Golf legend Tiger Woods and Nike have ended their historic, half-billion dollar partnership after 27 years.
The storied golfer broke barriers when he signed a $40 million contract with Nike that, at the time, many people thought was massively overvalued.
But neither Nike nor Woods thought so, and over the years that partnership became worth more than an estimated $500 million to Nike. In fact, at one point, Nike re-upped with Woods with a second $100 million deal.
In return, Woods drove Nike’s business in the golfing arena more than anything else, creating iconic moments like his famous putt at the 2005 Masters, when a Nike-branded ball hung for a full second over the cup on the 16th hole after a reality-defying shot by Woods, the famous swoosh logo perfectly centered, before dropping in for the win.
While Nike and Woods have now parted ways, both parties went out of their way to assure fans the breakup was both amicable and mutual. In a social media post, Woods thanked Nike co-founder Phil Knight for the passion and vision that made their partnership not just possible, but highly successful.
“Over 27 years ago, I was fortunate to start a partnership with one of the most iconic brands in the world,” Woods wrote. “The days since have been filled with so many amazing moments and memories, if I started naming them, I could go on forever.”
His agent Mark Steinberg from Excel Sports reiterated that sentiment. “It was time for the next chapter,” Steinberg told The Associated Press. “Amazing run. Great partnership.”
For their part, Nike acknowledged the huge value of the marketing and licensing deal, saying, “It was a hell of a round, Tiger,” in a social media post. “Tiger, you challenged your competition, stereotypes, conventions, the old school way of thinking,” the Nike post was captioned. “You challenged the entire institution of golf. You challenged us. And most of all, yourself. And for that challenge we’re grateful.”
The deal with Nike started with a five-year contract in 1996 when Wood turned pro after ringing up an unprecedented third straight US Amateur championship title. At the time, many criticized Nike for what seemed a shocking amount of money, but Woods’ father, the late Earl Woods, responded with his now famous comment, “Chump change!”
The elder Woods was obviously proven correct, as Woods became the instantly recognizable face for Nike, for his own ‘TW’ brand, and for the entire sport of golf. Nike reportedly signed a subsequent deal in 2000 for over $100 million, which Nike was more than happy to pay.
Woods held up his end of the deal, becoming the youngest man to win the Grand Slam at just 24 years of age, the only player to hold all four major titles at the same time, and of course, his staggering 15-shot win at the U.S. Open, which still holds the record for the largest winning margin in golf history.
“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,” Nike said in a statement. “We watched him set records, challenge conventional thinking and inspire generations of people around the globe. We are grateful to have been a part of it.”
But, all good things must come to an end. Woods suffered back injuries that required surgery on five different occasions, and then suffered major injuries in a car crash in 2021 that shattered bones in his right leg, and that combined with the inevitable onslaught of age has caused him to drop down in the standings over the years.
As well, Nike has been on a cost-cutting binge, and has stepped away from the golf equipment business in recent years, eliminating their production of hard goods in 2016.
However, Nike remains a major player in the world of golf apparel, and retains relationships with a number of top golfers, including the world’s current number one player, Scottie Scheffler.