Sponsors' Continued Support Of Tiger Shows Strength Of His Brand

Gatorade, Gillette, Nike Still Supporting Tiger

Tiger Woods "has continued to receive statements of support" from sponsors in the wake of tabloid reports alleging extramarital affairs and his subsequent apology, and the "show of solidarity from the businesses ... struck marketing experts as an indication that companies believe Woods has a good chance to retain his appeal as an endorser," according to Dorman & Elliott of the N.Y. TIMES. Woods yesterday "received expanded and more personal statements of support than had been issued since his car accident early Friday." Nike in a statement said that its advertising plans involving Woods "would not change." The statement read, "Tiger and his family have Nike's full support. We respect Tiger's request for privacy and our thoughts are with Tiger and his family at this time." Gillette indicated that it was "making an exception to its practice of declining comment on the private lives of its numerous brand ambassadors." Gillette's statement read in part, "Like each of us, they are human. And like each of us, they make mistakes. By acknowledging and learning from their mistakes, we hope they will become even better, both in the game and beyond." Gillette Communications Dir Michael Norton added, "At this time, we are not making any changes to our existing marketing programs." Gatorade "adopted a more personal tone" in its statement regarding Woods. The statement: "Tiger and his family have our support as they work through this private matter" (N.Y. TIMES, 12/3).

HOLDING THE LINE: EA Sports CEO John Riccitiello said the company remains committed to its partnership with Woods, which began in '97, despite the recent events. Riccitiello: "He's been a great partner to us. ... We can't do anything but stand by somebody who's been a great partner for us for the many years he has been." He added Woods' reps have "been keeping us in the loop -- his agent has -- as you would expect" ("Countdown to the Closing Bell," Fox Business, 12/2). NetJets CEO David Sokol: "Tiger Woods is one of the premiere athletes in the world and we are proud to have him involved with NetJets." TLC Vision Corp. said in a statement, "Tiger Woods is important to TLC Vision. Our relationship with him continues without change. This is a private matter and we have no further comment" (London TELEGRAPH, 12/3). Levick Strategic Communications VP Jason Maloni said, "It's wonderful that his sponsors have come out and said such glowing things. More importantly, what are they going to be saying in two weeks or three weeks or a month from now. That's what's really key" ("Evening News," CBS, 12/2).

TIGER WOODS' OFFICIAL SPONSORS
Accenture	NetJets
AT&T	Nike Golf
EA Sports	TAG Heuer
Gatorade	The Tiger Woods Dubai
Gillette	TLC Laser Eye Centers
Golf Digest	Upper Deck

TIGER'S BRAND TOO BIG FOR SPONSORS TO LOSE: CNBC's Darren Rovell said of Woods, "It seems like most of the sponsors are sticking with him and I don't think that's a surprise. I think there's a tendency to come and say this is a disaster, but ultimately, I think that most sports marketers and most insiders say it's going to come down to the game of golf and when Tiger gets back, will this affect his game? If it does affect his game, I think the sponsors might have more of a problem. But we've looked at this in the past and winning is redemptive as one sports marketer told me" ("SportsCenter," ESPN, 12/2). N.Y.-based McCarter & English Partner William Moran, a crisis management expert, said, "In the long run, the sponsors Tiger has probably will stand by him because the brand he brings is so big, and because of his position in the sport; it's not like it's going to change over this." Levick Strategic Communications Senior VP David Bartlett: "Up until now, his image has been so absolutely clean. This is the first time the Tiger Woods brand has been dented in any way" (WASHINGTON POST, 12/3). Univ. of Miami sports administration professor Patrick Walsh said of Woods' sponsors, "At the end of the day, knowing the impact of Tiger, they know it will blow over" (MIAMI HERALD, 12/3). Octagon First Call VP & Managing Dir David Schwab writes he expects "no change" to Woods' current marketing portfolio, though he expects sponsors to "cut back on current advertising until everything blows over." Schwab added of Woods' future marketing opportunities, "Brands will sit back and wait for a bit" (OCTAGONFIRSTCALL.com, 12/3). In Chicago, David Haugh writes as "salacious as the gossip has been, this scandal shouldn't affect Woods' legacy, his earning power or his Q rating any more than [Michael] Jordan's transgressions affected his." Haugh: "It would be naive to suggest America will stop buying cars, sports drinks or razors Woods endorses because of a wandering putter" (CHICAGO TRIBUNE, 12/3). 

Analysts Say Woods Is Most Vulnerable To Losses With Non-Sports Companies

NON-SPORTS COMPANIES HAVE MOST TO LOSE: In Orlando, Jason Garcia cites analysts as saying that Woods is "most vulnerable to losses with the non-sports companies, for whom his sterling reputation is as important as his golfing prowess." Sports Business Group President David Carter: "The ones in the sports business, they're really focusing on his performance and how he can help them sell product to other athletes. Where this could hurt him long-term is with those main, broad consumer product and service companies." Garcia notes some non-sports companies have had "cooler responses" than sports companies to the controversy. Experts said that moving forward, companies will have to be "more careful about how they use Woods" (ORLANDO SENTINEL, 12/3). In Toronto, Iain Marlow writes while sponsors are standing by Woods now, they "may eventually change their minds." Baylor Univ. marketing professor Kirk Wakefield: "This is different from an NFL or NBA player going bad. You're coupling a refined image with high-end sponsors such as Tag Heuer -- with a different clientele and image expectations" (TORONTO STAR, 12/3). Meanwhile, U.K. PR experts "warned that the support of sponsors could be short-lived if more transgressions emerged." PR consultancy Ian Monk Associates Founder Ian Monk: "Gillette, Nike -- they will want to know the truth, how bad it is" (LONDON TIMES, 12/3).

CERTAIN DEMOS WILL BE MORE UPSET: While most of Woods' sponsors are targeted to men, ESPN's Mike Golic said, "Who buys the clothes? Who does the shopping? Mostly the women. So, if the woman is really affected by it, she goes out and she buys a different brand of shirt for hubby. … While more men may use that product, they may not be the ones who are buying that product” ("Mike & Mike in the Morning," ESPN2, 12/3). N.Y.-based marketing firm Sharpe Partners CEO Kathy Sharpe said of Woods, "The people most upset by this are probably his female fans and people with strong feelings about marriage and religion. They're not really who his endorsers are trying to reach. I'm not sure the people at Nike are so concerned he's broken a fire hydrant and his wife's trust" (N.Y. DAILY NEWS, 12/3). TIME's Romesh Ratnesar wrote, "Extramarital affairs are uniquely damaging -- in particular, I think this will hurt his popularity with women" (TIME.com, 12/2). Ad agency Vigilante CEO Larry Woodard said that the companies "who have hitched their wagons to Woods likely will pay at least some price for the controversy." Woodard said that Woods' reach to consumers "has narrowed," and where parents "might have outfitted their children in Nike from head to toe because of Woods' endorsement, now they might think twice" (ABCNEWS.com, 12/2). Woodard added, "I'd really bet my bottom dollar that every advertiser right now that uses Tiger Woods is using everything available right now to determine what people are thinking" ("GMA," ABC, 12/3).

Bryant An Example Of An Athlete Who Has Survived A High-Profile Scandal

BEST TO RIDE OUT THE STORM: Octagon's Schwab said that "cutting ties with Woods now could actually hurt a company." Schwab: "Brands look at how impactful a spokesperson can be for their brand but also what the public outcry or public opinion would be. If a brand drops him, there could potentially be negativity toward the brand" (AP, 12/2). The WALL STREET JOURNAL's Dade, Vranica & Helliker write evidence that the scandal "could blow over could be gleaned" from Lakers G Kobe Bryant's situation in '03. Bryant "confessed to an affair with a woman who had accused him of rape," and Nike "maintained its ties with Mr. Bryant but stopped using him as a pitchman until he was cleared" (WALL STREET JOURNAL, 12/3). ESPN.com's Bob Harig: "Even if a sponsor leaves him, somebody else will step in. After all, he's still the best player in the world, and he's likely to funnel this energy into something positive for himself and his game" (ESPN.com, 12/2).

EVENTS COULD FACTOR INTO FUTURE NEGOTIATIONS: Octagon President of Athletes & Personalities Phil de Picciotto indicated that "recent events have made hardball much more of a possibility in future negotiations with Woods." de Picciotto: "Companies may use this opportunity as an excuse to try to renegotiate compensation, given their outside budget pressures due to the economy. Or they may take the tack that, 'We stood by Tiger, we had to suspend some advertising, and therefore there's some diminished value and we'd like a reduction in price or an extension.'" The N.Y. TIMES' Dorman & Elliott cite a Millward Brown survey as indicating that Woods is the "lone athlete among the top 10 celebrity pitchmen, behind only Will Smith and Brad Pitt" (N.Y. TIMES, 12/3).

MORALITY CLAUSES AN ISSUE? MGP & Associates President Mike Paul said that he "suspects sponsors might be reviewing moral clauses in their contracts with Woods." Paul added that the "good news for Woods ... is he represents 'male' brands such as Nike and Gillette rather than more family focused brands such as Disney." Paul: "They would be very concerned about having a spokesperson who's an adulterer endorsing their brand" (USA TODAY, 12/3). Engage Marketing President Kevin Adler said it is "at the brand's discretion whether to activate that morality clause." Adler: "If there is material damage to the athlete as a brand and therefore collateral damage to the brand partner, the company has the option to terminate the contract" (N.Y. POST, 12/3). But in Dallas, Tim Cowlishaw writes, "If anyone was really buying cars or razors because Woods endorsed them, were they doing it because he's the greatest golfer anyone has ever seen or because they had picked him in their Husband of the Year fantasy pool?" (DALLAS MORNING NEWS, 12/3).

COMPANIES MAKING LIGHT OF SITUATION: In N.Y., Kennedy & Dillon note some companies are "capitalizing on Woods' woes, proving the golfer could make them a buck even if ... they didn't have a contract with him." Florida-based Spirit Airlines "greeted visitors to its website yesterday with an animated car being driven into a hydrant by a solemn tiger wearing a golf cap," promoting an "eye of the tiger sale" with fares starting at $9 (N.Y. DAILY NEWS, 12/3). Meanwhile, the DAILY NEWS' Soraya Roberts reports TMZ has obtained a contract that AshleyMadison.com, a dating service for adults currently in relationships, "sent to Woods offering him $5[M] for 'advertisement endorsement, sale and promotion' of their site" (NYDAILYNEWS.com, 12/3).

LATE NIGHT LAUGHS: Woods' situation predictably is drawing the attention of late-night talk show hosts. NBC's Conan O'Brien said, "More women are coming forward to say that they've had an affair with Tiger Woods. That's the latest. One of the women who claims she slept with Tiger Woods said that they never talked about golf during sex. However, contractually Tiger was obligated to talk about Nike, Gatorade and American Express" ("The Tonight Show," NBC, 12/2). NBC's Jay Leno: "These allegations have shocked people because Tiger Woods' wife -- have you ever seen her? She's a beautiful swimsuit model from Sweden. She's beautiful. If you've seen her, she's what guys call a '19.' Do you know what that is, a '19?' That's a woman who's a 10 with a nine-iron" ("The Jay Leno Show," NBC, 12/2).