Blog Entry

Fortune: Tiger needs money, zapped by Nike

Posted on: July 15, 2011 11:33 am
Edited on: July 15, 2011 4:28 pm
 

SANDWICH, England -- Fortune Magazine, a longtime observer of the financial tide around the globe, has turned its eyes toward Tiger Woods and found ...

Not much, apparently.

The magazine's website posted a story this week stating that the reason Woods signed a deal to hawk a Japanese pain-relief rub was because he's out of money after being cleaned out in his divorce and losing several lucrative endorsement deals in the wake of his sex scandal.

Like many Americans, Woods is carrying a fat mortgage, on his new Jupier Island abode, too.

Said the story: 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.

Howver, the biggest note was yet to come. The story suggests that Nike, which has an entire golf division built around Woods, docked him millions in pay as penalty for his humiliating indiscretions.

Said the story: With giants like Gillette, Accenture, Tag Heuer, and Gatorade having jumped ship, Tiger's major deals are down to three: Nike, EA Sports, 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.

Woods' agent denied that his lone client is in financial hot water, but did not speak to the particulars of the Nike details cited.

"Tiger Woods is financially sound and strong, contrary to wide-ranging rumors and inaccurate figures in the media," Mark Steinberg wrote in an email to Forbes. "Stating anything else is incorrect and factually baseless."

The original Fortune story can be found here:  http://features.blogs.fortune.cnn.c
om/2011/07/15/is-tiger-woods-runnin
g-out-of-money/


Meanwhile, things seem to be going swimmingly for Elin Nordegren, who reportedly received a $100 million divorce settlement from Woods. According to the New York Post, she is dating wealthy American investor Jamie Dingman, who has acres of money on hand, apparently.

That story is here: http://www.nypost.com/p/pagesix/eli
n_dating_billionaire_son_O8mqWO21Bn
3OPn8D6MHZ3M

Category: Golf
Comments

Since: Feb 7, 2010
Posted on: July 15, 2011 3:34 pm
 

Forbes: Tiger needs money, zapped by Nike

Awwh...poor Tiger. His annual endorsement deals are now $20 million/year instead of $60/million. Elling, I'm sure Tiger is not losing any sleep regarding his income or net worth. The only thing that is dwindling is your credibility. Do you have any left?



Since: Nov 17, 2009
Posted on: July 15, 2011 3:11 pm
 

Forbes: Tiger needs money, zapped by Nike

Silliness that Nike would cut his pay over his personal life when in reality they should have cut his pay because he's not playing and he can't win anymore.



Since: Sep 5, 2006
Posted on: July 15, 2011 2:49 pm
 

Forbes: Tiger needs money, zapped by Nike

If Tiger has $600 million in liquid capital, I'll build a statue outside Scores in his honor. There's no way. That would have put his pre-divorce liquidity at $700 million, which means he would have had to gross about $2 billion. And there's really no way he has $600 million in liquid assets and another $300 million invested. If he does, he should fire whomever told him to keep $600 million in his bank accounts and invest only $300 million. I also don't think 5% is all that modest right now. That would actually be pretty damn good.




Since: Jul 29, 2009
Posted on: July 15, 2011 2:31 pm
 

Forbes: Tiger needs money, zapped by Nike

Hey Aggler; you say  this whole Tiger fiasco has "no affect on anyone but his family". Exactly what "family" are you talking about? Cousin Stevie Williams, uncle Mark Steinberg, papa Nike or that Dr. Gallea that's related to you? Speaking of family, I understand the ex is doing quite well with your $100 mill and dating some rich dude.



Since: Aug 23, 2006
Posted on: July 15, 2011 2:30 pm
 

Forbes: Tiger needs money, zapped by Nike

Redwings:

Let's say you're right. Let's call his liquidable net worth $600 million. Let's also say he has a $300 million investment portfolio, which is reasonable considering his earnings and projected decrease in income. Let's also say that his $300 million investment portfolio is growing at a rather modest 5% annually. In that case, if his portfolio grew 5% last year and he had $300 million in varied investments, he'd have accrued another $15 million in earnings from his investments alone. 
The man isn't stupid. It's guaranteed a large portion of his net worth is tied up in investments which are private. (Hence, Forbes.com wouldn't have much knowledge) He is not and will never be broke. Given his age and financial standing, it's not a reach to say that even if he never takes a step on a golf course again, with his current investments and after liquidating a few assets to keep future expenses down, he could reach a billion in net worth a second time.



Since: Jun 26, 2009
Posted on: July 15, 2011 2:13 pm
 

Forbes: Tiger needs money, zapped by Nike

I am sorry DK, but I won't donate one penny so that Tiger can stroke his putter....work with his wood....etc



Since: Nov 14, 2006
Posted on: July 15, 2011 2:12 pm
 

Forbes: Tiger needs money, zapped by Nike

Tiger Woods is going to be alright.  Anybody who thinks otherwise is a complete moron.  Stop hating on the guy.  He messed up and he is paying the price.  That has no effect on anyone but his family.  I hope he comes back hard and wins like he did before.  I agree the game was much more fun to watch when he was around.  people love to kick a guy when he is down.  But those same people would wet themselves if he asked them to play a round of golf with him.  You dont have to be huge to bomb a ball 300 plus yards.  Any won ever see John Daly.  Maybe he was juiced up too.  Dont be stupid!



Since: Feb 5, 2009
Posted on: July 15, 2011 2:10 pm
 

Forbes: Tiger needs money, zapped by Nike

Sorry but I don't care about the British Open without Tiger.  Who cares, really?  I sure hope Tiger takes the time to get well and then comes back and asserts his dominance.  There really are no other players like him.  McElroy is a nice player, but no Tiger.  I won't even be interested in him until he's won at least four majors, which would still be 10 less than Tiger.  Please spare me with how interested you are all in the Open today.  It is a shadow of what it would be with still the best player in the world.




Since: Jul 29, 2009
Posted on: July 15, 2011 2:09 pm
 

Forbes: Tiger needs money, zapped by Nike

All you haters don't understand the cash flow that's required to appease the Tiger's voracious sexual appetite. You think having some floozy on the side is tough financially, try juggling dozens of worldwide skanks. You either have to fly them in or set up some type of rendezvous for your flings. That job can be handled by Stevie, but at a steep price. When your done with these women, that's when the real fun begins on paying them for their silence and also paying for their services rendered. That ain't cheap! Please CBS Sports Nation; join me in raising the much-needed funds to allow Mr. Woods to continue his humble life style. If all golfers will donate their greens fees for one day (July 30) to the Tiger Woods Foundation, I believe we can defeat this growing problem for our hero.



Since: Jun 26, 2009
Posted on: July 15, 2011 2:07 pm
 

Forbes: Tiger needs money, zapped by Nike

You are kidding me, right? Anyone who pities Tiger Woods doesn't have a clue. The dude made his bed, slept in it and is now paying the price. How can ANYONE feel sorry for a dude that bought a crib on a friggin private island when the middle class of this country is taking it in the shorts?? I hope Tiger gets his head on straight and gets through his physical ailments and returns to the PGA because it isnt the same without him. But I will not shed one single tear for what he brought upon himself!!


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