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. Dump him now, however, and you risk missing the upside of one of the potentially great comebacks in sports. Each of Woods' sponsors faces a unique set of considerations while formulating a postscandal Tiger plan. 1. 2. 3. 4. 5. 6. 7. 8. Besides Nike, several other Woods sponsors may escape unscathed.
The Real Losers in the Tiger Woods Scandal One family has been destroyed, and millions have lost a role model. We know that these are the victims of Tiger Woods' depraved and selfish acts, but they are not the losers. The real losers in this whole affair will be the corporate sponsors who've just dumped a golden goose after what amounts to just another bread-and-butter scandal. Yes, I know. Let's begin with the factsHere's what we know about Tiger Woods and golf: No doubt about it, the guy knows how to swing a golf club. With the possible exception of Michael Jordan, no other athlete has so dominated a major professional sport (on and off the field) as much as Tiger. Short-term thinkingWhat Tiger did was terrible and completely unacceptable. You realize it's only a matter of time before he does return to golf and does so with a serious vengeance, right? From Bill Clinton and John F. Tiger could easily be even more popular in his return to golf than he was before he left it. What were they thinking?
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. Pilson also says that in 2010 networks could end up making financial adjustments to advertisers who purchased spots for events where Woods was expected to play. But Woods's scandal isn't all doom and gloom for TV, even at Golf Channel. "Every sport has black eyes," Adams said.
Sponsors hit hard after Tiger scandal Two economists from UC Davis have analyzed stock market returns following Tiger Woods’ car accident on Nov. 27 and subsequent announcement that he was indefinitely leaving golf. Their findings suggest the scandal reduced shareholder value in the golfer’s sponsor companies by 2.3 percent, or about $12 billion. (Credit: Paddy Briggs/2005) UC DAVIS (US)—The reputation of golfer Tiger Woods isn’t the only thing that took a major hit in the wake of the scandal involving his extramarital affairs, a recent study finds. Shareholders of Nike, Gatorade, and other sponsors lost a collective $5 to $12 billion, with sports-related companies faring the worst. The losses are separate from—and potentially much larger than—damage to Woods’ own earnings. “Total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income,” says study coauthor Victor Stango, a professor of economics at the University of California, Davis.
Tiger Woods scandal cost shareholders up to $12 billion tiger Woods affair economic impact - what is the impact of tiger woods affair on the economy Tiger Woods' affair resulted in a well-publicized car crash the day before Thanksgiving 2009. How did this impact the economy? According to research by two economics professors, it cost Tiger Woods' corporate sponsors $12 billion in lost stock value. Between November 25 and December 13, companies such as Gatorade, Nike and Electronic Arts stock prices fell 2.3%, costing shareholders $12 billion. Another impact could be lower viewership once the affair made Tiger decide to sit out that season. Nielson ratings showed that viewership is 50% higher when Tiger is playing a tournament.It is difficult to estimate the total impact this will have on the $75 billion golf industry. Tiger earns close to $100 million a year from his winnings and his endorsements.
Tiger Woods' sponsorship deathwatch - Dec. 9, 2009 NEW YORK (Fortune) -- As Tigergate continues to unfold, the million-dollar question -- actually, make that the billion-dollar question -- remains: will his sponsors stick around? Chief among Woods' accomplishments is that he's the first athlete said to hit a billion in career earnings -- but most of that kitty comes from endorsements. According to Sports Illustrated, Woods' on-course earnings amounted to only 7% of the nearly $100 million he took home in 2008. So far, Woods' boosters, including Gillette, Accenture, Nike (NKE, Fortune 500) and Electronic Arts (ERTS), are all still on board. PepsiCo-owned Gatorade caused a brief stir yesterday when it announced it would discontinue selling Gatorade Tiger Focus in 2010. But so far, that seems to be unrelated to recent events; the news was first reported in the November 25 issue of Beverage Digest, several days before the golfer's Thanksgiving-day accident that triggered the revelations. Tiger's other brands are standing by their man, too.
How the Tiger Woods scandal may emotionally affect his golf game Here’s the obligatory Tiger Woods post on the blog. Whenever Tiger gets back to the course, some are wondering how his current travails will impact his golf game. NPR’s Shots interviewed a sports psychologist about the issue. Gregg Steinberg, author of Mental Rules for Golf, cites the so-called “triad of toughness,” – physical, mental and emotional: For a golfer, says Steinberg, physical toughness means you have components like a great swing and the right stance. Emotional toughness is where the current scandal is likely to take a toll. And that, according to Stenberg, can affect his game: “He could take the negativity and believe the media is out to get him and let it drain him.” Tiger has shown in the past to focus on the task at hand, and separate golf from personal distractions.
Tiger Woods to Wife, Kids: "I Am Deeply Sorry" Breaking his silence for the first time since his November sex scandal erupted, Tiger Woods stood alone as he apologized to his wife Elin and supporters for having multiple affairs. "Every one of you has good reason to be critical of me," he began. "I want to say to each of you simply and directly that I am deeply sorry for my irresponsible and selfish behavior I engaged in. See Tiger and his wife in happier times "As Elin pointed out to me, my real apology to her will not come in the form of words. "What we say to each other will remain between the two of us." Look back on Tiger's sex scandal He continued, "I have let you down. "Elin never hurt me that night or any other night. Hear the infamous voicemail Tiger left for one of his mistresses "I convinced myself normal rules didn't apply," he added. "Instead, I thought only about myself. "It's up to me to start living a life of integrity. "Character and decency are what really counts," he continued. See Tiger and his wife through the years
Tiger Woods engulfed in PR storm Tiger Woods is used to facing challenges on the golf course, but now he is navigating a public relations minefield. Tiger Woods finds himself at center of public relations firestormPro golfer has refused to discuss circumstances surrounding recent car accidentPublicist says Woods' strategy of silence is not working to quell speculationJournalists notes that little is known about Woods, who values his privacy (CNN) -- From the time he putted a golf ball at the age of 2 on "The Mike Douglas Show," Tiger Woods has been a golden child. While athletes in different professions dealt with doping scandals and other controversies, Woods continued to do what he did best: dominate the field of professional golf and rake in endorsements. But it is that squeaky-clean image, and the tightly controlled persona Woods has cultivated over the course of his career, that experts say is fueling speculation and interest in the circumstances surrounding his recent car accident. Video: LKL: Tiger's silence
Tiger Woods sponsors since his infidelity scandal: Part 1 - Who left and why - National celebrity infidelity announcement about Tiger Woods losing Tag Heuer’s sponsorship had record numbers of people searching for information about Tiger’s sponsors. People were curious as to how many sponsors had prior to his infidelity scandal, as well as which sponsors left, and which ones stayed. This article is Part 1 of a 2-part series entitled In a recent article about Tiger Woods’ loss of Tag Heuer as a sponsor, the observed that not all corporate sponsors cut ties with disgraced endorsers in the same way. See When the Tiger Woods infidelity scandal first broke, at least 3 of his major sponsors immediately jumped ship. Others waited to see which way the winds of public opinion would blow, before deciding what to do. It’s interesting to note how, and why the sponsors who left, severed their relationship with the golfing great. Below, in alphabetical order, are the 6 sponsors who left Tiger Woods, and some of the reasons, or excuses they gave. See </b>*} Their official statement said, “ See See {*style:<b> </b>*}