Friday, December 11, 2009

Tiger Woods and the financial reality

By Jonathan Tse

Recent news relating to Tiger Woods' has shocked everyone with his reputation shattered after numerous news stories reveal scandal after scandal. Tiger Woods is arguably the best golf player in the world and also a great marketing icon to companies like Gatorade and Nike. These companies have invested heavily on him and if he leaves the golf world, much revenue will be lost from these companies who draw on his reputation for high sales. Once news of these scandals came out, companies began to reduce their Tiger Woods-related ads in an effort to reduce the effect that he would have on their reputation and sales. Also, the golf world will suffer from this as well, since many golf fans are interested in golf because of Woods. Without Woods, the golf world will still survive and move on, but it definitely will not be as popular as it used to. In the financial perspective of Woods himself, this would severely hurt his reputation and his wealth. Most of his earnings come from corporate sponsorships, so without them his earnings will be severely cut. The most effective thing that he can do to preserve his reputation and his salary is to apologize to the public and admit his wrongdoings. Sadly, he has waited much too long and his reputation is now tarnished by the media. This has ultimately forced him to declare in his website on Friday that he has decided to an “indefinite break from golf.” Now all fears have become a reality. Things will go on, but the future of the golf world and everyone linked to it will be greatly impacted by this decision.

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