International Herald Tribune

August 18, 2008

By Belinda Goldsmith

Michael Phelps, the major advertising vehicle

 

Phelps has gone global. A huge marketing machine behind Michael Phelps hit town Monday, with a strategy in place to make him a global brand - and even richer.

A day after Phelps won his eighth gold medal at the Beijing Olympics, making him the most successful swimmer and Olympian of all time, corporate executives emerged from poolside well prepared to capitalize on his new-found fame...

"This absolutely changes the game. The values will change, the depth of the programs he is involved with will change, the breadth of these programs will change," said Phelps's agent, Peter Carlisle.

Before Beijing, it was estimated that Phelps's sponsorship deals earned him about $5 million a year, although Carlisle, who has acted as Phelps's agent for six years, would not confirm this.

But as Phelps won gold after gold at Beijing, his appeal soared and television audiences in the United states, the world's biggest media market, watched his victories in record numbers.

Joyce Julius & Associates, a sponsorship evaluator, estimated that Phelps's air-time value to Speedo, another one of his sponsors, was $3.6 million after winning five golds - more than justifying the $1 million bonus that Speedo paid Phelps for matching Mark Spitz's record of winning seven gold medals at a single Olympics.

Carlisle said that previous Olympians had struggled to stay in the public eye between the Games but that he was confident that Phelps Inc. would maintain its momentum because of a multilayered marketing strategy that was not focused only on swimming competitions.

Phelps has made it clear that his goal is to raise the profile of swimming. ..