To drop him or not to drop him? That is the question sponsors like Nike are facing in the ongoing drama of the Tiger Woods scandal.
I was disappointed to hear about Tiger Woods’ transgressions. His behavior didn’t match with my image of him, of what I had come to expect from him.
And without a doubt, I’m not the only one who feels let down! Tiger has disappointed hundreds of thousands of fans, supporter and partners. He’s promised to redeem himself, but certainly those efforts will take time.
Accenture has chosen to drop Tiger.
Nike, seemingly, is preparing to stand by him. Indeed, the chairman and co-founder of Nike, Phil Knight, claims Tiger’s infidelity won’t irreparably harm the golfer’s career. He says the scandal surrounding Tiger will ultimately be seen as “a minor blip” in his storied career.
I think Peter Himler’s comments provide insight into why Accenture and Nike have taken different paths. In essence, Accenture was far too wrapped up in Tiger. He was their one guy. Nike, on the other hand, has a whole stable of athletes tied to their brand. They can afford, Himler says, to take a wait-and-see approach.
At the same time, Nike golf = Tiger! Nike’s built their golf franchise around him and through him. So no doubt the franchise has a lot riding on how this story develops from where we are today.
What do you think? Should Nike drop Tiger or wait and see if the Tiger brand can withstand and recover from its self-inflicted tarnishing?
They may scale down the Tiger campaign to appease the mass public but overall, NO, because secretly, deep down, most men are saying to themselves…atta boy Tiger. Nike knows this.
No they shouldn’t. This too shall pass despite his poor handling of the situation and the fact that he is not very good on TV. He didn’t commit any crimes and if people like Kobe Bryant & Martha Stewart made their way back from endorsement hell, he will too…
According to FOX News, Nike sales of Tiger Woods licensed golf products were at almost $500 million last year. Nike had no golf products before Tiger, so he is not going to get the boot from Nike so long as Phil Knight is around and especially after he went on the record throwing his support behind Tiger.
Like it or not, Tiger’s extra-marital affairs have nothing to do with his accomplishments on the golf course. The strategic brand and celebrity endorsement partnership they have makes sense of every level and the relationship will endure long after this is all forgotten.
The Tiger Woods, Nike Golf licensed product line will resonate long after he stops playing golf, not unlike Nike’s Air Jordan line, which continues to be a cash cow despite Michael Jordan’s departure from playing in the NBA. Count on it…
Some good points, Joel. Thanks for sharing them.
Thanks for chiming in, anon. I guess the tough part for Nike is that it’s not an easy matter to scale down when Tiger essentially equates to Nike golf. The one difference between Nike and Accenture, as Himler points out, is that Nike is a lot bigger than golf… Still, if you were leading up the golf franchise for Nike, you’d no doubt be wondering how to make it through this storm.
My view is that no one player is bigger than the game… and this goes for all sports. Nike could walk away on good terms with Woods and still maintain a successful golf business.
Favorability ratings of Tiger have slid dramatically, though I do think your comment has something to it. I don’t know if it’s “atta boy, Tiger”… but I do hear many defend Tiger’s golf prowess, performance and place in history. They seem willing to overlook the transgressions in his private life.
I don’t think you have a valued brand without respect. Tiger may have lost the respect of many for his conduct off the greens and fairways… but he still commands respect for his performance.
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Nike’s largest single target market is the “urban culture.” There it’s all about bros’ scoring with hos’ and THAT is why Nike will keep Tiger.
David, enjoyed your thoughts on this. Interestingly, this morning’s Wall Street Journal noted that Accenture relied on Tiger’s presence in 83% of its ads. Nike, 4%. Too, consider the difference in what those two companies sell: Accenture’s (services) use of Tiger was to support their brand; Nike, to move product as well as associate with the premier golf athlete.
Apparently, members of the AP who voted Tiger “Athlete of the Decade” agree with Nike.
Thanks for your blog and insights!
Susan, I was happy to see your comment! And I’m glad to have you stop by the blog. Happy holidays!
I hadn’t seen this breakdown of the Accenture ads, but certainly wasn’t surprised.
One wonders what Accenture will do next, post-Tiger. I’d say they will think long and hard before putting all their eggs in one basket as they did with Tiger!
Accenture’s next move will be of interest.
As for Nike, Joel is certainly right. With Phil Knight on record in support of Tiger, the association is highly likely to continue.
I dont think Nike should drop Tiger. Yes, the campaign might be less than what it was earlier, but it’s his personal life.
Excuse me I was , do you mind giving me the place where you found layout from?