While several sponsors have dropped Tiger Woods as spokesman, and others may be on the brink, Nike has steadfastly stood by the golfer. A just-released study by Carnegie Mellon University shows was a good financial decision based on an analysis of golf ball sales. The study acknowledged that Nike, and the entire golf industry, saw revenues decline as a result of Tiger’s off-course scandal. While Nike’s golf ball revenue declined by $1.3 million, it could have been worse according to the study:
We conclude that Nike’s decision to stand by Tiger Woods was the right decision because evenin the midst of the scandal, the overall profit was greater by $1.6 million for Nike with Tiger Woods than without him.
While the study was limited to golf balls only it seems likely the same effect carried over to other Tiger-endorsed products. The study certainly presents food for thought to Tiger’s former sponsors and any company considering whether or not to stick with a scandal-impacted celebrity.
You can read the full study here.
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