Tiger Scandal Cost Sponsors $12B

Study: Shareholders are the ones who got screwed
By Rob Quinn,  Newser Staff
Posted Dec 29, 2009 3:57 AM CST
Updated Dec 29, 2009 5:42 AM CST
"Total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income," the researchers wrote.   (AP Photo/Julie Jacobson)
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(Newser) – The Tiger Woods sex scandal has destroyed a whopping $12 billion in stock value along with the golfer's reputation, according to a University of California study. Economic professors crunched stock data for the weeks after the scandal broke and found that shareholder value in the Tiger-linked companies dropped a total of 2.3%.

Sports-related companies Gatorade, Nike and Electronic Arts were the hardest-hit, the researchers found, while Accenture suffered no damage. "Our analysis makes clear that while having a celebrity of Tiger Woods’ stature as an endorser has an undeniable upside, the downside risk is substantial, too," the researchers write.

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