Tiger Woods scandal costs sponsors $12 bn
December 30th, 2009 - 2:23 am ICT by IANS
San Francisco, Dec 30 (DPA) Tiger Wood’s sexual indiscretions have not just wrecked his marriage and his squeaky-clean reputation. They also wreaked $12 billion worth of havoc on the companies that paid him millions of dollar in sponsorship and endorsement fees, according to a new study released Tuesday.
The researchers at the University of California-Davis said that shares at companies like Gillette and AT&T and Nike lost $12 billion in value in the 13 trading days after the scandal first broke in November.
“Total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income,” said study author Victor Stango, a professor at the University of California Davis.
The study found that the damage was worst for investors in Woods’ three sports-related sponsors. Video gamemaker Electronic Arts, Gatorade and Nike experienced an average 4.3 percent drop in stock value.
Global management consulting firm Accenture on the other hand experienced no measurable impact from the Woods’ scandal, the study found.
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- Now GM Motors cancels deal with Tiger Woods - Jan 15, 2010
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- Tiger Woods Nike ads named 'worst celeb endorsement' of 2010 - Jan 15, 2011
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Tags: accenture, dpa, electronic arts, endorsement income, gamemaker, gatorade, gillette, global management, havoc, management consulting firm, measurable impact, personal endorsement, scandal, sexual indiscretions, shareholder, stock value, study author, tiger wood, tiger woods, university of california davis
