Tiger Woods may be going through his own personal pain now, but the sponsors who back the athlete of the decade are feeling some of their own pain — $12 billion worth of pain, to be exact.
]]>According to a study cited on “Good Morning America” Wednesday (Dec. 30), the sex scandal may have cost shareholders of companies endorsed by the world’s No. 1 golfer anywhere from $5-$12 billion in losses.
The study, released on Monday by economics professors Victor Stango and Christopher Knittel from the University of California, said that millions of shareholders were affected.
“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,” Stango said in a statement released along with the study.
Knittel and Stango concluded that the scandal reduced shareholder value in the sponsor companies by 2.3 percent.
“Our findings speak to a larger question of general interest in the business and academic communities: Does celebrity sponsorship have any impact on a firm’s bottom line?” Stango and Knittel said.
What do you think? Are you personally turning away from Tiger-endorsed brands over this scandal?
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