Monday, January 4, 2010

Tiger Woods and EA Sports dire relationship

In a study released today by two UC Davis Economic Professors, Christopher R. Knittel and Victor Stango, detail the 5 to 15 billion loss Tiger Wood's sponsors suffered ten days after the now infamous November 27th incident. The report can be found here in PDF form. I have included a graph from the linked report below.

The 10 day cumulative decline by the sport related sponsors of EA, Gatorade and Nike saw a 4.3% decline or a 5.71 billion loss. Much money loss for all those "transgressions" and will shareholders continue to support any future endorsements that involve Tiger Woods? Evidently, there is a downside to a sponsors' celebrity spoke person in the video game industry. Will EA Sports continue to have Tiger Woods as a spoke person, or drop the golfer, and use a rotating cast of PGA members, as they do with their FIFA, Madden and their other sports series?

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