Is Tiger Woods running out of money?

Fortune ^ | July 15, 2011 | Daniel Roberts

[fightinJAG]

With only a few endorsement deals left, a recent divorce settlement, a hefty house mortgage, and even a pay cut from Nike, Tiger Woods' lifestyle is looking a lot less glamorous.

FORTUNE -- When news broke a few weeks ago that Tiger Woods had signed an endorsement deal to hawk a heat rub in Japan, it was hard not to think of Lost in Translation, or of the Entourage episode when Vincent Chase goes to China to do an energy drink commercial because he's out of money.

Although Woods was likely paid in the single-digit millions for the spot -- in which he takes a swing, rubs his back, and says, "Go Vantelin!" -- it's a far cry from campaigns for PepsiCo (PEP), Gillette, and Accenture (ACN). The last time Woods showed up in Japanese TV ads was in 1997, when he promoted Asahi Wonda coffee, back before he became a phenomenon. So the deal with Kowa (maker of the rub) seems more like a moment of desperation than a return to form.

It's no secret that Woods, once king of the sports world, has suffered financially since his fall from grace. His endorsement list shrank and his marriage ended in a divorce settlement reportedly worth $100 million. But now he may actually be hurting for funds. At the very least, there are signs that he isn't generating enough to comfortably cover his costs.

[Revolting cat!]

I’m starting a collection for the poor boy. Contact me via FReepmail. Any contribution over $100 will be welcome.

[CreviceTool]

Mike Tyson managed to piss away $400 million or so.

[AU72]

More likely his investments went sour in the down economy and he can’t cover.

[Don Corleone]

Is Tiger Woods running out of money?

Is the ocean running out of water?

[E. Pluribus Unum]

Tiger is just a Charlie Sheen wannabe.

[Huntress]

As Tiger's revenues have declined, his expenses have only climbed. To begin with, there's the reported $100 million divorce settlement. And last August, Woods took out a $54.5 million mortgage on his home in Jupiter Island, Florida. According to the public document, Woods is required to pay off the mortgage in full by January of 2016, giving him a mere five and a half years to shed the debt. He's therefore paying more than $10 million each year, including his $431,042 in annual property taxes.

That 2010 property tax information comes from the district offices of Martin County, FL, where the home Woods now occupies alone is located. The property, which Woods purchased in 2006 for $44.5 million, is valued at around $47 million (the county values the house at $26.48 million, the land at $20.5 million). His 2010 improvements to the dwelling and the property cost him $6 million, including three separate residential pools, a tennis court, a golf green with a few holes, an elevator, and a 14,736-square foot improvement to the interior of the house -- evidence that Woods is not used to living cheaply. But the pace of his home improvements has slowed, according to online records of the county appraiser's office. So far there have been none in 2011.

It sounds like Tiger's going to need a bailout.

[org.whodat]

When you are bored enough to wonder about this crap you have already picked all of the lint out of your navel.

[Huntress]

I remember reading Tyson’s bankruptcy petition on www.thesmokinggun.com. One of his biggest creditors was a limo service. What got me about that was that the creditor let him get so far in the hole without cutting him off.

[buccaneer81]

Yikes. He pays more in property taxes in ONE WEEK than I pay in 18 months.

I like my life just fine.

[the invisib1e hand]

Although Woods was likely paid in the single-digit millions for the spot

woods and his agent, that is.

oh, it's you.

[vette6387]

Exactly, but I truly hope he dies penniless. He’s not a sports hero, he’s a POS.

[Mr. Mojo]

To fix up his financial short game, Tiger Woods is going to have to start making money again the old-fashioned way: by playing the sport he's known for.

With a messed up knee, messed up head, and a bunch of young, very talented competition who aren't the least bit intimidated by him now on tour, that scenario is unlikely.

[Revolting cat!]

Another innocent man brought down by a vengeful ex!

[Parley Baer]

He can always become a greeter at one of the Las Vegas Casinos.

[Joe Boucher]

I’ve flown over his Jupiter Island home a few times,
I’d pay a few hundred thousand for it.
Hey Tiger, want ta sell???

[FlJoePa]

We did work at both houses in Jupiter so I’ve seen plenty of both. Tiger wayyy overpaid for that property on the Island. If he had to sell that place today, he couldn’t get $25 million.

The house in town (for his Mother and kids) is almost laughable. Tacky greek statues, columns, elevators, etc....all within a neighborhood where homes are selling for $225K. Just weird...

[Aria]

A talented kid who got too much too soon too easily and got taken down by hubris and maybe naivety.

[TwoSwords]

I consider him among the top 5 of all time. Best long iron player ever. Top 3 putter. Number 1 in mental toughness. If his knee gives him a chance he’ll be competitive, for sure. He’s made mistakes, so have I. I wish him well.

[Waco]

Best thing he could have said when his troubles came to light,,,,’’You all have enjoyed kissing Bill Clintons’ butt for 20 plus years, you can just kiss mine for the next 40 years.’’ It would have made him money.