Nike will "continue endorsing Tiger Woods following the golfer’s DUI arrest" early Monday morning, according to Gleeson & DeMeglio of USA TODAY. A Nike spokesperson said that there will be "no change" in the company's relationship with Woods. Nike, which signed Woods in '96 when he turned pro, had previously backed the 14-time major winner following his '09 sex scandal, while other sponsors dropped him. Woods signed a new endorsement deal in '13 with Nike, but "much has changed since then," including the company getting out of the equipment business last year. Nike’s stock "reportedly dropped" 19% in '16 (USATODAY.com, 5/30). N.Y.-based Reputation Doctor President Mike Paul, a specialist in crisis PR, said that Nike is "unlikely to act for now, at least without evidence of further misdeeds." He added that Nike has "invested heavily in tying Tiger to its golf brand." Paul: "There’s too much money for Nike to make" (PALM BEACH POST, 5/31). YAHOO FINANCE's Daniel Roberts noted Nike has a "history of standing by its athletes despite scandal." It re-signed former NFLer Michael Vick four years after his arrest for "running a dog-fighting ring, after he had rehabilitated his image." Nike also temporarily suspended tennis player Maria Sharapova after she "admitted to taking a banned substance, then reinstated her three months later." Forbes has estimated Woods still earns $45M per year in endorsements, but that is "likely a highly inflated figure considering his list of sponsors." Sources said that Nike "pays Woods" nearly $10M per year. His "largest pact" is with Nike, but the others are "mostly small" (FINANCE.YAHOO.com, 5/30).
OTHER SPONSORS QUIET FOR NOW: CNN MONEY's Ahiza Garcia noted Rolex, Monster and Bridgestone have "declined to comment" on the status of their relationships with Woods. Other sponsors did not respond to requests for comment (MONEY.CNN.com, 5/30). CNBC's Melissa Lee asked, “Why is Madison Avenue still standing by him and why are so many sports fans hoping upon hope he can make a comeback?” FCB Worldwide CEO Carter Murray said, "A lot of these brands sponsor him because he’s a winner, and he’s no longer winning. They also sponsor him because he’s an icon. I think the challenge he has right now is that he’s not winning and he’s not giving himself enough space to be an icon” ("Power Lunch," CNBC, 5/30). The Dallas Morning News' Tim Cowlishaw said Woods is "going to have to convince people -- mainly all the people who endorse him and that still sponsor him where he makes all his money -- that this was a once-in-a-lifetime event that hasn’t happened before and won’t happen again” ("Around The Horn," ESPN, 5/30). But ESPN's Jason Sobel said Woods is in a "good place right now with sponsorships just because he's not playing golf" at the moment. Sobel: "He’s not as visible. They can wait until the entire story unfolds and then make a decision afterwards” ("Nightline," ABC, 5/31).
OUT IN FRONT OF THE STORY: GOLFCHANNEL.com's Rex Hoggard wrote Woods with the statement he issued Monday night seemed to "break from his normal game plan of reclusive silence and embrace the strangest of concepts -- the truth." In a "complete break from the norm it appears he has owned" his arrest with "no excuses, no qualifiers, no subterfuge." As the '09 sex scandal kept growing, Woods "remained in seclusion." The "juxtaposition between Woods’ actions in '09 compared with this week is stark" (GOLFCHANNEL.com, 5/30).
