I think Tiger Woods story of committing adultery on his wife was the biggest sports business story of the decade. It was a shock to millions of supporters, fans, family and media across the world when allegations of mega sport star Tiger Woods was cheating on his wife with multiple sex affairs. Due, to this high profile scandal Tiger Woods lost much respect from his fans, media and lost his wife, but on a financial scale he lost 22 million dollars worth of endorsement funds in year 2009. As one of the highest earning American athletes according to sports illustrated annual "Ranking 50" in 2009 Tiger Woods was making $92 million dollars in endorsements and in 2010 he was making $70 million. That is a 22 million dollar declination of endorsements in Tiger Woods financial lifestyle.
Some of the endorsements that backed out on Tiger Woods was AT&T, Accenture, Tag Heuer, Gillette, Gatorade, Electronic Arts, and Upper Deck. However, NIKE remained faithful as a sponsor of Tiger Woods as they saw his downfalls as something that will soon pass and Tiger will be back at sports greater than ever. Nike has been sponsoring Tiger Woods since 1996 and pays him 30 million dollars a year. Tiger Woods loosing endorsements also had an effect on his management company IMG. Tiger Woods lost of his endorsements cost his management 4.6 million dollars in fees. His sex scandal also cost him the following:
$180 million in personal earnings
$110 million in advertising income
$23 million in tournament prize winning
$30 million in fees of 3 golf courses
$17 million in appearances fees
$591 million in industry losses
$96 million of the woods brand EA sports Golf video games
$40 million in lost PGA tour ticket sales
As a multimillionaire this sex scandal in 2009 cost Tiger Woods alot of financial damage and lost of fans and a divorce from his wife. I believe this was the biggest business sport story in the decade because of the amount of Tiger Woods losses and although I'm not a huge Golf fan I knew all about the allegations set on Tiger because of the media. This case against Tiger was very high profile and it was scene and heard daily in 2009 when it first hit the tabloids.
Posted By Sparkle Callahan
Resource Links:
http://www.businessinsider.com/tiger-woods-lost-22-million-in-2010-endorsements-2010-7
http://www.usatoday.com/money/media/2010-06-20-endorsements-tiger_N.htm
CNBC Video Link:
http://video.cnbc.com/gallery/?video=1368367744
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