A study released yesterday, December 28th, by the University of California, Davis, estimates that Tiger Woods’ “transgressions” cost shareholders of companies billions in lost wealth.
The study, entitled “Shareholder Value Destruction following the Tiger Woods Scandal“, undertaken by two professors of the University, projects that shareholders in Woods’ top sponsors namely, Accenture, Nike, Gillette, Electronic Arts and Gatorade lost between $5 billion to $12 billion. Furthermore, it concludes that sports-related sponsors such as EA, Nike and PepsiCo (Gatorade) lost more than four percent of their aggregate market value after Woods’ car accident, as compared with non-sports-related sponsors where losses are estimated to be between 2-3 percent. The study also notes that these losses are distinct from any personal losses sustained by Tiger Woods in the form of lower endorsement income and future endorsement income.
