It all started with a “Hello, world!” in 1996. Now, 27 years, 15 major championships, and $500 million in payments later, that press release confirming Tiger Woods as a Nike athlete is up for auction. What’s more? We may have seen Woods sport Nike apparel for the very last time. Although both parties have remained quite tight-lipped about the possible split, that wasn’t the case in 2016 when Nike’s golf equipment department decided to say “Goodbye, world!”

Amidst the dignified silence about the Woods-Nike partnership, an old video of Nike’s co-founder, Phil Knight, has resurfaced. The candid conversation hints that the brand was not happy with how things were played out in the golf department, despite Woods’ influence and their continuous efforts. 

Nike felt the money invested in golf reaped no benefits

Before 1984, Nike had an almost non-existent basketball presence. But then came Michael Jordan, and together, they revolutionized the basketball scene. The American giant hoped to do something similar with Tiger Woods, and at first, it seemed to be working. Before signing the 15-time major champion, Nike Golf was making $30 million in annual revenue. But just two years later – when they introduced golf balls and equipment in 1998 – that number increased to $300 million.

Phil Knight appeared on The David Rubenstein Show almost six years ago, revealing that Nike’s heavy investment in equipment was unfruitful. When asked why Nike stopped equipment manufacturing in 2016, Knight said, “It’s a fairly simple equation that we lost money for 20 years on balls and equipment, and we realized next year wasn’t going to be any different.” Even with Woods being the brand’s face in the golf world, Swoosh found it hard to compete with brands like Titleist and TaylorMade. For 18 years, they struggled in the golf equipment market, unable to meet the competition.

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Though the company was struggling in one aspect, it was soaring in the golf apparel and shoe industry. However, due to Nike’s discontinuation of golf hardware, Tiger Woods had to look for a different equipment sponsor. And now, with signs pointing to their partnership is coming to an end – despite Woods’ cryptic “I’m still wearing their product” response at the PNC Championship – the five-time Masters champion will have to resort to another apparel sponsor as well.

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Nike lost money for 18 years because of its step into golf equipment manufacturing. The Tiger Woods connection just didn’t reap the same rewards that the Nike-Jordan partnership did and continues to do. But now, as one of the longest associations between the golf world giant and the sports giant is probably coming to an end, could Nike have to face more far-reaching consequences?

Could the Tiger Woods exit lead to long-term repercussions for Nike?

To put into perspective just how much Tiger Woods has impacted Nike’s financial status over the years, his 2019 Masters victory increased the company’s stock prices by 2%. His 15th major title added $2 billion to Nike’s market valuation. When he switched to Footjoy shoes in 2022, Nike’s growth was less than 1%, while the stock prices of the company that owns Footjoy increased by 2.5%. Needless to say, if the Woods-Nike partnership does come to an end, the Swoosh is likely to take a hit.

While Tiger Woods leaving Nike will undoubtedly have repercussions, Nike Golf could see major changes. In a recent episode of the No Laying Up podcast, there were claims that the brand is planning to outsource its golf business through an original equipment manufacturer. Sam Poser, a trade analyst, had something similar to say. As per Foot Wear News, he said Nike “may be planning to license out its entire golf business.”

With rumors that it could be run through Srixon or Cleveland, Nike Golf is potentially set to see operational changes in the coming months, regardless of the Tiger Woods situation. Poser also added how these changes could impact the company’s overall performance. “The changes will likely remove Nike’s presence in golf and will do long-term damage to the brand.”

What are your thoughts on the matter? Let us know in the comments below! Stay tuned to find all the recent updates on the Tiger Woods-Nike saga!

Also Read: Tiger Woods’s $500M Exit: Timeline of the Tiger-Nike Partnership Explored