Tiger On Hiatus: Tag Softens Stance, AT&T Evaluating Situation

AT&T Is Distancing Itself From Woods

Tiger Woods "may still ride out the current storm with much of his $100[M]-a-year endorsement empire intact," but his corporate sponsors "have reacted with surprising speed" to Woods' decision to take an indefinite break from professional golf, according to Michael McCarthy of USA TODAY. Some "family-friendly sponsors" such as Gillette, Gatorade and AT&T "are distancing themselves" from Woods amid the break and reports of multiple extramarital marital affairs. But Woods "has his supporters, too" -- Nike, EA Sports and NetJets "have stood by their man." Accenture on Sunday became the first company to drop Woods as an endorser, ending a six-year relationship (USA TODAY, 12/15). The London TELEGRAPH reports Tag Heuer "has appeared to backtrack on an apparent pledge to stick by" Woods, raising the possibility that it "could be next in line to cut ties." The company yesterday said that it would "continue to back Woods," but Tag Heuer VP/Communications Francoise Bezzola later stressed that "no official decision has been made, adding that it was still 'considering' whether to drop or continue its seven-year association with Woods." Bezzola: "We are not announcing that we will keep Tiger and we are not announcing we will drop Tiger Woods. We are still considering it and we haven't taken a decision yet" (London TELEGRAPH, 12/15).

PUTTING THE CALL ON HOLD: In DC, Barker Davis reports AT&T yesterday in a statement said that it is "presently evaluating" its partnership with Woods and the PGA Tour AT&T National, which benefits the Tiger Woods Foundation. Tournament Dir Greg McLaughlin "remains confident the event will move forward as planned" (WASHINGTON TIMES, 12/15). Meanwhile, NBC's Conan O'Brien joked, "AT&T announced they are thinking about dropping Tiger Woods as their spokesperson, which seems unfair because AT&T has made millions off of Tiger just from his text messages." He added EA Sports "says that despite the scandal, they're going to stick with Tiger." O'Brien: "The videogame company says we don't need to worry about offending women because none of our customers know any" ("The Tonight Show," NBC, 12/14).

SHIFTING FOCUS: Gillette Saturday "became the first major sponsor to limit ads featuring" Woods, and the company yesterday said that viewers will see athletes like Falcons QB Matt Ryan "more often in ads." Gillette said that it "will continue to air 'Fusion MVP' razor ads that have featured Ryan since September." While the company "will no longer run sports that exclusively feature Woods," Gillette said that it "will continue its 'Champions' campaign" featuring Woods, tennis player Roger Federer, France national soccer team F Thierry Henry and Yankees SS Derek Jeter (BOSTON GLOBE, 12/15).

Manager Says Public And Consumers Judge Athletes On Performance, Not Morals

THE SWOOSH MENTALITY: Nike has come out in full support of Woods, and Vada Manager, who worked with Nike from '97-'09 before launching his Manager Global Consulting Group, said Nike's "first predisposition is to stay with the athlete unless the athlete makes it very difficult or otherwise not to stay them." Manager: "The public and consumers have long since stopped judging athletes and political figures on moral grounds. The view has become a little more elastic these days and really looking at performance." Manager said if Woods’ break from competitive golf “erodes or dilutes his performance on the course, then I think we'll be having another discussion about this five or six months from now" ("Power Lunch," CNBC, 12/14). Fox Business’ Chris Cotter said Woods is “like a son to Phil Knight. Phil Knight will not cut him out. If all the others do, Phil Knight never will." Cotter later added Knight "doesn't care about image. He cares about his guy, Tiger" (Fox Business, 12/14). Author John Feinstein: “Phil Knight is already thinking of the next commercial. His next line of clubs will be called 'Redeemers'" (“Washington Post Live,” Comcast SportsNet Mid-Atlantic, 12/14).

COMPANIES DROPPING TIGER TOO SOON? In L.A., Tom Hoffarth writes under the header, "Dropping Woods Just Doesn't Ad Up." Hoffarth: "How can we be sure the heads of Accenture or anyone else trying to use Tiger as its spotlight never put themselves in a stupid personal situation based on the inability to handle money, power and fame?" The "mixed message" Accenture is sending now "seems to be simple." Hoffarth: "Cut your losses, ASAP." But "maybe the lesson it should be reinforcing is not to pass judgment on anyone if you haven't walked in their Nikes" (L.A. DAILY NEWS, 12/15). FanHouse.com's Kevin Blackistone said he is "surprised that sponsors have gotten off of (Woods) so quickly." Blackistone: "This isn't a deal like Kobe Bryant where you're talking about a criminal case." But Dallas Morning News columnist Tim Cowlishaw said losing some sponsorships -- "at least temporarily -- is good for him." Cowlishaw: "You walk through airports ... and see all these pictures of Tiger Woods, it just becomes the butt of jokes" ("Around The Horn," ESPN, 12/14).

Writer Says Sponsors' Pulling Of Tiger Ads Is Predictable

SCANDAL CYCLE: BLOOMBERG BUSINESSWEEK's Burt Helm writes the "celebrity endorser scandal plays out predictably," as when the "tabloid coverage is at its most feverish, sponsors 'go dark,' pulling ads off the airwaves." But "after a few weeks, the public gets bored." The obsession with Woods "may return when he gets back to the links -- and could spike TV ratings for tournaments he plays in." But by then, non-golf fans "will have tuned into the next scandal." Still, Woods' reputation, "like that of other celebrities, will never completely recover" (BLOOMBERG BUSINESSWEEK, 12/21 issue). In Illinois, Tim Cronin writes, "As falls from grace go, Woods' is steep and may not have concluded. Among skunks from recent generations, Woods earns a place alongside O.J. Simpson ... and Pete Rose" (SOUTHTOWN STAR, 12/15). In Nashville, David Climer: "We are fascinated with Tiger Woods. And just because his favorable rating has plummeted, that doesn't mean we are no longer interested in all things Tiger. To the contrary. After everything that has happened, we are even more interested" (TENNESSEAN.com, 12/14).

IMPACT ON OVERALL SPONSORSHIP MARKET: Marketing experts said that the "lurid, unrelenting media coverage" of Woods will "hurt the multi-billion dollar sponsorship market as companies shy away from individuals whose behavior they may feel they cannot control." SportsCorp President Marc Ganis: "There was no athlete who was viewed as safer than Tiger a month ago. This is going to have an impact." Horrow Sports Ventures CEO Rick Horrow: "The $12[B] a year endorsement and spokesman industry may take a direct hit." Horrow added that "past cases with athletes charged in high-profile scandals had already led companies toward shorter deals that were easier to terminate" (REUTERS, 12/14). Vorhaus Communications CEO Robbie Vorhaus said companies will be less inclined to have only one main spokesperson for their company and instead, "you're going to see a diversified portfolio of spokespeople" ("Power Lunch," CNBC, 12/14). The AP's Emily Fredrix writes Woods' "hasty and stunning downfall shows how quickly things can sour when a superstar athlete's life choices are exposed in a negative light by today's real-time tabloid news culture." Ries & Ries President Laura Ries said companies "want a safe choice and it seems like there's almost no safe choice out there." Univ. of North Carolina Sports Communication Program Dir John Sweeney: "There has to be trust and he's just taken a grenade to any kind of traditional agreement that you'd normally have" (AP, 12/15).

FOREVER IS A LONG TIME: Indiana Univ. School of Law-Indianapolis professor Gary Roberts wrote it is "nonsense" that Woods' brand is forever tarnished. Roberts: "There is a lot of evidence that the American public is very forgiving and that someone who has a fall from grace, redeems himself, and comes back as strong or stronger than before will actually enhance his brand value. Tiger's brand was fabulous, but he seemed perfect, almost inhuman and unapproachable before. If he can redeem himself, people will be able more to identify with him. My guess is that three or four years from now, if he can come back, again be the world's greatest golfer, and win some more grand slams, he will rake in far more in endorsements than he has up until now." SportsBusinessDigest.com's Emmett Brown: "Irreparably damaged? Far from it. Kobe Bryant was accused of rape...has anyone seen the cover of the most recent basketball video game? Or looked at the NBA's most popular jersey? ... If he takes some time off, and comes back and performs well? He won't have any trouble restoring his image. It just won't be instantaneous" (THE DAILY).

TAINTED CONNECTION? In N.Y., Natta Jr., Schmidt & Austen in a front-page piece report the FBI is investigating Dr. Anthony Galea, who has treated Woods, along with "many NFL players as well as Olympic medalists like Donovan Bailey." Galea was arrested on October 15 by Canadian police after HGH and Actovegin, a "drug extracted from calf's blood, were found in his medical bag at the United States-Canada border in late September." Using, selling or importing Actovegin is illegal in the U.S. News of Galea's arrest "shocked many in the sports world, especially those who refer to him as 'Miracle Man.'" When asked for comment about Woods' involvement with Galea, IMG Global Managing Dir of Golf Mark Steinberg, who reps Woods, said in an e-mail, "I would really ask that you guys don't write this? If Tiger is NOT implicated, and won't be, let's please give the kid a break" (N.Y. TIMES, 12/15). Steinberg today said in a statement, "The New York Times is flat wrong, no one at IMG has ever met or recommended Dr. Galea, nor were we worried about the progress of Tiger's recovery, as the Times falsely reported. The treatment Tiger received is a widely accepted therapy and to suggest some connection with illegality is recklessly irresponsible. Apparently the Times, like so many other news outlets on the Tiger Woods story, has abandoned principle." But the Times' Michael Schmidt said, "The stuff about IMG and in regards to how they got Woods connected with this doctor is all from the doctor himself and it's all on the record" ("SportsCenter," ESPN, 12/15).