why did nike leave golf
Nike announced on Wednesday that it was exiting the golf equipment business. The decision came after years ofdeclining salesof golf clubs, balls, and bags. Last year, sales within Nike’s golf division fell 8% to $706 million.
Why did Nike get out of the golf business?
Darren Rovell reports on Nike’s decision to no longer make golf equipment and attributes it to the decline in golf participation as well as the economic downturn in 2008. Nike announced Wednesday that it is getting out of the golf equipment business, ditching any future in clubs, balls and golf bags.
Is Nike losing its grip on the game?
Nike’s losing its grip on the game. Golf was the Swoosh’s worst-performing category in its last fiscal year, as sales fell 8% to $706 million, which followed a 2% decline the year before.
What’s the longest drought in PGA Tour history for endorsement from Nike?
Winners of the past eight majors were not Nike endorsers, the longest drought since a nine-major run from 2003-04. Nike entered the golf ball business in 2000 and the golf club business in 2001. Even though Nike had insisted that Woods’ contract didn’t force him to use their equipment, he eventually fully transitioned.
What happened to Nike’s oven?
It’s been more than a month since Nike effectively shuttered the doors and windows at the Oven in Ft. Worth and shut down its golf equipment business. Casualties included a legacy that will never be what it could have been and the livelihoods of many outstanding people who I enjoyed working with over the past several years.
What was Tom Stites’ influence on Nike Golf?
Under Tom Stites’ influence, the company’s tendency was to push the envelope long before it had found solid footing in the golf equipment space. Simply put, Nike Golf was innovative before it earned the right to be. It continually pursued non-traditional products, apparently believing that being Nike would be enough to drive sales; a notion categorically rejected by the consumer.
What is the most perplexing aspect of Nike Golf’s failure?
To my mind, the most perplexing aspect of Nike Golf’s failure is how a division powered by so many humble and talented people could collapse under the weight of its immutable arrogance.
What are the factors that make Nike successful?
In other sports, Nike’s success relies on two critical factors: exposure and winning. Consider the Olympics as a whole or any of Nike’s individual athletes; LeBron James, Michael Jordan, and Allyson Felix. The defining characteristic of Nike athletes is that they win. They win often, and they do it while prominently displaying their Nike gear. Volt-colored running shoes anyone?
Is Nike Golf a marathon?
For a company that’s fond of saying It’s not a sprint, it’s a marathon, it’s plenty ironic that Nike Golf would habitually sprint its way through spring only to stop running entirely for the better part of the golf season.
What is the bottom line of a business that fails?
As with any business that fails, the bottom line has to do with an inability to attract a volume of customers necessary to make sufficient profit from comparably small margins.
Is Nike a golf equipment company?
No doubt each of us will be left with indelible memories of Nike Golf as a golf equipment business. For many, I suspect it will simply be Tiger Woods. For others a set of irons, a Sasquatch driver, or maybe you sunk a tournament-winning putt on the final hole with a Method putter. There will be something that each of us associates with Nike Golf.
Does Nike bring people together?
There will be something that each of us associates with Nike Golf. As odd as it may sound, for me, it’s simply that Nike brought people together. Nike Golf had the biggest and best events in golf, and they did them in a way that left time to get to know people.
When did Phil Mickelson put the Titleist Pro V1 on?
In October 2000, at the Invensys Classic at Las Vegas, Phil Mickelson held up a prototype Titleist Pro V1 ball on camera and said, “The harder I swing, the less it spins and the farther it goes.”. The Pro V1 took off the following spring. It’s hard to compete if you don’t create a message of straighter, longer, better.
Is Taylormade tied to Adidas?
I see some beneficiaries to this announcement. Once TaylorMade is sold, they’re no longer tied to Adidas footwear and apparel. Callaway has a footwear license deal and they outsource apparel, and they have a flexible interpretation of what’s required of their equipment-contracted players.
Who was the first proponent of the solid core golf ball?
The ball. Tiger was the first proponent of the solid-core ball. [He won the 2000 U.S. Open using the Nike Tour Accuracy.] But Titleist and Wally Uihlein snuffed out Nike’s opportunity to produce that one product to drive the business. In October 2000, at the Invensys Classic at Las Vegas, Phil Mickelson held up a prototype Titleist Pro V1 ball on camera and said, “The harder I swing, the less it spins and the farther it goes.” The Pro V1 took off the following spring. It’s hard to compete if you don’t create a message of straighter, longer, better. Heck, many people felt Tiger won despite the inferiority of Nike clubs.
Is Nike golf exiting the club and ball business?
News broke Wednesday that Nike Golf is exiting the club and ball business. What does Nike’s exit mean for the equipment industry, Tour pros currently under contract with Nike, and you? For some perspective, we looked to Casey Alexander, the Senior VP/ Research Analyst at Compass Point Research and Trading. Alexander’s been tracking the golf equipment business since 1996. Here are some excerpts from our wide-ranging discussion.
Is 5% market share a sign of the end of the business?
Now, the secondary competitors are being flushed out. But it’s not a sign of the end of the business.
How much did Rory McIlroy make in 2012?
The company signed Rory McIlroy in 2012 in a $200 million deal, but he hasn’t won a major since 2014 and his star has been eclipsed by Under Armour ‘s ( NYSE:UAA) Jordan Spieth, among others.
When did Nike close its golf division?
Nike has shown in the past that it’s been unafraid to leave faltering businesses. It shuttered its FuelBand division in 2014, and sold Umbro and Cole Haan in 2012. At $706 million, golf makes up barely 2% of total revenue.
Does Nike make golf clubs?
Nike Inc ( NYSE:NKE) surprised the sports world last week by saying it would no longer make golf equipment. Twenty years after the world’s largest sports apparel company dove headfirst into golf with Tiger Woods, the company said it would stop producing clubs, balls, and bags, adding in a brief press release that it would instead be "accelerating …
Is Rory McIlroy sad about his sponsor?
Rory McIlroy may be sad his sponsor has moved on, but Nike will prosper with or without his favorite clubs. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley!
Does Under Armour make golf shoes?
Under Armour’s golf footwear and apparel have gotten a boost from Jordan Spieth, but that company has said it has no interest in producing golf equipment at this time .
Is Nike losing its grip on golf?
Nike’s losing its grip on the game. Golf was the Swoosh’s worst-performing category in its last fiscal year, as sales fell 8% to $706 million, which followed a 2% decline the year before. Golf was also the only segment to lose sales on a constant currency basis last year, and has become Nike’s smallest revenue contributor.
Is golf a decline?
Golf participation has been on a slow and steady decline for two decades. Participation among millennials has been particularly weak, as many have flocked to cities where golf courses are less accessible; they also complain that golf takes too much time and costs too much money.
How much revenue did Nike Golf make in 2016?
Nike Golf finished fiscal 2016 with $706 million in revenue, its worst year since 2011, when the division generated $623 million.
Is Nike getting out of the golf business?
Nike announced Wednesday that it is getting out of the golf equipment business, ditching any future in clubs, balls and golf bags. "We’re committed to being the undisputed leader in golf footwear and apparel," Nike Brand president Trevor Edwards said in a statement.
Has Tiger Woods played golf in 2015?
Nike’s prime golf endorsers have struggled in recent years. Tiger Woods hasn’t played for an entire year and missed cuts at three of the four majors in 2015. Mark J. Rebilas/USA TODAY Sports
Who are the endorsers of Nike?
It is also unknown how Nike’s contracts with its endorsers, including Woods, McIlroy, Brooks Koepka and Jhonattan Vegas, will change now that there won’t be a club or ball business to promote.
Does Nike have a club or ball business?
It is also unknown how Nike’s contracts with its endorsers, including Woods, McIlroy, Brooks Koepka and Jhonattan Vegas, will change now that there won’t be a club or ball business to promote. "We don’t discuss the details of our athlete contracts," Strong said.
Does Nike sell golf clubs?
Nike spokesman Brian Strong said the company has no plans to sell its golf equipment business as part of the transition, and that where there are products being made, production will continue to completion, which Strong says will take place over the next few months.
Who is the president of Cobra Puma Golf?
In a statement released Wednesday, Bob Philion, the president of Nike competitor Cobra Puma, called Nike’s announcement "surprising," adding that "at Cobra Puma Golf we believe we have the right strategies to continue playing offense while others are clearly playing defense.".
When did Nike start selling golf balls?
Nike was in the golf equipment arena a relatively short time. It began selling golf balls in 1999, and in May 2000, Woods ditched his old wound balata for the new solid-core Nike Tour Accuracy ball. One month later, he annihilated the field by 15 shots in the U.S. Open at Pebble Beach.
Is Steinberg a Nike golfer?
Steinberg declined to reveal which clubmaker he’d first approach, but added: “He’s been a longtime icon of Nike golf and that’s not going to change one ounce. He’ll remain a loyal and enthusiastic icon of Nike.”.
Is Tiger Woods a pro?
Tiger Woods has been Nike Golf’s flagship pro since its in ception. Nike is exiting the clubmaking business. And Tiger Woods’s golf bag is going to have a different look whenever he returns.
Who is on the Nike golf roster?
It remains unclear how this decision will affect Nike’s star-studded roster of golfers, which includes Tiger Woods, Rory McIlroy and Michelle Wie. But Woods, for one, will be moving on.
Is Nike still making golf shoes?
In a 141-word press release, Nike said it will continue forward with its golf shoe and clothing business while partnering with more of the world’s best golfers. However, Nike will be “transitioning” out of equipment.
Who is Bob Parsons?
It’s likely that competing brands will pursue golf’s new free agents, with Woods, McIlroy and Wie chief among them. But Bob Parsons, the billionaire founder of GoDaddy.com who launched his own golf company, Parsons Xtreme Golf (PXG), in late 2014 and has since outfitted a handful of Tour pros with his high-end clubs — including two-time major-winner Zach Johnson, U.S. Olympian Gerina Piller and Senior PGA champion Rocco Mediate — says that he won’t be making any hasty decisions.
Yes, I am being 100 percent honest when I say this
In a unprecedented move, Nike announced earlier this week that they will transition away from golf-related products (balls, clubs, bags) and will shift their focus more towards their apparel, shoes and other non-golf products in Nike’s arsenal. A very shocking move in the golf industry for sure.
1. Nike Can Now Focus On What They Have Been Good At For Years
Golf equipment has never been Nike’s forte, let’s be honest. I will be one to admit that, as a golfer, I did play Nike golf equipment, but I mostly played that in spite of my obsession with Tiger Woods (still a fan though). They can still dominate the golf market, but in a different way, and that’s apparel.
2. Equipment Manufacturers From This Point Forward Need To Release Great Products
I know what you’re thinking. Chris, golf companies already release really awesome products. I don’t disagree with you there, my fellow readers, but let me bring up a point you are overlooking. With Nike leaving the golf equipment industry, top notch companies will have no choice but to release amazingly great products from this point forward.
4. A Huge Change In Market Share
In the stock market news, after Nike announced its leave from the golf industry, Callaway Golf stock rose tremendously not even 24 hours later. There could be, in fact, a Big Three rising from the ashes thanks to Nike, and most likely it will be Titleist, Callaway and Taylormade. However, these are all just predictions.
Did Rick Shiels get approached by Nike?
Speaking on the most recent episode of his podcast ‘The Rick Shiels Golf Show’, the YouTube giant discussed that he had been approached by Nike Golf in the past, but at the time they were still manufacturing golf clubs and in order to remain impartial in his videos, a deal with the brand wasn’t possible .
Did Nike stop making golf clubs?
Shortly after, Nike stopped producing golf clubs – much to the disappointment of golfers all over the world – and focused their attention on apparel.
Is Rick Shiels still sponsored by Nike?
Rick Shiels has revealed that he is no longer sponsored by Nike Golf, after the brand changed its model in a way that Shiels felt would have a negative effect on his relationship with his audience.