Since Tiger Woods admitted having extramarital affairs, major sponsors like Accenture, AT&T and Gatorade have decided that the
world's No. 1 golfer was no longer the appropriate pitchman for their products.
However, the company that most associates itself with Woods,
Nike, released three statements supporting the embattled golfer
If you thought that loyalty might hurt Nike, think again. The company reported Wednesday evening that its
third-quarter revenues were up 7% and that it earned $4.73 billion of revenue.
Nike doesn't break out the performance of
the Nike Golf division on its balance sheet. Instead it is included in "Other
Businesses," which includes Nike Golf, Cole Haan, Converse Inc., Hurley
International LLC, and Umbro Ltd. That group's performance increased 13% to
$656 million for the quarter. TheStreet.com also reported today on a study that showed little change in Nike Golf sales despite the scandal:
Believe or not, Tiger Woods' hiatus from professional golf did little to dent corporate sponsor Nike's(NKE) golf product sales, and may not make much difference on those figures when he returns to golf, according to a recent study.Related: Follow David Dusek on Twitter See-Try-Buy: Nike clubs and GolfTEC custom fitting
The study, performed by SportsScanInfo, seems to indicate a disconnect between what shareholders of Tiger's corporate sponsors experienced after his fall from grace -- that is, a Tiger-induced shareholder value reduction in sponsor companies by 2.3%, or up to $12 billion, that was noted by a UC Davis study -- and what corporate sponsors like Nike actually experienced.
In fact, sales of Nike golf products were little changed in the 13 weeks between Tiger's car accident outside his Orlando, Florida home shortly after Thanksgiving Day and his televised public apology, when he revealed to the world that he had been cheating on his wife, according to SportsScanInfo data cited by Bloomberg.