Wednesday, January 2, 2008

Tiger's path to a Billion dollars

This article by Yahoo's Dan Wetzel caught my attention. He states that based on PGA's FedEx Cup - PGA version of year end play off tournament, Tiger would retire with a Billion dollars - yes, the one with the B.

FedEx Cup earnings are put in a retirement fund. If we go by the conservative assumption that Tiger would win 7 FedEx Cups over his career, he could end up with a retirement fund over a Billion dollars, as listed below.


Path to a billion
How Woods' retirement plan could possibly reach $1 billion, even if his production falls off, and he doesn't make the top 70 in some years.

Year
Assumed retirement
fund compensation
2007
$123,100,000
2008
112,900,000
2010
95,000,000
2011
87,200,000
2013
73,100,000
2015
61,500,000
2017
51,800,000
Total
$604,600,000
Plus interest
114,700,000
Plus other plans
300,000,000
Total
$1,018,700,000
But the line that best summarizes Tiger's earning potential is the following:
"When it came to figuring out the plan, Tiger was the last person we thought about," said Joe Ogilvie, the tour pro who helped implement it. "For Tiger, $10 million is a rounding error."
Amen !

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