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Tiger Takes out $54.5 Mortgage to Build Mega Mansion

{ Posted on Sep 04 2010 by Marcus Alston }

Tiger is in the news again!  According to several sources, days after finalizing his divorce with ex-wife Elin Nordegren, Tiger Woods took out a $54.5 million mortgage for a mega- mansion he is having built on his 12 acre waterfront estate in Jupiter Island, Florida.

The mega-mansion will span 3 parcels of land and include a tennis court, oxygen therapy room, multiple pools and a state-of-the-art fitness center.  As I wrote in comments to an article I read in Yahoo.com, I am not so sure this is a wise financial move or a great publicity move (which could cost Tiger in advertising dollars). This conspicuous consumption purchase just days after his divorce was finalized shows a lack of remorse for his extra-marital affairs and a lack of recognition that Tiger should “lay low” and stay out of the news off the golf course unless he is helping the needy, many of whom may have been fans who were hurt by the news of the indiscretions of their “perfect” hero and role model.

As you know from my last article on Tiger, I am concerned about his spending habits and that he could go broke one day.  He has at least 3 things working against him financially right now which I wrote about in my advice to Allen Iverson and other athletes:  Tiger is not thinking like a miser (he is continues to spend– possibly to show the world that he still has confidence in his diminished game), just went through what should have been a very, very costly divorce, and may not be practicing safe sex which could lead to disease and unplanned pregnancies and child support (not to mention hush money, pay offs and negative publicity).  This is all at a time when his game (and earning potential on the course) is at its worst and his sponsorship support (money off the course) is uncertain.  Click here to see pictures of his alleged mistresses.

The good part about Tiger’s seemingly over the top purchase is that based on his pre-divorce net worth he was worth a reported $600 million after taxes (Tiger has reportedly earned $1 Billion in his career).  Based on this, he is spending less than 10% of his net worth. Additionally, he made just over $90 million in 2009, so his income is pretty strong to purchase this house–of course this is just one of many houses and debts Tiger has. And who knows how much he will have to pay his ex-wife Elin as part of their recent divorce settlement.

Fortunately for Tiger, his game is golf and not baseball, and these 3 things against him are not strikes, but amount to a triple bogey on one hole that he can erase over the next several holes if he can stay mentally tough and get a few breaks.  I disagree with his decision to take on this extravagant debt at this time for the reasons I have already mentioned.  And others will continue to question his every move where as before he was given the benefit of the doubt always as if he had to know exactly what we was doing and that it was always the right thing to do, and maybe we were missing something.

At least Tiger is planning to pay off his mortgage in 5 years instead of 15 or 30 years which is very responsible and will save him a lot in interest.  According to reports, Tiger has agreed to pay the loan back by January 15, 2016.

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One Response to “Tiger Takes out $54.5 Mortgage to Build Mega Mansion”

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