Tiger Woods and Nike parting ways with each other after 27 years was a huge call from both sides. The 15-time major champion became the face of their golf products and eventually helped them grow their business. However, the news of them ending their deal did not come as a surprise.
Nike stopped manufacturing golf equipment back in 2016. More importantly, the golf segment was never a profit-making division and Tiger Woods’ lack of appearances made it even tougher. Also, it has been facing multiple threats from new brands such as Hoka and On Running challenging its running division. The Swoosh brand has its base and roots in the running division. It is highly possible that they would place more focus on this division rather than investing in a sport that is still growing.
The sports brand has planned to cut off around $2 million in the next few years to combat the external threats. Henceforth, letting go of the golf division was a better and easier option for the company. They are now more into focusing on their running division as even a minor percent market share in this segment would earn Nike millions compared to the uplifting golf division.
Will Nike Continue Brand Endoresments With Other Golfers After Cutting Ties With Tiger Woods?
It is not just Tiger Woods who has cut ties with Nike, but, Jason Day also ended it with Nike to join Malbon recently. Also, Rory McIlroy is nearing the end of his deal with the Nike. Seeing the prospects, it is quite in shadow that the brand will renew contracts with Scottie Scheffler and Tommy Fleetwood.
Since Tiger Woods has all the rights to the TW logo, it is quite fortunate that the portfolio having them would vanish over time. However, the Swoosh brand has announced launching new special edition shoes before the 2024 Masters. Also, they recently unveiled the Jordans golf shoe collection just before the Waste Management Phoenix Open.
So, Nike vanishing from the game of golf is quite unlikely to happen. The brand still has struck some new deals with golfers such as Tom Kim, Guido Migliozzi, and Nelly Korda in 2023. It is likely possible that they would instead downsize the golf division rather than ending it completely.
