brand contractions
Posted by Abe Sauer on December 14, 2009 04:20 PM
Much has been written about how Tiger Woods is in the gutter and how his sponsors are scrambling to do damage control or distance themselves from him. But the victim of his transgressions that stands to lose the most is the game of golf itself, or more specifically, the Professional Golf Association (PGA).
For the last decade, the PGA has been buoyed -- if not outright carried -- by Tiger Woods. In many ways, Woods took the sport mainstream the same way Michael Jordan elevated the NBA a decade earlier. Thanks largely to Woods, PGA Tour prize money rose from $70 million in 1996 to $278 million this year. And now that Woods is taking an unpredictably long break from the sport, the PGA could be in serious trouble. How bad might it be? The sport experienced a taste a year ago when Woods took time off from the circuit for knee surgery.
In February, while Woods was in rehabilitation, the Buick Invitational event -- which had enjoyed Woods' participation for a decade -- experienced a 30 percent drop in attendance. The PGA currently has 43 tournaments scheduled for broadcast in 2010. Network television has contracted to carry 33 of them with the Golf Channel slated to feature 10 more. The absence of Woods spells poor ratings for all. This should convince the PGA that diversification is in order -- it can't be dependent on one personality.
The NBA had a similar relationship with Michael Jordan. Quite possibly the greatest name in basketball history, Jordan took the NBA to a whole new global level. But then the NBA saw ratings suffer each time Jordan "retired." And after he left permanently, the NBA seemed in limbo for years. It has only recently begun a robust recovery.
One bright spot for the PGA? Woods' inevitable return. Whenever it comes, Woods' first game back on the tour will be a global event. In the meantime, the PGA needs to focus on developing some, not one, new talent.