Who Will Dump Tiger Woods? List of Endorsements, Lost and Kept
As the notoriety of Tiger Woods family saga intensifies, some brands that Woods endorsed in the past are starting to reconsider their endorsement deals with the golf star. This has many people wondering - who will dump Tiger Woods next? Initially, Tiger Woods's sponsors have stated they would stand by him. Back in the end of November, days after Woods's car accident, marketing experts insisted Woods would not loose out on his multi-million contracts with his endorsers. But, is the situation about to change?
So far, only Gatorade (PepsiCo) has dropped Woods's endorsement deal entirely, saying that the end of partnership has nothing to do with the recent sex scandal and was planned well before. The deal with Gatorade was worth $1 million.
Today, Tag Heuer, a Swiss luxury watchmaker, has announced it will pull Tiger Woods ads from its stores in Australia. The sponsorship of Woods by Heuer is still intact, according to the company. Woods's deal with Heuer is reported to be worth $5 million. Heuer has collaborated with Woods in the past to create the world's first professional golf watch. Heuer also insists the timing of the drop of Wood's ads has nothing to do with the scandal around Woods's family, and is just part of its annual ad campaign change. Tag Heuer representatives say "golf focus" is no longer pertinent now that the major golf tournaments have ended for the year.
There are also reports that ads featuring Woods are simply vanishing off air in the United States. Commercials featuring Woods have not appeared in prime time since just a couple of days after his car accident on November 27. Is this an indication that endorsers are starting to have double thoughts now that they are losing money from not being able to show ads featuring Tiger Woods?
Woods earns over $100 million dollars a year from his endorsement deals. It is estimated nearly 90% of his income comes from endorsements. But, what brand will be the next to dump Woods, reducing Woods's value as the highest-paid professional athlete? Here are the sponsors that Woods has deals with by dollar value:
--Nike: a $30-million deal
--Accenture: a $20-million deal
--Gillette: a $15-million deal
--Electronic Arts : an $8-million deal
Judging by the sheer numbers, it seems the companies that have less investment in Woods are more likely to dump him. Nike has the most money invested in Woods, so dumping Woods would be the hardest for them. So far, Gatorade, the only company that ended the endorsement deal officially, had the smallest contract with Woods -- $1 million. Tag Heuer that has pulled the ads with Woods and will likely end the endorsement deal all together is only risking five times as much as Gatorade. By this logic, the $8-million deal with Electronic Arts and the $15-million deal with Gillette might be the next ones to go. Although, the overall marketing budget and brand reputation of each company are also an important factor - such, it might be easier for Nike to dump Woods now than deal with the lost value from the associations people are likely to make between their brand and Woods. For one, General Motors must sure be happy that it ended contract with Woods in November of 2008. But, there are allegations that although endorsements are usually a sealed deal, advertisers can actually leverage the scandal to press Woods to return money or hire him for less later on.
But, perhaps any sort of reaction from Woods would alleviate the concerns of his endorsers and save him millions in deals - yet Woods is keeping his mouth shut for now.