Its Tiger impact on Sponsors too!
If the list of his mistress's coming out in public were not enough, the commercial aspect of Wood's finances would certainly make him more responsible with his image.
The recent controversy with all the women on one side has jeopardize his social image while on the other it is his commercial losses that are adding fuel to fire as leading brands endorsing the player are slowly but gradually taking their hands off the big boy.
It seems that Tiger's chase with women not only has impacted him loose quite a bit of his money, but also the brands endorsing the golfer have to suffer because of this sudden slump of limelight in his career.
According to Sydney Morning Herald, a couple of American professors have pointed out a loss of $US12 billion the shareholders would have to face because of scandals.
If at all words from Victor Stango, professor of economics has to be taken into consideration, it is very much evident that celebrity sponsorship does have an impact on a firm's bottom line. He quoted to an Australian newspaper, "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."
A study was conducted by the UCD economists to compare returns for Woods' sponsors to those of the total stock market and of each sponsor's closest competitor. It was concluded that out of the nine sponsors i.e. Accenture, American Express, AT&T, Tiger Woods PGA Tour Golf (Electronic Arts), Gillette, Nike, Gatorade, TLC Laser Eye Centers and Golf Digest, the pattern of losses is unlikely to stem from ordinary variation of stock prices. The shareholder value incidentally dropped by 2.3 per cent or about $US12 billion.
Reports from another Australian newspaper confirmed that the investors in three sports related companies fared a loss of around 4.3 per cent or almost half of the total losses suffered. These are Tiger Woods PGA Tour Golf, Gatorade and Nike.