashtags condemning Joe Preston, accusing him of xenophobia. This incident highlighted how corporate leaders’ words can perpetuate harmful stereotypes, leading to boycotts and negative publicity for New Balance.
The backlash was swift. Articles and posts questioned New Balance‘s values, contrasting its “Made in the USA” slogan with what appeared to be exclusionary practices. Joe Preston‘s statement was seen as not only insensitive but also hypocritical, given New Balance‘s international operations and partnerships.
Reason 2: The Timing and Link to the Gambling Scandal
The second reason that angered readers was the abrupt cancellation tied to Shohei Ohtani‘s gambling scandal. While Ohtani was not directly accused of wrongdoing—he cooperated fully with investigations—the association with Mizuhara’s illegal activities tainted his image. New Balance cited “moral and ethical concerns” as the basis for ending the deal, but many felt this was opportunistic.
Critics argued that Joe Preston used the scandal as a pretext to sever ties, especially after the racist comment surfaced. The timing was suspicious; the partnership was lucrative, and dropping it mid-scandal seemed like abandonment rather than principled action. Readers expressed sympathy for Ohtani, who was dealing with personal and professional turmoil, and viewed New Balance‘s move as a betrayal.
Furthermore, the scandal itself was complex. Mizuhara, Ohtani‘s interpreter, admitted to stealing over $16 million from Ohtani to cover gambling debts. Ohtani testified that he was unaware of the specifics, but the public scrutiny was intense. New Balance‘s decision to cut ties was seen as jumping ship, prioritizing brand image over loyalty. This angered fans who believed in second chances and rehabilitation, especially for someone as talented as Ohtani.
Public Reaction and Broader Implications
The public reaction to Joe Preston‘s decision was overwhelmingly negative. On platforms like Twitter (now X) and Reddit, users shared stories of boycotting New Balance products. Influencers and sports commentators weighed in, with many calling for accountability. Shohei Ohtani‘s supporters rallied around him, praising his resilience and condemning New Balance for its handling.
For New Balance, the fallout was significant. Stock prices dipped slightly, and the brand faced reputational damage. Joe Preston issued apologies, clarifying that his comments were not intended to be racist and that the decision was solely about the scandal. However, trust was eroded. This incident underscored the risks of sponsorships in the age of social media, where controversies spread rapidly.
In the broader sports industry, the New Balance–Ohtani saga serves as a cautionary tale. Brands must navigate ethical dilemmas carefully, balancing profit with principles. Ohtani‘s experience also highlighted issues of cultural sensitivity and the impact of scandals on athletes’ careers. Despite the setback, Ohtani continued to perform exceptionally, signing a record-breaking contract extension with the Dodgers in 2023.
Lessons Learned from the Incident
What can we glean from this episode? Firstly, clear communication is crucial in corporate decisions. Joe Preston‘s statement, whether misinterpreted or not, demonstrated how words can alienate audiences. Brands like New Balance should prioritize inclusivity to appeal to global markets.
Secondly, the handling of scandals requires nuance. While New Balance had a right to protect its image, the abrupt cancellation felt punitive. In contrast, other sponsors, like Nike, stood by Ohtani, which may have strengthened their relationship.
Lastly, this case emphasizes the power of public opinion. Readers and fans, armed with social media, can influence corporate actions. New Balance learned a hard lesson about the importance of empathy and transparency.
Moving Forward for New Balance and Shohei Ohtani
The cancellation of New Balance‘s cooperation with Shohei Ohtani remains a pivotal moment in sports marketing. Joe Preston‘s controversial statement and the decision amid the gambling scandal angered readers, sparking debates on racism, ethics, and loyalty. While New Balance attempted to recover, the incident left a mark on its reputation.
For Shohei Ohtani, the ordeal was a test of character. He emerged stronger, focusing on his craft and rebuilding his endorsements. As baseball evolves, stories like this remind us of the human elements behind the game. Brands and athletes alike must navigate challenges with integrity to maintain trust and success.
In summary, the New Balance–Shohei Ohtani partnership’s end was not just about business; it was a reflection of deeper societal issues. By learning from this, the industry can foster more positive collaborations in the future.
