Woods’ sponsors standing behind him — for now

Published 8:46 am Thursday, December 3, 2009

Longtime sponsors are sticking with Tiger Woods — for now.

But the world’s most famous athlete, who offered a “profound apology” Wednesday following allegations of infidelity, might find new deals hard to come by, marketing experts say, and the loyalty of existing sponsors could be tested by any additional tawdry stories or his reluctance to address the issue publicly.

“Unfortunately for Tiger, the situation is not over,” said Bob Williams, CEO of Burns Entertainment and Sports Marketing, which represents companies looking to hire celebrities to sell their brands.

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“The linchpin will be when he addresses the public for the first time,” Williams said, adding that will help companies determine how they feel about him.

Woods’ apology came in a statement on his Web site, after a cover story in Us Weekly magazine reported that a Los Angeles cocktail waitress claimed to have had a 31-month affair with the world’s No. 1 golfer. The magazine also published what it said was a voice mail — provided by the waitress, Jaimee Grubbs — that Woods left on her phone on Nov. 24, three days before his middle-of-the-night car crash outside his Florida home.

Woods did not offer details of any alleged relationships but said he had “not been true to my values and the behavior my family deserves.”

Forbes estimated earlier this year that Woods was the first athlete to surpass $1 billion in career earnings, more than 80 percent of that coming from endorsements with companies such as Nike, Gillette, Gatorade and AT&T. Those are all long-term relationships, Octagon First Call’s David Schwab said, partners not likely to dump him at the first rough patch.

Nike, Gatorade and EA Sports all released statements Wednesday expressing their support or commitment to Woods, and Gillette said it had no plans to change its marketing programs. AT&T declined comment.

“These are people who are invested with him in his foundation, his golf courses, across the board. So they’re part of his family, too,” said Schwab, who also links companies and celebrities for branding opportunities.

In fact, cutting ties with Woods now could actually hurt a company, Schwab said.

“Brands look at how impactful a spokesperson can be for their for brand but also what the public outcry or public opinion would be,” he said. “If a brand drops him, there could potentially be negativity toward the brand for doing so.