Woods pay for $12 billion for his scandal





Woods pay for billion for his scandal

According to a study by economic professors at the University of California-Davis, Tiger Woods’ sex scandal has cost the shareholders of companies endorsing the golfer up to billion (£7.2 billion). The study, conducted by Victor Stango and Christopher Knittel, examined the market value of Woods’ main sponsors in the days following  the golfer’s late night car crash in November, and the subsequent revelations of extra-marital affairs.

The study focused on eight of Woods’ major sponsors – Accenture, AT&T, Tiger Woods PGA Tour Golf videogame franchise (Electronic Arts), Gillette, Nike, Gatorade, TLC Laser Eye Centers, and Golf Digest – taking into account normal stock market fluctuations and the returns of each sponsor’s closest competitor. 

Of the sponsors, it was the sports-related companies that fared the worst, with Tiger Woods PGA Tour Golf, Gatorade, and Nike all suffering a 4.3 percent loss, or around billion (£3.7 billion).

 ”Our analysis makes clear that while having a celebrity of Tiger Woods’ stature as an endorser has undeniable upside, the downside risk is substantial, too,” Stango said in a statement released with the study. 

Woods – the world’s first sporting billionaire – was estimated to earn between million (£41.5 million) and 0 million (£63 million) in endorsements each year before the scandal hit, but Gillette – one of his biggest sponsors – has since announced they are scaling back their use of Woods in its advertising campaigns while Accenture has dropped the golfer altogether. 

More than a dozen women have been linked with Woods since the car crash, and the golfer has taken an “indefinite” break from the sport to focus on his family, though it has been said that wife Elin Woods has already launched divorce proceedings.

 

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