More Videos
- Moon Hopes To Complete Amazing Story
- These Poker Stories Are No Bluff
- Did Matsui Make Contract Money Last Night?
- Adidas Out At UCF After MJ's Son Wears Jordans
- If Yanks Win, Merchandise Will Fly Off Shelves
- Final World Series Games Big Money Makers
- What I Got Wrong About Keflezighi
- Marathon's Headline Win Is Empty
- New Cubs Owner Tom Ricketts Goes One-on-One With "SportsBiz"
- Roger Federer Signs With Chocolate Brand Deal
RSS FEED
MOST SHARED
- Future of Marketing
- Oil Tomorrow
- Dow Industrials at New Highs—But Other Indices Lag
- Dow Up Over 100 After G20 Stimulus Pledge
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Priceline Crushes Profit Forecasts; Shares Jump
- Sprint to Cut Up to 2,500 Jobs, Sees Charge
- Trial of Ex-Bear Stearns Managers Goes to Jury
- 'Modern Warfare 2': Biggest Entertainment Event of 2009?
- Why Google is Paying $750 Million for Ad Mob
- Warren Buffett to Sell Stakes In Union Pacific & Norfolk Southern
- Nov. 9: Unusual Volume Leaders
- The Battered Businesses Behind Housing
- Modern Warfare 2's Record-Breaking Launch
- Merck’s Mega-Monday Morning
- Why are Traders Bullish on This Food Company?
- Profiting From Natural Gas: Strategists
- S&P Stocks Trading at New 52-Week Highs
- Obama Says Will Raise Currency Issue with China
- Look Ahead: 'Risk On' Attitude Could Fuel Rally Further
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Buffett to Sell Stakes in Norfolk Southern, Union Pacific
- Cramer: 5 Stocks to Play the Next Bull Run
- Do You Know Your Coca-Cola Myths?
- Electronic Arts Beats Street, Announces 1,500 Job Cuts
- Time Is Here to Look at Overseas Stocks: Bill Gross
- Home Prices Start to Stabilize In the US as Sales Pick Up
Sports Biz
Text Size 
For the second straight Summer Olympiad, swimsuit maker Speedo is floating a $1 million prize to Michael Phelps if he ties Mark Spitz's 1972 gold medal record of seven gold medals in a single Olympics.
 |
But this time, all that money is going to come out of Speedo's pocket.
Craig Brommers, Speedo's vice president of marketing, confirmed to CNBC earlier today that the company doesn't have any insurance to cover the bonus.
Brommers said that in Athens, Speedo's bonus was insured so that if Phelps -- who eventually won six golds and two bronze -- did win seven gold medals, the company would have only forked over about $300,000.
But Phelps' performance since then has made it hard for any insurance company to see much of an upside in insuring the deal this time around.
 |
CNBC.com Michael Phelps with a Fu Manchu. |
"Unfortunately, due to Michael's performance at the Melbourne World Championships and the probability that he might reach that million dollar bonus, Speedo was unable to secure insurance this time around," Brommers said.
He said the company didn't exhaustively try to insure it, believing that the premium this time around would have been closer to 90 percent.
Phelps will wear a new Speedo swimsuit for every single race.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes