I guess they shouldn't have put their eggs all in one basket.Originally Posted by Bloomers;3778685;There are still many people who do not understand how in the world it can be anybody else's business what Tiger Woods does in his private life and off the golf course.
However, I think that the following article explains well how Tiger's actions off the golf course have adversely affected many in a detrimental manner and why they are interested in his personal life.
Woods Scandal Costs Shareholders Billions Updated: 3 hours 13 minutes ago
(Dec. 28) -- Infidelity has its price. Just ask shareholders of Nike, Pepsi and EA Sports, three of Tiger Woods' biggest corporate benefactors.
According to a new study by economists at the University of California Davis, the Woods scandal has cost those who own stock in the golfer's chief sponsors an estimated $12 billion.
The study, conducted by economics professors Christopher R. Knittel and Victor Stango, charted the stock performance of the top eight companies sponsoring Tiger Woods in the wake of the revelations stemming from his late-night car wreck.
"This is what is called an event study," Knittel said. "We looked at the stock prices of these companies relative to the market as a whole and tracked them accordingly."
Nike, one of Tiger Woods' biggest sponsors, has lost an estimated $1.3 billion in stock value since the car accident that lead to revelations of the golfer's infidelity.
According to Knittel and Stango's tally, Accenture, Gillette and Gatorade lost 2 percent to 3 percent of their aggregate market value since Woods' alleged serial adultery surfaced. Pepsi, Nike and EA Sports have lost over 4 percent.
For Nike alone, "that means roughly $1.3 billion in losses," Knittel said.