The reason why Nike should not sponsor Tiger Woods Essay

The reason why Nike should not sponsor Tiger Woods - Essay Example Nike’s relationship with Tiger Woods can tarnish the company’s name, as this will depict to the public that it supports the drama that surrounds the golfer (Knittel & Stango, 2010). Most companies sponsor athletes for the sake of advertisement, promote the company’s image, and portray an excellent reputation on behalf of these companies, but Woods had proved otherwise, and most companies do not want to be associated with his persona. This also calls for Nike to take precautions and cease sponsoring him just for the sake of the company’s name and reputation. For Nike to support or be involved with Woods in any way, he should prove to be an outstanding representative of the company values. That is not the case as Woods has since been involved in several scandals including; being a reckless driver and being involved in extramarital affairs and this has damaged his reputation in the public. These values portrayed by Woods are dreadfully unacceptable and are against the values and norms of any reputable company such as Nike, and any relationship with him could jeopardize the outstanding reputation and name of Nike in the public. The losses that Nike is likely to incur if it decides to sponsor Woods would be extremely widespread considering the fact that Nike is a large company; hence, Nike should avoid him at all costs. Woods has proved to be incurring large amounts of loses since the ruin of his reputation, so there is no need to promote someone whose performance and earnings are moving at a downwards trend. In addition, since a larger percentage of Wood’s income is from endorsements, this means that those companies involved with him are likely to be victims of his losses since it is estimated that Woods’s scandal stock market effect, is on both their competitors and sponsors, as well. Nike sponsoring Woods is extremely risky as