HOME  |   STATS  |   PUBLICATIONS  | REGISTER  | ADVERTISE   CONTACT US  |  SEARCH  


 ORDER THE WORKBOOK!

 
Weren't able to attend the 2009 Marketing to African-Americans with Excellence (MAAX) Summit? Order the workbook which contains hard copies of the presentations made by some of the nation's top experts on Black consumer marketing, including:

Arbitron
Burrell Communications
Carol H. Williams Agency
FUSE Advertising
GlobalHue
Hunter-Miller Group
MEE Productions
Media Economics Group
Nia Enterprises
OwensMorris
 Communications
Salon Sense Magazine Sanders\Wingo
Target Market News
The MasterMind Group
The Media Audit
The Nielsen Company
U.S. Census Bureau
UniWorld Group
...and more


Click here to order
_________________


 Departments        
Advertising & PR News
Marketing News
TV & Cable News
Radio News
Magazine News
Newspaper News
Internet News

Retailing News
Consumer Research

Expenditure Data
People in the News
Industry News
Company Bios and
  Background


 Register Here       
STAY IN-THE-KNOW!
Are you getting the latest industry news when it happens via e-mail
?



Click here for free delivery of the Target Market News Bulletin
You'll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media

 Black Stats          
Frequently requested data on African American consumers

Black Buying Power:
  $744 Billion (2006)

Black U.S. Population:
  38.3 million

Top Five Black Cities
  - New York
  - Chicago
  - Detroit
  - Philadelphia
  - Houston

Top Five Black Metros:
  - New York-New Jersey
  - Washington-Baltimore
  - Chicago-Gary
  - Los Angeles
  - Philadelphia

Top Five Expenditures:
 - Housing $121.6 bil.
 - Food $59.2 bil.
 - Cars/Trucks $32.1 bil.
 - Clothing $27.7 bil.
 - Health Care $17.8 bil.

Click here for more stats from "The Buying Power of Black America."
______________________
Get quick access to key
U.S. Census 
Bureau Data

Click here to go to African-American Census Bureau data

_____________________


Copyright
(c) 2009 by
Target Market News Inc.

All rights reserved
Business address:
228 S. Wabash Ave.
Suite 210
Chicago, IL 60604
t.  312-408-1881 
info@targetmarketnews.com
 

Study: Tiger Woods scandal may have cost sponsors' stockholders $12 billion

(December 28, 2009) Shareholders of Nike, Gatorade and other Tiger Woods sponsors lost a collective $5 to $12 billion in the wake of the scandal involving his extramarital affairs, according to a new study by researchers at the University of California, Davis.

The losses are separate from - and potentially much larger than - damage to Woods' own earnings.

"Total shareholder losses may exceed several decades' worth of Tiger Woods' personal endorsement income," said Victor Stango, a professor of economics at the UC Davis Graduate School of Management and co-author of the study.

With fellow UC Davis economics professor Christopher Knittel, Stango looked at stock market returns for the 13 trading days that fell between Nov. 27, the date of the car crash that ignited the Woods' scandal, and Dec. 17, a week after the golf great announced his indefinite leave from the sport.

To assess shareholder losses, the economists compared returns for Woods' sponsors during this period to those of both the total stock market and of each sponsor's closest competitor.

Knittel and Stango also reviewed returns for four years before the car accident to determine how each sponsor's market performance normally correlates with that of the total market and of competitor firms.

The study looked at eight sponsors for which stock prices are available: Accenture; AT&T; Tiger Woods PGA Tour Golf (Electronic Arts); Gillette (Proctor and Gamble); Nike; Gatorade (PepsiCo); TLC Laser Eye Centers; and Golf Digest (Conde Nast).

Overall, Knittel and Stango concluded that the scandal reduced shareholder value in the sponsor companies by 2.3 percent, or about $12 billion.

"(This) pattern of losses is unlikely to stem from ordinary day-to-day variation in their stock prices," the researchers wrote.

Investors in the three sports-related companies (Tiger Woods PGA Tour Golf, Gatorade, and Nike) fared the worst, the study found. They experienced a 4.3-percent scandal-generated drop in stock value, equivalent to about $6 billion.

On the other hand, Accenture, a global management consulting firm, experienced no ill effects following the accident.

"Economic theory would predict this," Knittel said. "For Tiger Woods, having a firm like Accenture as a sponsor probably does not enhance the overall value of the Tiger brand very much, giving Woods a lot of bargaining power when negotiating that deal. If the company therefore ends up paying Woods something close to its extra profit from his endorsement, it isn't much worse off without him than with him.

"However, Nike and other premier sports-related sponsors are special for an athlete like Tiger Woods. They are themselves powerful brands that add value to Tiger's brand and create other financial opportunities for him. This gives a premier sports sponsor the bargaining power to capture some of the profits generated by an endorsement deal with Woods - so that if the Tiger brand is tarnished, those profits may decline. Our study measures that decline."

The pace of losses had slowed by Dec. 11, the day Woods announced his leave from golf, Knittel and Stango found. But as late as Dec. 17, shareholder had yet to reverse their losses.

"Our findings speak to a larger question of general interest in the business and academic communities: Does celebrity sponsorship have any impact on a firm's bottom line?" Stango said.

"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."

Before the scandal, Woods earned about $100 million a year in endorsement income, more than any other athlete.

The UC Davis study is available online at: http://faculty.gsm.ucdavis.edu/~vstango

Go to Target Market News homepage


RECENT STORIES

Percy Sutton, trailblazer in New York politics, media and business, dies at 89

Black Cable TV Ratings for Week of Dec. 14 - 20 NBA, NFL capture viewers' interests in run-up to Christmas holiday

American Legacy Magazine looking for another investor relationship

Black TV Ratings for Week of December 14 - 20 TV viewing among black households cuts back as holidays approach

Black Broadcasting Network launches nationally on Verizon FiOS TV VOD

Ford names 'Taurus Top Ten' of those who make a difference

SBA data show Black, Hispanic businesses shut out of stimulus loans

Debbie Allen, Magic Johnson, headline Showplace Television's Fall 2010 lineup

Black Cable TV Ratings for Week of Dec. 7 - 13 Jacksons special, Heisman presentation gave usual cable favorites competition

Dale Wright, pioneering journalist, former Johnson Publishing Co. editor, dies at 86

 







_________________________________________________________________________________________