Major golf news was breaking last night as Nike issued a statement confirming that it was to exit the golf equipment market.
This means that Rory McIlroy, Tiger Woods and others including Michelle Wie will be searching for new clubs, bags and balls in the very near future.
Nike will continue to make golf clothing and footwear so the long term and multi million relationship the company has with its leading pros will continue on those terms for now.
McIlroy is in year four of a five year deal signed in 2013 which is worth an estimated minimum $100 million. Wood’s deal remains one of the largest endorsements in sport despite his absence from the game over the past 12 months.
Nike’s golf sales in 2015 were down by 8%, the third consecutive annual fall and while still impressive at over $700 million they never achieved the market dominance they secured in other areas of their business.
The statement revealing the news indicated that there would be renewed investment in the clothing and footwear sides of the business but there must now be a long term question mark over those areas as well.
The number one golf equipment brand in the US, Taylor Made was also put up for sale by Adidas earlier this year so to say this is a market in flux would be an understatement.
Whether the remaining big players like Calloway and Wilson grow stronger or whether a new challenger will step in to the void will be an interesting story to watch unfold over the coming months.
Sport for Business’ Golf Coverage is proudly supported by Carr Golf
Sport for Business’ Golf Coverage is proudly supported by Carr Golf
