Tag Heuer ends endorsement deal with Tiger Woods
Swiss watchmaker Tag Heuer cancelled their multimillion-pound sponsorship deal with Tiger Woods, due to his rapid fall in the Official World Golf Rankings (OWGR), and in the world of golf generally.
The news was confirmed by Golf World via their Monday edition in which they wrote that Woods’ agent Mark Steinberg verified the news in an e-mail that the agreement ended. However, he declined to provide further details.
According to the insiders, the two parties met a mutual agreement last month at the expiry of the contract, which cost Woods a fortune of $10-million. Woods had been constantly falling in the Official World Golf Rankings since the onset of the last season
and his decline has not come to a stop. Currently, the veteran is ranked 30th and by looking at his form, he is predicted to go down further by the end of the year.
Tag Heuer, which is owned by LVMH Moet Hennessy Louis Vuitton SA (MC), abstained from using Woods’ image after his infidelity scandal unleashed in front of the world. The 35-year-old was involved in extra marital affairs with dozen of ladies, which included
pornstars, high class escorts and cocktail waitresses.
These affairs cost Woods a loss of millions worth of endorsement deals with several well-reputed companies. These companies included names like Gillette, Gatorade, Accenture, AT&T and Golf Digest and now Tag Heuer. According to a figure presented in Golf
World, Woods suffered a loss of $25m in endorsement deals.
The only two business tycoons that have stood next to Woods during his fall are Nike and EA Sports. The companies backed Woods when he had to make a payment of $100-million in settlement to his wife, which she claimed after divorce. EA Sports launched the
new version of Tiger Woods PGA 12, a game with Woods as its media promoter, and remained steadfast to their long-term relationship.
However, Nike gave a pay cut to Woods for failing to win a major tournament in the last two years.
Woods is ranked 30th on OWGR, but despite that, he is worth $500-million. In 2010, he was nominated as the richest athlete alive for having earnings of more than $100-billion a year.
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