Tiger Woods' split with GM a warning for athletes

[marmar]

via the Detroit Free Press:



Tiger Woods' split with GM a warning for athletes
By EDDIE PELLS • ASSOCIATED PRESS • November 29, 2008


Turns out, Tiger Woods wouldn't really rather have a Buick. At least not anymore.

When Woods ended his nine-year relationship with General Motors Corp. on Monday — a mutual decision between a megawatt celebrity who doesn't need the work and a teetering corporation that needs every penny — it offered yet another snapshot of how badly the American economy has deteriorated.

Woods is the world's most marketable athlete with an estimated $100 million endorsements a year. If his agreement with one of the world's most active sports sponsors dissolved, some experts wonder if any endorsement or sponsorship deal is really ironclad in these tough times.

"The real story here isn't Tiger," says Marc Ganis, the president of Sportscorp Ltd., a Chicago-based sports consulting firm. "It's the auto industry. ... There are a lot of parties who are going to have some difficulties finding sponsors to substitute for what the auto industry used to provide."

LeBron James ($28 million in endorsements according to Sports Illustrated's 2007 figures), Peyton Manning ($13 million) and those in the top-circle elite don't have so much to worry about because, like Woods, they have multiple deals spread over several industries.

As for everyone else, well, Ganis figures they will feel the pain. If money from the auto industry and financial world dries up, athletes and events that are lower in the pecking order will get thirsty. .......(more)

The complete piece is at: http://www.freep.com/article/20081129/BUSINESS/81129041

[sandnsea]

1. How many workers would that pay?

Enough so that they wouldn't have to depend on government services and would have enough disposable income to buy the cars that they make? How many billions have these corporations given to sports stars instead of their employees?

[smoogatz]

2. Meh.

Call me cold-hearted, but I just don't feel that bad for the dozen-or-so multi-millionaire athletes who'll be affected by this. I'm a hell of a lot more worried about the nearly one million union auto/parts workers who stand to lose their jobs if the big-three sink without a trace.

[otohara]

3. Insane Amounts of Money

athletes more important than jobs, health care.

[Mz Pip]

4. I've never understood

celebrity endorsements. Maybe there are enough people out there who will buy a Buick because of the Tiger ads to justify the gazillion dollar contract, but I'm not one of them.

I am entertained by the 'caveman' ads but haven't changed my insurance because of them.

And how can CitiGroup justify its 400 million dollar stadium naming buy?

When Candlestick Park was renamed 3 Com Park people were really pissed off. I don't see how it helped their business.