Wednesday 2 December 2009

How will sponsors react to Tarnished Tiger?


Tiger Woods is the wealthiest sportsman in the world, not simply because of his golfing talent but because of the big businesses that pay him to advertise their products. With sponsors such as Nike (they signed their first contract with him in 1996), Gatorade and Gillette, Woods has made more money off the green than on it. Last year he earned $23 million from golf tournaments - he made $100 million sponsorship deals.

However, allegations surrounding his private life since he crashed his car last week have tarnished his previously perfect image and his future earnings will depend on how the sponsors react. Nike and Gatorade seem to have offered Woods their full support but Gillette have not committed themselves to what they may do in future. Other major sponsors such as Tag Heuer, although continuing to use Woods in advertising campaigns, have been "unavailable for comment" when asked to discuss the situation.

Woods has become the first athlete in history to earn $1 billion in a sporting career and his success (and attraction to sponsors) in being a black player in a black player in a traditionally white sport has raised the profile of golf greatly.

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