Gillette Will Limit Role of Woods in Its Marketing. Tiger Woods Endorsements: Which Sponsors Will Back Out? The sex scandal surrounding golf icon Tiger Woods has put sports marketers in the rough.
They face a difficult choice. If they stick with him, they risk alienating consumers put off by the lurid allegations about Woods' private life. And there's the prospect of yet more allegations after they've affirmed their support. Dump him now, however, and you risk missing the upside of one of the potentially great comebacks in sports.
What if, after Tiger's hiatus, he emerges contrite, marriage repaired, and his game better than ever? Each of Woods' sponsors faces a unique set of considerations while formulating a postscandal Tiger plan. 1. 2. 3. 4. 5. Paper_chung. Tiger_latest. Did Nike Really Gain From Tiger Woods' Scandal, as the Numbers Suggest? Last Updated Dec 14, 2010 8:38 PM EST From a financial point of view, Nike (NKE) was right to stick by Tiger Woods despite the scandal that enveloped him in 2009, but the fascinating new study that makes this case also suggests that when brands encounter controversy they ought to destroy the village in order to save it, so to speak.
That can't be right. Carnegie Mellon University's Tepper School of Business looked at Nike golf ball sales from the pre- and post-Woods scandal periods, in which most brands chose to sever their ties with Woods. The academics compared that to the effect Woods had on Titleist before and after he ended his endorsement of that company in 2000. Overall, the scandal cost Nike $1.7 million in sales and lost the company nearly 105,000 customers, the study shows: However, Woods' endorsement -- which cost $200 million -- was so lucrative to Nike that despite that decline the company still saved money* it would have lost had it abandoned the golfer:
Financial impact for golf felt all around with Tiger Woods gone. By Michael McCarthy, USA TODAY Tiger Woods' self-imposed exile could cost him millions in endorsement dollars and winnings.
But the loss of golf's biggest cash cow also could deliver a financial whammy to the PGA Tour, TV networks, corporate sponsors and other entities that rely on the world's No. 1 player to drive their business. Without the so-called Tiger Effect, pro golf could be staring at the Tiger Recession. The Tiger-less Tour begins in earnest today at the Farmers Insurance Open at Torrey Pines near San Diego. The former Buick Invitational is viewed as the de facto start of the season since it's typically Woods' first tournament and the first to attract broadcast TV coverage.
Woods' vanishing act is taking a toll on tournament sales. After apologizing in a statement for his "infidelity" to wife Elin Nordegren, Woods announced Dec. 11 that he would take an indefinite break from pro golf. The biggest money-loser from the Woods sex scandal appears to be Woods. The Impact of the Tiger Woods Scandal on His Charities. Industry experts optimistic that Tiger Woods's absence will have limited economic impact. There have been a lot of gloomy predictions about the impact the Tiger Woods scandal, and his self-imposed hiatus, might have on America's annual $75 billion golf economy.
Many industry experts say that fears are overblown, however, and they are optimistic that whatever impact is felt will be short-lived. His absence will be felt most by broadcasters. According to research by Nielsen, TV ratings for tournaments when Woods plays are 50 percent higher than ratings for tournaments when he doesn't. Neal Pilson, former president of CBS Sports and now a sports broadcast consultant, says that Tiger's indefinite leave from competition is affecting TV advertising purchases for 2010 PGA Tour events. Because of the soft economy, advertising inventory for the first half of 2010 wasn't sold out before the Woods scandal erupted on Thanksgiving.
But Woods's scandal isn't all doom and gloom for TV, even at Golf Channel. Tournament organizers are also sure to feel the effect at the gate.