Michael Phelps' Endorsement Value Said To Be In The $50 Million Range
Olympics, Summer

I Think Everyone Should Calm Down About Phelps' Endorsement Value

8/19/08 in Olympics, Summer   |   100%InjuryRate   |   1283 respect

Look, I'm all for Olympic athletes getting endorsements after they strike gold. Lord knows they deserve it after years and years of being totally ignored and under-appreciated. But some of the dollar figures being thrown out there currently for what Michael Phelps could pull in are simply ridiculous.

"Michael Phelps would be worth $40 or $50 million to Nike," said Howard Bloom, who teaches sports management at Algonquin College in Ottawa and has worked with several Olympic athletes, "He could literally allow them to launch a massive swimwear company, and I think you are going to see an incredible bidding war for him."

And if that isn't nuts enough for you, how about this tidbit courtesy of Phelps' agent Peter Carlisle.

"What is the value of eight golds in Beijing before a prime-time audience in the U.S? I'd say $100 million over the course of his lifetime."

In Bloom's case, I'm not exactly sure what kind of bidding war would go on. It'd essentially be Speedo, Phelps' current sponsor, against Nike. And while Nike certainly could make a splash by signing Phelps, to give him in the $40-$50 million range borders on the absurd. Sure, LeBron James has a $90 million contract with Nike, but remember what he's pushing - basketball shoes. Whether you want to admit or not, basketball shoes fly off the shelves a lot faster than do shark skin swim suits or swim googles.

And the important thing to remember, which makes both Bloom's and Carlisle's estimates much too lofty, is that swimming fades away in the minds of most Americans right after the Olympics.

While some people believe Phelps can change that, I don't. The American public has already seen what they want out of Phelps - perfection at the Olympics.

Phelps' performance may inspire people for the short term, but the key problem is that we only see Phelps on TV once every four years. And that won't change. TV stations won't suddenly be replacing NFL games for swim meets just because of Phelps.

Thus, having Phelps' face appear once every four years (and Phelps claims that 2012 will be his last Olympics) makes it hard to see how he could get any kind of mega-endorsement.

Just think about this way, what kind of market value will Phelps have two years from now? It won't be what Tiger or LeBron's market value will be, that's for sure.

For Olympic athletes, there's a very small window of opportunity for them to cash in. Phelps' time is now, but he better do it quickly, before people come to their senses.

Now, Phelps Chases Gold On Land [
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8/19/08   |  

no he's so ausom and hott with his hair long  i ment

8/19/08   |  

no he's so ausion and hot wiht long hair

8/19/08   |  

Ummmmm.........From what I read above, that is not the statement or comment that was relayed as it had nothing to do with Phelps needing the money for training!
 
Here, I will pull some info from what was posted above and to answer your question, I played several sports not only through my freshman year of college until I blew out my knee, but on a highly more competative scale outside of the "high school" arena as well.


"In Bloom's case, I'm not exactly sure what kind of bidding war would go on. It'd essentially be Speedo, Phelps' current sponsor, against Nike. And while Nike certainly could make a splash by signing Phelps, to give him in the $40-$50 million range borders on the absurd. Sure, LeBron James has a $90 million contract with Nike, but remember what he's pushing - basketball shoes. Whether you want to admit or not, basketball shoes fly off the shelves a lot faster than do shark skin swim suits or swim googles.

And the important thing to remember, which makes both Bloom's and Carlisle's estimates much too lofty, is that swimming fades away in the minds of most Americans right after the Olympics.

While some people believe Phelps can change that, I don't. The American public has already seen what they want out of Phelps - perfection at the Olympics.

Phelps' performance may inspire people for the short term, but the key problem is that we only see Phelps on TV once every four years. And that won't change. TV stations won't suddenly be replacing NFL games for swim meets just because of Phelps.

Thus, having Phelps' face appear once every four years (and Phelps claims that 2012 will be his last Olympics) makes it hard to see how he could get any kind of mega-endorsement.

Just think about this way, what kind of market value will Phelps have two years from now? It won't be what Tiger or LeBron's market value will be, that's for sure.

For Olympic athletes, there's a very small window of opportunity for them to cash in. Phelps' time is now, but he better do it quickly, before people come to their senses. "

8/19/08   |  

The fact that you do not even see an issue with giving LeBron James $90mil for promoting basketball shoes is sad.

One must also consider that Phelps will not just be pushing goggles and swim suits, but rather clothing attire as well. LeBron pushes shoes, Phelps pushes not only swim suits, caps, goggles, fins, kickboards, etc. but as well he pushes gym bags, shirts, shorts, sweatpants, sweat shirts, warmup pants, wind breakers and yes, even shoes-----I think you totally missed the boat on this one (not trying to be rude), but there is far more to endorse with swimming that has nothing to do with swimming ( I am sure that did not make sense). Pushing clothing for Nike or even Speedo has nothing to do with swimming, it is the person who is promoting the product.

Just like LeBron, you are assuming that everyone who buys basketball shoes plays basketball. 

He can promote a lot more than LeBron can whether he is in the pool or out of  the pool.

As for the fading of the sport-that really depends on who you are talking to. It is not as highly viewed in America simply because the media does not promote it as much and the fact that  there are not swim meets every night or every other night, just as there are not football games every night or every other night.

Swimming, on the other hand, is a huge sport in other countries, other countries to which Nike, Speedo, Arena, Addidas etc. advertise and sell within.

The point is this: Michael Phelps is an athletic star that these companies are going to use to their advantage in order to promote their "stuff". He is clean cut, not a thug and dang good at his sport. I am thinking one shold rethink paying these NBA players what they are being paid as that in itself is truly ridiculous.

8/19/08   |  

(Edited by )

I don't know about business and endorsements but I do remember Mark Spitz and all the hoopla.  The world was abuzz about Spitz for about 6 months.  The problem seemed to be that there are no pro swimming teams to go to with a healthy bit of cash and continued exposure.