Study Shows Nike Made The Right Call Keeping Tiger


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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