Wednesday, January 20, 2010

According to The New York Times, AT&T did not have to pay when it
dropped scandal-plagued Tiger Woods last month. The reason: Woods's
agents at IMG decided it was better to let AT&T end the
relationship without penalty than to force a confrontation over payment
that could end up in the courts. “This was very clearly a decision by IMG to allow these sponsors to
leave the fold,” said a person familiar with IMG’s decision making who
was not authorized to speak publicly on the matter. “IMG is very
sponsor friendly so it’s mutually beneficial when something like this
happens for a sponsor to opt out. They had the right to say: ‘This is
an extraordinary event. We don’t want this relationship.’ ”
AT&T and Accenture dropped Woods as a spokesman after he admitted to cheating on his wife. Other sponsors Tag Heuer and Gilette have reduced Woods's role in their marketing efforts, while Nike and EA Sports (makers of the Tiger Woods PGA Tour video game) reaffirmed their support of Woods.

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