One of the greatest golfers of all time has been synonymous with a leading apparel and footwear stock.
Recent comments from the golfer sparked rumors that the relationship could be nearing an end.
What Happened: In a golf tournament with his son, Charlie Woods, over the weekend, Woods was asked specifically about his relationship with Nike Inc NKE and to clarify what the future looks like.
"I'm still wearing their product," Woods said during a press conference after the event.
When asked again to clarify and if the Nike deal was coming to an end, Woods offered the same five-word answer.
Some golf fans will recall that Woods wore FootJoy shoes instead of Nikes after practicing for the 2022 Masters following his car accident.
Woods has often been spotted wearing FootJoy shoes since that time, including over the weekend.
Woods and Nike parting ways could be the end of an era in golf. While he doesn't compete in as many events, Woods would likely gain attention from rival companies that could lure him away, including Topgolf Callaway Brands MODG and Acushnet Holdings Corp GOLF, which owns the FootJoy brand.
Related Link: Players Leaving PGA Tour For LIV Golf ‘Turned Their Back’ On Sport, Tiger Woods Says Ahead Of British Open
Investing in Nike, Betting on Tiger Woods Successful: Woods signed a $40 million deal with Nike in 1996. Multiple extensions signed by Woods see the golfer as a current Nike-sponsored athlete.
Nike reported a 76% year-over-year increase in golf apparel after the 1997 Masters victory for Woods, an event that led to increased interest in the sport.
In 2022, Woods became the third athlete to ever become a billionaire, joining the shortlist that included Michael Jordan and LeBron James at the time.
Other endorsements for Woods include Rolex, Gatorade and TaylorMade golf clubs. Nike discontinued golf equipment manufacturing in 2016, leading to Woods having to turn to other brands.
A car accident for Woods in 2021 was one of the biggest stories in the world of golf. Woods subsequently missed many events due to injury, only competing in two official PGA Tour events during the 2022-2023 season.
Woods last extension with Nike came in 2013, according to Golf.com. Multiple media sources point to the deal being up at the end of the year. Reports also say that Nike could be looking to exit several sponsorships in the golf sector.
Over the years, many people have followed Woods on the PGA Tour. Investors who followed the Nike storyline have also been pleasantly rewarded.
Nike shares traded at $56.16 in 1996 when Woods signed with the brand. An investor could have purchased 17.81 NKE shares at the time. Stock splits in 2007, 2012 and 2015 would have turned the 17.81 shares of Nike into 142.48 shares today.
Today, the $1,000 investment would be worth $17,318.44, based on a $121.55 price for Nike shares at the time of writing. This represents a return of +1,631.8% over the last 27 years.
Woods has also been successful at the annual Masters Tournament. His first run at the tournament as an amateur took place in 1995 where he tied for 41st place. Woods won the tournament in 1997, 2001, 2002, 2005 and 2019.
In his career, Woods has competed in 24 Masters Tournaments. A bettor who wagered $100 on Woods to win each of the Masters Tournaments Woods competed in would have turned $2,400 in bets into $3,200 for a profit of $800.
The five wins by Woods paid out the following, based on a $100 bet:
- 1997: $900
- 2001: $250
- 2002: $300
- 2005: $450
- 2019: $1,300
While Woods may have competed in his last Masters wearing Nike in the 2023 tournament he withdrew from after cutting, golf fans have likely not seen the last of Woods competing on the golf course.
Read Next: Nike Q1 Earnings Spotlight: EPS Beats As North American Sales Slide, Shares Move Higher
Image: Wikicommons
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