Nike’s Big Investment

On the eve of his return to golf, Nike premiered a new Tiger Woods ad. (Image via CNBC.com)

As I previously mentioned, Nike was one of the few sponsors to stick with Tiger Woods through his PR disaster.  While Accenture, Gatorade, and AT&T abandoned Woods, Nike and EA Games loyalty remained by Woods’ side.

And on the eve of Tiger Wood’s return to golf, Nike took their loyalty to a whole new level.

The sports apparel company aired a 30-second commercial tonight on ESPN and the Golf Channel.  It  featured a close-up of Woods, decked in Nike gear, listening to questions from his late father, Earl.

“Tiger, I am more prone to being inquisitive, to promote discussion,” Earl says in the spot. “I want to find out what your thinking was. I want to find out what your feelings are. And did you learn anything?”

As Dr. Walter Guarino, strategic communication professor at Seton Hall University and president of SGW Advertising Agency, told CNBC’s Darren Rovell, “Nike is really going to bat for Tiger and truly protecting their long time investment in him.”

It’s definitely a risk, but if Woods does well in the Masters tomorrow, this faithfulness will likely translate to huge revenues.

Fans are ready for Woods’ return.  According to an ESPN SportsNation poll, 52% of voters hope to see Woods win the Masters.  And while ESPN.com visitors do not reflect the entire population, they do reflect Woods’ — and Nike’s — core audience.  Fans who appreciate Tiger for his golf skills (and not his celebrity) are the ones buying Tiger’s Nike gear.

While the content of Nike’s new Tiger Woods ad is debatable, the fact that the company once again forcefully aligned itself with Woods was a smart move.  Nike has already built an $800 million business on his back, and stuck with him through his transgressions, so they might as well get in on what could be the greatest comeback in sports history.

What did you think of the ad? Watch it here:

With The Exception of Tiger Woods, Sponsorships Remain A Good Business

Tiger Woods and his sponsors have had a rough few months, but as a whole, the sports sponsorship market did considerably well last year.

Gatorade dropped Woods, but overall sports sponsorships are strong (image via tigerwoodsaccident.com)

While Nike and EA Games have stood by Woods’ side throughout his drawn out ordeal, Gatorade, Accenture, and AT&T dropped their sponsorship deals with the number one golfer.

But according to The World Sponsorship Monitor Annual Review,  sports sponsorships remained relatively stable between 2008 and 2009, Sports Business reports.

The report states that athletic sponsorship deals are still the most popular, accounting for 88% of all endorsements.

Including McDonald’s recent deal with LeBron James,  sports sponsorships actually rose 15% in 2009 compared to 2008.

And despite the Woods fatalities, the number of dropped endorsements remained the same at 8%, according to Sports Business.

Taking into account the decline in advertising due to the recession, these numbers indicate a strong market that could surge in the next few years.

For athletes looking to supplement their athletic endeavors with extra income and for corporations seeking to build their brand to a broader base, this speaks well for the future.

Tiger Woods first Athlete to Earn $1 Billion

Woods became the first athlete to earn $1 billion after receiving a $10 million bonus for winning the 2009 FedEx Cup this weekend.

According to Forbes.com, the golf star has earned his record-breaking billion not only in prize money, but also in endorsements, appearance fees, and the creation of three courses under his golf course design business, Tiger Woods Design.  These courses, located in North Carolina, Dubai, and Mexico, are a source of $10 million each.

Though substantial, the income from his design pales in comparison to that of Woods’ endorsements.  Since stepping onto the golf scene more than 13 years ago, he has entered into more than a dozen sponsorship deals that have brought in tens of millions of dollars for both the athlete and his corporate partners.

Woods receives $30 million a year from Nike for being the face of their golf brand, which now earns more than $80 million annually.  The golf superstar is also in agreements with AT&T, Gatorade, EA Games, and Gillete -  to name a few.

Woods Leads Endorsement Pack (http://tinyurl.com/yhryq4k)

Since 2002 Woods has been the highest paid athlete in the world, passing six-figure income earners like retired basketball player Michael Jordan and German Formula One racer Michael Schumacher.  

The global star power and fandom of these two athletes shows the magnitude of Woods and his commercial prowess. 

“The most stunning part is that Woods is 33 years old – he might have 15 years of competitive golf left in him, and 30-plus years of designing courses.  This is only the first billion for Woods,” said Kurt Badenhausen in Sports’ First Billion-Dollar Man.