Tiger Woods is set to leave Nike after 27 years and $500 million in payments. This video breaks down the reasons why Tiger and the Swoosh are going separate ways, the business impact Tiger had on Nike, and which company Tiger might partner with on his next endorsement deal.
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Tiger Woods is about to leave Nike after 27 years and I have a prediction for what he’s going to do next but let me set the scene with a quick story in 1996 a 20-year-old Stanford student arrived at Pumpkin Ridge Golf Club in Oregon looking to become the first person ever
To win three consecutive us Amer championships that player was Tiger Woods of course but many of you might not remember that a University of Florida student named Steve Scott had him on the ropes Scott had won two high school state championships he was a three-time All-American at Florida and
Heed started the final round of that tournament up five shots on tiger and he’s still led by two shots with just three holes to go but then Steve Scott did something that Tiger Woods will probably never forget tiger had moved his ball marker on the 16th green so
Scott could putt but when tiger returned to putt himself he forgot to replace his marker that would typically lead to a penalty which would have resulted in Tiger losing the hole and eventually the match but instead of just letting it happen Scott reminded tiger to move back
His marker tiger ended up making the putt to win the hole he pulled within one shot with just two holes to play and later won his third straight US amateur championship in a playoff it was a remarkable example of sportsmanship and the rest is history tiger then ended up
Turning professional and has since earned $120 million in prize money on the PGA tour that’s a record of course but more importantly this round was so interesting because it was the last round of competitive golf where Tiger Woods didn’t wear Nike clothing he later signed a $40 million contract with the
Swoosh when he went professional later that year Nike founder Phil Knight said at the time the world has not seen anything like what he’s going to do for the sport it’s almost art I wasn’t alive to see Claude Monae paint but I am alive to see tiger play and that’s pretty
Great now Nike’s partnership with Tiger Woods is one of the most iconic deals in sports history Tiger’s initial contract was worth $40 million over 5 years the largest golf endorsement deal at the time and Niki has paid him over $500 million in total over the last 27 years
Nike also opened the Tiger Woods Conference Center on its Beaverton Oregon campus in 2001 and the world’s largest sportsware company has stuck by Tiger Woods through everything we’re talking about his extramarital Affairs in 2009 a DUI in 2017 and all of the injuries from 2014 to even the car
Accident in 2021 now the reason for this is actually quite simple Tiger Woods is still the world’s most famous golfer b a mile and he helped make Nike golf a ton of money over the last three decades for example Nike golf was doing about $30 million in annual revenue before signing
Tiger Woods but just two years after signing Tiger Woods that number increased to more than $300 million in annual revenue it’s also estimated that Tiger’s 2019 Master’s final round victory was worth more than $22 million to Nike in brand exposure alone but this iconic partnership might finally be
Coming to an end after 27 years and more than $500 million in payments Tiger’s latest deal with Nike expires at the end of this year and many people are now speculating that the two parties will eventually part ways without a new deal tiger was actually asked about it
Several times at the PNC championship this past weekend and he essentially deferred the question entirely and said I’m still wearing the product multiple times now some of this could have been predicted Nike stopped making golf equipment in 2016 so Tiger has a deal with tayor made for clubs he uses a
Bridgestone golf ball and he has worn FootJoy Shoes for extra support after returning from the 2021 car accident but the real question is what will Tiger Woods do next if he isn’t with Nike one theory is that Taylor Made will increase its apparel offering starting in 2024
The golf brand has dropped hints on its website for the last several months that they might do that and they have equipment deals with several other Nike golfers including Roy maroy Scotty Sheffer and Tommy Fleetwood so if Nike were to reduce its golf offering or even shut the business down entirely it’s
Easy to connect the dots and see why a company like tailor ma might make sense still the most logical choice for Tiger Woods at least is Grayson Grayson is a newer golf clothing brand that has exploded onto the scene over the last few years they gave Justin Thomas equity
In the brand after he was dropped from Ralph Lauren in 2021 and the company now has deals with a bunch of other athletes like Matt Fitz Patrick Luke Donald Ian ha Dylan Lin and Allison Lee now the reason why I think this makes sense specifically for Tiger is two full
Number one Grayson actually welcomed Tiger’s 14-year-old son Charlie Woods as a brand ambassador in a now deleted Instagram post on Monday and number two Grayson’s current Equity partnership with Justin Thomas who don’t forget is one of Tiger’s best friends means the brand understands the long-term gain of giving up equity in exchange for
Promotion Now Tiger could obviously just go out and start his own clothing brand and make a bunch of money there but this reminds me of lot of when Roger federa left Nike for a 3% stake in on- running the retired tennis star made more than $300 million when on- running went
Public in 2021 and Tiger’s opportunity with Grayson could be similar in value but it also speaks to just how challenging the endorsement business is Tiger Woods has provided a lot of value to Nike over the years but Nike also has a strict rule where they don’t spend
More than 10% of category revenue on athlete sponsorships that’s something that they weren’t willing to go back on for Roger feder and it doesn’t seem like they’re willing to go back on for Tiger Woods either so we’ll see what happens Tiger has publicly said that he won’t
Play in more than a handful of tournaments each year and even with the Saudi back Liv golf disrupting the professional ranks over the last few years golf is more popular than ever that’s why I’m super surprised Nike is even letting Tiger Woods walk away but I’m really interested in seeing what he
Does next thanks so much for watching this video If you enjoyed it please do me a favor and subscribe to the channel I do these videos every Week
