Tiger Woods and Money Problems

So it seems as if Tiger Woods is now in different kind of trouble. I saw a recent article that speculated that Tiger Woods might go broke. Although, no one has the full details of his balance sheet his expenses seem to be increasing while the amount of money coming in is decreasing. Forbes in 2009 estimated Tiger Woods to have a net worth of $600 million. True, this seems like a lot, however has some other issues going on as well. The most costly error was Tigers’ boogey off the golf course that cost him $100 million. So now we are left with $500 million. In addition to this, according to the PGA in 2009 Tiger was making $10.5 million. The next year Tiger made $1.29 million and year to date Tiger has only made $571,363. I thought the top 1% only got richer? The main reason why Tiger is making less is because his ranking has decreased which means less money. Perhaps maybe his divorce not only wrecked his marriage but his career as well. Tiger has other money from endorsements, but is hard to pinpoint with any accuracy what these numbers are or will be.

I am surprised that Tiger is living such a luxurious lifestyle after his divorce. Last year Tiger took out a $54 million mortgage. The house has property taxes of over $400,000 per year. Tiger had to also add three different pools, a tennis court, golf course, and an elevator. In addition to this Tiger also pays property taxes on his mother’s $2.6 million house.

Time will only tell if Tiger goes broke. The ironic thing was Tiger majored in economics at Stanford. I guess he never took a personal finance course. Someone could easily write a book on the celebrities who have made fortunes only to see it all gone.