Accenture Drops Tiger Woods Ad
DON LEMON, CNN ANCHOR: Breaking news: A big-time sponsor is getting out of the Tiger Woods business. It could be a sign of things to come. We're on top of this for you. Think you spent a lot of money for the holidays? Congress is spending a lot more. Today, it was $1 trillion. The next stop: the president's desk. From mudslides to snow to freezing rain and flooding, the weather is wreaking havoc on the country. Bad news for some hikers lost on a snowy mountain. One of them has been found dead. We'll update you on that story/ An emotional reunion for Jews who tried to flee Hitler's terror, only to be sent back to die. Those who managed to survive speak to CNN on the anniversary of a freedom voyage denied. Hello, everyone. I'm Don Lemon. Thanks for joining us. We begin with a bombshell in the sports world. Accenture, the company behind this well-known TV ad today, dropped Tiger Woods. (</s>BEGIN VIDEO CLIP, ACCENTURE AD/YOUTUBE) NARRATOR: Go on. Be a Tiger.</s>LEMON: The question now: is Accenture just the first of many companies and corporations who have lost faith in the world's premier golfer? There have been hints for days that sponsors may begin quietly dropping Woods after revelations of infidelity emerged over the Thanksgiving holiday. But Accenture's announcement today is nothing less than a public repudiation of Woods' personal life. The company releases blunt statement on its Web site and they did just a short time ago. So, listen to this. This is what they said, "For the past six years, Accenture and Tiger Woods have had a very successful sponsorship agreement -- or arrangement and his achievements on the golf course have been a powerful metaphor for business success in Accenture's advertising. However, given the circumstances of the last two weeks, after careful consideration and analysis, the company has determined that he is no longer the representative for its advertising. Accenture said that it wishes only the best for Tiger Woods and his family." So, is this a sign of things for things to come for Tiger whose many sponsorships have enabled him to become sports' first billion- dollar man? There you see you him. Let's ask our resident sports guru, Rick Horrow. So, Rick, what do you think of this? It says, "He no longer represents the kind of image that we want to have."</s>RICK HORROW, CNN SPORTS BUSINESS ANALYST: You and I before the show talked about this statement. The right questions to focus on, the right language, he is no longer the right representative for the company. Gillette talked about a hiatus, wished him well. The PGA Tour, hiatus wished him well. Other companies like AT&T; reevaluating. This is the first time a corporation has come and slapped right between the eyes. And it's a bottom line where you may think that it's a deal that might cascade to the $93 million a year that he already has in sponsorships. This spells some trouble.</s>LEMON: Yes, OK. So, we've -- and we have been talking about this before, about all of the sponsors. And if you look at them, there they are up there on your screen. Nike, Accenture -- Accenture no longer. You can put a red mark to that one. AT&T;, TAG Heuer, E.A. Sports, Gatorade, Gillette, "Golf Digest," Net Jets, TLC Laser Eye Centers, Upper Deck, P.J., and on and on and on. So, we're talking about close to what, $100 million in sponsorships here?</s>HORROW: Close to $100 million. But also, let's remember that the spokesman industry for athletes, $12 billion a year, corporate America, corporate world, Patrick can talk about that, is spending for spokesman. Before this deal, there was this contracts being shorter, smaller, and easier to terminate. That's fair. But this is a fundamental sea change in the sports industry, in the sponsorship industry, and how corporate America treats this period.</s>LEMON: And we're going to -- real quickly, I just want to said, let me just tell everyone who is here, because this happened just a short time ago. So, we got Patrick Snell who is here, from CNN International. He's a sports guy. And we also have David Cornwell, who is a very prominent sports attorney, celebrity and sports attorney, and is very knowledgeable of this. We're going to break this all down for you and get to the bottom of this and where this story is going. International interest in this story, correct?</s>PATRICK SNELL, CNN SPORTS: Yes. This is big.</s>LEMON: Let me finish with him. A sign of things to come, you think? This is the first of many?</s>HORROW: Well, it might be first of many. There are companies that are going to react to exactly how people react to this today. If it's a hiatus with a small "h," if he stays out a little longer, companies may wait. It's a large "H," if he stays out for a while, rest assured his landscape fundamentally changes.</s>LEMON: OK. Let's turn now -- standby. We're going to now to Patrick Snell. Talk about the other half of this equation, his decision to leave indefinitely to sports and to take a leave, and he says, to get his family healthy again -- bad for the PGA? Good for Tiger maybe?</s>SNELL: You know, I think the jury is still out on that. We've got to see when he -- when is he coming back. I mean, I know internationally, Don, the golfing community is waiting with bated breath to see when he'll actually play. We saw his appearance in Down Under, recently in Australia, the Melbourne Masters, the Ozzie Masters. The attraction that he has at these events is huge. It's second to none. It's unparallel. It's a huge blow to the U.S. PGA Tour, but to all the tours worldwide. And the impact he had in Australia, I mean, the Victorian government Down Under was willing to pay him a fee of $3 million alone just to get him there. And they came under fire to a degree about that. But they said, "Well, look, OK, we're paying him $3 million just to be here, but he's generating around $20 million to the local economy." That's the impact Woods has worldwide. But we know when he was out last year, Don, he took several months away from the game to have more knee surgery, and the U.S. PGA Tour suffered greatly during his absence. TV viewing figures go down dramatically, and people just kind of lose interest.</s>LEMON: Well, the interesting thing is, as people just kind of lose interest, I don't think they'll lose interest when Tiger decides to come back. I think the ratings are going to probably be higher than, you know, almost any sporting event in history.</s>SNELL: Yes.</s>LEMON: I'm willing to go out on a limb for that one.</s>SNELL: And we saw that when he came back after his knee surgery. It was an event we covered internationally and domestically. In Tucson, Arizona, he came back, and the media presence of that event in Arizona was just incredible. It was hailed as the biggest story of the year then.</s>LEMON: You said $3 million Australia was willing to pay him, but he generated how much?</s>SNELL: The local government in Victoria, Australia, was saying, "Yes, his fee is $3 million, but we estimate," they've said, "that he's going to bring in around $20 million to the local economy."</s>LEMON: Let's talk about that, David Cornwell, because if anyone aligns themselves with a celebrity, and I spoke and you said, they're paying for a pop of advertising that they couldn't afford, that they couldn't get anywhere else.</s>DAVID CORNWELL, DNK CORNWELL SPORTS LAW FIRM: Absolutely. The image of Tiger pumping his fist after hitting a putt or winning a tournament right above the Nike logo, you can't put a price on that. So, it's been valuable to Nike and his other sponsors up until this point. But now that his image has been tarnished, Accenture made the decision today that "we don't want to align our products or our services with him at this time." But I think an important distinction to make here: they are not terminating the agreement. They are terminating the relationship. The agreement was entered into in 2003, six-year agreement. What they're saying is we're not going to renew. So, that kind of operates in Tiger's benefit. I don't think that his conduct has violated any of the morals clauses in any of the agreements. So as they come up for renewal, and it's not all lockstep, it will be, you know, staggered in time. It will depend on where he is in rebuilding his image. So, by stepping out of the public eye, focusing on the personal issues, but also giving the public and the sponsors a chance to catch their breath, this may not be the watershed of an end. It all depends on what happens next.</s>LEMON: This is going to be an -- correct me if I'm wrong -- any time you do something like this, when you have to do a mea culpa and you're in business with someone, the best thing is to have face-time with that person and say, you know, "I'm sorry, I screwed up." Is he going to have to go to each one of those sponsors and do that?</s>CORNWELL: I will tell you, when I've been in situations like this with athletes, primarily high-profile athletes, the work that we do publicly is paled -- pales in comparison to the work that we do behind the scenes, getting on the phone, giving them a heads-up. You know, we've dealt with E.A., the same companies that Tiger has been sponsored by. You let them know what's going to happen before it happens. And I would be absolutely shocked if there weren't discussions with the sponsors who agreed that taking this time off might be better for both sides.</s>LEMON: I have so many questions for you. And I asked Rick this question yesterday and I want to ask you this now. Because, you said the morals clause right there exercising whatever.</s>CORNWELL: Yes.</s>LEMON: But these are iron-clad contracts, right, that they are. So he's pretty well-locked into these contracts, even with the morals clause? Because he didn't do anything illegal.</s>CORNWELL: He didn't do anything illegal, but there are -- there is generally a clause that says that -- engage in conduct that is so offensive that it shocks the minds of the consciousness of the public, that we can terminate.</s>LEMON: Does this rise to that level?</s>CORNWELL: Well, you know, I don't mean to be crass, but -- we're here to inform your viewers. The standard on the morals clause, generally, as it comes to sex or a man is a live boy or a dead girl.</s>LEMON: Yes, I heard that.</s>CORNWELL: And that hasn't happened. So he hasn't risen to the level where they can terminate on that clause, I don't think.</s>LEMON: I'm sorry. Go ahead.</s>HORROW: The other comment I was going to make, David, was ask you the question about you can terminate, but the language that Accenture used, no longer the right representative, you could terminate and make the language a little more vanilla. They chose not to do that.</s>CORNWELL: That's right. Well, terminate the relationship, terminate the agreement. They could terminate the agreement and continue to pay him...</s>HORROW: Right.</s>CORNWELL: ... and just not use him. But let's hold our -- keep our powders dry for a minute and see what happens next.</s>LEMON: Let's stand by real quick, Patrick. I know you want to get in here. But here's the question I'm asking. OK. So, it's a morals clause and you said he didn't do anything illegal and the language that you used, "not wanting to be crass." But here's the question: if he's saying, I'm taking an extended leave from sports and golf, these people, these companies, sponsors signed on to him because of what he did on the golf course. If he's no longer on that golf course, is that contract then legitimate? Is he in breach? Can they get out of those contracts?</s>CORNWELL: Generally, there is a provision in the termination clause that relates to disability or death. But concept is, if you are unavailable for a continuous period of time, 90, 180 days or maybe more, then they have the right to either terminate or suspend the contract for the period that you're unavailable. Here in these discussions behind the scenes that I was talking about, it's entirely possible that they've agreed to suspend the contracts for the period that he's not playing. We just don't know.</s>LEMON: All right. Stand by -- stand by real quick. Patrick, I want to ask you this. Sometimes, you can have a different perception from people who are overseas than here in the United States. Is this -- did it have the same gravity overseas that it has here? People look and going, oh, he is you know, or they're saying, he's a man, he's a cad? But sometimes that does happen.</s>SNELL: No, I think they're shock as well. In my native U.K., for example, there is definite shock. I mean, you're always going to get people who have that attitude that you just expressed. But he is -- at the end of the day, he is the world's number one golfer. He's unique. And all golf lovers worldwide -- this transcends golfer lovers. He's a brand worldwide. There is nowhere he can where he is incognito. Everybody knows Tiger Woods. Therefore, people are always going to judge. I mean, it's the nature of the game. He's all about winning Majors. But, you know, when certain things happen, when certain allegations are made, people are always going to have an opinion. And the U.K. is the home of golf. And those Brits, they like to have their say.</s>LEMON: Are people really not going buy watches or insurance or whatever because Tiger Woods is associated with them?</s>HORROW: Very perplexing question. We know that lawyers and marketers are going to be paid a lot money to determine that. But internationally as well, Patrick is right about his home country. Twenty million golfers predicted in China by 2020. And, of course, the Olympics in Beijing, it credited to Tiger getting there in Shanghai and saying we're going to expand golf. So, it's well more than watches. This is an international phenomenon that now is discredited with an uncertain end. Last year, when he had his knee surgery, we all knew when he was coming back roughly. And that was an entirely different circumstance. So, the half reduction in television ratings, we knew that was going to rebound. Now, we don't know when the rebound happens.</s>LEMON: All right. Hang on. Hey, guys, I know we -- Tom, you're telling me to wrap it up. One more question that I want to get here and I think it's a very important question. I've been asked by the viewers. What's next? What does he do? Does he go on? Does he do an "Oprah"? Does he do a sit-down with a Barbara Walters? What happens with Tiger Woods next?</s>CORNWELL: He avoids the cliche and he does the authentic.</s>LEMON: What's the cliche?</s>CORNWELL: Cliche maybe Oprah or Barbara Walters.</s>LEMON: Why avoid that?</s>CORNWELL: Because so many people do it that way. Tiger has to regain what he was before, which was authentic, strong character, unique. Maybe he sits down with you, Don, in his backyard. Maybe he comes on "LARRY KING" and just asks questions. But what he doesn't do is kind of check the boxes that crisis managers put in front of you, because he's not going get back to where he was if he does.</s>LEMON: Because if he sits down with another celebrity, he is sort of capitalizing on the equity of that celebrity?</s>CORNWELL: Exactly. He borrows on Oprah's equity...</s>LEMON: Yes.</s>CORNWELL: ... by sitting with her. He may -- who knows what it is, but it has to be authentic, and it cannot be a cliche.</s>HORROW: And remember -- he may have started already, because two weeks ago, he used this word "transgression." Nobody knew what it was. Now, look at his statement, disappointed, infidelity, profoundly sorrow, ask for forgiveness, better husband, father, person -- those are pretty strong words. So, he may have started this already.</s>LEMON: Last word.</s>SNELL: And one thing that -- another thing he cannot do is put out another of those online personal Web site kind of statements that have become synonymous throughout this whole thing.</s>LEMON: Right. Thanks to all three of you. More next hour. I could talk about this all day, and I wish we could do a segment with just viewer feedback and you guys answering it. Maybe we'll do that. Maybe we'll reach and do a show to do that because I think it's an interesting conversation and I think people are watching and they want to know. Thank you, David, Patrick, and as always Rick Horrow. But, again, we'll talk to you guys next hour. Appreciate it. You know, it is another Sunday work day in Washington. Senators are on the clock and spending big money, really big money. We'll tell you where the billions are going. And a man goes after Italy's prime minister. Police arrest his attacker. We'll update Silvio Berlusconi's condition. Also, taking your questions. Twitter, Facebook, MySpace or send us an iReport.