So, it isn't bad enough that Tiger Woods ruined his marriage and soiled his squeaky-clean reputation. Apparently he cost his corporate sponsors $12 billion in stock value as well. According to a study conducted by UC Davis economics professors Victor Stango and Christopher Knittel, Tiger lost his sponsors a "collective $5 to $12 billion." This loss outpaces "several decades' worth of Tiger Woods' personal endorsement income."
The study examined the stock market returns during the 13 trading days after Tiger's car crash, a period concluding a week after Tiger's announcement of an indefinite leave of absent. The two economics professors then compared the returns for Tiger's sponsors during this 13-day period to those of the total stock market and each of the companies' closest competitor. Returns for the four years prior to the car accident were also taken into account in order to establish the stocks' historic performance.
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When the 2006 season began, football player Michael Vick had it all. The #1 pick in the National Football League's 2001 draft, he had become an all-pro as quarterback for the Atlanta Falcons. Vick's endorsement income from contracts from Nike, EA Sports, Coca-Cola and other top corporations had earned him 33rd place on Forbes' list of Top 100 Celebrities in 2005.
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