Tiger Woods’ sponsors are feeling the brunt of…the economy right now.
According to a study by the University of California at Davis, sticking by Tiger may have cost various companies as much as $12 billion.
Nike, Gatorade and EA Sports were hit the hardest because they decided to back Tiger after the scandal broke. They lost a total of $6 billion.
The professors looked at stock market returns for Tigers’ sponsor companies in the 13 trading days that immediately followed the car accident and ending a week after Tiger announced he would be leaving golf indefinitely.
These companies are likely to be hit harder financially than Tiger, who makes $100 million per year. Accenture escaped any negative financial effects to their company because their profits don’t depend as much on public opinion.
We feel bad for the people who have stock in those companies! No one could have ever anticipated this happening, and being as big of a story as it’s become!