AT&T (T) Doesn't Want To Be Associated With Tiger Woods Any Longer
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Price: $16.58 -1.37%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
Revenue Growth %: -0.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
Revenue Growth %: -0.3%
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AT&T Inc. (NYSE: T) is the latest company to sever ties with Tiger Woods following the golfer's sex scandal that has caused him to go into hiding for weeks.
"We are ending our sponsorship agreement with Tiger Woods and wish him well in the future," AT&T announced in a brief statement on Thursday.
The world's No. 1 golfer and first billionaire athlete has admitted to infidelity that has put his marriage to Elin Nordegren on life support and caused him to take an indefinite leave from the PGA Tour and now forced another sponsor to move on.
AT&T is the second major sponsor to free itself from the whirlwind surrounding Woods, after Accenture (NYSE: ACN) removed the golfer from company ads earlier this month, while Proctor & Gamble Co. (NYSE: CO) has not cut Woods loose, but has removed him from its Gillette marketing campaign.
Woods will likely see a few more of his stable of endorsement deals go away, but he will likely keep Nike Inc. (NYSE: NKE) and Electronic Arts Inc. (NASDAQ: ERTS), as these two companies have products so closely tied into the Tiger name brand.
The scandal may have caused shareholders of companies that used Woods as a sponsor up to $12 billion in losses, according to research by two economics professors from the University of California, Davis.
In a time when AT&T has enough to worry about with an onslaught of slander ads from competitors and complications with its network, having an embattled public figure as a sponsor would likely not be wise. So expect to see even more of Luke Wilson in upcoming company ads.
Maybe now that Woods will not be sending text messages across the country to his countless mistresses, the AT&T network will be able to hold up better.
"We are ending our sponsorship agreement with Tiger Woods and wish him well in the future," AT&T announced in a brief statement on Thursday.
The world's No. 1 golfer and first billionaire athlete has admitted to infidelity that has put his marriage to Elin Nordegren on life support and caused him to take an indefinite leave from the PGA Tour and now forced another sponsor to move on.
AT&T is the second major sponsor to free itself from the whirlwind surrounding Woods, after Accenture (NYSE: ACN) removed the golfer from company ads earlier this month, while Proctor & Gamble Co. (NYSE: CO) has not cut Woods loose, but has removed him from its Gillette marketing campaign.
Woods will likely see a few more of his stable of endorsement deals go away, but he will likely keep Nike Inc. (NYSE: NKE) and Electronic Arts Inc. (NASDAQ: ERTS), as these two companies have products so closely tied into the Tiger name brand.
The scandal may have caused shareholders of companies that used Woods as a sponsor up to $12 billion in losses, according to research by two economics professors from the University of California, Davis.
In a time when AT&T has enough to worry about with an onslaught of slander ads from competitors and complications with its network, having an embattled public figure as a sponsor would likely not be wise. So expect to see even more of Luke Wilson in upcoming company ads.
Maybe now that Woods will not be sending text messages across the country to his countless mistresses, the AT&T network will be able to hold up better.
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