In my opinion the Tiger Woods sex scandal is the biggest sports business story of the decade. Even though Tiger Woods took a huge hit on his personal image, it didn’t affect his ability to still sell product for his biggest endorsement deal Nike. What I don’t understand is why was America surprised at the fact that a famous figure was having extra marital affairs. This has been going on before Tiger Woods and trusts me it will be going on until the end of time. Let’s be honest we live in a country where we had our President involved in the same thing Tiger was involved with and people still love Bill Clinton. I think the reason it was such a big deal is because people didn’t look as Tiger as being human being. If he weren’t held at such a high stature then it would have been okay. There are certain people in the world we live in that are expected to be perfect and there is no such thing is a “perfect person”. This way of thinking is not fair.
The Tiger Woods scandal generated enormous amounts of profit for media outlets and other businesses that were looking to benefit from the events. It is sad that the only person that didn’t benefit from the scandal was the person who was the reason for it all Tiger Woods himself. Or did he benefit? Maybe he didn’t want to be married in the first place and just didn’t know how to get out of his marriage? We will never know looking from the outside in. One thing we will know though is a man lost his family and huge amounts of money, and at the same time helped the sports business world generate profits from his mistakes. Just think about all of the small business people that created novelties of the saga and made money! There has not been a more publicized sports story in the last decade to generate buzz like the Tiger scandal.
Nike has maintained profits all through the Tiger scandal. The only aspect of the company that seen a decrease in sales was the golf ball sector and they released a statement saying they would have lost more money if they had decided to cut ties with Woods. Therefore Nike still came out on top. “Although several major sponsors cut ties with Tiger Woods — Nike did not," said Timothy Derdenger, as assistant professor that helped conduct the study. "So we examined the net effect on Nike's sales and market share. What we found is that by maintaining their relationship with Tiger Woods, Nike's overall profit in golf ball sales was $1.6 million greater than it would have been without him."
I want to leave you with this thought. Imagine if Tiger Woods would have walked away from the sport he loved. He could have single handedly destroyed a whole professional sport from a business aspect and at the same time ended the Nike golf department. Therefore I feel a lot people involved in the sports industry should thank Tiger for not turning his back on golf.
I want to leave you with this thought. Imagine if Tiger Woods would have walked away from the sport he loved. He could have single handedly destroyed a whole professional sport from a business aspect and at the same time ended the Nike golf department. Therefore I feel a lot people involved in the sports industry should thank Tiger for not turning his back on golf.
Read more: http://www.businessinsider.com/tigers-nike-endorsement-proved-profitable-2010-12#ixzz1IWJEu4JY
