He's Grrrrreat!
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Shareholders of Nike, Gatorade and other Tiger Woods sponsors lost a collective $5 to $12 billion in the wake of the scandal involving his extramarital affairs, according to a new study by researchers at the University of California, Davis. The losses are separate from – and potentially much larger than – damage to Woods’ own earnings. “Total shareholder losses may exceed several decades’ worth of Tiger Woods’ personal endorsement income,” said Victor Stango, a professor of economics at the UC Davis Graduate School of Management and co-author of the study. With fellow UC Davis economics professor Christopher Knittel, Stango looked at stock market returns for the 13 trading days that fell between Nov. 27, the date of the car crash that ignited the Woods’ scandal, and Dec. 17, a week after the golf great announced his indefinite leave from the sport.
UC Davis News & Information :: Tiger Woods Scandal Cost Shareholders up to $12 Billion
Financial impact for golf felt all around with Tiger Woods gone
By Michael McCarthy, USA TODAY Tiger Woods' self-imposed exile could cost him millions in endorsement dollars and winnings. But the loss of golf's biggest cash cow also could deliver a financial whammy to the PGA Tour, TV networks, corporate sponsors and other entities that rely on the world's No. 1 player to drive their business.
Tiger Woods to Wife, Kids: "I Am Deeply Sorry"
Breaking his silence for the first time since his November sex scandal erupted, Tiger Woods stood alone as he apologized to his wife Elin and supporters for having multiple affairs. "Every one of you has good reason to be critical of me," he began. "I want to say to each of you simply and directly that I am deeply sorry for my irresponsible and selfish behavior I engaged in. "I know people want to find out how I can be so selfish and so foolish. People want to know how I could have done the things to my wife Elin and my children.
Sponsors hit hard after Tiger scandal
Two economists from UC Davis have analyzed stock market returns following Tiger Woods’ car accident on Nov. 27 and subsequent announcement that he was indefinitely leaving golf. Their findings suggest the scandal reduced shareholder value in the golfer’s sponsor companies by 2.3 percent, or about $12 billion. (Credit: Paddy Briggs/2005)Tiger Woods' affair resulted in a well-publicized car crash the day before Thanksgiving 2009. How did this impact the economy? According to research by two economics professors , it cost Tiger Woods' corporate sponsors $12 billion in lost stock value. Between November 25 and December 13, companies such as Gatorade, Nike and Electronic Arts stock prices fell 2.3%, costing shareholders $12 billion.
tiger Woods affair economic impact - what is the impact of tiger woods affair on the economy
In what may be the nerdiest ripple effect from last year's scandal , Tiger Woods has been excised from the latest edition of Greg Mankiw's popular econ textbook, Principles of Economics . Mankiw, a Harvard professor, used Woods to explain comparative advantage: It makes economic sense for Woods to pay the kid next door to mow the lawn, even if Woods can mow the lawn a lot faster than the kid. The new edition replaces woods with Tom Brady .
Tiger Woods Booted From Econ Textbook : Planet Money
industry experts optimistic that Tiger Woods's absence will have limited economic impact
There have been a lot of gloomy predictions about the impact the Tiger Woods scandal, and his self-imposed hiatus, might have on America's annual $75 billion golf economy. Many industry experts say that fears are overblown, however, and they are optimistic that whatever impact is felt will be short-lived. His absence will be felt most by broadcasters.
Sports Law Blog
The Impact of Tiger Woods Scandal on Morals Clauses in Endorsement Contracts John Gibeaut of the American Bar Association Journal examines how the scandal involving Tiger Woods and infidelity will impact the use and enforcement of morals clauses in endorsement contracts . Below are excerpts from his piece, which includes comments from Peter Carfagna , Brian Socolow , and me, as well as from Porcher Taylor III and Fernando Pinguelo , both of whom recently authored the excellent article The Reverse-Morals Clause: The Unique Way to Save Talent's Reputation and Money in a New Era of Corporate Crimes and Scandals, Cardozo School of Law's Arts & Entertainment Law Journal (2010).Tiger Woods is not the only one who blew big bucks with his image-busting cheating spree.
