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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

(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.

Total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income, the researchers wrote.
"Total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income," the researchers wrote.   (AP Photo/Julie Jacobson)
A TAG Heuer ad featuring Tiger Woods.
A TAG Heuer ad featuring Tiger Woods.   (PRNewsFoto/TAG Heuer)
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COMMENTS
Showing 3 of 7 comments
t0ak
Dec 30, 2009 4:08 AM CST
He just needs new sponsors to balance it out ..............DOes Trojan have an official sponser? .................The Trojan Tiger.................how about Lava soap - I mean porn stars are great on video but they carry a lot of bacteria if your going thru them like gatorade
Count-Spatula
Dec 30, 2009 2:41 AM CST
Pfft. some CEO jackass just made a random guess, than tripled it, then released the number as news so he can use it for his tax cheating next year.
divetrader
Dec 29, 2009 12:19 PM CST
TheyrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrGreat!

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