Woods’ Cautious Approach to the Green

Tiger Woods the golfer knows that success means striking while the iron--or the wood or putter, for that matter--is hot. But Woods the businessman seems content to craft a longer-term game plan.

Woods has entered the stratosphere of the sports world. By shattering the 129-year-old scoring record in the British Open on Sunday, he became the youngest golfer to win the sport’s four major tournaments.

And he doesn’t just win, he blows out the competition. That’s opened the way for almost unlimited earning potential.

But Woods isn’t your typical athlete. For now, he’s not drumming up new endorsement deals, preferring to concentrate on his game.

“It’s getting to the point where we’re talking about a guy from another planet,” said Rick Burton, director of the James H. Warsaw Sports Marketing Center at the University of Oregon. “What’s the bumper sticker? ‘He who dies with the most toys wins’? Well, Tiger has all the toys--the [British Open] Claret Jug, the [Augusta National] green jacket, as many cars as he wants and a really big house.”

The 24-year-old star also has plenty of time. Consider Jack Nicklaus, who completed his sweep of the four majors in 1966 and still was playing tournament-level golf this past weekend. Most athletes are happy if their endorsement career lasts for a few solid seasons. But Woods has embarked upon a career that will probably be measured in decades. There’s no reason to hurry, sports marketers say.

“There’s a scary length to the career still in front of Tiger,” said Keith Bruce, a San Francisco-based sports marketing executive with the Foote, Cone & Belding advertising agency. “He’s still got 20 or more years to go, and money isn’t the issue. What creates [future] demand is his continuing ability to do what he’s doing.”

With an estimated $45 million in endorsement income coming his way in 2000, Woods places second behind Michael Jordan, with $69 million, in Forbes magazine’s annual survey of endorsement income.

ESPN Magazine recently used its cover to promote a story about Woods’ projected lifetime earnings from winnings, endorsements and appearance fees. The title: “Six Billion Dollar Man.”

“It’s a given that he’s going to be in contention each weekend he plays,” Burton said. “But I don’t think Tiger or his management team wants or needs more endorsements. It’s now about what he wants his legacy to be in terms of humanity.”

Clubbing the Competition

Woods’ dominant role in the sports world was evident in subsequent television and newspaper coverage of the British Open. Woods was the hero du jour, despite a full menu of WNBA and major league baseball games, the U.S. Women’s Open in Illinois, Olympic track and field trials in Sacramento, a CART auto race in Michigan, and a NASCAR race in Pocono, Pa

Woods also took top billing over a talented Texan who on Sunday won his second consecutive Tour de France, arguably one of the sporting world’s most grueling physical and mental challenges.

Cyclist Lance Armstrong is no mere mortal--there’s talk in Hollywood about a movie detailing the life of an athlete who overcame cancer and then went on to twice win the 2,255-mile, 21-day race.

“Lance’s accomplishment, purely from the physical aspect, is an amazing story line,” Bruce said. “But he’s not revered, he’s not got the aura of a Tiger Woods.”

Chicago-based IEG Sponsorship Reports pegs Armstrong’s endorsement income in 2000 at about $5 million, well below the $40 million to $45 million that IEG and others estimate Woods will reap from deals with such companies as Nike, American Express and Buick.

Even though their sponsors are scrambling to cash in on last weekend’s performances, neither Woods nor Armstrong is believed to have crossed picket lines set up by actors on strike against the advertising industry.

Woods doesn’t live by endorsements alone. By shattering golf course records, Woods earned a record PGA Tour total of $6,616,585 in 1999, nearly $3 million more than his nearest competitor. Sports marketers say this year’s winnings could top $10 million when non-PGA events around the world are included.

IMG, the Cleveland-based sports marketing company that represents Woods, declined to discuss his future business dealings. But sports marketers suspect Woods is content to stick with his existing sponsors so he can continue to concentrate on his craft.

“Tiger wants to play golf,” said Bruce, who learned about the single-mindedness of top athletes while working with Jordan on the NBA superstar’s Gatorade commercials. “And one of the smart things IMG is doing is purposely holding back on business opportunities.”

Woods signaled his willingness to limit commercial deals in 1998, when he fired his business agent. The move came amid rumors that Woods felt that he was being overextended. A CNN/SI report went so far as to suggest that Earl Woods, the golfer’s father, characterized the agent as being too interested in “the almighty dollar.”

The slow-and-steady approach is designed to let Tiger be Tiger on the course. Business deals do take time away from Woods’ game--there are commercials to film, speeches to make and clients of business partners to schmooze.

Woods’ value could soar if he chooses to stick with existing business deals rather than adding new partners. That’s because a huge backlog could develop among companies that want to partner with Woods.

“If you’re one of the companies lucky enough to be doing business with him, you just sit back and reap these huge benefits,” Bruce said. That’s what sponsors did after Woods’ weekend performance in Scotland.

American Express advertisements early this week described Woods as a “conqueror.” Buick weighed in with a play on golf’s “fore”--using the word “four” in reference to Woods’ career Grand Slam wins. Laser Eye Center patted itself on the back by noting that Woods turned to one of its surgeons to help him keep his eye on the ball.

Masterstroke of Product Placement

Woods’ product endorsement can be as powerful as one of his tee shots. When the world’s best golfer switched to a Nike golf ball from longtime sponsor Titleist, television cameras showed a string of shots that prominently featured the Nike swoosh.

“It was like winning the lottery,” Bob Wood, president of Nike Golf, told Associated Press. “People are absolutely juiced around here.” Nike, which had committed to pay Woods $40 million over five years, reportedly added around $2.5 million when Woods switched from Titleist.

Woods delivers more than just a winner’s profile. The sports marketing arena is increasingly worldwide in nature, sports marketers say, and Woods translates well in many cultures. “Tiger is unique,” Burton said. “He’s black, he’s Thai, he’s Buddhist, he’s Christian, he’s old, he’s young and he’s rich. He’s an amazing combination.”

Woods is big news even among sports marketers, who tend to view the world through rose-colored glasses. IMG founder and Chairman Mark McCormick, who describes longtime client Arnold Palmer as “a pioneer in the spirit of Thomas Edison or Benjamin Franklin,” gushes that Woods is “a pioneer in the spirit of Bill Gates.”

What’s next for Woods? One fan’s Web page--called TigerWoodsIsGod.com--offers a hint. In a celebrity-conscious society, Woods faces “unbelievable media scrutiny,” Burton said.

Sports figures aren’t perfect. Jordan, for example, drew criticism for marketing expensive shoes made by underpaid workers in overseas factories.

“[Woods] virtually can’t get any bigger in golf,” Burton said. “Now, if he doesn’t win, it’s going to be news. If he doesn’t play well at a major, or doesn’t show up for a tournament, there will be rumors--is he getting too greedy, is it the money, is something going on? The silly season will really kick in.”

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Power Players

Forbes magazine used to track athletes who earned significant sums from endorsements. The annual survey has been rolled into what Forbes calls The Power 100. The secret formula incorporates wealth--but also counts magazine covers, Web site mentions and broadcast media appearances. The list is dominated by Hollywood types--but two athletes made the Top 10.

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Name Power rank Julia Roberts 1 George Lucas 2 Oprah Winfrey 3 Tom Hanks 4 Michael Jordan 5 Rolling Stones 6 Tiger Woods 7 Backstreet Boys 8 Cher 9 Steven Spielberg 10

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Source: Forbes magazine; photos by Reuters and Associated Press