It’s being reported that the company which represents golf superstar Tiger Woods lost $4.6 million from the sex scandals that plagued Woods late last year and into this year. If that’s the case, then this means that Woods himself lost $25 million. The major deals lost by Woods as a result of the scandal were his endorsements with AT&T, Accenture and Gatorade.
The source says that Woods earned $64 million of his endorsement dollars last year before the scandal broke. IMG, the company that represents Woods, also did quite well, earning a profit of $85.3 million.
One of the deals that Tiger Woods was able to keep during the scandal is the one he has with Nike, who signed him in 1996. Since signing Woods, Nike Golf has become one of the fastest growing brands in all of sport, with over $600 million in sales each year. The company took the unique step of tying nearly every aspect of its golf brand to Tiger, getting even more entrenched with Woods than they did with Michael Jordan. In the case of Woods, Nike purchased nearly every aspect of Tiger’s brand, including the hats, shirts and shoes he wore, and even made contracts regarding whether or not Tiger would wear Nike gear in commercials for other companies. Nike never did that with Jordan.
This was supposed to be the year in which Tiger Woods surpassed a billion dollars in career earnings. With the recent setback, he is not likely to reach this mark. Also, with the possibility of an expensive divorce looming, Woods may be starting his wealth building from scratch. Tiger’s wife, Elin Nordegren, has reportedly demanded $750 million in a divorce settlement, along with full custody of the children. Although most don’t expect Elin to land a deal of that magnitude, it’s not out of the question for her to walk away with nearly half a billion for her trouble.
Making matters even more challenging for Woods, he has yet to regain his reputation as a dominant force on the golf course. Anyone watching PGA golf this year has noticed that Tiger has yet to dominate any tournament as he has done in the past. Also, the tour announcers seem ever-so-determined to shine the spotlight on other golfers who DO NOT have to go to sex addiction clinics. It will be interesting to see if Woods can make a comeback, but then again, the term “comeback” is relative: Woods is still the #1 ranked golfer in the world. It seems that when he simply wins but doesn’t win convincingly, we somehow feel that he’s lost his swag. His greatness spoils us all.