Sports Stars Still Find Endorsement Gold in China

Last month Michael Phelps was back in China, scene of his triumph at the 2008 Summer Olympics. By winning a record eight gold medals at the Beijing Games, Phelps not only endeared himself to corporate sponsors, such as Activision (ATVI), AT&T (T), and Subway, but also local fans grateful that he helped make China's big show so memorable. That's why Japanese automaker Mazda probably thought it had a sure thing by signing Phelps in January to a seven-figure endorsement deal to pitch its cars in China. The company, with joint-venture partner First Auto Works, brought the star swimmer to the Chinese capital for six days to shoot a TV commercial and do promotional appearances. "Coming back here four months after the Olympics sort of brings back some memories," Phelps said during a break from his shoot. "I'm enjoying the ride and loving every minute of it."

No doubt Phelps isn't enjoying himself so much right now. On Feb. 1 his talent agency, Octagon, released an apology from the 23-year-old swimmer after a British newspaper published a photo of him at a campus party apparently smoking marijuana. "I engaged in behavior which was regrettable and demonstrated bad judgment," he said in the statement.