IMG has represented Woods since he became a professional, and Steinberg has guided the ascent to his perch as one of the world’s wealthiest and most marketable athletes. However, in the wake of an alleged sex scandal and divorce, Woods is far less profitable than he used to be when his annual income was roughly $100 million a year. Multiple companies have dropped their endorsement deals with him.
Meanwhile, a person familiar with the situation said Steinberg’s contract was set to expire next month and the company decided not to renew the contract. Steinberg was among the highest paid employees at IMG, with a salary topped only by that of the company’s chairman, Ted Forstmann.
Steinberg could not be reached for comment. Glen Greenspan, a spokesman for Woods, did not return a message seeking comment.
Steinberg can take Woods and Annika Sorenstam with him if he continues to work as an agent, but a non-compete agreement will prevent him from taking other IMG clients, according to a person close to the situation.