Margareta Pagano: Does the brand maketh the sportsman?

Shareholders are starting to ask if the superstars they fund so lavishly are really good for business

The most shocking aspect of the Tiger Woods affair is how big brands are emerging as the arbiters of public morality. It's the world's big sports sponsors – brands such as Nike, Gillette and power drinks giant Gatorade – which are fast becoming the guardians of celebrity transgressions, not their families or even the press. Within hours of the Woods scandal breaking, the only statements that seemed to matter were those from the golfer's big-brand sponsors on whether they would still back him with the $100m or so a year they give in sponsorship.

It was only after Woods made his extraordinary apology, promising to be a better family man, that the companies involved came out with their full-hearted backing. Not so long ago it was the wronged wife or husband who would be forced to publicly announce support for an errant spouse. It doesn't take a rocket scientist to work out that the billionaire golfer was forced into his confession by the army of PR and sponsorship advisers, desperate for him to repair his squeaky-clean image as swiftly as possible.

But it's not surprising that power is switching to the big brands. As traditional forms of advertising decline, companies are under huge pressure to find new ways to sell their products. Top sporting stars such as Woods, who is both international and aspirational, have become one of the easiest ways to sell a message to the global audience. Between them, the world's biggest companies such as Adidas, Puma, Santander, Coca-Cola and even our own Royal Bank of Scotland, spent a staggering total of £15bn on sponsoring individuals and events this year. No wonder brand kings seem to care more about the image of their celebrities than whether their sportsmen are winners. That's why it's not enough for Nike to borrow Woods's body to display around the world: it's got to be seen to be clean as well. Gatorade can't be happy that its Tiger Focus is being marketed as a power drink to improve mental focus while he goes through daily counselling sessions. But for now, Woods seems to have given his sponsors what they wanted with his confession.

More pertinent, though, is whether we want big business to be these new guardians. I'm not sure we do, nor, I think, do their investors. I wouldn't be at all surprised to discover that Gillette shareholders are starting to question why the mens' grooming company is spending so much money on sportsmen who seem to have feet of clay rather than gold. What's being called the curse of Gillette started when it signed David Beckham to a sponsorship deal just days after stories emerged about his alleged affair with his personal assistant. Then, only a few weeks ago, Thierry Henry, another Gillette superstar, got in trouble for cheating in France's World Cup qualifier and was forced into a humbling mea culpa. And now Woods.

Yet good could still come from this humiliation. Big brands must think hard about throwing so much cash at spoilt sportsmen and other celebrities. Its not healthy for them. There are many more responsible ways for companies to advertise, and they should move quickly, before shareholders start swinging their golf clubs.

RBS SHOULD LOOK AT THE FUTURE OF ITS INVESTMENT BANKING, NOT ITS BONUSES

Forget the recent spat over bonuses at Royal Bank of Scotland. This prickly problem will be thrashed out between the Government and the RBS board over the next few weeks as RBS does not have to decide what to pay its top-earning staff until February.

Inevitably, there will be compromise as both the politicians and the investment bank need to defuse this issue.

A much bigger question faces Sir Philip Hampton, the chairman, and Stephen Hester, the chief executive. They need to decide what sort bank they are running – whether they should be building up the global banking and markets division, or running it down. For now, Hampton and Hester argue that they need to pay the bonuses to retain the staff. If they don't pay the market rate, they claim these brilliant assets with feet will jump ship to a competitor.

I'm not sure that I buy this talent argument. With no disrespect, RBS is not one of the top-draw, top-tier investment houses but a second-liner. Many of its bankers and traders are talented but if they are not paid the top street rate, I simply don't believe they will all be snapped up by a Goldman Sachs or a Morgan Stanley.

If RBS has to pay huge amounts to keep the bankers it fears will leave, the board must be brave enough to take a risk and let them walk. The priority of the board is still to fix the main part of the bank, but it looks increasingly as though the only way to do that is out of the private eye by nationalising the bank completely.

As this is political dynamite, the second-best option would be to clean out all the toxic assets from the global banking and markets division and either spin it off into a separate company or sell it to the private sector. That way, RBS can get on with its main job and avoid being caught in the crossfire between the politicians and the furious public.

Once the new bank has paid off its loans, then it can pay its bankers what it thinks they are worth.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Attenborough with the primates
tvWhy BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
News
people
News
Campbell: ‘Sometimes you have to be economical with the truth’
newsFormer spin doctor says MPs should study tactics of leading sports figures like José Mourinho
Sport
football
ebooks
ebooksA special investigation by Andy McSmith
Life and Style
Alexander McQueen's AW 2009/10 collection during Paris Fashion Week
fashionMeet the collaborators who helped create the late designer’s notorious spectacles
News
i100
News
Perry says: 'Psychiatrists give help because they need help. You would not be working in mental health if you didn't have a curiosity about how the mind works.'
people
Life and Style
Stepping back in time: The Robshaws endured the privations of the 1950s
food + drinkNew BBC series savours half a century of food in Britain
News
Google celebrates St David's Day 2015
newsWales' patron saint is believed to have lived in the 6th century
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?