After a partnership spanning over 27 years, Tiger Woods and the sportswear powerhouse Nike have officially concluded their longstanding collaboration.
Since turning professional in 1996, the 15-time major golf champion has been utilizing the products and equipment from the brand.
“The days since have been filled with so many amazing moments and memories, if I started naming them, I could go on forever,” Woods said on social media.
Nike said it was an honour to partner with “one of the greatest athletes the world has ever seen”.
At the age of 20, Woods initially entered into a five-year contract with Nike worth $40 million upon turning professional in 1996.
This partnership evolved into one of the most lucrative alliances in sports history, given Woods’ dominance in golf for over a decade, securing him the second spot on the men’s major champions list, just three titles behind leader Jack Nicklaus.
Woods, who became one of the most renowned sports figures globally, subsequently inked multiple additional deals with Nike, including a reported $200 million 10-year contract.
Tim Derdenger, an associate professor of marketing and strategy at Carnegie Mellon’s Tepper School of Business in Pittsburgh, Pennsylvania, expressed to the BBC that the enduring collaboration between Woods and Nike was mutually beneficial.
In 2013, Prof Derdenger, part of a research team examining Woods’ impact on Nike golf ball sales (which he started using in 2000), noted that while Woods received $200 million in sponsorship over a decade, the research indicated that Nike recuperated 60% of its investment through sales of golf balls in the United States alone.
He said when Woods turned professional, Nike “didn’t have a strong prominent position in the golf industry” and so struck gold when it launched the its golf line with the upcoming star.
“What better person in hindsight to then bring out this phenomenal teenage, generational player to then launch their golf brand and apparel brand for Nike? He is golf, he is that person that brought the game to a massive amount of people over the last 25 years,” said Prof Derdenger.
“This was sort of the MO (modus operandi) for Nike and it still is to this day – to go out and find these athletes that are generational, or some of the best of their time, and build brands around them to help them drive sales of Nike products.”
Having returned to competition in November last year following a seven-month injury hiatus, Woods expressed his gratitude across his social media platforms, stating that he felt fortunate to have forged a partnership with Nike nearly three decades ago.
Nike remained steadfast in its support of Woods through the highs and lows of his career, including the scandal surrounding his private life in 2009 when he admitted to being unfaithful to his then-wife at the peak of his golfing prowess.
While other major brands, such as Gillette, Accenture, and AT&T, severed ties with Woods during that period, Nike stood by him, affirming its “full support.”
In his statement on Tuesday, Woods extended his thanks to Nike’s staff, fellow athletes, and Phil Knight, the co-founder and former chief executive of Nike, for their “passion and vision.”
Responding to the announcement, Nike expressed gratitude for being a part of Woods’ illustrious career in a statement provided to the BBC.
“Throughout the course of our partnership, we have witnessed along with the rest of the world, how Tiger not only redefined the sport of golf, but broke barriers for all of sport,” it added.
While the specific reason for the termination of the partnership between Nike and Woods remains undisclosed, Prof Derdenger suggested that the separation would be more detrimental to the brand. He noted that Nike’s golf division had faced challenges over the past five to seven years.
In 2016, the company halted the sale of clubs, bags, and balls due to declining sales, redirecting its focus toward golf footwear and apparel. This shift included sponsorship agreements with another prominent figure, four-time major winner Rory McIlroy.
However, Prof Derdenger expressed doubt that McIlroy has the same impact as Woods in terms of ‘selling product.’
Without Woods, and former basketball player Michael Jordan, “I don’t think Nike, it’s brand, would be where it is today,” he added.
“Those two athletes are synonymous with Nike and the growth of Nike.”
In recent years, Woods has used TaylorMade clubs, but his switch to Bridgestone balls was possibly an easier transition due to Bridgestone having previously made golf balls for Nike, Prof Derdenger said.