Tiger Woods ends 27-year long partnership with Nike
Golf superstar Tiger Woods announces the end of his 27-year partnership with athletic brand Nike (NKE). Yahoo Finance's Brad Smith joins the Live show to highlight Woods' history with Nike and which other sports brands, such as Acushnet (GOLF), could land a partnership deal with the golfer.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Tiger Woods announcing today via X that his 27-year partnership with Nike is finished. For a look back at one of the most successful sponsorships truly of all time, and what's next for both Nike and Woods, we toss it over to Yahoo Finance's very own Brad Smith.
BRAD SMITH: Hey, Josh. Yeah, visible on the head, chest, and shoulders of the face of golf for decades was one logo, the swoosh. Prominently positioned during Tiger Woods wins and iconic Sunday red appearances. Today, Nike and Woods part ways. Here's a look at the value of some of the deals between Woods and Nike. Woods sparked question and fodder for conversation during the 2022 masters by wearing FootJoy shoes, an Acushnet subsidiary, instead of his Nike designed footwear, with accompanying TW logo. Perhaps the beginning of the end for the 27-year relationship between golf's most recognizable figure in Woods, and Nike, the world's most recognizable athletic manufacturer.
So what's the price action and potential trade ability on the Tiger news. Well, shares of Nike, they've been trending on the Yahoo Finance platform on this news. And Nike for itself, we should note is in the midst of a cost efficiency push, which impacts everything from head count to product line considerations. The company is also continuing to expand Jordan brand, beyond basketball, into golf, global football, and American football, and Jordan women's and kids. And this Jordan brand continues to lead the brand at Nike and the overall growth, as communicated to investors during its 2024 fiscal second quarter earnings call.
Next up, we got to check in on shares of Acushnet. This is the parent company of FootJoy. And they manufacture the golf shoes Tiger currently wears. Plus, also the parent company of Titleist, the golf ball and club maker who actually manufactured the Titleist 681T irons that Woods used in his four major championships in 2000 and 2001, which were actually later sold for over $5 million with Goldin auctions.
We reached out to a representative for the company who says that Acushnet had nothing further to share in the immediate morning of the news breaking. The other perhaps longer shot possibility could be Top Golf Callaway, and this one is, of course, a Phil Mickelson fame. So we won't dilly dally there for too long. But say you don't want to trade Tiger specifically but want to trade the sport, well, golf. Let's consider this. The sport has already experienced a post-pandemic surge as athletes look for outdoor activities, but is unquestionably still among the more expensive sports.
Wealthier consumer groups, they may continue to spend, but equipment and apparel sales are probably going to lag the same boom that was seen during 2020. So the trade perhaps that's still offers golf exposure is airlines, with routes to the most golf forward destinations. While partnerships they begin and end, one thing will remain for sure for Tiger fanatics, on Sundays, we wear red.
- All right, Brad. Thank you so much. I really hope that you are either heading to the airport to head down to Florida, or you're at least getting some top golf in after that fantastic report. We really appreciate it, Brad. Thank you so much.
BRAD SMITH: Thank you.
