Michael Phelps is Worth His Weight in Gold... And Then Some

The Lucrative Sponsorship of Athletes

It was reported by various agencies that Olympic swimmer Michael Phelps was holding down around $5 million in sponsorship deals going into the 2008 Summer Olympics. With his world record-shattering performance in Beijing, industry analysts are now saying that that amount could go over 10 times higher.

So what's in a name? Right now, Michael Phelps' name is gold. Apparently, it comes with the territory.

After winning eight gold medals, setting world and Olympic records in the process, Michael Phelps is being courted with lucrative sponsorship deals. Associated Press reports that Phelps was being sponsored by ten separate companies at the onset of the Summer Olympics, including Speedo, Visa, AT&T, Hilton Hotels, and Kellogg. In fact, when he won the eigth gold medal, Visa is reported to have paid Phelps a cool million in bonus money.

Octagon is the agency that markets Phelps to the public. "What is the value of eight golds in Beijing before a prime-time audience in the U.S?" Peter Carlisle, who leads the Olympic and action sports division at Octagon, told the Associated Press. "I'd say $100 million over the course of his lifetime."

Pizza Hut, a company not even on the list of sponsors provided by Octagon to Associated Press, is giving Michael Phelps and his teammates free pizza and pasta for a year for winning in Beijing.

Carlisle says he is receiving about 50 pitches a day for possible sponsorships.

In addition to lucrative sports contracts, many athletes pen impressive sponsorship deals. Michael Jordan's sponsorship deals are now legendary in the marketing industry. He penned million-dollar deals with Nike, Hanes, Gatorade (PepsiCo), McDonalds, and others.

Golfing great Tiger Woods, according to Sports Business Journal, was the most marketable athlete alive in 2007. In 1999, Woods signed a five-year, $90 million deal with Nike. A list of Woods sponsorship includes Rolex and American Express as well.