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Written by The Mezzanine Group
on March 18, 2010

It’s a good thing that Tiger is coming back to golf, because he’s got some ground to make up for. Recent articles have pointed out the following stats:

  • $12 Billion USD: The decline in the market value of the companies who stuck with Woods in the 13 trading days following his accident.
  • $6 Billion USD: Share value lost by Nike, Pepsi and Gatorade alone in the 10 days following the accident.
  • $100 million USD: Tiger's annual endorsement income.
  • Total shareholder losses may exceed several decades' worth of Tiger Woods' personal endorsement income according to Victor Stango, a professor of economics at the University of California, Davis. (Source)

With stats like that, companies will never base their marketing campaigns on a single athlete ever again.

But it isn’t really a fair analysis. If you look at the stock prices of the Tiger sponsors the week before the ‘incident’, you get this:

Accenture:
Nov 20: 39.70
Nov 27: 39.55
Dec 16: 41.84
Mar 17: 42.88

Nike:
Nov 20: 63.64
Nov 27: 65.05
Dec 16: 64.05 (Earnings released 12/17; profit falls by 4%; anticipation of lower-than-expected earnings was justified.)
Mar 17: 70.57

Pepsi:
Nov 20: 61.67
Nov 27: 63.06
Dec 16: 60.68 (On 12/7, Pepsi spiked to 64.23. The day after, they changed their guidance on 2010 profit margins, which made the stock tank. This had nothing to do with Tiger.)
Mar 17: 66.32

So you see that the Tiger debacle hasn’t actually caused real pain to their stock prices. But the perception of what Tiger’s affairs did to their values – that’s where the pain is. And that’s what Tiger is going to have to make up for in the coming months and years.

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