As Tiger Woods Announces $500M Split, Nike’s ‘Notorious’ Move Gets Exposed by Top Analyst

Tiger Woods and Nike parted ways on amicable terms. But a departure after 27 years of partnership that has stood the test of the toughest time naturally leaves many questions in its wake. Why did the veteran golfer leave the brand that took him in when he just turned pro? It appears that Nike’s strange business policy left them with no choice but to let Woods go.

Joe Pompliano, an entrepreneur and investor, mentioned in a previous podcast that Nike has a policy of capping their endorsements at 10% of their annual revenue. So, if the company goes through a period of stunted growth, it’s difficult for the megabrand to top the previous contract. In fact, we have witnessed this before with Roger Federer.

Nike’s stern rule that cost them Tiger Woods

Tiger Woods and Roger Federer were both long-time partners of the apparel giant. The tennis legend left in 2018 and jumped to On Running. Pompliano said the 3% equity stake that Federer had in the new brand translated to more than $300 million when it went public.

Unfortunately, Nike hasn’t followed a similar path with any of their stars. Contrarily, “Nike has also notoriously stuck to the rule of not spending more than 10% of category revenue on athletes sponsorships,” Pompliano shared. They haven’t breached the glass ceiling with Federer, and in all likelihood, they didn’t agree with Woods as well.

“So again, if they’re making $100 million, we’ll just say as an example, they’re not going to spend more than $10 million dollars on athlete endorsements,” Pompliano further added. Recent reports also indicate that Nike is overhauling its business and has already taken $2 billion in cost-cutting measures, part of which rendered several workers jobless as the megabrand slashed its workforce.

Notably, Woods’s last contract with Nike came in 2013 for a reported fee of $200 million. Asked about his future during the 2023 PNC Championship, the 82-time PGA Tour winner refused to say anything beyond, “I’m still wearing their product.” However, now that the veteran golfer is no longer with his partner after 27 years, where is he headed next?

Will Woods join Greyson?

Greyson Clothiers made headlines last month after an Instagram post showcased that they have signed Woods’s teenage son, Charlie Woods. Although the post has since been deleted, Tiger Woods’s name has also been inevitably linked with the brand. Intensifying the rumors further is the fact that Greyson Clothiers has partnerships with Justin Thomas, who is very close to the Woods family.

Read More: Is Tiger Woods Joining Greyson? The Strongly Rumored Connection Explored Amid Nike Exit

In fact, Greyson also offers equity in exchange for promotions, like On Running, offered to Federer. Although the amount is not clear, Pompliano said that a partnership term that includes an equity stake in the brand means Greyson has cracked the code for long-running apparel deals. Hopefully, Tiger Woods’s fans will get the news in a few weeks, when the PGA Tour stops in LA for the Genesis Invitational, a tournament the 15-time Major champion hosts.

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