Tiger Woods’ sponsors are standing behind him, but the New York Times wondered what may be ahead for Woods.
This from a story written by Larry Dorman and Stuart Elliott:
Large corporations play hardball, and as Phil de Picciotto, president of Athletes & Personalities at the marketing firm Octagon, sees it, recent events have made hardball much more of a possibility in future negotiations with Woods.
“Companies may use this opportunity as an excuse to try to renegotiate compensation, given their outside budget pressures due to the economy,” de Picciotto said. “Or they may take the tack that, ‘We stood by Tiger, we had to suspend some advertising, and therefore there’s some diminished value and we’d like a reduction in price or an extension.’
“Somebody might come in and say, ‘We won’t terminate Tiger, but we want a sizable reduction because we’ve protected Tiger and his image — we protected you when he most needed it— and we want a reduction in payments or more years.’ They would need a legal hook to grab onto.” If there is such a hook, “IMG. would have to give it to them,” he said, referring to Woods’s management group.
Ray Katz, president of sports properties and media at the sports- and entertainment-marketing firm Leverage Agency, told MarketWatch he is 'not surprised' so many sponsors are sticking with Woods.
'Frankly, he had a marital dispute,' Katz told the Web site. “Why should he lose sponsors? I am sure many of them have their own [similar] issues in today's complex society.'
About contract renewals or future deals for Woods, Katz said there may be a “little” effect.
'Time will tell, but the only question is how much more he will be worth than the next guy, unless a whole pile of new stuff comes out,' Katz said.