HomeNewsBusiness

Woods’ indiscretions to cost PGA Tour, Nike $220m

Bloomberg bases the figure on two estimates which say that, because of Woods’ indiscretions and disappearance from the PGA Tour, television advertising for the PGA Tour may drop by 40 per cent and Nike stands to lose $30 million in sales.

The television advertising figure was estimated by Aaron Cohen, chief media negotiating officer at New York agency HOrizon Media. The Nike loss was estimated by Claire Gallacher, analyst at San Diego-based Capstone Investments Inc.

Bloomberg quotes Rick Gentile, a former CBS Sports executive producer who teaches at Seton Hall University, as saying: “It’s not so much a ripple effect as it is a tsunami.

“The aura is gone.”

Other metrics the Bloomberg report predicts to fall include television audiences, which could shrink by half based on Nielsen Company data from previous events, and tournament crowds, which could fall 20 per cent according to organisers.