If pro golfer Tiger Woods were to end his endorsement with Nike, the leading sports apparel manufacturer, it would most likely cease the brand’s sponsorships in golf altogether, concludes shoe industry business trade magazine Footwear News. The deal expires by the end of this year.
Footwear News reported that if Woods chooses not to renew his contract, prominent golf sponsor Nike would exit the space, concluding a 27-year partnership. This partnership helped propel Nike Golf from $30 million to $300 million in annual revenue within its first two years.
Inside the Deal
So is he leaving Nike? Woods recently responded cryptically amid rumors hinting at the potential conclusion of the partnership in which the golfing legend reportedly received about $500 million over the lifetime of that deal.
After securing three consecutive U.S. Amateur golf championships in 1994, 1995, and 1996, Woods, the youngest champion in 1994, entered into a groundbreaking partnership with Nike, inking a deal valued at $40 million over five years.
In 2001, Woods inked a substantially more lucrative deal – a five-year contract extension valued at $105 million. This landmark agreement made him at the time the highest-paid endorser in history at that time.
Between 2000 and 2005, Woods had won eight majors, only further his renewal in 2006 for the third time, with the deal reportedly worth $20 million to $40 million annually.
When Woods’ marital cheating scandal tarnished his clean-cut image, Nike was one of the few companies that stuck with Woods in 2009. Other companies, such as Gatorade, AT&T, General Motors, and more, all canceled their contracts.
The latest, and possibly final, contract with Nike was a 10-year deal signed in 2013 — an agreement reported to be worth as much as $200 million, Footwear News reported.
With Woods’ net worth an estimated $1.1 billion, he and his son Charlie Woods participated in the PNC Tournament, accompanied by his daughter Sam Woods as their caddie. The tournament ran from Dec. 14 through 17. That might have been is final tournament sporting Nike apparel.