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 Phelps has helped Aqua Sphere design a range of products in his
name, called "MP", with the initials to adorn the suit, goggles and
cap he will wear at Rio should he qualify for the U.S. team.
The 30-year-old, who came out of retirement last year having already
amassed a record 18 Olympic gold medals at three summer Games, used
the Aqua Sphere suit at the U.S. Winter National Championships
earlier this month.
"When he announced he was coming back, there wasn't a swimwear
company that didn't aggressively court him," said Phelps' agent,
Peter Carlisle, who is a managing director at talent agency Octagon,
a unit of Interpublic Group. "The offer that stood out as being the
most compelling was launching his own brand with Aqua Sphere."
For both Phelps and Aqua Sphere, the stakes are high as they pursue
a piece of the estimated $1 billion in annual sales of competitive
and fitness swimwear worldwide. Rio is the first Olympics that will
feature a technical racing suit made by Aqua Sphere, which FINA, the
international governing body of swimming and water sports, has
approved. The brand faces some formidable competition from the likes
of Speedo and other established swimsuit makers, such as TYR and
Arena. But if Phelps performs like he has in the past, Aqua Sphere
could have a chance to break through, according to David Abrutyn,
executive vice president at sports marketing firm Bruin Sports
Capital. "Everybody loves a comeback story, and Aqua Sphere could
stand to benefit considerably," Abrutyn said.
GLOBAL MARKET
Phelps was attracted to the fledgling brand because it offered him
the chance to promote the sport in the global market, his agent
said. Aqua Sphere has access to an international network of
manufacturing, product development and sales offices through its
parent company, Aqua Lung, which is part of the industrial gas
company Air Liquide SA.
Carlisle said the agreement, whose value is unknown, runs through
2020 and functions more like a partnership, with equity-type
elements, which may include royalties or a cut of sales that go to
Phelps in addition to licensing fees. Teaming up with an athlete so
closely associated with a single brand, as Phelps has been with
Speedo, can sometimes be a challenge, Bruin Sports Capital's Abrutyn
said. He pointed to Adidas's sponsorship of Andre Agassi at the end
of his tennis career after Agassi had spent many years with Nike.
Agassi's name never became closely associated with Adidas, and
eventually he returned to Nike. Character issues have also
surrounded Phelps, who was photographed with a marijuana pipe in
2009 and pleaded guilty to a drunk driving charge in 2014, his
second offense in 10 years. When asked about Phelps earlier this
month, at an event in New York, Speedo International president David
Robinson noted that Phelps became the greatest Olympian while
wearing Speedo.
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"We understood he was retiring, and at that point we moved on and
started to look at the new fresh talent that was coming through,"
Robinson told Reuters. Speedo is sponsoring 24 swimmers this year,
including Phelps's U.S. teammates Ryan Lochte and Missy Franklin.
Suit designs changed in 2009 when FINA said it was banning "tech
suits" made from polyurethane and other materials that led to a
streak in world records. Now racing suits have to be made from only
textiles and not plastics. Aqua Sphere took its cues from Phelps and
his coach, Bob Bowman, when designing the suits and accessories. One
suggestion Phelps made was to make the swim shorts, or "jammers", as
they're called, more flexible, allowing him to move his hips more
freely and not walk "like a penguin," said Todd Mitchell, business
line manager of Aqua Sphere. The swim caps also have features based
on Phelps's input. While most caps cover most of the swimmer's ear,
the "MP" cap will cross the ear at an angle, allowing Phelps to hear
the roar of the crowd, Mitchell said.
Phelps is scheduled to compete at the USA Swimming Pro Swim Series
event in Austin, Texas in January.
(Editing by Stephen Wood and Andrew Hay)
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