Tiger Woods Fiasco Cost Shareholders Up to $12 Billion
According to a study by two economics professors from the University of California, Davis, companies that Tiger Woods endorses may have lost shareholders up to $12 Billion.
While Tiger is still the best golfer in the world, the recent sex scandals have put his reputation into a bit of a free fall. Saying that he has cost a lot of people money is probably enough reason for him to consider picking up some new term life insurance quotes online.
The study, released on Monday by researchers Victor Stango and Christopher Knittel, gave an estimate for damage to the market value of Woods’ main sponsors caused by revelations of alleged extramarital affairs that surfaced after he was involved in a minor car accident outside his Florida home on November 27.
“We estimate that shareholders of Tiger Woods’ sponsors lost $5-12 billion after his car accident, relative to shareholders of firms that Mr. Woods does not endorse,” the researchers wrote, adding that millions of shareholders were affected.
“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, a professor at the UC Davis Graduate School of Management, said in a statement released along with the study.
Woods, believed to be the world’s wealthiest athlete who was estimated to earn about $100 million a year in endorsement deals before his troubles, confessed on December 11 to “infidelity” to his Swedish wife Elin Nordegren. He announced he would take an indefinite break from golf to save his marriage.
