Tiger Woods Cheating Cost Him & Shareholders
Tiger Woods isn't the only one suffering financial as a result of his multiple affairs -- shareholders of his sponsors are too. A study Monday revealed that shareholders of sponsors like Nike, AT&T and Gatorade may have lost billions of dollars in the wake of the scandal.
Study author Victor Stango, a professor at the University of California Davis, said:
"Total shareholder losses may exceed several decades' worth of Tiger Woods' personal endorsement income."
In the study, Stango compared the stock prices of nine of Woods' sponsors with competitors and the overal market after the scandal was revealed last month. Investors in three sports-related companies -- Electronic Arts, Gatorade and Nike -- actually fared the worst, experiencing a 4.3% drop in stock value. Accenture, a global management consulting firm, did not experience any measurable ill effects.
Comments
WTF. Don't blame Tiger for that. Theses companies just need to make good products. Stop riding Tigers (and other athletes) coat tails. Be like the iphone, Google, Rolls Royce and Prada. Just make good products that sell themselves.
These companies and shareholders can not blame Tiger for any losses--no!
Also, Tiger should have more money than he has. He is only worth 1 billion. He should have been paid more like 4 billion by these companies. He was underpaid big time.
So you can't blame Tiger Woods, his video game isn't selling because the image he is portraying of a poor role model isn't what his product's key demographic (the wholesome family) wants their children to play? Come on! It is a fantastic game, except it isn't selling because of the person on the box. It's like having OJ SImpson as the spokesman for ISOtoner gloves.