Dec

30

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.


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  1. jcg on December 31, 2009 12:07 pm

    pretty misleading study. five of the eight stocks were up. a $10,000 investment in each of the eight stocks mentioned (ACN, T, ERTS, PG (gillette), NKE, PEP (gatorade), AXP and NWSA (golf digest)) on the day before Thanksgiving has returned approximately
    2.4% compared to 1.05% for the s&p. also, new 52 week highs for nke today.

  2. Nick Pribus on December 31, 2009 1:01 pm

    Seems to me that new athlete endorsement deals will offer lawyers additional income drafting a boilerplate “no fooling around” clause in the foreseeable future. We all forgot about Michael Phelps smoking dope already, but that situation applies as well. Can a lawyer attach a morality clause to a contract, maybe call it the Santa Clause, he knows when you been good or bad so you better be good for goodness sake.

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