Scandal may put end to massive deals for all stars
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LEADING commercial brands including Nike and Adidas could cut their multi-million-dollar endorsement deals for sporting stars as a result of the Tiger Woods scandal, according to business analysts.
The adverse publicity from the golfer's serial infidelities has shown that investing vast sums in one individual could be "fraught with risk", Credit Suisse said.
In a report entitled "Tiger Woods fallout: another nail in the coffin of the expensive endorsement era", analyst Omar Saad wrote: "We believe the trend away from high-profile, multi-million-dollar celebrity and athlete endorsements has been growing for some time, and 'Tiger-gate' could be an inflection point. Athlete sponsorships can be fraught with risk and simply aren't as valuable as they once were." He expected the fallout to be a catalyst for Nike and Adidas "to realise they are systematically overpaying".
Phil Knight, the chairman of Nike, has pledged his support for Woods, calling his indiscretions a "minor blip".
However, Accenture has severed its links with the golfer, and Gillette is "evaluating" its relationship with him.
The meltdown in Woods' personal life has seen a dozen women come forward to claim they had affairs with him.
With the sport's biggest draw taking an "indefinite break" from the game, television audiences are expected to halve, which could lead television advertising to drop by 40pc. (© Daily Telegraph, London)
- Anita Singh
Irish Independent
