Wednesday, July 5, 2000
Woods looks like the first billion dollar athlete
By Ed Sherman
Chicago Tribune
(KRT)
CHICAGO — The subject was money and golf, and Gary Player's
eyes were spinning.
“When Arnold Palmer and I started playing, the purse for
the entire tour wasn't even $1 million for the year,” Player
said. “Now the seniors play for $1.2 million a week.”
Then the subject turned to Tiger Woods and money, and Player's
eyes almost popped out of his head.
“You know what?” said Player, his South African-accented
voice rising. “Tiger Woods is going to be the first billion-dollar
athlete. A billion dollars, man. For a golfer.”
Player paused to contemplate the thought.
“I never thought I'd see that in my lifetime,” Player
said. “The sponsors are paying it, so he must be worth it.”
Money earns money on all fronts for Woods. Chicago fans will get
a chance to see the heir apparent to Michael Jordan's marketing
machine when Woods defends his title at the Advil Western Open
beginning Thursday at Cog Hill in Lemont.
Fresh off his 15-shot victory in the U.S. Open, Woods is firmly
in place as the nation's top sports icon in the post-Jordan era.
To the victors go the spoils.
“Michael Jordan opened the door,” said Bob Williams
of the sports marketing firm Burns Sports Service. “And Tiger
is going to knock it down.”
Indeed, the riches accumulated by Jordan are likely to look like
pocket change by the time Woods is done. Given his youth and earning
power, Woods would seem to be a virtual lock to build a billion-dollar
bank account.
At 24, Woods will earn in the neighborhood of $60 million this
year. According to Burns Sports Service, an estimated $41.5 million
will come from endorsement deals with 11 sponsors. Another $15
million to $18 million will come from his earnings on the PGA
Tour, and from tournaments overseas, where he commands $1 million
appearance fees for just showing up.
And that's just the start. Woods' representatives are renegotiating
his five-year, $40 million deal with Nike, which is set to expire
next year. With Woods switching to the Nike Tour Accuracy ball,
the new pact could be staggering. Estimates range from a $15 million
annual base, plus a percentage of the profits, which could make
it as much as $25 million.
With other deals expiring and Woods' star on the rise, he should
be earning more than $100 million a year in no time. Do the math,
and it won't before long before he becomes the first athlete with
a portfolio in 10 figures.
“The easy answer is that if anybody can, it's Tiger,”
said Woods' agent, Mark Steinberg.
Nike seems poised to help him get there. When the company first
signed Woods to his megabucks deal before he took a swing as a
pro, critics howled that Nike had overpaid. Now it looks like
a bargain.
Since Woods won the Memorial and the Open with the new ball, Nike
estimates sales have gone up 50 to 75 percent, with greater increases
expected.
“Nike deals with more athletes than any company in the world,”
said Mike Kelly, vice president of marketing for Nike Golf. “(Nike
chairman) Phil Knight knew he had something special. When Michael
Jordan became popular, he transcended his sport. Tiger Woods is
starting to transcend golf.”
NBC did record numbers for the Open even though Woods took all
of the drama out of the event. Research shows casual fans, who
wouldn't know a birdie from a bird, tuned in to see the Woods
phenomenon.
“People wanted to see what else he might do,” said David
Blum, vice president of strategic planning for Eisner Communications.
“They're interested in the story. It goes far beyond the
regular golfers. It goes into the mainstream.”
Indeed, Woods' attraction is more remarkable when you take into
account that golf barely shows up on the radar screen for major
sports in this country. At least Jordan played a sport that is
considered to be one of the big four.
“Tiger's the hot commodity of the day,” Williams said.
“Advertisers needed the next Jordan. People think he's the
next Jordan.”
Woods' worldwide appeal makes him even more marketable. Kelly
notes that Woods is more popular in Asia than he is in the United
States, thanks to mother Tida's Thai heritage.
Woods is plenty popular here. The Western hopes to attract record
crowds, and most of those fans will come out to watch one golfer
in a field of 156.
“He made some mistakes early in his career,” Blum said.
“He came off as being arrogant. It didn't matter. He seems
to be immune. He performs. People never get sick of somebody who
comes through.”
For his part, Woods continues to maintain that winning, not money,
is his motivation. Woods' father, Earl, told Golfweek earlier
this year that his son's current portfolio is worth in excess
of $150 million.
Woods, though, is said to be tight with his money. He indulges
in luxuries such as private planes, a fleet of cars and the building
of a new $8 million home in Orlando. But most of the money, Earl
says, goes into investments.
The money will keep coming. The upside is that Woods' career is
still in its early stages. And Player noted that when Woods hits
36, he probably won't be retiring like Jordan did.
“Those should be his prime years as a golfer,” Player
said.
If that's the case, and Woods gets even better, the $1 billion
mark will seem like a speed bump.
The notion of a golfer doing it almost is too much for Player
to comprehend.
Player's lament: “I only wish it had happened to me.”
(c) 2000, Chicago Tribune.
Visit the Chicago Tribune on the Internet at http://www.chicago.tribune.com/
Distributed by Knight Ridder/Tribune Information Services.
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