A portrait of Tiger Woods of The USA in the course of the pro-am as a preview for the Hero World Challenge at Albany Golf Course on November 29, 2023 in Nassau.
David Cannon | Getty Images
Tiger Woods’ 27-year partnership with Nike has come to an end. The superstar golfer announced the news in an announcement Monday on social media platform X.
“Phil Knight’s passion and vision brought this Nike and Nike Golf partnership together and I would like to personally thank him, together with the Nike employees and incredible athletes I even have had the pleasure of working with along the way in which,” Woods wrote.
Mark Steinberg, Woods’ longtime agent, told CNBC that the golfer made a business decision to not renew with Nike.
The announcement got here after months of speculation that the 2 would break up. Nike confirmed the news on Instagram with an image of Woods in his iconic red polo, saying: “It was a hell of a run.”
In an announcement, the corporate said: “For over 27 years, we’ve got had the consideration to partner with Tiger Woods, one in all the best athletes the world has ever seen. Throughout the course of our partnership, we’ve got witnessed together with the remainder of the world, how Tiger not only redefined the game of golf, but broke barriers for all of sport. We watched him set records, challenge conventional considering and encourage generations of individuals across the globe. We’re grateful to have been a component of it. We wish him the very best in the longer term.”
There is not any word yet on Woods’ plans for a future endorsement deal. But he said on social media: “There will definitely be one other chapter.”
Some recent speculation about Woods’ next chapter have pointed to On Running, the Swiss brand which tennis great Roger Federer joined in 2019 after he left Nike.
Marc Maurer, co-CEO of On Running, addressed the speculation on Monday on the ICR Retail Conference in Orlando. “We also heard the rumors, so it is usually interesting what’s on the market we hope that Tiger finds a fantastic latest partner and it isn’t going to be us,” he said.
Golf equipment maker TaylorMade, with which Woods, 48, has had a relationship with since 2017, might be one other potential landing spot for the 15-time major winner.
Analysts aren’t expecting a big effect with the news because the rumors have been circulating about Woods’ departure for months.
“We proceed to consider the corporate has endorsements with a few of the biggest name athletes on the planet and we might expect that trend to proceed for the foreseeable future,” said Brian Yarbrough, a Nike analyst for Edward Jones.
Nike has been quietly ramping down on golf for years because it wasn’t an enormous money maker for the brand. In 2016, the Oregon sports apparel maker announced it could stop making golf equipment altogether.
Yet Woods brought significant exposure to the Nike brand. And, over the course of his profession, Woods made a reported $500 million from “the swoosh.”
Eric Smallwood, founding father of Apex Marketing, estimates that when Woods goes 4 rounds, he’s providing Nike with $2 million to $4 million of exposure.
Likewise, when Woods swapped his Nikes for FootJoy shoes on the 2023 Masters, he gave the brand $3.2 million of exposure.
Woods provides much more exposure for Nike than even a LeBron James because of the pace of play of golf in comparison with basketball, he said. “Golfers have longer longevity,” Smallwood said.
–CNBC’s Gabrielle Fonrouge contributed to this report.
It is a developing story. Check back for updates.
