Michael Phelps Sponsorships
Olympic Swim Champ Already Making Millions as Corporate Spokesman
Aug 19, 2008
In the 2008 Olympics at Beijing, Michael Phelps was called history’s greatest swimmer. At 23, he was already a millionaire and potentially one of advertising’s richest athletic spokesmen of all time.
He had 10 corporate sponsors even before he won his eighth gold medal at Beijing and his 14th overall. Some people called him the "greatest Olympian ever," but a quick poll showed that others thought that title still belonged to tracksters Paavo Nurmi, Jesse Owens or Carl Lewis.
There is no objective way to compare such tremendous performers from widely separated generations, but the label "greatest Olympian" has enough economic value to claim and debate it. Nurmi, Owens and Lewis, however, might have swapped the title for even a fraction of the money Phelps is expected to make, with or without that recognition.
Phelps as Magazine Cover Boy
Phelps has literally been a magazine "cover boy," fronting at least 10 publications even before Sports Illustrated topped them all with a photo of him wearing all eight gold medals he won at Beijing.
Phelps is a native of Baltimore. He attended Michigan but could not compete for the school because he was classified a professional swimmer. According to NBC, he is 6-feet-4 inches tall, has a 6-foot-7 inch wingspan and size 14 feet, giving him plenty of kicking power.
Sponsored by Speedo Swim Suits
The Wall Street Journal said Phelps was making $3 to $5 million annually from the 10 sponsorships he brought to Beijing. The list included VISA, Hilton, AT&T and Speedo, the company that makes his swim suit.
Just how many millions Phelps will make will depend upon his personality and ability to serve as a spokesman at public events and in television commercials. Though he won a record seven gold medals in 1972, Mark Spitz never matched the sponsor earnings predicted for him.
Phelps’ agent, Peter Carlisle, told the Wall Street Journal that he was receiving 50 sponsor proposals per day even before they left China. He estimated that eight gold medals should be worth $100 million to Phelps "over the course of his lifetime."
Paul Swangard, managing director of the Warsaw Sports Marketing Center at the University of Oregon told the Journal that was an "aggressive" number from an aggressive agent, but he wouldn’t bet against it.
Tiger Woods reportedly earns $100 million annually, but he stays on television much of the year. Phelps may not swim on international television again until the 2012 Olympics.
Other questions about any athlete’s sponsor value concern his personality, public behavior and skill as a spokesman.
"I Just Say Things"
Phelps might have raised some questions regarding his public speaking skill in China. The Associated Press said he told NBC about a deal to buy a Baltimore swimming complex, then backed off at a later news conference, saying "I'm not really sure exactly. I never know what I'm really talking about, I just say things."
John Sweeney, director of sports communication at the University of North Carolina, told the AP that Phelps will be tested in upcoming interviews.
"Is he funny? Is he warm? Is he interesting? Does he say things that make you want to listen more or is he the great athlete who is pleased to be here and he's done?"
To put Phelps’ Olympic performances in perspective:
- In the 1920s, Nurmi won 12 Olympic medals and broke most middle and long distance running records.
- Owens sprinted to four gold medals and defied Adolph Hitler in 1936 at Berlin.
- Lewis won nine gold medals and set sprint and long jump records in the 1980s and 1990s.
Sources:
- Associated Press, August 19, 2008
- Christopher Rhoads, Wall Street Journal, August 18, 2008
- Peter Finney, The Times-Picayune, August 18, 2008
- NBC Olympics.com
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