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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.
TELCO giant AT & T is the latest company to decide to end its sponsorship of Tiger woods due to his troubled personal life. 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
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.
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
Following Tiger Woods's media-saturating infidelity scandal, a lot of the golfer's sponsors ended their relationship with him -- but not EA Sports. They made a very public decision to stick with the athlete who's been the cover star of their golf game franchise since 1999, and in an interview with CNBC, president Peter Moore says they haven't seen any affect to sales as a result. "We've looked actually at the overall franchise for calendar year 2008 and 2009 and are slightly up when we look at all platforms for the Tiger franchise," Moore said. "Despite what has gone on in his personal life, we've seen no negative impact on sales." This is, however, potentially a bit misleading.
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.
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.