ON THE TRAIL OF THE TIGER

In the year since he flashed his trademark smile and announced his pro career with a confident “Hello, world,” Tiger Woods has unleashed a tidal wave of more than $650 million washing over the golf world.

Ticket sales shot up, TV ratings jumped, interest in the game increased, sales for his main sponsor took off and the spirits of tournament directors soared as they anticipated a spillover boom to events Woods in which does not play.

While golf was on a roll even before Woods announced in a faxed statement on Aug. 27, 1996, that he was turning pro, the difference now is that non-golfers are paying attention to the sport.

The new money brought to golf includes increases in TV contracts and sharp rises in ticket and merchandise sales, as well as Woods’ record-setting endorsement deals.

This influx of new money to golf conservatively totaled $653.5 million, according to tournament officials, TV and corporate executives and analysts interviewed by The Associated Press.

And that is not even adding in increases in print and TV advertising, the effect of which will be felt down the road.

Clearly, Woods’ youthful enthusiasm, intelligent charm, immediate success and ethnic background in an overwhelmingly white professional sport helped push golf from the corner of the sports stage into the spotlight.

“He got them into the tent,” said CBS Sports vice president for programming Rob Correa, whose network’s golf ratings were up 24% this year. “Now, he doesn’t have to be in contention. He has gotten them to sample the sport and they like what they see.”

At tournament after tournament this year, it was clear that many spectators were people who not only had never been to a tournament before but had also never been on a golf course.

At Pebble Beach, a spectator asked a reporter “what the ‘negative 13’ next to Woods’ name means.”

At the PGA Championship this month, a college-age spectator wearing a Columbia University shirt said: “I’m in a pool. Can you tell me the names of four players beside Tiger I should pick?”

These were not usual golf galleries.

“I don’t see it stopping,” Correa said. “I don’t think your ratings go up 24% in one year by getting golfers who weren’t watching last year. The increase means people who aren’t playing the game are watching.”

That has long been the main limiting factor to golf audiences. Only those who played the game watched the game. In the United States, there are 25 million golfers, but only about 5 million avid golfers.

“Tiger has introduced golf to a new audience,” said Dede Patterson, tournament director of the Buick Classic in suburban New York where advance ticket sales were up 35% this year because Woods was playing.

“Just the thought of Tiger boosts ticket sales,” Patterson said.

Woods has taken golf into uncharted monetary areas.

“I think that one of the things that was unique with Tiger, while he was long in coming, it was very fast in terms of what happened,” said Alastair Johnston, head of the golf division at International Management Group, Woods’ agents.

“Spectators, media, sponsors were so fascinated with him,” Johnston said. “Even with Palmer and Nicklaus, it was an evolutionary thing.”

In 12 months as a pro, Woods has won more than $2.91 million worldwide and his $2.71 million on the PGA Tour is already in the top 90 on the career money list. He’s made an another $1.2 million in appearance fees for events from Thailand and Australia to Pennsylvania, with Japan next in November.

A series of five-year endorsement deals with Nike, Titleist, American Express and Rolex are worth $95.2 million, according to various sources contacted by the AP. A part-ownership situation with The Official All-Star Cafe makes Woods easily the $100 million man.

He also has financial ties to Golf Digest and Sportsline, and a $2.2 million book deal with Warner Books.

Ticket sales this year at tournaments in which Woods played were up as much as 35%, according to tournament directors, and concession and souvenir sales increased as much as 28%.

Based on an average ticket price of $22.50, an average concession expenditure of $9 per person and a $15 souvenir purchase, Woods conservatively has had a $1.13 million effect on the 10 tournaments he impacted the most.

Six of his events--the four major championships, the Players Championship and Phoenix--already were at or near capacity and not affected significantly.

“We had the best year ever,” said Lou Russo, tournament director of the Pebble Beach tournament. “Our biggest year prior to this year was 1995, and we showed an approximately 20% increase.

“It’s hard to attribute all of it to Tiger--golf is on an upswing anyway and he did play with Kevin Costner--but he did contribute to that.”

Russo, who is also chairman of the television committee and a member of the board of directors for the PGA Tour Tournament Assn.--an organization of tournament directors--said: “All the tournaments that had Tiger in them were up anywhere from 18 to 30%.”

And then there was television.

Last year, 19.4 million homes watched the final round of the four major championships. This year, the figure was 30.3 million--a 56% increase. And Woods was on the Sunday leader board only in the Masters, supporting Correa’s theory that he has created new fans who watch even when he is not in contention.

Weekend television ratings for all golf--PGA Tour, Senior Tour and LPGA--were up 16.6% this year through the week of the PGA Championship, showing the broad overall impact Woods has had.

“For advertisers, they have to look at a lot of those new people as potential customers,” said CBS’ Correa. “It means a lot of happy advertisers.

“Getting people to sample the product is what promotion does,” he said. “Getting people to stay is what the quality of the product does.”

A mere month after Woods won the Masters in record fashion and drew nearly 40 million viewers for the final round, the PGA Tour had the good fortune of negotiating a new four-year TV deal that starts in 1999.

While the increasing popularity of golf would no doubt have meant an increase in rights fees anyway, Woods’ spectacular Masters performance put the tour in a great bargaining position. The final deal was worth $650 million, about $325 million more than the deal that expires after next season.

PGA Tour commissioner Tim Finchem said that as a result of the increased TV revenue, the average tournament purse of $1.7 million this year will be “north of $3 million” in the year 2000 and average $3.5 million by the time the agreements expire at the end of 2002.

That would put the total prize money at $158.5 million in 2002, compared with $75.2 million this year.

The PGA of America also took advantage of the climate to extend its deal with CBS to televise the PGA Championship through 2005 for $36.4 million, more than doubling the annual payment of the previous deal.

And as staggering as Woods’ endorsement deals seemed when word of them leaked last year, it now looks as if his major backers got a bargain.

“I think when you consider Nike and Titleist, who are the only ones who have been associated with Tiger for the full year, I think they are delighted with the exposure and the profile,” IMG’s Johnston said. “Tiger has delivered on and off the course as well. They are in a fortunate position. I think he has got the personality, commitment and the dedication for the long run.”

Nike, whose golf division was a mere afterthought until it signed Woods to a five-year, $40 million deal, gained the most. Sales of its golf apparel and footwear increased 100% to $120 million in the fiscal year that ended May 31.

The company projects golf apparel and footwear sales for the current fiscal year to top $200 million.

Nike’s overall sales in the last quarter of calendar year 1996 were up 55% to $2.1 billion, well ahead of Wall Street estimates, according to San Francisco-based analysts Hambrecht & Quist. And its international sales were up 60%, also better than expected.

“The scary thing for us at Nike is that we’ve had this jump even before we’ve introduced Tiger’s line of clothing,” said Nike spokeswoman Robin Carr. “Who knows where it will go from there?”

Nike’s youthful Sport TW line will hit the stores with apparel in December and footwear in March, Carr said.

It is also too early to assess the impact of Woods on those playing the game. According to the National Golf Foundation, $10 billion was spent on all greens fees, cart rentals, etc., in 1994, the last year for which numbers are available.

Another $5 billion was spent on merchandise, including $2.24 billion on clubs.

If even a 1% impact by new players and new levels of interest was created by Woods, that would bring another $150 million into the marketplace.

While there may be a slight falling off of Tigermania in his second year, all the tournament directors, TV officials, company executives and market analysts contacted expect more good things for golf.

If Woods’ impact in Year 2 is anything like it was the first time around, everyone connected with golf will be humming.

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Tracking the Tiger

Tiger Woods’ impact since turning pro on Aug. 27, 1996 (All figures are based on worldwide events):

* Tournaments: 30

* Victories: 7

* Winnings: $2.91 million

* Appearance Fees: $1.2 million

* Endorsement deals: $95.2 million (Nike: $40 million, Titleist: $20 million, American Express: $26 million, Rolex: $7 million, Warner Books: $2.2 million)

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TELEVISION

PGA Tour four-year TV Deal: $650 million (up $325 million)

PGA Championship TV Deal through 2005: $36.4 million (up $18 million)

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TICKETS

Tournament ticket sales up 18% to 35% and concession and souvenir sales up 20% to 25% ($1,125,000 increase).

Nike golf apparel and footwear sales double to $120 million.

All course fees (greens fees, cart rental, etc.): $10 billion.

All merchandise (including $2.24 billion for clubs): $5 billion.

(A 1% Woods-based increase would be $150 million)