(Tiger story updated with news of his spilt from Golf Digest)
NEW YORK (TheStreet) -- From humiliating himself and his sponsors -- and even denting their stock value -- to losing his marriage to the mother of his two children, Tiger Wood's path to self-destruction in 2010 startled the world.
Throughout 2010, TheStreet documented, in pictures, the year in the life of the golfing great -- a year that Tiger and his remaining sponsors are hoping that everyone will one day forget.
In early 2010, U.C Davis economics professors conducted a study that indicated that the
Tiger Woods scandal not only hurt the stock market value of his sponsors, but also that of his sponsors' celebrity-endorsement-heavy competitors.
"It appears that the scandal sent a negative market-wide signal about the reputation risk associated with celebrity endorsements," UC Davis economics professors Christopher Knittel and Victor Stango said in their report.
Knittel later told the
that as the Tiger scandal erupted, some consumers who used to buy from
Golf began buying from
Callaway Golf Company
also reported that several retailers had seen Tiger's Nike apparel line drop in sales along with his performance. Tiger won no tournaments in 2010 and at one point fell to 83rd place on the PGA Tour money list.
reported that retailers such as
Roger Dunn Golf Shops
Golf Discount Superstore
have all seen a softening of the apparel line's sales even as golf apparel sales are generally heating up. An analyst told
that Nike derives roughly $650 million of its sales from the company's golf-related products.
Both data and anecdotal evidence suggests a decline in Tiger's Nike apparel line.
reported that Golfsmith's 76 stores saw the line's volume fall 7.5% in the first half of the year from the year ago period, while total golf apparel sales grew 11%. The report added that Golf Discount Superstore said it's definitely witnessed the brand's erosion and that Roger Dunn said Tiger's line is pretty much the only apparel line that isn't heating up in sales at its stores.
It was a rough year for Tiger on all fronts -- not only did he experience what many see as the lowest point of his career, Tiger's marriage officially dissolved.
Click on for the images of an unlikely collapse -- and the companies (and stocks) that paid the price....
On Jan. 6, 2011, another long-term partner of Tiger Woods says goodbye to the beleaguered golfing great.
After 13 years of working with Tiger, who contributed instructional advice articles to the monthly magazine, Golf Digest is terminating their partnership.
Their partnership first began during the 1997 Masters and has been the second-longest partnership for Woods -- second only to Tiger's relationship with
, which has remained supportive of Tiger throughout his public crisis last year.
Others weren't so forgiving; sponsors such as
( ERTS) Gillette unit jumped ship soon after his marital indiscretions became exposed.
reports that Tiger's agent, Mark Steinberg, says the breakup was mutual, as the two couldn't see eye to eye on new terms after their contract expired last year.
The agent, according to
was asking more time of Tiger than he currently had been devoting to the magazine as the magazine increasingly went digital.
Golf Digest has a circulation of more than 1.6 million.
"We are sad that our marriage is over and we wish each other the very best for the future," Tiger and Elin said in a joint written statement on Aug. 23. "While we are no longer married, we are the parents of two wonderful children and their happiness has been, and will always be, of paramount importance to both of us."
Judgment was entered in Bay County Florida Circuit Court dissolving the marriage. The Judgment provided for shared parenting of Tiger and Elin's two children Sam, 3 and Charlie, 1.
Elin had begun using her maiden name again. Court documents also revealed that Elin was being advised by eight attorneys from several cities, including London, during the divorce proceedings. Tiger, according to ABC News, hired just one attorney.
On August 31,
, reported that
Tiger, now newly single, had moved into a new apartment in downtown Manhattan.
Meanwhile, ex-wife Elin had also been busy taking care of her own pad. According to
The Hollywood Reporter
, she was revamping a $3 million waterfront home in Sweden.
The news came after market research firm NPD said that that
Tiger Woods PGA Tour 11
32% of the volume
sold in its first month last year and didn't even make it to the top ten title list in June.
EA Sports attributed the disappointing numbers to "the slowing of the overall Wii software market and Tiger's performance on the course," according to CNBC. Notably missing from this statement was his gigantic sex scandal, which dominated media coverage for months after it broke last year but that
chairman Phil Knight had dismissed as a "minor blip" in his career in an interview with
This assessment came out as Tiger Woods competed in the AT&T National tournament taking place between June 28 and July 4 at the Aronimink Golf Club outside Philadelphia. This year, Tiger would no longer be the official host for the tournament, as AT&T dropped their endorsement agreement, along with a handful of other large sponsors at the height of his sex scandal.
According to a CNBC report, Tigers' sex scandal
, IMG, $4.6 million in fees.
CNBC said that IMG, like its peers, charges clients between 15% to 20% on the sponsorship deals it helps to seal.
Extrapolating that figure to Tiger himself, the scandal-plagued golfer would have lost $23 million to $30 million in endorsement deals last year.
CNBC obtained the information from a confidential document that delves into private and powerful IMG's 50-year sports management history.
In May, Tiger Woods was one of hottest Internet search topics ahead of the U.S. Open tournament in Pebble Beach, California, which began on Thursday, Jun. 17. Unfortunately, the articles that turned up didn't speak kindly of him.
"Now, he can't hit a fairway any better than I can," Roy Johnson, editor-in-chief of
, lamented in an article that appeared in ESPN.com, as Tiger went through some practice rounds at Pebble Beach. Tiger, 34, was playing as poorly as at any point in his career, according to reports.
In April, Tiger was usurped by 39-year old rival Phil Mickelson at the Masters tournament in Augusta, Georgia, who had been overshadowed by the former for much of their careers.
Still, Tiger's relationship with sponsors who remained loyal to him throughout his humiliating ordeal seemed to be getting stronger. Shortly after he resurfaced from hiding, Tiger was cast in a
, a clear effort by Team Tiger to seek resolution on his recent past.
That was in early April, as Tiger got ready to return to professional golf at the Masters tournament. And on June 3,
announced that it had cast the golfer in a humorous ad campaign for its latest Tiger Woods PGA Tour video game.
EA Sports, in anticipation of the product's launch on June 8, released a new
and the first in a series of online videos. This would be Tiger's
in an ad since his return to the game.
What follows is a documentation of the Tiger saga, starting from his return to the professional game at the Masters tournament in the first half of April and going back to where the breakout of the scandal all began....
After undergoing two months of inpatient therapy to deal with his "personal issues,"
Tiger Woods said he was ready to make his comeback in golf.
TV audiences first saw him play again at the Masters in Augusta, Georgia, from where Tiger answered questions at press conference . There, in what was universally acknowledged as his most genuine, sincere appearance since his scandal broke, Tiger admitted his "mistakes," noted that he understands why some sponsors dropped him, and said he hopes to prove to potential sponsors that he can be a "worthy investment" again.
By then, it felt like age since the world first discovered that Tiger had a secret life that he had been hiding from the world -- and, more importantly, his wife. But in fact, it was only on Dec. 2 when the legendary golfer had apologized for his "transgressions."
Tiger had gone into hiding after that, announcing his decision to take an indefinite break from golf and issuing a statement expressing his "profound" apologies and asking for "forgiveness" for the "hurt that my infidelity has caused to so many people." Woods reportedly checked into the Pine Grove/Gentle Path sex addiction treatment center in Hattiesburg, Mississippi after a brief visit at The Meadows in Arizona.
The entire affair -- so to speak -- finally culminated in a
Feb. 19, in which Tiger made multiple apologies to his family, friends and fans from and said that he would be remaining in therapy for the foreseeable future. During the televised address, Woods announced that he didn't know when he would be returning to golf. He also took the opportunity to dispel rumors about domestic violence in his household, or that he had been using performance-enhancing drugs.
The effort he put forth didn't appear to help matters much. In fact,
Davie Brown Entertainment
, a part of
conducted a study that showed that
"You would have expected to see his scores rise," Matt Delzell, a director at Davie-Brown Entertainment said. Delzell noted that televised statement like the one Tiger made, where celebrities admit to and assume responsibility for mistakes, typically help a troubled celebrity's image. But in Tiger's case, there was something that the public wasn't getting from his message.
The saga had definitely been worthy of screenplay; indeed, according to a Dec. 29 report in Britain's
, there was even a Hollywood movie in the works about Tiger's fall from grace, slated to star Cuba Gooding as Tiger. Meanwhile, as a result of the scandal, several of his major corporate sponsors and business partners had distanced -- and dropped -- themselves from Woods.
How have each of those sponsors responded to the Tiger Woods saga? Read on to find out...
On Dec. 31, AT&T
, including its sponsorship of his PGA golf tournament.
Others stood fast -- and the price they paid may have been steep: A study by finance professors at the University of California, Davis, estimated that
in market value since the Tiger sex scandal broke -- although a recent review of the researchers' methodology by the
Wall Street Journal
raised significant doubts regarding that conclusion.
Despite all this -- and the seemingly irreparable harm done to his once good name -- it is worth nothing that Woods
still managed to make it to the top of Forbes'"Fab 40" list
of the most powerful sports brands; with an estimated value of $82 million.
In fact, Woods' value still reportedly exceeded that of some of the biggest names in the sports world combined, topping David Beckham ($20 million), tennis player Roger Federer ($16 million), NASCAR driver Dale Earnhardt Jr. ($14 million) and National Basketball Association stars LeBron James ($13 million) and Kobe Bryant ($12 million).
Noteworthy is the fact that market research firm NPD Group found that most consumers it surveyed planned no change in their purchasing behavior based on the recent Tiger news. Indeed, a mere 5% of consumers surveyed by NPD said that they planned to cut back or eliminate any purchases of products Woods endorses.
NPD said that the majority of those planning to cut back came from the 55-plus age group. It added that, in an interesting twist, 2% of consumers that had purchased a Tiger Woods-endorsed product stated that they planned to actually buy more. These respondents came primarily from the younger consumer demographic.
Wood's endorsement deals with Nike, Gillette, Accenture, AT&T and
once amounted to $100 million a year, according to
Stockpickr Answers How will the Tiger Woods "transgressions" affect Nike and Nike Golf?
How have the rest of Tiger's sponsors respond to his hiatus -- and what impact has his hiatus had on other publicly traded companies? Read on....
Tiger Woods first signed with
in 1996, and extended that contract in 2000 for five years and $105 million. Today, Woods has a building named for him on the Nike campus, and reportedly receives a slice from the sale of Nike Golf apparel, footwear, golf equipment and balls. "Nike supports Tiger and his family," the company said in a statement. "Our relationship remains unchanged."
Nike was facing the challenge of promoting its new golf clubs
-- the Victory Red STR8-FIT Tour fairway woods -- without the help of Woods' marketing muscle, as Tiger took a hiatus from professional golf to deal with his personal issues, reported the
Wall Street Journal.
But all in all, Tiger's hiatus from professional golf
did little to dent Nike's golf product sales
, according to SportsScanInfo (a unit of SportsOneSource) data cited by
The data shows that sales of Nike golf products were little changed in the 13 weeks before Tiger's car accident outside his home and the 13 weeks thereafter.
Electronic Arts, Nike and
, for their part, supported Woods throughout his crisis. Indeed, on Jan. 21, Electronic Arts' EA Sports brand announced that its new online golf game "Tiger Woods PGA Tour Online" had become available for free previewing and encouraged golf enthusiasts to join the open beta. A console version of the game was made available in the summer. A demo of the game can be accessed at http://tigerwoodsonline.ea.com/.
In an interview with
on Jan. 21, EA Sports president Peter Moore said "there is nothing that we have seen that traversed since Thanksgiving and the unfortunate incident there that made us second-guess his role as an endorser of an authentic golf game."
"Yes, we would always have some options like any company you would imagine, we would always have some fallbacks or Plan B. But we have not in any way seriously considered doing anything but calling this
console version Tiger Woods PGA Tour 11.
On January 11, Electronic Arts provided an updated fiscal year 2010 forecast that shocked and annoyed many investors. The company said it was lowering its earnings forecast to the range of 40 cents to 55 cents per share on revenue of $4.1 billion to $4.2 billion, versus its prior guidance of 70 cents to $1 per share on revenue of $4.2 billion to $4.4 billion.
This disappointing outlook had been blamed on a shortfall of attractive video game titles at EA as it tried to downsize to concentrate on a smaller quantity of games during the current industrywide slowdown in sales, according to
the Wall Street Journal.
"You can't be that out of touch with the market," said shocked Wedbush Morgan Securities analyst Michael Pachter, who was cited by the paper.
In 2007, the PepsiCo brand Gatorade helped Woods launch his own brand of sports drink. Analysts had estimated the value of Tiger's deal with Gatorade at more than $100 million over a five-year period.
That all came to a crashing halt, however, on Feb. 26, when Pepsi's Gatorade announced that the scandal-fatigued golfer would no longer endorse the sports-drink.
Curiously, the announcement came one week to the day after Woods' public mea culpa. The news came as something of a surprise, as Gatorade had generally stood behind Woods throughout his ordeal; although Gatorade discontinued Tiger's drink, "Gatorade Tiger Focus," on Dec. 8, it said at the time that the move had nothing to do with recent events.
had been the main backer of the PGA tournament Woods hosted every July.
AT&T was also the presenting sponsor of Woods' charity event, "TigerJam," but the contract for that arrangement has expired.
Finally, prior to the tournament, The New York Times
confirmed that AT&T was able to back out of its contract with Woods
without paying the millions of dollars
the company owed him.
As for Tag Heuer, on Dec. 14, 2009, its vice-president of communications, Francoise Bezzola, fueled speculation of a breakup, saying "we are not announcing that we will keep Tiger and we are not announcing we will drop Tiger Woods. We are still considering it and we haven't taken a decision yet."
Just a few days before, on December 10, 2009, the
Sydney Morning Herald
had reported that Tag Heuer was doing away with placards of Woods from jewelry stores across Australia. Tag Heuer said that the move had nothing to do with reports of Tiger's infidelities -- although one jewelry shop owner the paper spoke to said he received a firm order from Tag Heuer to take them down, even though he just put them up.
On Dec. 18, 2009,
apparently became clear after the company's CEO told a Swiss daily that it would be removing Woods from its advertising campaign in the U.S.
But then, on the night of Dec. 21, 2009, Tag Heuer had Woods on the front of all eight of its Web sites, according to
. On the TAG Heuer Watches' homepage, there was, at the time, a large image of Woods wearing a TAG watch, accompanied with the words "Tag Heuer stands with Tiger Woods."
In 2007, Woods joined soccer star Thierry Henry and tennis great Roger Federer in the "Gillette Champions" marketing campaign. The deal is thought to be worth $10 million to $20 million.
Since then, Procter & Gamble's Gillette division said it would begin limiting Woods' role in its marketing programs.
-- Written by Andrea Tse in New York.
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>> Tiger's Sponsors' Rivals Also Hurt by Scandal
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