By Shane McGinley
World's top golfer was paid $55.4m to design and promote a branded golf resort in Dubai
Dubai Holding has confirmed it has “dissolved” its partnership with Tiger Woods. The branded golf resort, for which the World No.1 golfer was paid $55.4m to design and promote, has been permanently scrapped.
Dubai Properties Group, a unit of Dubai Holding, announced in January 2010 it had suspended work on the luxury Tiger Woods Dubai golf course and residential units but said it would “continue to be monitored and a decision will be made in the future when to restart the project.”
As some initial work had begun on the site before it was suspended in 2010, the developer said it is currently reviewing its options on how best to develop the site and a new project, which will have no association with Tiger Woods, will be announced in due course.
In February 2011 it was revealed Woods received $55.4m to design and promote the golf resort. Under a revised contract drawn up in 2008 between Woods' company ETW (Eldrick Tiger Woods) and Dubai developer Tatweer, which is now part of Dubai Holding, the golfer was paid $26.25m upfront and an additional $29,166,667 ten days after signing the contract.
As part of the deal, Woods was to be paid $14,583,333 when the finished resort was officially opened and agreed a fee of $28.8m to put his name to a second branded golf resort developed by Tatweer.
The $1.1bn Tiger Woods Dubai project was announced in 2006 and originally scheduled to open in September 2009. Original plans for the 55 million square foot project included 287 luxury villas and mansions, a boutique hotel and a clubhouse.
Last month it was confirmed the world No.1 is set to make a return to Dubai in 2013 to compete in the Omega Dubai Desert Classic. “I appreciate the support I have received from the people in Dubai and I always enjoy playing in their tournament. They have an outstanding field all the time, and the golf course (Majlis) is really in great shape,” said Woods, who has won the tournament in 2006 and 2008.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
It's in the wrong part of town for a start. If you Google 'Tiger Woods Dubai' you can see how a number of holes were actually finished before the project was cancelled. It looked impressive.
Good business for Tiger - maybe not such a great deal for the bond holders and banks that have been forced to take a haircut on the debt that financed this and other projects.
There are only two golf courses that make money in Dubai - Emirates & The Montgomerie (mainly driven by F&B not the golf!).
Dubai Hills will be the next iconic golf resort & development.