As reported yesterday, AmEx signed a five-year deal for
Tiger Woods to become a company spokesperson. In a tele-
conference with the media, AmEx President & COO Ken Chenault
said the deal calls for Woods to represent AmEx "financial
advisors as well as our card businesses around the world."
Chenault said that the first advertisements with Woods will
roll out "some time during the third quarter." Woods said
he had been "in discussions" with AmEx since December '96.
Woods will not feature an AmEx logo on his clubs or apparel,
adding, "Under contract, I can't do that" (THE DAILY).
REAX: While previous reports valued the deal at $30M,
Stephen Frank of the WALL STREET JOURNAL puts the package at
"well over" $20M. Frank: "Marketing experts say signing Mr.
Woods represents a coup for American Express, which has a
reputation as a stodgy, premium brand that caters to older
consumers." With the deal, AmEx "beat out" MasterCard and
"also upstages another" AmEx competitor, Charles Schwab &
Co., which was named the "official investment firm" for the
PGA Tour in January. A Schwab spokesperson declined comment
(WALL STREET JOURNAL, 5/20). In N.Y., Richard Sandomir
notes a person familiar with the deal said the $30M sum
noted in earlier reports was "too high." Sandomir:
"Aligning with [AmEx] catapults Mr. Woods from the hard-core
sports business into a broader role as a corporate
spokesperson." Kelly Presta, a spokesperson for Visa, said
that the company "had not pursued" Woods. H. Spencer
Nilson, publisher of the Nilson Report, which tracks the
credit and charge card industry: "This is a coup. There is
no one in the world entirely like him" (N.Y. TIMES, 5/20).
In Dallas, Richard Alm writes that MasterCard "had little to
say about its rival's coup." The company refused to comment
on whether it negotiated with Woods and company spokesperson
Ed Dixon referred all calls to Woods and his management
advisors. Ray Clark, Exec Dir of The Marketing Arm, said of
Woods' endorsement potential: "I think Tiger Woods will pass
Michael Jordan within 12 months" (DALLAS MORNING NEWS,
5/20). In N.Y., Kenneth Li values the deal at $26M.
Goldman Sachs analyst Robert Hottensen: "It's a perfect
combination" (N.Y. DAILY NEWS, 5/20). With the deal, Woods
"saw his annual endorsement take swell to $18 million. And
that doesn't include profits on his investment in The All-
Star Cafe" (Richard Wilner, N.Y. POST, 5/20). USA TODAY
puts Woods' annual endorsements at $14M. Melanie Wells, on
AmEx's deal: "In tapping Woods, it's landed a global star
and one with special appeal to young adult consumers, who
tend to stick with the first credit card they use" (USA
TODAY, 5/20). In DC, Paul Farhi writes Woods has become "a
rival to Michael Jordan as the most salable man in America."
ProServ Senior VP Seth Matlins: "Jordan is a phenomenon, but
he is not what Tiger Woods is" (WASHINGTON POST, 5/20).
AmEx took out full-page ads in the N.Y. TIMES and WALL
STREET JOURNAL featuring a head-shot of Woods with the
tagline, "I Plan To Do More" (5/20). TV spots with Woods
will begin airing this summer (Dave Sheinin, MIAMI HERALD,
5/20). AmEx shares were up 1 1/4 to 68 5/8 (Mult., 5/20).
