Woods scandal cost to sponsor shareholders? $5-$12Bn (SB, CNBC, TW, UCD)

By Nancy Tartaglione

A study conducted by two University of California Davis professors has found that Tiger Woods' so-called "transgressions" have resulted in a collective loss of $5-$12 billion to his corporate sponsors' shareholders.

In their study, entitled "Shareholder Value Destruction following the Tiger Woods Scandal," economists Victor Stango and Christopher Knittel looked at the stock performances of eight current and former Woods sponsors from Nov. 30-Dec. 17 and compared them with ordinary market fluctuations and their competitors.

Knittel said shareholders of three companies – Nike, Pepsi and Electronic Arts – have suffered the most, losing a combined $5 billion.

There didn't seem to be any difference in stock performance if the company fired Woods, Stango said. The golf star has lost some endorsement deals like Accenture, but companies such as Nike have stayed with him.

Related Links

UCD profs put $12 billion price tag on Woods scandal (SB)
Tiger Woods Scandal Cost Shareholders up to $12 Billion, UC Davis Study Says (CNBC)
Tiger's 'Transgressions' Could Cost $14B (TW)
Shareholder Value Destruction following the Tiger Woods Scandal (UCD)