Market Overview

Why Should Nike Want Tiger Woods, Not Rory McIlroy, To Win The Masters?

Why Should Nike Want Tiger Woods, Not Rory McIlroy, To Win The Masters?

Belus Capital Advisors CEO Brian Sozzi argued that Nike Inc (NYSE: NKE) may prefer Tiger Woods to win the upcoming Masters tournament over Rory McIlroy.

In an article published Wednesday on The Street, Sozzi said the issue at hand is the fact that the 39-year-old Woods is still Nike's "go to" guy in the sport despite his recent struggles, injuries and negative spotlight in the media.

"Nike execs are likely rooting hard for its veteran to wind up with the legendary green jacket," Sozzi wrote. "Why? Woods winding up in the winner's circle has proven best for Nike's golf business, which only represents about 3.5% of the company's annual sales, but maintains a prominent place in the golf equipment industry because of its high profile endorsers."

Related Link: Here's Why Nike Is A 'Slam-Dunk' Over Its Largest Competitors

Sozzi added that Nike's golf sales have fallen each quarter of the most recent fiscal year. Nike may be desperate for an epic Woods win, who has racked up zero wins on tour as of late due to various injuries. On the other hand, Nike saw its golf sales rise 10 percent in fiscal 2012, and then gained another 9 percent the following year, coinciding with Woods eight wins during the two-year time period.

Nike does have a lucrative agreement with fan favorite McIlroy who was signed to a 10-year contract in January 2013. The Northern Irish born golfer won two majors last year, yet his growing dominance in the sport hasn't energized consumers enough to buy golf-related apparel and equipment.

Sozzi concluded if Woods does the beat the odds and wins the tournament, Nike's executive team will "likely be cheering just as loud, if not louder, than the distinguished patrons at Amen Corner and then the final hole at Augusta on Sunday evening."

Latest Ratings for NKE

Nov 2019Initiates Coverage OnOverweight
Nov 2019Initiates Coverage OnOutperform
Oct 2019MaintainsOutperform

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Belus Capital Advisors Brian Sozzi Golf Masters PGA Rory McIlroyAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (NKE)

View Comments and Join the Discussion!

Latest Ratings

TORCCantor FitzgeraldDowngrades3.0
CIDMCanaccord GenuityMaintains1.5
TDGCanaccord GenuityMaintains620.0
DLPNCanaccord GenuityMaintains1.6
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

U.S. Dollar Index Little Higher

Telsey Advisory Initiates Rentrak With Outperform