It’s official, sot of: The HSBC Champions in China is now a WGC event. But, according to the PGA Tour’s web site, it is not a PGA sponsored event.
This is significant for a couple of huge reasons. Tiger Woods recently acknowledged that, “This (the PGA Tour) is the only place that doesn’t have appearance fees.” This strongly implies that he is paid fees everywhere else he plays, whether they are publicized or not. And you can be sure that Woods, who played in this IMG event in 2005 and 2006, received seven figure checks for traveling around the world, a tradition he would not like to break, and apparently won’t have to because it won’t call under the PGA Tour’s rules.
Point number two is that Woods, with 66 PGA Tour victories, is out to exceed Jack Nicklaus (73) and Sam Snead’s (82) victory totals. If the HSBC were official and he won it a few times in the years ahead, Woods, who specialized in winning WGC events, could considerably enhance his resume.
As it stands, Woods will earn a boatload of cash and, by competing and possibly winning, create millions of adoring new fans who may be eager buyers of Nike clubs and balls and all things Woods.
Indeed, this IMG orchestrated business deal/golf tournament won’t count towards Woods official record. So Asia’s major, as it is being touted, is really nothing but a big money grab for the world’s wealthiest golfers. Furthermore, it may lack the depth of the US based WGC events since it is being held over Thanksgiving weekend, a time when many US pros who are not being offered huge appearance fees, will opt to stay home.
When the majors are concerned, Woods is totally into playing for history. And when he travels out of the country (except for the British Open and the Cups), he’s equally committed – to making a buck.
A Mistaken Assumption - HSBC Follow Up
I made a well founded, but erroneous, assumption that Woods would be receiving an appearance fee at the HSBC WGC. The assumption was based on Woods’ statement regarding fees, IMG’s involvement, Woods’ previous history of receiving fees out of the US and at this event, that Woods is receiving appearance money in this trip for playing in the Australian Masters, and his general love of a buck.
So he won’t get his standard seven figure guarantee. Still, there are plenty of reasons to believe that Woods will make out economically on this trip far beyond whatever he wins in the tournament proper. The sports world covets China and its huge market. And Woods and IMG, his management company, have big plans for the Far East, hence his participation. Indeed, playing at the HSBC is like his participation in the Buick Open in Michigan – although he didn’t receive an appearance fee, his endorsement deal with General Motors acted like one.
The abolition of appearance fees at the HSBC WGC Champions also brings fees into question. If this event must eliminate fees to become a high class sub major, what does that say about all of the events that don’t offer them?
Indeed, it sounds like the right thing to eliminate the fees for the HSBC, but golf is big business, so you can be sure that Woods is not traveling to China Thanksgiving weekend just for a chance to win the coveted trophy or the first place check alone.
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4 responses so far ↓
1 BD // Apr 28, 2009 at 11:14 am
You make an interesting point about Tiger and his motivations. I would agree Tiger does not appear to be particularly interested in becoming golf’s great international ambassador (a la Gary Player). He apparently plays overseas in order to extend the Tiger Woods “brand” and take advantage of lucrative appearance fees he can collect.
He also doesn’t SEEM to be overly focused on setting an eye-popping (100?) record for career wins. If he were, he would play in more events, and include on his schedule many of the lesser tournaments that are currently capable of crowning the likes of Jerry Kelly as victors. As it is, Tiger seems content to let Snead’s record come to him, which it will in fairly short order if he continues to win 4-5 tournaments a year.
This raises the question of what Tiger DOES wish to accomplish, either within or without the world of golf, other than capture Jack’s record for major victories. Does he have a master plan that goes beyond that record or is he going to wait until he gets the record to decide what comes next?
Personally, I don’t think Tiger’s goal is simply to amass as much money as possible. Tiger can make money so easily, there just wouldn’t be enough of a challenge in trying to make money to get him out of bed in the morning. It would be like me making it my life’s goal to collect as many plastic shopping bags as I can. It would quickly become a pointless and tedious exercise.
My guess is that, to the extent Tiger is trying to maximize his earnings, it’s with some other, long-term goal in mind. I’d love to know what that is, but I doubt very much he’s going to open up any time soon and reveal what his real objectives are in life.
2 MikeZ // Apr 29, 2009 at 10:29 am
Good point, BD. It must be about more than just making money. Maybe he has his eye on the Arnold Palmer/Greg Norman model insofar as what his “after golf” ambitions might be. As you suggest, he’s building the Tiger Woods brand more than he’s just collecting paychecks (or shopping bags).
Phil, he’s a reference I think you’ll appreciate … there’s a line in “The Hustler” (the book, I don’t remember if it was in the film) that says, “When whales fight whales it’s never because one is hungry.” The point being that money, at the highest levels, is simply another way of keeping score. I suspect Tiger cares less about the dollar figures per se than he does about building the biggest business empire.
3 BD // Apr 30, 2009 at 7:44 am
I would imagine (so this is just speculation on my part) that when Tiger turned pro, he and Earl provided his management/financial advisors only a broad, long-range outline of what they wanted them to do, with the idea that Tiger’s focus needed to be on golf, not business. Based on what has taken place over the last dozen or so years, it’s apparent that branding Tiger’s name was a big part of it.
To his credit, Tiger has done his part to keep the brand name squeaky-clean. Although some people find Tiger’s public persona somewhat cold and brittle at times, he’s about as far removed from the stereotype of a troubled celebrity athlete as you can get. There have been no arrests, incidents involving strippers, gunshots, drug or alcohol episodes, etc. He has always conducted himself as if he has long-term interests in mind, and not as someone who is out to have a good time while the going is good.
I don’t know how much of that is attributable to having good business sense (i.e., trying to protect his brand name) and how much is due to having good character and values (i.e., his upbringing). Regardless, if he keeps it up, there’s no limit to the influence he can have over the rest of his life. Arnold Palmer last won a major in like 1964, yet STILL makes something like $30 million a year. He makes that money today, but he really EARNED it by cultivating a an image over the last 50 years or so.
4 kanadianhoser // Apr 30, 2009 at 10:05 am
Fellas, it would be good to know if the cost that Woods costs the Australin Masters is in any way mitigated by HSBC? (by a payment of some sort), or any other (in between) entity?…Just curious I guess but if you have access Mr. C, it should be a simple thing to clarify?…just curious in Canada.
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