Phelps, the billion dollar man?
2008-08-14 12:46
Beijing - Weighed in gold, Michael Phelps is worth about $3m. In reality the face of the Beijing Olympics is probably worth 10 times that amount each year.
Marketing experts said the 23-year-old American, who is now
the most successful Olympian with 11 gold medals, will become
the richest professional swimmer ever, far surpassing the money
earned by the former most decorated US swimmer, Mark Spitz.
"He's the greatest Olympian in the world and he'll be able to earn money everywhere as he's an international brand," Australia-based celebrity agent Max Markson said.
"He's a billion dollar man. He won't have to get a job ever. He can live off this for 50 years."
Olympic sports have meant big business since the Olympic
movement allowed professional athletes to compete 20 years ago.
But none has banked the sums earned by charismatic
megastars like Tiger Woods, David Beckham or Michael Jordan
whose names are globally known and set cash registers
ringing everywhere.
Declined to comment
Eli Portnoy, chief brand strategist at the Portnoy Group,
a US consultancy specialised in branding, doubted Phelps -
or any Olympian - would match the earning power of Woods who
is estimated to become the first billionaire athlete by 2010.
Phelps reportedly earns about $5m a year from endorsements although his agency Octagon declined to comment. Portnoy forecast this rising to about $30m, short term.
"In the heat and intensity of this event it may seem that
his earning power is limitless, but you have to pull back and
look at someone like Tiger Woods who has performed at a top
level for years and years in front of the world," he said.
"The Olympics is only held once every four years. After a
year to so Americans forget about the Olympics and move to
stars they see more. Kids want someone else on their Weetabix
box."
Phelps is already the epitome of the modern American
corporate Olympian with the Phelps Machine in full swing before
he topped the record nine gold tally held by Spitz and Carl
Lewis, Finnish runner Paavo Nurmi and Soviet gymnast Larysa
Latynina.
Phelps, who became a professional swimmer at 16 and a
millionaire by 18, has sponsors, agents, lawyers, accountants,
charities, his own website in English and Chinese, and even his
own logo with a wave-like blue M and red P over his name.
Commercial commemorating
An Octagon spokesperson said his sponsors were credit card
company Visa Inc., Speedo, watch maker Omega, AT&T Wireless,
energy food company PowerBar. Kellogg's, Rosetta Stone, and
PureSport. He declined to say what they paid Phelps.
Within seconds of Phelps's snapping up his 10th gold medal, Visa released a special edition television commercial
commemorating his title as the most decorated Olympian.
"You need to be out there early and establish your
affiliation with the property, Michael Phelps," said Michael
Lynch, head of global sponsorship management at Visa whose
relationship with Phelps dates back to 2002.
"His performance here will benefit us as it will add to the visibility we will get through this affiliation ... and his
earning ability will increase, there's no question of that."
Portnoy said Phelps's youth and composure under pressure
made him a marketer's dream. The only blotch on his record was an arrest for drinking and driving in 2004 for which he
apologised.
"In the short term, he is a gold mine because he represents everything that is pure, young, strong and visionary about America. We haven't had anyone of this significance since Mark Spitz," said Portnoy.
"Guaranteed there will be marketers wanting a piece of him that make no sense and it will interesting to see how his
handlers cope with this and if they get greedy because the
Olympics has a narrow avenue of marketability."