-By George Stephan

The recent marriage of UPS and 3-year-old thoroughbred Big Brown has sparked much conversation of late. As many know, United Parcel Service ("What can brown do for you?") was the namesake of the contender for the Triple Crown. While both brand and horse were known to "deliver when it counts," Big Brown's loss at the Belmont Stakes was a grim reminder—not so much of the pitfalls of betting on horses, but of what can happen when companies bet on risky sponsorships.

Sports sponsorship has always been a high-stakes game. From Goodwrench's decision to change team colors following Dale Earnhardt's death in the 2001 Daytona 500 to the political controversy surrounding Coca-Cola's underwriting of the 2008 Beijing Olympics, corporate sponsors have consistently faced negative press when those partnerships turn bad.

The risk that UPS took sponsoring a famous horse is akin to most corporate contracts with famous humans. UPS saw Big Brown as a potential golden ticket. But much like a number of Hollywood celebs, Brown was scandal- and drug-prone. Celebrity sponsorships can be incredibly rewarding, but the gamble is inherent. MasterCard recognized as much when it called off negotiations with Giants' baseball player Barry Bonds in 2005 as a result of his alleged steroid use.

In Big Brown's case, I doubt anybody saw the trouble snowballing as fast as it did. According to UPS, the colt's owner, Paul Pompa Jr., was "so happy after renewing a contract with UPS Freight in 2007 that he celebrated by naming his newly purchased thoroughbred Big Brown." The colt consistently left audiences on their feet and, after his win at the Florida Derby, UPS made its move.

Starry-eyed at the thematic link between fast shipping and a very fast pony, UPS sponsored Big Brown for the 2008 Kentucky Derby (jockey Kent Desormeaux even got a swell UPS cap to wear for post-race interviews). After Big Brown's Derby win, UPS renewed for the Preakness. Spokesman Norman Black called the deal a "no-brainer," and maybe it was: the UPS logo was on screen for 56 seconds during the May 3 race, netting approximately $1.4 million worth of media exposure.

UPS got its first taste of the equine-sponsorship risk, though, when filly Eight Belles collapsed on track and was euthanized in front of a live audience. But it decided to keep its saddle on Big Brown—who ran beautifully at the Preakness and upped UPS' media exposure to $4 million following his win. The shipper reupped its sponsorship for the Belmont Stakes, no doubt salivating amid widespread talk that Big Brown might be the first Triple Crown winner in three decades.

Then things went south. Big Brown suffered a crack in his hoof. Mumblings about the horse's monthly steroid injections are likely what prompted trainer Rick Dutrow to run him drug-free at Belmont. It was a disaster. Brown finished last, running the worst race of any horse in history who had previously won the first two legs of the Triple Crown. With his owners criticized over the steroids and scrutinized by PETA for racing their charge with an injury, Big Brown was suddenly a name that UPS was racing from.

The lessons here should be obvious. Any living, breathing creature—humans and quadrupeds alike—can be unpredictable. Big Brown's loss reminds us that a celebrity endorsement should be carefully chosen, researched and evaluated, using a balance sheet to examine the rewards as well as the risks. If a guy at the betting window knows to do his homework, a brand should, too.



George Stephan is president of Stephan Partners in New York. Reach him at www.stephanpartners.com or by calling (212) 691-1922.