Is Tiger Woods Broke?
By mustang6560 on 7/15/11
My initial reaction - pfff, no way Jose! But, Fortune you've piqued my interest, so I'm listening...
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.
Go on...
With giants like Gillette, Accenture, Tag Heuer, and Gatorade having jumped ship, Tiger's major deals are down to three: Nike (NKE), Electronic Arts (ERTS), 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.
But what about Tiger's new endorsement deal with the heat rub?
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 (PEP), Gillette, and Accenture (ACN). 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.
I get it, Tiger Woods' endorsement deals are not as lucrative as they once were, he's not earning money on the golf course, he recently settled his divorce and he bought a new house. All in all, Tiger is not as money rich on paper as he used to be.

But, Tiger is not the first person to be in debt on a mortgage and divorce settlements aren't typically paid in a lump sum so I don't think he's anywhere close to broke. If anything, Tiger's disposable income isn't what it once was, however, I don't think he's going to default on his mortgage anytime soon.

Nice try Fortune, you almost had me.



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photo by xploitme


[ comments ]
bobhooe says:
Yea, no way in hell. he could make a phone call and come up with a million dollar gig any time he wants.
7/15/11
 
GolfSmith7 says:
He could live on appearance fee's alone for another ten years.
7/15/11
 
guzzlingil says:
Cry me a freakin river...................................................................................................................................................................
7/15/11
 
falcon50driver says:
We sure are getting piqued a lot.
7/15/11
 
billbadaz says:
that's like questioning if Michael Jordan is broke? No way.
7/15/11
 
homermania says:
I was wondering if Oob would pick this story(non-story) up. Seems like Fortune is really fishing.
7/15/11
 
sr31143 says:
Let's get real here. In 2009, Tiger was said to be worth $600 million. His divorce settlement to Elin Nordegren was $100 million, perhaps another $10 million in legal fees, and perhaps another $15 million to the "strumpets" he used to fool around with. That would leave him with $475 million. His endorsements certainly are down, but still earned him $69.1 just ahead of Phil Mickelson last year, so that has to be figured in as well. In addition, that $43 million mansion was already in construction when the scandal broke so, quite probably, the funds for that were already allocated. Tiger will still be able to get appearance fees to play in Dubai, etc., plus he has his golf design business too. And, let us not forget that both Charles Barkley and Michael Jordan said that he was cheap and that he probably still had the first dollar he ever made. So, Tiger was never one to throw his money around. Therefore, I don't think he will ever have to worry about money for the rest of his life!
7/19/11
 
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