Nike has decided to pick up its bags and leave the golf equipment business, leaving global names such as Tiger Woods and Rory McIlroy without a brand.
More interesting than the surefire bidding war for names such as Woods and McIlroy when it comes to clubs and bags, though, is how this all came about—Woods’ epic downfall.
The sudden, unexpected departure by the checkmark shows Woods’ legendary power and how it propped up the globe’s top brand. The Associated Press took a statement from the powers at Nike about the situation:
“We’re committed to being the undisputed leader in golf footwear and apparel,” said Trevor Edwards, president of Nike Brand. “We will achieve this by investing in performance innovation for athletes and delivering sustainable profitable growth for Nike Golf.”
Nike and Woods began an on-course partnership in 2000, with one of golf’s most historic moments when Woods chipped-in a birdie at the 2005 Masters, the Nike logo frozen on the screen as the ball teetered on the brink before falling in and giving him the win:
With Nike getting out of golf equipment biz….here’s their quintessential golf ball moment https://t.co/G7VnHFzF9b
— trey wingo (@wingoz) August 4, 2016
Numbers by ESPN’s Darren Rovell show just how much Nike fell in recent years alongside Woods: “Nike Golf finished fiscal 2016 with $706 million in revenue, its worst year since 2011, when the division generated $623 million.”
Said downfall for Woods includes having not played in more than a year thanks to an injury and missing the cut at three of four majors in 2015. McIlroy and others on board or not, Nike simply hasn’t been able to maintain its staying power.
Perhaps more important than anything is simply what this means for Woods. If Woods was sounding like a guy ready to make an epic comeback and compete for titles again, it’s hard to imagine Nike would have backed out. If this move is any sign, odds are Woods isn’t coming back anytime soon, or at least in any sort of form that would make a brand recoup losses while promoting a major comeback campaign by the best to ever pick up the clubs.
So this is the end for Nike, and maybe Woods as well. It’s going to take a gargantuan effort from the rest of the PGA Tour to balance the scales.