Travelers in New York walk past Accenture advertisements depicting golfer Tiger Woods
Posted on 12/29/2009 3:58:03 PM PST by bruinbirdman
Tiger Woods's affairs may have cost shareholders in some of his major corporate sponsors up to $12 billion (£7.2 billion) according to a study by US economists.
The figure was reached by two economics professors who examined how nine of Woods's sponsors fared on the stock market in the weeks after his mysterious late night car crash outside his Florida mansion on Nov 27.
Travelers in New York walk past Accenture advertisements depicting golfer Tiger Woods
They said the collective market value of the sponsors fell 2.3 per cent as revelations about Woods's private life emerged over the following weeks, with Gatorade and Nike being among the worst hit.
Losses for the sponsors slowed by Dec 11, the day Woods made a public announcement that he would take an "indefinite hiatus" from professional golf. However, by Dec 17, shareholders had still not recouped their losses.
The study, conducted by Professor Victor Stango and Professor Christopher Knittel at the University of California, Davis, concluded that the shareholders had together lost somewhere between $5 billion (£3 billion) and $12 billion (£7.2 billion).
One of the sponsors, consulting firm Accenture, had experienced "no ill effects," according to the study. Accenture distanced itself from Woods on Dec 13, saying he was "no longer the right representative" for the company.
There were a number of caveats to the study, including that many of the sponsors are subsidiaries of larger companies.
However, the professors concluded: "The overall pattern of losses at the parent companies is unlikely to stem from ordinary day-to-day variation in their stock prices.
"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."
Before the scandal it was estimated that, over the
(Excerpt) Read more at telegraph.co.uk ...
Well if he escaped being the SOB of the decade prior to this news ...!
it’s call adultry and TW needs to man up but he can’t cause he is just like obozo!
You can bet that the primary reason for most of these sponsorships was so that senior executives could hang with Tiger and play golf with him.
Government Motors spent millions promoting Tiger rather than Buick long after it was obvious that the relationship wasn’t moving the needle.
Perhaps Buick should consider starting a Last Time Buyers Club to move cars.
TW continued silence is deafening. His privacy is gone he should do talk show apology tours then find ways to reach out to the fans as a new, flawed human.
The media fawns over him like Obama. He also probably cheats like Obama with HGH and steroids while Obama got ahead with AA, Saudi money and sealing all his records - something no other president has ever done.
His “fans” are tards. Bunches of them on the golfwrx message board with golfers fawn over him endless with man crushes. Disturbing and creepy listening to the little sychophants.
The days of huge galleries, millions of dollars and happy contentment are now out of reach for poor Tiger. I doubt he will be able to perform at his craft without the legions of worshippers. He will now be known as the greatest golfer ever, but not the resume’ of the most majors. He never showed much class anyway, cursing like a sailor while families watched. Now we know how filthy his private life is/was too.
yep and I really believe he is a bigger hoax than Madoff because of what I here and see from obozo own mouth! sad, voters got what they ask for, come 2012 we will vote Sarah in and fix the quagmire obozo has done to this great Country!
You wouldn't understand; it's a black thing.
AA?
Nike’s problems are more likely related to the overall economy. It’s also the slow season for Nike - after Football season and basketball purchases having already been made. Business picks up in late winter and early spring.
Two idiot professors from UC Davis try to tie stock market performance to Tiger Wood’s behavior. What a crock.
you right I’m italian ~~Mi stai prendendo in giro?
Affirmative Action for Obama. More like he is a Saudi mole.
This article is total BS. There is no way to calculate it any lose this early and probably won’t be any to the actual businesses.
Tiger will lose tens of millions of endorsements for sure, but no way did business loose 12 Billion off this. utterly stupid !
Las Vegas Confidential
NORM: Source: Tiger built brawn over years
NORM CLARKE
A former local high school athlete wants to offer some perspective on the subject of trainer Keith Kleven's work with Tiger Woods.
Pat Curran, Nevada's Class A player of the year in 2000 and 2001 while rushing for 4,500 yards at The Meadows, said he went to Kleven for 16 years, starting with knee problems at age 10.
During his junior and senior years at The Meadows and the summer before college, he was a regular at Kleven's institute, starting training sessions at 5 a.m. Woods was among the few people there at that hour, he said.
That would indicate Woods' physical transformation "did not happen overnight as your column seems to suggest," Curran said.
Curran was responding to Sunday's column, which included reports that Kleven has come under a cloud of suspicion after performance-enhancing drugs were discovered by authorities in October in a car belonging to a Toronto doctor who faces charges of supplying a substance deemed illegal by the World Anti-Doping Agency.
According to the published reports, that doctor, Tony Galea, supplied Woods this year with "blood spinning," a platelet-rich plasma injection therapy to help him recover faster physically.
Curran, in his e-mail, said that when he was 17 he lifted 300 pounds on the bench, "which I thought was pretty good" until Kleven told him he was "still behind Tiger."
Woods, Curran said, "is probably one of the best-conditioned athletes ever and this is all thanks to his tremendous dedication, and the skill and knowledge of Mr. Kleven.
"Tiger's physique took shape over several years, and it was not 'out of the ordinary' for someone who followed a training regimen designed and supervised by Keith."
He added that Kleven "is one of the premier PTs (physical trainers) and athletic trainers in the world and I can't say enough about just how amazing he and his staff are. I, myself, put on 30 pounds of muscle starting the summer before my junior year at Meadows and leading up to my freshman year of college football."
THE HAUCK CONNECTION
Back in my early sportswriting days during the late 1960s, a friend of mine during my tenure as sports editor of the Billings (Mont.) Gazette was Tom Hauck, an assistant coach at Billings Senior High School.
Tom and his brother, Bob, who became a football coaching legend at nearby Big Timber, came out of Butte, a mining town known for double-tough football teams.
Bobby Hauck, named UNLV's new football coach last week after an 80-17 run at the University of Montana, played for his dad at Big Timber.
As for Tom Hauck, he's been coaching the Grizzlies' defensive tackles for more than a decade.
Another old Montana friend, Scott Wilson, recalls being the team manager for Montana's football team in the early 1980s. His counterpart for the basketball team and then-Montana coach Mike Montgomery was a teenager named Bobby Hauck.
yitbos
Not how much business they lost. How much the shareholders lost when the stock price fell immediately after the scandal went public.
". . . how nine of Woods's sponsors fared on the stock market" [the value of their market capitalization = shares outstanding X share value]
". . . the collective market value of the sponsors fell 2.3 per cent as revelations about Woods's private life emerged over the following weeks"
For instance Nike's capitalization is about $32.25 billion @ today's $66.21/sh. After the Tiger Woods scandal the stock took a $4 hit or about $2 billion. It has since recovered.
yitbos
That’s a freaking stretch to say the stock market fell on Tiger Woods marriage. Sorry, that dog don’t hunt!
No he used HGH and probably ROIDS.
Not the stock market. The nine companies that endorsed Woods.
A little more than coincidence?
yitbos
Yea iNone of the companies are going to be really hurt by this. This article is total trash and stupidity. They’ll move on, Tiger will be the one stuck.
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