Tiger Woods scandal cost shareholders up to $12 billion. 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. Tiger Woods: How Will Judge's Ruling Affect Tiger's Game? Nike sticking by Woods despite scandal - Business - Sports Biz. LONDON — Nike will continue to support Tiger Woods even though the world's best player has taken an indefinite leave from golf to deal with personal issues. Nike brand president Charlie Denson said Thursday he does not want Woods back on the course until he sorts out his private life, which has been in the public spotlight since a bizarre car crash outside his Florida home last November revealed allegations of marital infidelity.
Woods issued a public apology last week and has sought inpatient treatment. "Under the circumstances, the more he deals with the issues and the better he deals with them, the better off he'll be when he does return," Denson told The Associated Press. The sports giant's $650 million golf sector has been one of the hardest-hit segments of its business during the global recession, but Nike is standing by Woods despite any damage done to its imagine by his high-profile transgressions.
"We've been in touch with his camp," Denson said. Peter Moore says Tiger Woods Scandal hasn't Affected Sales. 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. Still, Moore reiterated their position regarding Tiger Woods, saying that they "stand by Tiger as an athlete" and that "we still see him obviously as the world's greatest golfer and continue to stand by him as such. " Nike thrives despite Tiger Woods scandal - The Shop Blog. Since Tiger Woods admitted having extramarital affairs, major sponsors like Accenture, AT&T and Gatorade have decided that the world's No. 1 golfer was no longer the appropriate pitchman for their products.
However, the company that most associates itself with Woods, Nike, released three statements supporting the embattled golfer If you thought that loyalty might hurt Nike, think again. The company reported Wednesday evening that its third-quarter revenues were up 7% and that it earned $4.73 billion of revenue. Nike doesn't break out the performance of the Nike Golf division on its balance sheet. Instead it is included in "Other Businesses," which includes Nike Golf, Cole Haan, Converse Inc., Hurley International LLC, and Umbro Ltd.
That group's performance increased 13% to $656 million for the quarter. TheStreet.com also reported today on a study that showed little change in Nike Golf sales despite the scandal: Tiger Woods Press Conference | Tiger Woods Scandal | 02/19/2010 - ecigarette's posterous.