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Tiger’s new contract is substantially more than $100 million

Written by: Tony Korologos | Date: Tuesday, December 12th, 2006
Categories: MiscellaneousPGA TourTiger Woods

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Nike has inked Tiger Woods to a new contract. Details as to how much dough Tiger got this time haven’t been released but the terms “substantially more than his last contract” have been spoken. Tiger’s last contract was for 5 years at $100 million. “Substantially more” than $100 million is really an insane number, whatever it is.

Astronomical money nuggets

Nike makes about $500 million a year on golf stuff, so the $20 million they were paying Tiger before was certainly a good investment. Interestingly, that $500 million is only 3 percent of Nike’s total revenue.
Tiger made $96.7 million last year, making him the top money making “athlete.”

Speculation on the amount this time? Let’s do some math:

Tiger’s first Nike deal was 5 years at $40 million, from 1996 to 2001. That’s $8 million per year. Then in 2001 Tiger signed for 5 years at $20 million per year. The increase from contract 1 to contract 2 was 150%. Does Tiger’s take increase another 150%? That would put him at $50 million per year. We’ll guess he signed for another 5 years so that’s $250 million? Does Tiger make almost a million bucks a week now on his Nike endorsement alone?

How much dough do you think Tiger signed for this time around?

4 responses to “Tiger’s new contract is substantially more than $100 million”

  1. Luke S. says:

    Tiger’s the man. The money he gets seems well worth it. Nike would have no golf equipment division without him. None. Still be only apparel.

    Nitpicking, but it’s 150%. Just sayin’ ūüôā

  2. Yeah I meant 2.5X not 250%. I was never good at math.

  3. I think it could very well be upwards of a $100 million dollar contract. I think the one number that is missing is what has the revenue growth of Nike’s golf division been the past 5 years? No matter how iconic Tiger is, it will all depend on how Nike calculates their return on investment in Tiger.

  4. AndyBrown says:

    GolfersWired is spot on. We need to know the break specifics on the Golf division

    For the past three years Nike’s annual revenue has been:

    2004: $12.25 billion
    2005: $13.74 billion
    2006: $15 billion

    So there is definite growth, just not sure if it is in Golf.

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