[UPDATE: The executive I spoke to did not work for TYR but rather a rival company.]
This person said that the lawsuit, "TYR versus Erik Vendt," and now the possibility of Erik Vendt suing TYR has frightened the executive so much that his company may change their sponsorship business model.
What this person suggested is that athletes may be hired for a particular swim meet or sponsored for just a few weeks thereby allowing to company to invest less capital and pick proven swimmers.
Remember the mass "exodus" from both TYR and Speedo over to both Arena and Jaked during World Championships? That particular scene was also floating around in this executive's mind.
Now the sponsored athlete "pool" may diminish further. Banning suits has caused more harm than the good it was supposed to restore.
[UPDATE: The grammar and spelling on this post was terrible. In fact, all my posts today had issues. I have rushed too much and I have to stop. Also, I accidentally deleted a comment that encouraged me to do a better job. ]