The speculation about where Woods goes next spotlights the changing nature of brand deals. — Bloomberg
NEW YORK: Tiger Woods’ nearly three-decade partnership with Nike Inc, which generated about US$660mil for the golfer, has come to an end.
“Over 27 years ago, I was fortunate to start a partnership with one of the most iconic brands in the world,” Woods said in a statement posted on Monday on X, formerly Twitter.
Woods, now 48, signed a five-year, US$40mil deal with Nike as a young phenom in 1996.
A five-year, US$100mil contract followed in 2001, and his next pact with the athletic-goods giant was worth US$320mil over eight years.
He signed his most recent deal with Nike, worth US$200mil over 10 years, in 2013.
As for what’s next for Woods, he said: “People will ask if there is another chapter. Yes, there will certainly be another chapter. See you in LA!”
The Genesis Invitational tournament, which Woods hosts, starts on Feb 15 near Los Angeles.
In a statement via text message, Nike lauded Woods’ impact on golf and the overall sports world.
“We are grateful to have been a part of it,” the company said.
“We wish him the best in the future.”
The multimillion-dollar partnership that surged golf to new heights of popularity highlights Nike’s deep history of building brands out of celebrities that go beyond mere endorsements.
The speculation about where Woods goes next, possibly jumping to another brand where he can take an equity stake, also spotlights the changing nature of brand deals, with celebrities seeking a greater financial share in the businesses they promote.
Indeed, several younger athletes recently have chosen to take equity stakes rather than traditional endorsement contracts.
In sports beverages, San Francisco 49ers US National Football League (NFL) running back Christian McCaffrey, Atlanta Hawks National Basketball Association (NBA) guard Trae Young, New York Liberty guard Sabrina Ionescu and even singer Carrie Underwood, all have equity stakes in the Coca-Cola Co-owned Bodyarmor.
NFL quarterback Patrick Mahomes, tennis player Naomi Osaka and NBA players Anthony Davis, Chris Paul and Russell Westbrook all have equity stakes with Hyperice, a performance-recovery tech company.
As it relates to golf, the PGA Tour has said golfers who remained loyal to the tour during its pending merger with Saudi-backed LIV Golf would get equity stakes in the new for-profit company, should the merger be completed.
Sports stars of the new generation are seeking equity because they’re “making decisions around what they do with their capital and their personal brand to make sure it’s consistent with how they want to be perceived,” Mark Patricof said in November. Patricof is the founder of Patricof Co, an athlete investment and advisory platform.
Woods’ relationship with Nike came before those of NBA stars LeBron James of the Los Angeles Lakers and the Phoenix Suns’ Kevin Durant, who each have lifetime deals with the company, unlike Woods.
James signed his lifetime pact in 2015, and Durant in April 2023.
In another high-profile Nike divorce, Swiss tennis star Roger Federer left the sportswear giant in 2018 for a 10-year, US$300mil deal with Uniqlo, in part because he wanted a contract that would outlast his playing career. — Bloomberg
