When the average guy is reckless it usually only costs him a nominal fine or maybe a marriage. To them of course it is a big deal, but it is a bag of shells compared to what it costs a big time athlete. These guys pay a much higher price.
Tiger Woods, as anyone who hasn't been living in a cave for the past year knows, took recklessness to a whole new level. Though not condoning his behavior, it is one thing to have an affair, its another to have slept with the amount of women and to go to the lengths he did while married. The public will at first act disgusted with your behavior when they learn of an affair, but once you start winning again all is generally forgotten. In Tiger's case his indiscretions cost him not only his family, but a list of endorsement deals longer than most people knew he had.
A year ago today Tiger had endorsement deals with Nike, EA Sports, Gatorade, Accenture, GE, AT&T, Gillete, Tag Heuer, American Express and many others. Since then he has been dropped by Gatorade, Accenture, GE and AT&T; He is no longer appearing in ads for Tag Hauer or Gillette even though they still sponsor him; AMEX has put him on the bench as well. This cost him about $25 million last year, according to CNBC. It also cost IMG, his management firm, $4.6 million. Not to overemphasize how much damage Woods has caused, but a study by UC Davis estimated the loss of market capitalization of the firms he sponsored to be upwards of $12B
He still was able to keep his most valuable endorsements with Nike ($30 million), Gillete ($15 million), EA Sports ($8 million), the values according to NowPublic.com. Other endorsements he still has with Golf Digest, NetJets, Tag Heuer, TLC Laser Eye Centers and Upper Deck in tact according to his website. Fnancially he will not ever be in trouble unless his soon to be ex-wife, Elin Nordegren, is able to win the $750 million she is seeking in a divorce settlement.
While Tiger will still make a considerable chunk of change this year, it will be nowhere near the $100+ million he enjoyed the past few years. At least he may still have Rachel Uchitel.
Gilbert Arenas was the best and most popular player on the Washington Wizards. He was, in fact, one of the most liked and talented players in the whole NBA at one point. He then decided it was a good idea to bring guns to an NBA arena and point them at teammates during an argument. Even Tiger Woods shook his head at Gilbert the day that news broke. In a recent pole taken by Forbes, Gilbert Arenas ranks among the top ten most disliked people in the sporting world by Americans. He is on the same list as Ben Roethlisberger, Michael Vick, Tiger Woods and Alex Rodriguez.
He probably will not lose his contract, but he was suspended indefinitely without pay. This will cost him $147,200 per game and a total of $9,429,505.41 for the rest of the 2009-2010 season, according to ESPN. NBA commissioner David Stern said "Although it is clear that the actions of Mr. Arenas will ultimately result in a substantial suspension, and perhaps worse, his ongoing conduct has led me to conclude that he is not currently fit to take the court in an NBA game. Accordingly, I am suspending Mr. Arenas indefinitely, without pay, effective immediately pending the completion of the investigation by the NBA."
Michael Vick, though not losing the most money, has to be the worst offender on this list. He didn't cheat on his wife, he isn't married; he didn't bring guns to an NFL stadium, though he was caught with marijuana in Miami's airport. His actions didn't even really destroy people and companies either. He brought only himself down, and maybe Arthur Blank's Falcons. When he signed a 10 year, $130 million contract with the Falcons in 2004 he became the most highly compensated player in league history.
He repaid Arthur Blank by smoking pot, giving Falcons fans the middle finger while walking off the field and running Bad Newz Kennels, a dog fighting ring. He was the lead trainer, financier and exterminator. He had friends with him, but he clearly ran the show. In exchange for shooting, electrocuting, drowning, choke slamming and fighting dogs to death after their birth via forced rape on a rape stand he received an indefinite ban from the NFL, the voiding of his contract and an 18 month prison sentence. He also lost endorsement deals with Nike, EA Sports, Coca-Cola, Powerade, Kraft, Rawlings, Hasbro and AirTran, according to Wikipedia.
To add insult to injury, he had to repay $20 million of the bonus money he received while with the Falcons because he admitted using it to fund gambling on the dogs his organization trained. In the US, professional athletes are banned from gambling because of the potential detrimental effects caused by gambling that were exhibited by the 1919 Black Sox.
Michael Vick subsequently declared bankruptcy and ended up having to accept a 2 year contract worth $1.6 million the first year, $5.2 million the second year and with $3 million in incentives according to ESPN. Shortly after he signed an endorsement deal with Nike that was then refuted by the company in spite of his agent announcing it.
Michael Vick clearly lost a lot of money, well over $100 million dollars. He did it because the exhiliration of dog fighting and abuse was more inviting than the on field rush that would be enough for most people. He is the only person discussed here to spend time in jail for his actions. That he is in the NFL is a blessing for him and hopefully he appreciates it much more this time than he did the first time around.
What will all these lessons do to stop future philanderers and potential criminals from losing their massive contracts and endorsement deals? Probably not much if you look at the likes of Ben Roethlisberger, Alex Rodriguez and David Beckham.
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