Maybe it’s time for CNBC’s sports business guru Darren Rovell to finally update his “Gatorade blog.”
The popular sports drink, marketed by the Quaker Oats Company (a division of PepsiCo.), was created by Dr. Robert Cade of the University of Florida in 1965 for the school’s football team. It was subsequently named after the university’s mascot, the Gators, and is estimated to have lead to over $80 million in royalties since then for the university.
Most recently, however, Golfweek reported that Tiger Woods reached a five-year endorsement deal with Gatorade that could be worth as much as $100 million. Reports state that Woods’ compensation will be based on his endorsement fee and royalties from sales of at least three Gatorade products, including a new proposed drink that will be named after Tiger. Who knows, maybe Tiger’s drink will also utilize the newly launched “G2,” per Rovell’s latest piece?
In making the deal, Woods and IMG agent Mark Steinberg purportedly spurned a similar offer from Glacéau’s VitaminWater (sold recently to Coca-Cola) of EnergyBrands, Inc. As was theorized on this blog earlier, it is deals like these (as well as the one with Gillette) that suggest that Woods may not have been hurting too much after his recent split from American Express. But again, one also has to wonder about the wisdom of the decision on the part of AmEx (as well as that of Buick, which is reportedly quietly phasing Woods out of its primary marketing campaign).
Meanwhile, business as usual for Woods today as he put the finishing touches on yet another win (his professional career 60th) at Cog Hill, this time in the third-leg of the PGA Tour’s first-ever “playoffs.” Yawn.
– Jason G. Wulterkens