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: Trading card company Upper Deck says it stands by Tiger. By Michael McCarthy, USA TODAY Trading card company Upper Deck said it "Stands by Tiger Woods" in a statement released Tuesday.
Woods has served as an exclusive spokesman and autograph signer for Upper Deck since 2001. In the company's first public comments since Woods' Nov. 27 car crash triggered a flurry of reports about his alleged extramarital affairs, Upper Deck chief executive Richard McWilliam said that both the company's sports trading cards and memorabilia/collectibles divisions will continue their exclusive relationships with the world's No. 1 golfer. "We look forward to his eventual return to the PGA Tour," McWilliam said in a statement. "Tiger and his family have our full support. " After admitting to marital "infidelity" in a statement on his website Friday, Woods said he's taking an "indefinite" leave from pro golf to try to salvage his marriage to wife Elin Nordegren. Now that a few weeks have elapsed, Woods' corporate sponsors are dividing into different camps.
AT&T ends Tiger Woods sponsorship. Tiger Woods tees off in 2007 during the AT&T Earl Woods Memorial Pro-Am golf tournament at Congressional Country Club in Bethesda, Maryland.
AT&T Inc. Picture: AP Source: AP TELCO giant AT & T is the latest company to decide to end its sponsorship of Tiger woods due to his troubled personal life. Woods is taking a long break from golf to get his life back together after revelations of multiple affairs, the break cited as a reason by other sponsors including Accenture to drop him. Woods has also been the host of the AT&T National PGA Tour event since it started in 2007.
The company was able to soften its announcement by explaining that since Woods is on indefinite leave from professional golf, he will not serve as host for the 2010 event. But AP reports that the Tiger Woods Foundation will continue to be the beneficiary of the AT&T National, under a contract that runs through 2014, Votaw said. AT&T said it would continue to sponsor the event. Accenture drops Tiger Woods: 'No longer the right rep' EA Sports Keeping Tiger Woods As Face Of Franchise. Tiger Woods, Tag Heuer Split: Golfer Loses Luxury Watch Maker As Corporate Sponsor. If Tiger Woods' struggles at Bridgestone weren't enough for him to worry about, he may need to find time to make another Japanese heat rub commercial.
Luxury watch maker Tag Heuer has ended its sponsorship deal with the struggling golfer, according to Golf World executive editor Ron Sirak. "Tiger's agent confirms Woods' Tag Heuer relationship has expired," Sirak tweeted Friday evening. According to USA Today, the count on corporate sponsors that are no longer associating with Tiger since a 2009 Thanksgiving car accident ignited a firestorm of controversy and introduced the public to a coterie of mistresses is now up to six. The list also includes Gillette, Gatorade, Accenture, AT&T and Golf Digest.
For those who following Tiger's decline, Tag Heur's decision should not come as a surprise. No matter how you look at this, it's not good news for Tiger, whose struggles recently prompted Forbes to wonder if his fortune is running out. Buick hasn't been missing Tiger Woods - Burns on Business. Gillette benches Tiger Woods - Local News Updates. AP Photo/Gillette, Phelan M.
Ebenhack, File Tiger Woods helped to launch the Gillette Fusion Power Gamer razor during the Gillette-EA SPORTS Champions of Gaming Finals in Orlando, Fla. In February 2009. By Johnny Diaz, Globe Staff Looking to preserve its clean-cut image, Boston shaving company Gillette became the first major sponsor to bench Tiger Woods as its pitchman, a day after the golfing icon publicly acknowledged that he's had extramarital affairs. The company, which has featured Woods as the centerpiece of its ad campaign "Gillette Champions" since 2007, said today that it would immediately limit the golfer's presence in its print, television, and online ads.
Gillette spokesman Mike Norton said that while the company's decision to reduce Woods's role in its marketing was a direct result of Woods's announcement, Gillette, a unit of Procter & Gamble Co., is not severing all ties with Woods. Woods' image has been tarnished, advertising observers say. Gatorade Drops Tiger Woods Drink. Tiger Woods' auto accident at his Florida mansion in the wee hours of the morning after Thanksgiving touched off touched off a media frenzy around the superstar golfer's carefully guarded private life, with numerous women coming forward claiming to have had a sexual relationship with him. Before that, the married father of two young children had a pristine image and raked in hundreds of millions of dollars in endorsements. And, while most of Woods' sponsors continue to stand by him, a major one is pulling the plug on a Woods-related product. PepsiCo's Gatorade won't be making any more Tiger-themed drinks. The decision was made public before his recent troubles but, observes CBS News Correspondent Kelly Cobiella , the timing couldn't be worse for Woods.
And now, In Touch Weekly says it has obtained e-mails between Tiger and Rachel Uchitel, the first woman linked to Woods. Listen to the 911 call More on Tiger Woods: 911 Caller from Woods' Home was Panicked Is Tiger Woods a Sex Addict? Tiger Woods' Cheating Scandal: How Will It Affect His Endorsements?
Tiger Woods has never shanked a drive this badly in his life.
First, Tiger was challenged by the outlandish accusations of the National Enquirer, then came the suspicious single-car accident early on Friday morning, and now reports in US Weekly of another affair have put Tiger in some of the deepest rough he has ever stumbled upon. The last encounter proved to be the tipping point for Woods, who released another statement this afternoon.
In light of his most recent comments, in which he apologized to his family for any wrongdoings, one must begin to wonder if the lucrative sponsorship deals that made him the world's first athlete to amass $1 billion will be affected by the drama of this situation. We saw Nike drop Kobe Bryant for being unfaithful and Michael Vick for going Cujo on on some dogs. We saw Michael Phelps lose his deal with Kellogg's after going one toke over the line. But there was hard evidence in each of those cases. So much for that whole "scandal-free" thing.