Sponsors Stand By Woods As He Looks To Revive Tarnished Brand

Marketing Experts Say Rebuilding Tiger Inc. Will Be Possible Only When He Returns To Course

Tiger Woods' apology Friday is the "first step toward healing the image of Tiger the man," but Tiger the pitchman "still has a long way to go to recover the corporate good will he has squandered," according to Sarah Skidmore of the AP. Marketing experts said that "rebuilding Tiger Inc. will be possible only when he returns to the golf course." They added that Woods' "strength as pitchman was tied to the perception of athleticism, power and integrity people once associated with him," but his value now "lies almost solely in his strength as a golfer." Global Consulting Group President & CEO Vada Manager, who worked for Nike from '97-'09, said of Woods, "Winning, good behavior and time can be his friends in the long term" (AP, 2/20).

STANDING BY THEIR MAN: In the wake of Woods' press session Friday, several of his remaining sponsors issued statements in support of the embattled golfer.

• Nike: "Tiger has apologized and made his position clear. Nike fully supports him and his family. We look forward to him returning to golf."
• EA Sports: "We're supportive of his focus toward family and rebuilding his life. He remains one of the greatest athletes in history, and as a long-standing partner, we look forward to seeing Tiger back on the golf course when the time is right for him and his family."
• Upper Deck said it "continues to stand by Tiger Woods and wishes him all the best on his road to recovery." The company noted its "exclusive autographed memorabilia contract with Tiger remains intact."
• Gillette: "Tiger spoke today and addressed the issues he felt were most important. His words stand on their own. We wish him and his family the best."

Nielsen Communications Dir Aaron Lewis indicated that "not a single one of his remaining sponsors has aired a prime-time TV commercial starring Woods since Nov. 29" (USATODAY.com, 2/20). Fox Business' Connell McShanes said, "The sponsors that have stood by him up until this point say they're going to keep doing the same thing" (Fox Business, 2/19).

GILLETTE STILL LIMITING MARKETING: In Boston, Johnny Diaz noted Gillette was the "first major sponsor to distance itself from Woods in December," and the company has said that it "will continue to limit Woods's role in its marketing." But Gillette "has not severed all ties and Woods remains part of Gillette's roster of pitchmen." Gillette Communications Dir Mike Norton: "We have not made any changes to our advertising plans" (BOSTON GLOBE, 2/20). Gillette spokesperson Damon Jones Friday said, "While Tiger's taking a break, we're going to continue to take a break" (BOSTON HERALD, 2/20).

CHECK, PLEASE? CNBC.com's Darren Rovell wrote, "Imagine how Nike executives really feel -- having launched a club line without him in late January and having planned and softly sold an entire year of apparel launches around what he'll wear in the majors." Rovell wondered if Nike would "reduce its payments to Woods until he comes back," but Manager said that that is "not likely going to happen." Manager: "When Nike says it's loyal to an athlete, it's at every level, including compensation. Remember, some of the contract has to do with royalties, so if product isn't moving, it will affect that, but I find it difficult to believe they'd reduce his base contract" (CNBC.com, 2/19). Univ. of Oregon Warsaw Sports Marketing Center Managing Dir Paul Swangard said of Nike's support for Woods, "That's all that matters -- they're a core brand that's stuck with him." Swangard added that Nike's decision "gives other advertisers cover to keep Woods as a spokesman" (REUTERS, 2/19). Ries & Ries President Laura Ries said of Woods: "I think he made a big impression on a lot of people, most importantly Nike, who I think is breathing a big sigh of relief" ("The Early Show," CBS, 2/20).

WINNING WORKS: Pilson Communications President Neal Pilson said if Woods is "contrite and apologetic, expresses regret and remorse," he can "build back a good part of the marketing, advertising, and sponsor deals he had in the past." Pilson: "If he stays clean and reconciles with his wife and family, he can get back to [75-80%] of his endorsements." One sports business firm head said, "Tiger's got to come back and win. The reason you sponsor him is he wins, not because of his winning persona." While Woods' stock is "clearly down," Strategic President Peter Stern "doesn't think there will be many sponsors trying to buy his endorsement on the cheap." Stern: "I would think brands today would be more conservative. There's a bit of wait and see. Winning is a big part of it, but given the publicity outside of winning, he'll have to live up to what he's saying" (FOXBUSINESS.com, 2/19). Some Boston-area media and sports analysts said that Woods is "not likely to win back sponsors right away." Harvard Business School professor Stephen Greyser: "He built his brand on performance on the golf course. The only chance he has to rebuild it will be on the golf course" (BOSTON GLOBE, 2/20). CBS' Nick Faldo: "Tiger needs to come back to golf now. He's built an empire. It's taken a hell of a walloping" ("Nightline," ABC, 2/19). ESPN's Tony Kornheiser: "He has to win as a golfer to be given the opportunity to regain that standing. … He's a golfer and he's also a corporation, which he acknowledged in much of the things that he said" (“PTI,” ESPN, 2/19).

Writers Agree Woods May Never Be Able To Revive His Endorsement Career

STRUGGLING TO REVIVE: Sports marketing execs said that Woods "might not be able to revive his endorsement career, which had topped $90[M] annually." Octagon First Call VP & Managing Dir David Schwab said Woods "may never fully recover." Schwab: "Brands that relate to moms and target women will never hire him." CBS' Faldo: "The question now is whether anyone will like him anymore" (WALL STREET JOURNAL, 2/20). Brand consultant Sally Hogshead indicated that while Woods' golf game "may recover," it "may take his brand a long time to do so -- if it ever does." Hogshead said Woods' brand was "founded upon prestige, mystique and an aura of elusive untouchability." But now "we all suddenly know more about his bottom-feeding behavior than we ever cared to" (NYTIMES.com, 2/19). In Boston, Dan Shaughnessy wrote Woods image "just took a huge hit, but we are forgiving people." Woods is "never going to be the same, but he can come back" (BOSTON GLOBE, 2/20). Comcast SportsNet's Ivan Carter said Friday's apology "was about getting his endorsements back." Clarke: "This is about he is an individual who is also a corporation and he is protecting his assets. … He is a corporate animal" ("Washington Post Live," Comcast SportsNet Mid-Atlantic, 2/19). But a BOSTON GLOBE editorial stated, "The companies that paid so handsomely to endorse Woods should think twice about returning to the fold. Nothing can detract from the skill of Woods' game, but it will take more than one competent PR move to restore his reputation as a role model" (BOSTON GLOBE, 2/20). In K.C., Jason Whitlock wrote corporations and their pitchmen "earn loyalty with slogans, jingles, commercials and, apparently, no-questions-asked press conferences." Woods "wants our faith, but he doesn't want to earn it," rather he "wants us to Just Do It." Woods' press event Friday "felt like a well-choreographed Nike campaign" (K.C. STAR, 2/20).

JUMPING BACK ON BOARD: Manager said that "some companies might want to decide whether Tiger could help them in the future and potentially discuss dropping him altogether before making the move to reduce his endorsement salary," though he "thinks that Tiger is going to win again and companies are going to want to be a part of that." Manager: "Because of the long career horizon, the better comparison here isn’t another athlete. It’s someone like Ted Kennedy, who had Chappaquiddick in his thirties as a senator, but recovered to become one of the most effective and revered senators in history" (CNBC.com, 2/19). Method Chief Engagement Officer Dean Crutchfield: "The appropriate sponsors are going to be bending over backwards to get a deal, it may be discounted, but they are going to be pushing backwards to get one. Some forward-thinking brand will take advantage of that. He's back in the game and will have sponsors lining up but it's not going to be Johnson's Baby Powder" (ADAGE.com, 2/19). Crutchfield added, "He's still a big brand and many big brands are going to want to be associated with that" ("Nightly Business Report," PBS, 2/19). Pilson said, "I don't think Tiger can ever recapture what he had, but he can be a viable representative down the road. There are lots of potential advertisers out there" (REUTERS, 2/19). In Providence, Jim Donaldson wrote, "For years, Woods has been the consummate corporate pitchman. He has sold video games and golf equipment, automobiles and apparel, investment advice, watches and energy drinks. Now he's trying to re-brand himself. To sell himself. You are the target audience. You are the consumer. He's not taking any questions yet, but the one he had to be asking now is: Are you buying?" (PROVIDENCE JOURNAL, 2/20).