News
Tiger Woods affairs cost sponsors up to $US12 billion in lost wealth
Tue, 29 Dec 2009
- From: news.com.au
- December 29, 2009
TWO US academics have calculated that Tiger Woods' infidelities and his "indefinite leave" from golf have cost his sponsors billions in lost wealth.
The University of California economic academics, Christopher Knittel and Victor Stango, found that Woods' sports-related sponsors suffered the most from the public outing of the golfer's "transgressions".
"Our analysis makes clear that while having a celebrity of Tiger Woods's stature as an endorser has undeniable upside, the downside risk is substantial, too," Professor Stango told McClatchy Newspapers.
The men studied how share prices in Woods' sponsors performed compared with the broader market in the two weeks since the golfer's car crash.
"Mr. Woods’ top five sponsors (Accenture, Nike, Gillette, Electronic Arts and Gatorade) lost 2-3 percent of their aggregate market value after the accident, and his core sports-related sponsors EA, Nike and PepsiCo (Gatorade) lost over four percent," the authors write in their paper.
Shareholder Value Destruction following the Tiger Woods Scandal (PDF link).