Tiger Woods Memorabilia - Paul Fraser Collectibles

Market Update:
Tiger Woods Memorabilia
Signed apparel
•
Tournament-worn clothing •
Autographs
Background:
Regarded by most observers as the greatest golfer of all time, Tiger
Woods is a record breaker. The first black player to win a major, he
is also the youngest winner of all four majors and the youngest to
win 50 tournaments.
With 14 majors and 71 PGA events to his name, Woods has proved
an inspiration to diverse groups around the world and brought golf
into the consciousness of many for the first time.
We believe now is the time to buy Woods memorabilia, prior to his
retirement from the game – which we anticipate will spark a sharp
rise in demand and value.
What’s new?
09 February 2012
Recommendation:
BUY
Key changes:
• 8.01% pa
Woods autographs 2000 / 2011
• 2011 tour victory
• New focus
Woods’ December 2011 win was his first since 2009
Plans to play a full schedule in 2012 - boosting global interest
Performance of Tiger Woods
autographs between 2000-11:
A circa-2004 tournament-worn shirt sold for $5,000 at a US auction
in October 2008.
A Woods-signed golf bag, identical to those he played with during
2001, sold for $1,500 at a US auction in November 2011.
Woods’ autograph has risen in value from £750 ($1,150) to £1,750
($2,680) since 2000, at a rate of 8.01% pa, according to the PFC40
Autograph Index. This gives us great cause for optimism for longterm growth.
Source: PFC40 Autograph Index
The Paul Fraser Collectibles View:
Auction results from recent years reveal that only a small number
of items are making their way onto the market, highlighting the rarity of Woods memorabilia. Recent auction figures also indicate that
Woods’ autographs and memorabilia remain significantly undervalued, in our opinion. These factors suggest that when the small number of available items is viewed more positively by collectors, prices
will soar.
Despite uncertainty in some quarters regarding the Woods memorabilia market following the emergence in late 2009 of his marital indiscretions, we believe the long-term outlook is extremely positive. We
Adrian Roose (Analyst)
+ 44 (0) 117 933 9503
[email protected]
www.paulfrasercollectibles.com
Page 1 • Tiger Woods Memorabilia Market Update • 09 February 2012
Market Update:
agree with the view of Mike Heffner, a sports memorabilia expert, who
recently told the Wall Street Journal: “I don’t think it’s going to affect
[Woods’ memorabilia] that greatly. Other athletes have been through
these trials and tribulations, and they’re remembered for what they did
in their field.” Indeed, reluctance on behalf of owners to put Woods
memorabilia up for auction is a key contributor behind the lack of items
on the market, rather than a lack of interest.
We believe the Woods collectibles market remains significantly undervalued. When he retires we expect demand and values for his memorabilia and autographs to soar, as nostalgic collectors begin to appreciate
his true standing and worth.
We recommend Tiger Woods memorabilia as a BUY.
Demographics behind the market:
Paul Metzler, the senior director of marketing at the PGA, told US newspaper the Triangle Business Journal that Woods’ intention to play a full
calendar in 2012 will have a positive impact on television figures. This is
evidence of Woods’ enduring popularity with the public. The plans also
suggest Woods’ renewed zeal for the game, which will bring him new
fans.
Tiger Woods Signed Baseball Cap
Despite his indiscretions, Woods is still bringing in large amounts of advertising revenue. In October 2011 Woods became an ambassador for
Rolex, while in November 2011 he agreed a deal with Fuse Science to
carry the company’s name on his golf bag. In October 2011, Forbes magazine revealed that Woods was the world’s most valuable sportsperson
in terms of endorsements, $29m ahead of second placed Roger Federer.
His unusual parentage (he refers to himself as Cablinasian – a mixture
of Black, Caucasian, Asian and Native American) has helped generate
interest in Woods and the game of golf in new demographics and countries.
The booming popularity of the game in increasingly prosperous China
will help boost demand for Woods collectibles. As recently as the mid1980s the sport was banned by the communists for being too bourgeois. It is now one of the country’s fastest growing industries, boasting
more than 200 courses, with another 100 currently under construction.
One impressive project in China is the Mission Hills Hainan Club. When
completed it will be the world’s largest golf complex, with 22 courses.
China’s central government has “guaranteed” it will be a top international tourist destination by 2020.
In the US, 8% of the population play golf – many in the wealthy baby
boomer bracket (those born between 1946 and 1964). As growing numbers of baby boomers retire, expect to see an increased interest in golf
and Woods collectibles.
Page 2 • Tiger Woods Memorabilia Market Update • 09 February 2012
FOR SALE: £1,750
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Market Update:
There is a large body of nostalgic golf collectors out there. In May
2011, just a month after his death, a gold putter that had once belonged to Seve Ballesteros sold for £55,000 ($84,200).
Market Performance Catalyst:
Woods’ “brand” is tightly controlled by his licensing company, ETW.
This includes his image rights, ensuring that just a small amount of
signed memorabilia comes to auction. Woods is currently the world’s
second rarest living signature (after Neil Armstrong), and there is little of his tournament-worn clothing on the market either. With such a
scarcity of items, it is only a matter of time before prices begin to soar,
as growing numbers of investors begin to realise the true potential of
Woods.
Short term, Woods’ return to form (he won his first tournament for
two years in December 2011) and intention to play a full schedule in
2012, should boost his profile and that of his memorabilia.
Longer term, we believe the forecast is particularly positive. Currently
aged 36, the abilities of the majority of top golfers tend to slide once
they hit their 40s. When this happens, we believe Woods will not accept being simply “one of the field”, and decide to quit while at the
top. What’s more, Woods has been troubled with a string of major
injuries. We cannot see many more years for Woods in the game.
When Woods retires we believe the value of his memorabilia will soar.
We’ve seen it happen with that other pioneering sports stars like Muhammad Ali and Babe Ruth. 25 years ago Ali’s autographs were available at £25 ($37). Today they are increasingly hard to find, and valued
at £995 ($1,530), an increase of 15.88% pa.
Summary:
$29m
2011 Tiger Woods endorsements
earnings. The world’s number one.
Woods is back after personal issues and injury problems, but probably has few years left of top level golf. When he retires, we expect
to see demand and desire for his strictly limited number of items of
memorabilia to climb sharply. Now is the time to buy.
Key reasons to invest:
• The current low interest environment represents a real
opportunity to build a valuable collection for long term value
• Many alternative investments are classified as ‘wasting assets’
and do not come into inheritance or Capital Gains Tax
calculations
• Unique collectibles have historically been considered ‘safe
havens’ and have a low correlation with traditional financial
investments Page 3 • Tiger Woods Memorabilia Market Update • 09 February 2012
For further reports in this
series please email
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Market Update:
• World record prices are being achieved despite the recession
• There are estimated to be 200m serious collectors worldwide
underpinning prices
• The population of the BRIC countries is expected to double
in the next 40 years, adding significantly to the number of
collectors
• The Baby Boomer generation is making its way through the
system and is now responsible for 80% of the world’s wealth
• Baby Boomers are living longer than previous generations,
with a higher level of disposable income, and with time on
their hands to pursue collecting in a serious way
• Many Institutional Funds have been created in collectibles
with many more waiting in the wings. These funds will add
significantly to the pressure on prices and to a shortage of
unique pieces on the market
• Collectibles as part of your overall portfolio give you greater
control over allocating and preserving your wealth, and the
ability to manage the process yourself, giving you confidence
where it has been lost in the bigger financial product areas
Key facts:
•
8.01% pa growth of Woods
autographs since 2000
•
Growing middle class worldwide with high levels of
disposable income
•
Sporting legacy
About Paul Fraser Collectibles:
Paul Fraser Collectibles is recognised as one of the world’s leading
boutique providers of investment grade collectibles.
Our company specialises in historical manuscripts, autographs, memorabilia, rare coins, postage stamps, art, first edition books, classic
cars, fine wine and military medals.
We also offer a unique, free worldwide news service with subscribers
in 212 countries, including a loyal following of Financial Advisers and
Wealth Managers.
Paul Fraser Collectibles also boasts an expert panel, with more than
250 years’ experience and $750m of sales to its name.
Our current inventory includes Tiger Woods signed baseball caps,
Henry VIII signed documents and an original Declaration of Independence. Many items qualify for our unique 120% guarantee.
For full details on our services, and for other free reports in this
series, please contact us at:
[email protected]
+44 (0) 117 933 9503
This document is non-independent investment research and a marketing communication.
Page 4 • Tiger Woods Memorabilia Market Update • 09 February 2012
For further reports in this
series please email
[email protected]
www.paulfrasercollectibles.com