Revealed; Reason why Tiger Woods rejected Saudi’s contract.
No matter that he allegedly rejected a deal worth “high nine digits” to participate in the newly-backed golf tour by Saudi, it is inconsequential.
Despite any attribution to endorsements and real estate, he still managed to become a billionaire.The PGA Championship last month saw Tiger Woods’ struggling hobble around Southern Hills, which served as a stark reminder of how long it has been.
On his way to winning his first green jacket, he stalked the fairways at the 1997 Masters.Between then and now, there have been periods filled with triumphs, injuries, scandals and failures followed by another period of triumph.
Throughout everything, Woods, who is 46 years old, has managed to uphold his position as one of the highest-earning athletes globally.
Throughout his 27-year career, he has amassed a total income of over $1.7 billion from various sources including salary and endorsements—surpassing all other individuals tracked by Forbes in terms of earnings.
His lifetime earnings have led Forbes to estimate his net worth at a minimum of $1 billion, positioning him among the exclusive group of only three athlete billionaires.
NBA legends LeBron James and Michael Jordan have both capitalized on their fame and wealth by investing in various businesses. Thanks to his shrewd investment in the Charlotte Hornets, Jordan achieved a net worth of over $1 billion even after retiring from basketball.
Despite reportedly rejecting a staggering offer from the new Saudi-backed LIV Golf tour, which CEO Greg Norman claimed would have been in the “high nine digits,” Woods has achieved an exceptional level of success.
Only a fraction of Woods’ overall wealth, which includes his career earnings and net worth combined, can be attributed to golf winnings. Specifically, less than 10% of it falls under this category. Instead, the majority of his fortune is derived from lucrative endorsement deals with over twelve prominent companies such as Gatorade, Monster Energy, TaylorMade and Rolex. However Nike remains his most significant sponsor since he joined them in 1996 .
According to sports business consultant and Columbia lecturer Joe Favorito, “By being an athlete with a varied background that people could relate to, he entered the right sport at exactly the right moment. Brands appreciate having someone who is accepted by both dedicated followers and more casual viewers.”
Using his status and earnings, Woods has diversified into various ventures. These include TGR Design- a golf design business-, TGR Live -a live events production company-, and The Woods restaurant. He has also invested in Full Swing, which is a golf technology training tool; Heard-a hospitality software startup; PopStroke-luxury mini-golf experience with four locations in Florida-. In 2022 there are plans to open six more across the country under the same name. Additionally, he’s mentioned as an investor alongside British billionaire Joe Lewis’ Tavistock Group & rivals Ernie Els& Justin Timberlake for NEXUS Luxury Collection- A group of clubs & resorts-& identified as a partner for SPAC announced back in January this year.
Legendary sports agent Leigh Steinberg, who is believed to have inspired Tom Cruise’s character in Jerry Maguire, asserts that he possesses exceptional expertise in extracting different sections of businesses and establishing new ones. According to him, this ability sets the current generation of athletes apart from their predecessors.
Having negotiated the largest rookie contract in football history back in 1975, paying Atlanta Falcons quarterback Steve Bartkowski $600,000 over a span of four years – still holds vividly to Steinberg’s mind; but even when adjusted for inflation its present value amounts up to only about $800,000 annually- a modest sum compared to what many NFL rookies earn nowadays.
What has changed is the increased value of live sports on television. In a world dominated by streaming, few other types of programming can attract such a large audience as reliably. Back in 2011, only 51 out of the top 100 telecasts were sporting events but last year that number skyrocketed to an impressive 95 out of every hundred broadcasts. This exponential increase in viewership has led to larger TV contracts and subsequently higher player salaries – for instance golf players now receive more tournament prize money than ever before!
Just consider golfer Jack Nicklaus who earned around $5.7 million (less than today’s equivalent sum) over four decades during his professional career from1961; contrast this with Tiger Woods whose inflation-adjusted earnings amount to almost three times what Nicklaus made throughout his entire time playing professionally which spans across just twenty-seven years!
The influence of Woods on the television ratings and prize money in golf cannot be ignored. According to ex-CBS president Neal Pilson, during the early 2000s when Tiger was not competing for a title at an event, TV viewership plummeted by between 30% to 50%. This phenomenon commonly referred to as “Tiger Effect” led to PGA Tour’s payouts increasing almost threefold from1996 until his last major championship victory in 2008 where he won fourteen titles. While still drawing substantial attention today, it is now less pronounced than before.
According to a 2014 interview with six-time major champion Phil Mickelson, “Tiger has been the driving force. He’s responsible for improved ratings, heightened sponsor engagement and increased interest- all of which have benefited us.”During his peak performance, Woods became the most successful athlete to endorse products and earned more than $100 million annually.
In Forbes’ highest-paid athletes list, he seized the top position for a decade until 2012, despite diminishing earnings following his car accident during Thanksgiving in 2009. Even after suffering from serious injuries due to another car crash last year that prevented him from participating in tournaments regularly, Woods was able to accumulate an impressive off-course income of $68 million – positioning himself as the world’s fourteenth-highest earning athlete.
Observing Woods push through obvious agony has sparked a fresh version of Tigermania, as supporters and sponsors rally around his role as an unyielding survivor instead of an unbeatable conqueror. Despite the assurance that his prosperity is secure regardless if he ever swings another golf club or not, Woods has announced his determination to compete in the upcoming Open Championship at St Andrews this summer.
Although withdrawal from last month’s PGA championship because of discomfort stemming from previous surgery on both legs and back occurred, involvement in this month’s U.S. Open Championship can’t be disregarded yet either.
According to Steinberg, he was originally a well-groomed inspiration and an embodiment of the American dream. The challenges have in fact contributed to his reputation on certain levels.
