Nike reportedly slashed their contract with Tiger Woods by 50% last year, cutting his endorsement earnings to less than one-third of what had been previously reported.
Last month, Forbes estimated that Woods’ endorsement deals brought in about $75 million in 2010, but now a report by Fortune says that his actual earnings may be less than $20 million.
Many of his major sponsorship deals were canceled in the wake of sexual scandals in late 2009, but the quiet renegotiation with Nike – by far his biggest benefactor – has delivered this biggest hit.
Given his recent (very expensive) divorce and a series of huge real estate deals, his debt may soon become overwhelming. He’s paying more than $10 million a year in mortgage payments and property taxes just on his main Florida home.
The declining revenues may also explain why IMG did not put up a fight when Tiger’s agent, Mark Steinberg, decided to leave for another agency. An IMG sources tells Fortune their income off his deal had dropped to about $1.5 million a year.
Compounding Woods’ troubles even more is the fact that he hasn’t won a tournament in almost two full years. He’s won about $1.8 million the last two years. In 2009 alone, he won $10.5 million in a single campaign.
No one is going to feel sorry for a pro golfer making “only” $20 million a year, but for a guy used to living on top of the world, it’s not just his knee and ankle that are hurting right now.
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