There has been a rumored dissonance between Tiger Woods and Nike. The 10-year extended contract from 2013 is nearing its end, and it is now speculated that Woods and Nike might part ways for good. For now, when asked about the recent developments, his response at the PNC Championship did little to nothing to dispel the rumors, “I’m still wearing their product.” However, the smarts of the only billionaire golfer, who amassed around $500 million from his deal which stretched for 27 years, once outsmarted the brand to reserve himself a larger piece of the pie.

The partnership agreement had clauses that at times even made Woods uncomfortable! What did the golfer do about it?

Tiger Woods once smartly prevented splitting his profits with Nike

Woods’s legendary status often comes with admirers and loyal followers who would give anything to walk in his shoes. Hence, in 2005, a video game inspired by him was released. The Tiger Woods PGA Tour 2005, developed by EA Redwood Shores, was launched and could be played on GameCube, Microsoft Windows, Xbox, PlayStation, and other platforms. And of course, Nike, Woods’s biggest sponsor, was involved in the game too!

In 2020, this situation was discussed on the ‘All American Podcast’. During the sit-down, the host claimed that Woods’s contract with Nike ensured the games were under their control. “Yeah, and that video game, year after year, was selling over a million copies. Nike had originally controlled Tiger’s video game rights in that first contract with them.”

This was not a happy term for the golfer, who had to share a big margin of profit with Nike. Hence, when Woods renewed his agreement with the billion-dollar company, he got this clause removed, ensuring that Nike could no longer have any control over the video games released in his name. Hence, the profits were all his to claim, or, in the host’s words, “By 2004, they no longer had a piece of that pie.”

What made this move possible was that some big-level executives, like Michael Shapiro, Woods’s brand manager, and Rod Tallman, the former head of the golf’s marketing division, were no longer involved with Nike or the major champion. Instead, they had been replaced by “an army of executives” who sought out the best deal for Woods.

Things have certainly changed since Nike and Woods’s initial contract, and the golf legend successfully managed to elude them from taking a chunk of his gaming profits, eventually leading him to be over $500 million richer. For Nike, on the other hand, things didn’t go as well, and despite having the 15-time major winner on board, they faced blow after blow within the sport!

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Multiple setbacks Nike faced despite Woods being their brand’s face

Making Tiger Woods a Nike ambassador was undoubtedly a smart move by Nike. However, it failed to serve them well in the long run, at least when it came to their golf equipment division. Nike found itself falling short in competition with brands like Titleist and TaylorMade.

Their revenue was less, and the investment made on hold reaped no benefits. The sport also experienced a period of oversaturation, with numerous companies competing. This abundance of options was challenging for Nike. As a result, they finally had to shut down their golf equipment department in 2016.

After the close, Nike co-founder Phil Knight explained their decision in an interview. “It’s a fairly simple equation that we lost money for 20 years on balls and equipment, and we realized next year wasn’t going to be any different,” he said. Sadly, it seems like even having Woods on board using their clubs and balls wasn’t enough to keep them afloat.

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