Tiger Woods, the world’s first sports billionaire

November 20th, 2009

He is every youngster’s dream come true

Here’s what Forbes Magazine had to say about the golf maestro: “Woods had earned a cumulative $895m going into 2009, by our estimates, from prize money, appearance fees, endorsements, bonuses and his golf course design business. If you add his $10.5m in 2009 prize money, the FedEx bonus and his take so far this year from his more than $100m in annual off-the-course earnings, Woods’ career earnings are now 10 figures.”

It’s all from playing a game

It is given to very few men or women to become the very best in the world and on top of that, to earning a billion dollars doing what you like best. Tiger Woods is a phenomenon, an almost unnatural man with the grit and resolution to be the best and then having the instinctive know-how to manage it all, both on the golf course and in the office. I’m sure he is not the manager of the billion dollars, but I bet that he has the ability to find good managers that he can depend on.

A hundred million a year

The world’s greatest golfer has made more than 100 million a year for the last 3 years in a row and will certainly match that in 2009, Last year Woods had a 8 month lay off after he had knee surgery but this had little effect on has annual earnings. Woods’ actual earnings on the golf course only amount to 10% of his income and the rest comes from his massive sponsorships.

Where the money comes from

Prize money: $8m. Career prize money, earned from competitions played around the world but mostly in the US.
Appearance fees: $15m. Woods demands $3 million a time for appearing in prestigious events around the globe and on average he will accept five invitations a year.
Course Design: $10m. Three courses are being built, one in Dubai featuring mansions and palaces, one in Punta Brava, Mexico and his first designed in the US, The Cliffs at High Carolina.
Sponsorship: $55m. Nike pays $20m a year for Woods to promote the Tiger Woods name on their equipment, Gillette offer $15m for promoting their razors, and global management consulting Accenture pay him another $20m a year. Total Amount $111 million.

The challenge

Tiger Woods insists it is not the money that drives him, but the tremendous challenge that the game presents and his love of glory. He is currently four Majors short of equaling Jack Nicklaus record of 18. Woods is now 33 and with his form and his terrific dedication to the sport, it looks like he will equal that record before long.

The dream

Every kid has a dream and it’s usually to be the best at something. But how many have the determination to realize their dreams, especially when one takes into account all the traps and obstacles that have to be overcome along the way to glory. Well done, Tiger!

This entry was posted on Friday, November 20th, 2009 at 7:02 am and is filed under Finance, Personal / Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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