Over at CNN Money, I came across a pretty interesting article about Tiger Woods and his recent endorsement deal with Kowa Company Ltd. This Japanese company signed Tiger to hawk their newest Antiphlogistic Analgetic topical cream called Vantelin. Below is the 15 second commercial where Woods, after hitting that ridiculously awesome swing of his turns to the camera and says “Go Vantelin!”
Oh, and in case you didn’t get the jist from the clip, Tiger Woods is the new spokesperson for Japanese Ben-Gay. Although, I’m sure they paid him more than a few million(estimated at $4 mil) for the spot, it’s not the type of endorsement deal you’d expect from the Tiger of yore.. but I digress.
The article discusses Wood’s financial woes over the past few years, $100 million dollar divorce settlement, $54 million dollar mortgage, and the loss of the big endorsement deals with Accenture, Pepsi, Tag Heuer, Gillette and Gatorade. In addition, it’s rumored that his largest endorser Nike, has penalized Tiger for his indiscretions by as much as 50% in 2010 (to the tune of about $10 million, down from $20 million in 2009) and that he will get the same reduced amount for 2011.
Also, another fact to support the authors hypothesis is that Tiger Woods has not stock piling tournament winnings. He won no majors in 2009, first year that’s happened since 2004. He didn’t have a single win in 2010 and so far this year, he’s missed the U.S. Open, AT&T National and the 2011 Open Championship due to injury.
According to the PGA Tour website, to date, Tiger Wood’s 2011 winnings total $571,363. Chump change 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.
So, altogether, looks like Tiger has suffered some short term expenses totaling somewhere around $160 million. On top of all that, his billion-dollar Dubai project that was first set to open in 2009 with a golf course, up-scale real estate, and restaurant, was scrapped in February.
You can read the full article here.
The author of the piece, Daniel Roberts, sums up the report by stating “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.”
Now, before you start digging out your checkbooks for the “Save the Tiger Charity Auction,” keep in mind that Woods was the first professional athlete to ever amass over one billion dollars in career earnings.
Also, even with all of the self inflicted financial struggles he’s been suffering through, in 2011, Tiger Woods STILL managed to come in #1 on the Sports Illustrated Fortunate 50 List, earning a total of $62,294,116 million dollars.
He edged out everyone’s favorite lefty golfer Phil Mickelson by a little over a million dollars.
What do you think? Is Tiger Woods heading for financial ruin?