Phelps makes a splash with endorsements

Michael Phelps' splash with eight gold medals at the Beijing Olympics is now worth its weight in gold as endorsement companies rush to cash in on his new-found glory.

The 23-year-old US swimmer from Baltimore was already worth millions with endorsements and sponsored advertising amounting to $5 million (Dh18.36m), but industry experts believe his branding appeal could multiply eight to 10 times.

One of the first endorsement companies to approach him is Sportcorp Ltd, which is making him an offer of $40m. The president of the Chicago-based firm Marc Ganis was quoted in the US media as saying, "If he's handled properly over the next four years, he should generate in excess of $40m."

Sponsorships, especially of sports personalities and events, is a multi-billion dollar business. Last year, global sponsorships crossed $43.3 billion and this year will see an almost 15 per cent increase in deals.

Aquatics have never been the biggest earners of sponsorship deals, but Phelps' record-breaking effort could make him a billionaire in the years to come.

Phelps earnings jump-started with his split-second win in 100-metre butterfly race that got him a $1m bonus from swimsuit maker Speedo. With this gold, he had tied Mark Spitz's 1972 record of seven gold medals in a single Olympics.

After collecting his historic eighth gold on Saturday night, marketing executives say Phelps has raced into the ranks of other sports stars with huge marketing contracts, like Tiger Woods and Michael Jordan.

Within seconds of Phelps' snapping up his 10th gold medal, Visa released a special edition TV commercial commemorating his title as the most decorated Olympian.

Marketing experts claim that Phelps will become the richest professional swimmer ever, far surpassing the money earned by the former most decorated US swimmer, Mark Spitz.

"He is the greatest Olym-pian in the world and he'll be able to earn money everywhere as he's an international brand," Australia-based celebrity agent Max Markson told Reuters. "He's a billion dollar man. He won't have to get a job ever. He can live off this for 50 years."

Olympic sports have meant big business since the Olympic movement allowed professional athletes to compete 20 years ago. But none has banked the sums earned by charismatic megastars such as Tiger Woods, David Beckham or Michael Jordan whose names are globally known and set cash registers ringing everywhere.

A spokesman for Phelps' endorsements agency Octagon said his sponsors were credit card company Visa, Speedo, watch maker Omega, AT&T Wireless, energy food company PowerBar, Kellogg's, Rosetta Stone and PureSport.

He declined to say what they paid Phelps.

Phelps, who became a professional swimmer at 16 and a millionaire by 18, has sponsors, agents, lawyers, accountants, charities, his own website in English and Chinese, and even his own logo with a wave-like blue M and red P over his name.

"You need to be out there early and establish your affiliation with the property, Phelps," said Michael Lynch, head of global sponsorship management at Visa whose relationship with Phelps dates back to 2002.