Is Tiger Woods Running Out of Money? This just the title of an article that quickly drew my attention. How could this be? It is for real or issue? After making some surfing, here’s just the story ..
-Wife ‘used golf club’ after Tiger Woods car crash (Saturday, 28 November 2009)
World number one golfer Tiger Woods has been released from hospital after receiving treatment following a car accident in Florida on Friday. Woods’s car reportedly hit a fire hydrant and tree as he left his drive at 0225 local time (0725 GMT).
Chief Daniel Saylor of the Windermere Police Department says the golfer’s wife removed Woods from the car after breaking into the rear window with a golf club.
- Tiger Woods admits ‘I have let my family down’ (Wednesday, 2 December 2009)
Golf star Tiger Woods has apologised to his family, amid continuing speculation about his private life following a car crash last week. ”I have let my family down and I regret those transgressions with all of my heart,” he said in a statement, without elaborating further.
“I have not been true to my values and the behaviour my family deserves.”
Woods was found bleeding and semi-conscious after his car hit a tree and fire hydrant outside his Florida home. He was charged with careless driving, which carries a $164 (£98) fine and four points on his driving record.
The 14-time major champion has been married to his Swedish wife Elin for five years and has two young children.
He denied rumours that physical violence played any role in the incident, saying they were “utterly false and malicious”. In his statement, he also said: “Personal sins should not require press releases and problems within a family shouldn’t have to mean public confessions. ”I will strive to be a better person and the husband and father that my family deserves.”
His statement follows a story in aUSgossip magazine in which aLos Angelescocktail waitress claims to have had a 31-month affair with Woods.
Us Weekly magazine posted online an audio clip of what was purported to be Tiger Woods begging the 24-year-old woman to take her name off her voicemail greeting in order to hide their affair. The caller’s identity has not been verified.
In his statement, Woods also appealed for privacy for his family. ”Although I am a well-known person and have made my career as a professional athlete, I have been dismayed to realise the full extent of what tabloid scrutiny really means,” he said in the statement. ”I am dealing with my behaviour and personal failings behind closed doors with my family. Those feelings should be shared by us alone.” The golfer also offered a “profound apology” to his supporters.
Woods has become an international sporting icon since winning his first major in 1997 at the age of 21.
The 33-year-old American, who is just four short of equalling Jack Nicklaus’s record of 18 major victories, is regarded as one of the world’s all-time great golfers. He has been fiercely protective of his personal life, and his clean-cut image has helped him amass a fortune through product endorsements and appearance fees.
- Will sponsors back tarnished Tiger Woods? ( Thursday, 3 December 2009)
Tiger Woods’ extraordinary golfing prowess has made him the wealthiest sportsman in the world – but behind every great sportsman these days, there is always an array of big businesses.
Nike has been Woods’ biggest sponsor since the start of his career, signing its first contract with him as long ago as 1996. Since then, other major companies have added their endorsements, including the Gatorade drinks brand and Gillette razors.
In fact, despite being the world’s number one golfer, Woods makes far more money off the green than on it. Last year, he earned $23m (£13.8m) from golf tournaments – a figure dwarfed by the more than $100m that his various sponsorship deals brought in. So with his previously impeccable image now somewhat tarnished, amid continuing speculation about his private life following last week’s car crash, his income is hugely dependent on how those sponsors are likely to react.
In the long term, it is unclear whether the 33-year-old star’s apology to his family for his “transgressions” will restore his clean-cut reputation or simply add to the perception of guilt. But so far, the picture is mixed. Nike, Pepsico, TLC Vision and Electronic Arts all issued statements on Wednesday to the effect that their relationship with Woods was unchanged. On Monday, Gatorade wished Woods well as he recovers from his injuries and said: “Our partnership with Tiger continues.”Jet plane rental firm Netjets, a subsidiary of billionaire Warren Buffet’s Berkshire Hathaway investment firm, went further, saying: “Tiger Woods is one of the premiere athletes in the world and we are proud to have him involved with Netjets.”
Others sound less committed. Gillette says its marketing strategy is unchanged, but has left open what might happen in the future. More ominously, however, several other sponsors have yet to pronounce at all on the matter. This week, companies such as watchmaker Tag Heuer and IT firm Accenture have continued to run advertising campaigns in theUSmedia featuring Woods.
But they, and other big backers including telecoms giant AT&T, have so far been “unavailable for comment” on whether he still enjoys their full confidence.
- Tiger Woods takes break from golf (Saturday, 12 December 2009)
Tiger Woods is taking an indefinite break from professional golf to tackle problems in his private life. In a statement on his website, he said he was aware of the disappointment “my infidelity” had caused to his family. The world’s top golfer said he wanted to “try to repair the damage done” and asked for privacy.
Woods’ biggest sponsor, Nike, said it would continue to stand by him, but his agent said it was too early to discuss the impact on any other business deals.
On his website, Woods said he was “profoundly sorry” and asked for forgiveness. ”What’s most important now is that my family has the time, privacy, and safe haven we will need for personal healing.”I would like to ask everyone, including my fans, the good people at my foundation, business partners, the PGA Tour, and my fellow competitors, for their understanding,” the 33-year-old said. ”After much soul searching, I have decided to take an indefinite break from professional golf. I need to focus my attention on being a better husband, father, and person.”
In a separate statement, he also indicated he would be taking some time off from his responsibilities with the Tiger Woods Foundation – a charity he set up with his late father to help young people. He said he knew his staff would continue efforts to maintain the foundation’s work during his “absence”.
In a statement, Nike said: “Tiger has been part of Nike for more than a decade.”Woods has been married to his wife, Elin, for five years and they have a two-year-old daughter and 10-month-old son. ”He is the best golfer in the world and one of the greatest athletes of his era. We look forward to his return to golf.” ”He and his family have Nike’s full support.”
Woods’ agent, Mark Steinberg, also voiced his support for the golfer’s decision but said it was “premature” to discuss particular business deals. ”Suffice it to say, we have had thoughtful conversations and his sponsors have been open to a solution-oriented dialogue,” he said. ”Of course, each sponsor has unique considerations and ultimately the decisions they make we would fully understand and accept.”
In a statement the Professional Golfers Association (PGA) Tour said it supported the golfer’s decision. Tour commissioner Tim Finchem said the celebrity’s “priorities are where they need to be”.
In London, Woods’ lawyers obtained an injunction on Friday preventing certain information purportedly about him being published.”We look forward to Tiger’s return to the PGA Tour when he determines the time is right for him,” he added. It was granted by a judge at the High Court, and concerns alleged information which cannot be disclosed for legal reasons.
Last week, Woods apologised to his family for “transgressions”. Speculation about his private life has been intense since he was involved in a car crash outside hisFloridahome two weeks ago. Newspaper allegations followed about extra-marital affairs.
Woods has not been seen in public since the accident, in which his car hit a tree and fire hydrant. The golfer, who was found bleeding and semi-conscious, was later charged with careless driving, which carries a $164 (£98) fine and four points on his driving record.
Woods has become an international sporting icon since winning his first major in 1997 at the age of 21. He is just four short of equalling Jack Nicklaus’s record of 18 major victories and is regarded as one of the world’s all-time great golfers.
- Tiger Woods breaks silence with apology (Friday, 19 February 2010)
Golfer Tiger Woods has made several heartfelt apologies in his first public appearance since revelations surfaced about his private life. He took an indefinite break from the sport last year after admitting being unfaithful to his wife.
- Tiger Woods: Celebrity under pressure (Friday, 19 February 2010)
Tiger Woods is arguably the best-known sportsman of his generation and, before he announced he was taking a break from the sport amid claims about his private life, he was on his way to becoming the most successful golfer of all time.
The 34-year-old American has won 14 major titles and is just four short of equalling Jack Nicklaus’s record of 18 major victories.
As the most successful black player in a traditionally white sport, Mr Woods has been credited with boosting interest in the game, raising TV audiences, and bringing greater wealth to the sport in prize money and sponsorship.
He was born on 30 December 1975 inCypress,California, the son of retired US Army lieutenant colonel Earl Woods and his Thai-born wife Kultida.
A golf prodigy, he featured on TV putting against Bob Hope aged two, and shot 48 for nine holes aged three.Originally named “Eldrick” he was nicknamed “Tiger” after a Vietnamese soldier friend of his father. After a glittering amateur career, he turned pro in 1996 and backed up his Masters win with victory in the USPGA Championship in 1999. In 1996, he and his father set up the Tiger Woods Foundation which is dedicated to helping disadvantaged children.
He won his first major – the Masters – in 1997 by a record 12 strokes, becoming the prestigious tournament’s youngest winner in history at 21 years three months and 15 days. Later that year he became world number one – briefly – for the first time and he would later go on to hold the top spot for all 52 weeks of a year a record eight times.
He has now been world number one since 12 June 2005, and through endorsements and appearance fees earns an estimated $100m (£62.5m) a year. In September 2009, Forbes Magazine declared him to be the first athlete in history to earn $1bn in the course of his sporting career.
In 2000, he won the US Open title, by a record 15 strokes atPebbleBeach, and the Open Championship atSt Andrews. He clinched the 2001 Masters to hold all four major titles at the same time, a feat dubbed the “Tiger Slam”.In doing so he became only the fifth player – the youngest – to complete a career Grand Slam of all major titles.
In 2002 he remodelled his swing, prompting claims of a slump when he did not win a major title until the 2005 Masters, his fourth victory atAugusta. In 2006, he missed the first cut in 38 majors as a professional at the US Open at Winged Foot following a nine-week lay-off after the death of his father. He went on to clinch the Open Championship at Hoylake and, amid emotional scenes, broke down in tears as he dedicated the win to his father. In April 2008 he underwent a third operation on a troublesome left knee. But the absence of this sporting legend resulted inUStelevision ratings dropping by 50%. He returned to win the US Open at Torrey Pines after a 18-hole play-off, despite being crippled by knee pain.
In 2005, Mr Woods married Swedish girlfriend Elin Nordegren, who he met during the 2001 Open Championship. In 2006 she gave birth to the couple’s first child, daughter Sam Alexis, and in February 2009 their second child Charlie Axel was born.
However, speculation about Tiger Woods’s private life has been intense since he was involved in a car crash outside hisFloridahome in November.
He broke a long silence on 19 February to apologise for cheating on his wife.Newspaper allegations followed about extra-marital affairs.
“I was unfaithful, I had affairs and I cheated. What I did was unacceptable,” he said in a statement televised live around the world.
He said he was undergoing therapy and that he would return to gold, but could not say when.
The golfer, who was found bleeding and semi-conscious, after hitting a tree and a fire hydrant, was later charged with careless driving.
He pulled out of the Chevron World Challenge, a tournament he had hosted for the past nine years.
Many of Mr Woods’s numerous sponsors – including Nike, Gillette, Tag Heuer and NetJets have stood by him. But Accenture and AT&T dropped him as a spokesman and soft drink brand Gatorade axed a drink endorsed by the sports star. Gatorade said it was not related to revelations about the golfer’s private life.
- Tiger Woods and wife Elin Nordegren are divorced (23 August 2010 )
Tiger Woods and his wife Elin Nordegren have divorced, the couple said in a statement posted on the world number one golfer’s website.
“We are sad that our marriage is over and we wish each other the very best for the future,” the couple said. They said they planned to “share parenting” of their two children.
News of the split comes nine months after a car crash outside Mr Woods’ Florida home set off revelations that he had been unfaithful to Ms Nordegren.
Details of the financial settlement have not been disclosed, but US media reports suggest the former Mrs Woods will receive over $100m (£64.4m).
The divorce was finalised inFloridaby Bay County Circuit Judge Judy Pittman Biebel in what was described as a brief hearing in which both Mr Woods and Ms Nordegren were present.
In November 2009 Mr Woods, the world’s wealthiest athlete, was involved in a single-vehicle accident outside hisFloridahome. Soon after, several women came forward and claimed they had had affairs with Mr Woods.
Mr Woods, 34 subsequently lost several major sponsors, including AT&T and Gatorade. In February he publicly apologised and admitted that he had been unfaithful to Ms Nordegren, a former model.
In a statement released by their lawyers on Monday, the pair asked for privacy “as we adjust to a new family situation”.
“While we are no longer married, we are the parents of two wonderful children and their happiness has been, and will always be, of paramount importance to both of us,” the joint statement said.
“Once we came to the decision that our marriage was at an end, the primary focus of our amicable discussions has been to ensure their future well-being. The weeks and months ahead will not be easy for them.”
- Is Tiger Woods Running Out of Money? (Friday, 15 July 2011)
With only a few endorsement deals left, a recent divorce settlement, a hefty house mortgage, and even a pay cut from Nike, Tiger Woods’ lifestyle is looking a lot less glamorous.
When news broke a few weeks ago that Tiger Woods had signed an endorsement deal to hawk a heat rub inJapan, it was hard not to think of “Lost in Translation,” or of the “Entourage” episode when Vincent Chase goes toChinato do an energy drink commercial because he’s out of money.
Although Woods was likely paid in the single-digit millions for the spot — in which he takes a swing, rubs his back, and says, “Go Vantelin!” — it’s a far cry from campaigns for PepsiCo (NYSE: PEP -News), Gillette, and Accenture (NYSE: ACN -News). The last time Woods showed up in Japanese TV ads was in 1997, when he promoted Asahi Wonda coffee, back before he became a phenomenon. So the deal with Kowa (maker of the rub) seems more like a moment of desperation than a return to form.
It’s no secret that Woods, once king of the sports world, has suffered financially since his fall from grace. His endorsement list shrank and his marriage ended in a divorce settlement reportedly worth $100 million. But now he may actually be hurting for funds. At the very least, there are signs that he isn’t generating enough to comfortably cover his costs.
Earlier this week, the golfer’s agent, Mark Steinberg, announced he would be joining the agency Excel Sports. Although that means Excel gets Woods too, the icon was conspicuously absent from the announcement. Steinberg left IMG at the end of May. It took two weeks, but on June 7, Woods announced via Twitter that he would be leaving with Steinberg.
IMG declined to comment on the details of Steinberg’s departure, or on Tiger Woods, but a trusted Fortune source with reliable information tells us that IMG was none too broken up about losing Woods, because his endorsement earnings have fallen so dramatically. The source says IMG’s commissions for 2011 — they’ll continue to get a chunk of Tiger’s endorsement deals through 2013 — will be as low as $1.5 million.
That’s a huge drop from two years ago. With giants like Gillette, Accenture, Tag Heuer, and Gatorade having jumped ship, Tiger’s major deals are down to three: Nike (NYSE: NKE - News), Electronic Arts (Nasdaq: ERTS - News), and Kowa. His EA Sports video game, “Tiger Woods PGA Tour ’12,” set a first-week franchise record of 225,000 games sold. But our source also tells us that Tiger’s Nike money fell by as much as 50% in 2010 (to about $10 million, down from $20 million in 2009) and that he will get the same reduced amount for 2011. The reason? Nike penalized him for his indiscretions, reducing his payment for two years as a response to his public behavior. Nike had no comment.
That Nike would have renegotiated Tiger’s contract to give him a temporary pay cut may be hard to believe, but Bob Dorfman of Baker Street Advertising says, “That’s not surprising. They’re not going to release him entirely, because that’s not the way they are, but [a pay reduction] would not surprise me at all.” As for the Kowa deal, Dorfman estimates its value at $4 million. Doug Shabelman of Burns Entertainment & Sports Marketing believes it’s worth around $3 million. Recent valuations of Tiger’s overall endorsement earnings for 2011 have been between $60 million and $75 million. But based on our information about Nike, and on the Kowa estimates, the real number is likely closer to $20 million.
Woods’ agent adamantly denies the assertion that the golfer is facing financial strain. “Tiger Woods is financially sound and strong, contrary to wide-ranging rumors and inaccurate figures in the media,” Steinberg wrote in an email. “Stating anything else is incorrect and factually baseless.”
Another factor that has undeniably fizzled is Tiger’s tournament winnings. Woods won no majors in 2009, the first year that’s happened since 2004. He went completely winless in 2010, and this year he’s so far missed the U.S. Open, AT&T National, and British Open due to a knee injury. According to the PGA Tour website, Tiger’s 2011 winnings so far total $571,363. Those are like pennies compared to the $10.9 million, $5.8 million, and $10.5 million he earned in 2007, 2008, and 2009, respectively. In 2010, that dropped to $1.3 million.
Woods is still young, and undoubtedly one of the greatest golfers alive, but as he continues to stay off the links, that money stream dries up. Meanwhile, Tiger Woods Dubai, a billion-dollar project that was first set to open in 2009 with a golf course, pricey real estate, and restaurant, was scrapped in February.
As Tiger’s revenues have declined, his expenses have only climbed. To begin with, there’s the reported $100 million divorce settlement. And last August, Woods took out a $54.5 million mortgage on his home in Jupiter Island, Florida. According to the public document, Woods is required to pay off the mortgage in full by January of 2016, giving him a mere five and a half years to shed the debt. He’s therefore paying more than $10 million each year, including his $431,042 in annual property taxes.
That 2010 property tax information comes from the district offices of Martin County, FL, where the home Woods now occupies alone is located. The property, which Woods purchased in 2006 for $44.5 million, is valued at around $47 million (the county values the house at $26.48 million, the land at $20.5 million). His 2010 improvements to the dwelling and the property cost him $6 million, including three separate residential pools, a tennis court, a golf green with a few holes, an elevator, and a 14,736-square foot improvement to the interior of the house — evidence that Woods is not used to living cheaply. But the pace of his home improvements has slowed, according to online records of the county appraiser’s office. So far there have been none in 2011.
Mark Steinberg says simply that there is no debt on Woods’JupiterIslandhome, and declined to elaborate. But theMartinCountyclerk’s office confirmed that their records show that the mortgage has not been paid off.
TheJupiterIslandmega-mansion isn’t the only Woods property. Among others, in 2007 he bought his mother property near his own, inJupiterIsland, for $2.4 million. In 2010, construction on that cost him another $2.6 million. Presumably, it’s Woods himself that pays and will continue to pay all taxes on the home.
Between the divorce settlement and his recent mortgage, Tiger has faced recent debts to the tune of at least $160 million, though it’s unknown how much of this he has now paid down. His endorsement earnings will not come close to this in 2011, and he’s no longer adding much to his pot with golf winnings. Nike’s decisive slash to his contract has not helped matters.
“Tiger remains one of the most popular and visible athletes in the world, demonstrated by television ratings, tournament attendance and various empirical polls,” Steinberg says. “His endorsement future is strong and any additional partnerships will be announced at the appropriate time.”
To fix up his financial short game, Tiger Woods is going to have to start making money again the old-fashioned way: by playing the sport he’s known for
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- Really tragic, fall from grace.