Even Tiger’s Aren’t Immune To Recession

Despite their superhuman talents, all-star athletes aren’t immune from the everyday effects of a tightening economy.  Recently golf phenom, Tiger Woods, was given the pink slip from failing automaker GM.  This is just another signal that 2009 is more then likely going to be a year of contractions in spending and restructuring of corporate budgets.  Are athlete sponsorships worth the millions they cost?

I recently heard that the deal between GM and Tiger was around 7 million a year.  It’s probably a good move to free up some much needed cash flow in light of the cash crunch GM has encountered.  There is little doubt that a superstar athlete like Tiger gives Buick a fresh brand and image, but is it worth the 7 million a year?  Apparently it’s not or GM wouldn’t be cutting the contract.  It’s amazing the massive endorsement contracts that pro athletes yield.  It would be really interesting to see the ROI that companies get through these advertising contracts.  I would have to think that in light of all the economic uncertainty more companies will be opting out of large endorsement deals.

Tomorrow I plan to do some research and compile a list of top corporate endorsements for athletes.  I think it would be interesting to see which of these companies are looking for some much needed cash flow.

What do you think; Are Superstar Athletes overpaid for endorsement deals?