He’s back. But is he bigger than ever?
By Chimmy Thompson
His fall was as epic as his rise. With a personal scandal that included mistresses and car wrecks and a wife swinging golf clubs in his general direction while he attempted to drive away (poorly) in his Escalade, Tiger Woods went from arguably the world’s greatest athlete to the lowest of lows in just a matter of weeks, which dragged into months. And as the years progressed it looked like the old Tiger was never coming back.
His subsequent divorce, rumored to have cost him in excess of $100 million, and a rapidly failing body (which required numerous back surgeries) took him from being one of the highest paid athletes in the world as well as the World’s No. 1 golfer, to sponsors dropping him like a hot rock and his ranking plummeting to No. 1199 as of December 2017.
But just as he was otherworldly when he hit the pro circuit in 1996 and for his first 10 years (where he racked up 14 major titles), his win at the 2019 Masters Tournament at Augusta National Golf Club has catapulted him all the way back to No. 6 (aided by a win last year at the Tour Championship in September). And he’s looking for more. In fact, he was just awarded the Presidential Medal of Freedom. And while we’re disinclined to predict the future, we’re not ready to bet against someone who has amazing talent, work ethic and determination. He may very well be No. 1 by the time you read this.
Or not. That’s the gamble of hitching your fortune to a human being.
In early 2009, Woods was still the top-ranked golfer in the world. He had sponsorship deals worth hundreds of millions of dollars and in just a few years he was expected to surpass the legendary Jack Nicklaus with major titles. But the scandal cost Tiger dearly. Sponsors fled. Longtime sponsors Accenture, Gatorade, AT&T, Gillette, Buick, and Tag Heuer each headed for the door. The only ones willing to stick with him were Nike and Upper Deck. And, not surprisingly, that loyalty paid off handsomely during the final round of The Masters.
According to sponsorship analytics firm Apex Marketing Group, the brand exposure that Nike received from Woods during the final round of this tournament was worth more than $22.5 million. The branding from new sponsors on his bag from Monster Energy and on his golf balls from Bridgestone Golf was also worth more than $1 million total, possibly more. The amount of exposure that Woods produced for Nike in the final round is nearly double the $12 million that Apex estimated Nike got last year from Masters winner Patrick Reed.
That’s largely due to the intense focus the TV broadcast placed on Woods, says Apex president Eric Smallwood. “Pretty much every hole, every time he hit the ball, they were showing him … or the Nike logo,” he says.
And having Tiger to tout brought eyes back to the live television broadcast. The ratings for CBS were the best in 34 years.
“When Tiger is at the top of the leaderboard in a tournament, the sports content he provides increases the viewership and attention that the media outlets crave and thrive off of,” Smallwood told ESPN. “This makes him an anomaly in sports and has made him a ‘must watch’ when he plays.”
TaylorMade, a golf club manufacturer and another new sponsor of Woods, immediately promoted the hashtag “#NeverDone” in a reference to the player’s longevity. Rolex, another recent sponsor, came up with #perpetual for it’s congratulatory spot. Hero MotoCorp and Kowa are also current sponsors of the golf great.
Woods last won the Masters Tournament in 2005, making this the longest period ever between wins in that tournament. He’s gone through a lot since then.
“I had serious doubts after what transpired a few years ago,” Woods told reporters after his victory. “I couldn’t walk, I couldn’t sit, I couldn’t lay down, I really couldn’t do much of anything. Luckily I had the procedure on my back, which gave me a chance at having a normal life. … The body’s not the same as it was a long time ago, but I still have good hands.”
According to Forbes, in 2009 he brought in $105 million in endorsements and appearance fees, compared to $37 million in 2017. TaylorMade is a newer sponsor, as is golf ball manufacturer Bridgestone Golf and drink company Monster Energy. But Nike, which has been a sponsor since 1996, has stuck by him. And that has turned out to be lucrative.
Nike has drawn down its relationship with Woods over the years – now concentrating on his apparel rather than balls or clubs. But Smallwood doesn’t see the company ever dropping him. “I think Nike will stick with him until he stops playing golf, in some capacity. I don’t foresee that ever going away,” says Smallwood.
From a branding perspective, says Smallwood, Woods’ story has obvious appeal. “This is coming back from not even playing and winning the Masters. It’s got a lot of good story lines to it,” he says, that brands would want to hold onto.
Nike and its ad agency Wieden+Kennedy had a moving ad cued up and ready to go as soon as Woods won the Masters, proving without a shadow of a doubt that Nike had faith in its star. From the outside, it looks like the kind of relationship all companies and celebrities would like to foster. But the winds of controversy and scandal make it tough to stay committed.
But it’s also possible that the Woods scenario may make sponsors of other athletes consider their positions if and when they reach a moment of controversy. True, AT&T, Accenture, Gillette and the like could have hopped back on the Tiger bandwagon any number of years ago if they so chose, but they didn’t. And that’s the apparent value of loyalty. It paid off for Nike in a big way. And maybe we all should have seen it coming.
Rest assured the companies who want to add Tiger to their roster will find it costs far more today than it did a year ago. But that’s good for golf. Good for Tiger. And good for businesses that want to hop on the best ride in sports.
Sidebar:
Tiger’s net worth back on the rise
At the end of 2018, Forbes listed Tiger Woods’ net worth to be an eye-opening $800 million. And even though the last 10 years have been inconsistent and perhaps even disappointing, the recent wins at the Tour Championship and the Masters Tournament are sure to send his bank accounts soaring.
Since turning professional in 1996, Woods has earned $1.5 billion dollars, a significant portion of that from endorsement deals, appearance fees and golf course design work. On the course, his numbers are pretty impressive as well: he’s taken home more than $118 million in career prize money. In fact, he was the highest-paid athlete in the world for 11 straight years early in his career.
In addition to his design business, Woods has several major assets in his portfolio, according to Forbes, including: his $20 million yacht, Privacy; his 12-acre property in Jupiter Island, Fla., worth more than $50 million; and a lucrative PGA Tour pension estimated to be worth more than $20 million. The pension plan is the best in sports and based on deferred FedEx Cup bonus money and a cuts-made bonus system.
And you can bet that any sponsorship talks taking place in the near future are going to add to his fortune dramatically. Once again it’s good to be Tiger.