"I'm Tiger Woods...
not!
by David Forrest
(TMF Bogey)
On August 27, 1996, Eldrick "Tiger" Woods declared his status as a professional
golfer. Fresh from his third straight U.S. Amateur title, Eldrick had the
whole package. He had the great nickname "Tiger", the smile, the looks, the
charisma, the youth, and most of all, the golf game to make all of those
other traits even more valuable. At the tender age of 20, Tiger walked away
from the quiet solitude of life at Stanford University and into the white-hot
spotlight. Waiting in the wings, of course, was Nike.
For almost a decade, golf's popularity has been on the rise and Nike has
wanted to infiltrate the market previously owned by companies like Ashworth
and FootJoy. Tiger presented the perfect opportunity to not only enter the
market, but to own it outright. If you watch the television commercials where
the kids say, "I am Tiger Woods," you'll understand that Nike isn't just
trying to sell shirts and shoes. It is trying to permeate the consciousness.
It is trying to ingrain itself into the psyche of the American public and
the world. With marketing blowouts like Michael Jordan, John McEnroe, and
now Tiger Woods, Nike has been pretty successful in its quest to dominate
the athletic arena.
They "Just Did It."
Philip Knight, Chairman and CEO of Nike said:
Tiger Woods will have a tremendous impact on the world of sports and will
change the way people view the game of golf. He is one of a handful of special
athletes who transcend their sports, the way Jordan has done in basketball,
and McEnroe did in tennis.
Apparently Phil is putting his money where his mouth is, paying Tiger $8
million a year for 5 years. Early on, many people criticized the size of
the endorsement, but it should be relatively clear now that $8 million is
probably a very large understatement of the value of Tiger Wood's name. Although
Nike doesn't break its numbers out into the various athletic segments, I
would imagine that sales of golf shoes and apparel have gone through the
roof for Nike. I'd also imagine that regardless of whether you're a golf
enthusiast or not, the "Tiger" phenomenon is so appealing to so many people
that there is a huge residual overflow into other product lines completely
unrelated to golf.
As much as he'll help Nike, Tiger's impact will stretch far beyond the athletic
apparel giant. He currently has contracts with:
Nike - $40 million over 5 years
Acushnet (Titleist and Cobra Golf) - $20 million over 5 years
American Express - estimated $30 million over 5 years
Rolex - estimated $7 million
Total Tour winnings to date - approximately $2.5 million.
So, despite a poor showing at the U.S. Open, Eldrick "Tiger" Woods is dominating
the game and the marketing world. He owns a green jacket for his win at the
Master's and about $100 million in earnings and endorsements.
As much as my bank account would like me to be... I'm not Tiger Woods.
Discuss
What You've Learned |