Filed under: News 
Some are wondering how much money Tiger Woods stands to lose if he takes a year off from golf. The New York Post came up with an estimate, which is probably a bit of an exaggeration. Personally, I think that these numbers are inflated for dramatic effect, but it is not inconceivable to argue that Woods will lose $200 million in lifetime earnings from the scandal, even if he chooses to play golf like normal next year. The value of a financial asset (which the Tiger Woods name is) is not only impacted by reductions in current earnings; it is also affected by the multiplicative effect of lifetime losses resulting from current events.
What is also significant is the half billion dollar loss for the entire golfing industry that will result from a year without Tiger on the course. There were quite a few people making money from Tiger's name, so the long list of Tiger Woods mistresses will create an even longer list of golfing execs crying in their collective beer.
Here is the estimate of losses to Tiger and the industry if Woods takes next year off - this comes from the New York Post:
$180 MILLION IN PERSONAL EARNINGS, INCLUDING: $110 million in advertising income, if sponsors rebel and dump contracts
$23 million in tournament prize money (roughly the amount he won in his last full season on the PGA Tour and abroad) $30 million in fees for three golf courses he's designing, if deals fall through $17 million in appearance fees (equal to his best year for showing up to play minor events)
$591 MILLION IN INDUSTRY LOSSES, INCLUDING:
$455 million in losses to his Nike-endorsed golf brand, based on estimated 35 percent sales decline
$40 million in lost PGA Tour ticket sales, based on a predicted 25 percent loss at 20 Woods-attended tourneys
$96 million if the Woods-brand EA Sports golf video game goes down the tubes
The golfing industry's greatest mistake is that while they certainly did a good job of investing in Tiger, they didn't do a good job investing in Tiger's replacements. Sure, Tiger is the greatest golfer in the history of the world, but the lack of effort put into promoting golf to people of color means that Tiger is still the only black guy on the golf course. My uncles, cousins and friends all gather around the TV to cheer for Tiger Woods because he represents a source of pride for our community. We've never had another black man to cheer for on the course, largely due to golf's stubborn commitment to remaining the sole domain of the white and wealthy. Even today, the PGA is still a game for white men, and they are going to lose money because of it.
 Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here.
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