Deals & People December 31, 2009

Tampa Recordkeeper Rebrands

Tampa, Florida-based 401k ASP has announced a name change, which the company said will better reflect its expanding product lineup.
Reported by

“We founded this company as an institutional application service provider [ASP],” said Pete Kirtland, president of 401k ASP, in an announcement. “However, because of the increase in the variety of the retirement plans the company services—and our growing market presence—we are rolling all the company’s functions into a single name that more accurately encompasses this diversity—ASPire Financial Services.”

The company will transition to its new name and brand on Friday.

Kirtland noted that the company provides an online platform for many types of retirement plans, including 401(k)s, 403(b)s, 457s, and IRAs, so the names ‘401k ASP and 403b ASP’ “no longer accurately reflect our many capabilities.”

According to the announcement, the company saw a 200% growth in recordkeeping assets in 2009 and more than doubled its staff. 

More information about the firm is available at 401kasp.net.

Diversions December 31, 2009

Tiger Woods Scandal Costs Shareholders Billions

Celebrity affairs can cost more than just a marriage, new research suggests.
Reported by

Since the scandal broke about Tiger Woods’ extramarital affairs, shareholders of Tiger Woods sponsors lost a collective $5 billion to $12 billion, according to research from the University of California, Davis.

The losses are potentially much larger than the damage to Woods’ own income. “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, on the university’s Web site.

Stango and fellow UC Davis economics professor Christopher Knittel looked at stock market returns for the 13 trading days that fell between November 27, the date of the car crash that ignited the scandal, and December 17, a week after the golfer announced his indefinite leave from the sport. The economists compared the returns of Woods’ sponsors to those of both the total stock market and of each sponsor’s closest competitor.

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).

The researchers said they also examined 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 conclusion: The scandal reduced shareholder value in sponsor companies by about $12 billion, or 2.3%.

Accenture was the only stock immune to the scandal. Stocks that fared the worst, with a 4.3% “scandal-generated” drop, were Tiger Woods PGA Tour Golf, Gatorade, and Nike, according to the research.

“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.”

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