Brooks Koepka’s LIV Golf May Not Have Answer to Nike’s Problems Amid Jason Day Nightmare and Tiger Woods Scare

Jason Day’s departure marks the first high-profile exit from Nike. Reports indicate that it might actually be the first of many, including Tiger Woods, that we are going to see this year. If Nike wants to stay relevant in the golf apparel business, it needs to find quick answers. While LIV Golf offers an interesting opportunity on paper, it might not offer the revival opportunity that Nike seeks. Moreover, golf fans have been there before.

In June, it was widely rumored that Nike was planning to buy Smash GC. The chatter gained momentum because Brooks Koepka, the Smash GC captain, decided to sport Nike apparel instead of promoting LIV Golf merchandise. However, Nike failed to latch onto the factor, as Koepka’s team eventually partnered with the Bald Head Blues.

Also, Nike’s footfall on the breakaway side is microscopic. On top of that, the rival league has struggled to attract broadcasters. So, even if Nike manages to strike a deal with a LIV Golf side, it doesn’t look lucrative unless the delayed framework agreement ends the broadcasting woes for the Saudi-funded side. What does this present predicament spell for the megabran’s future? 

Has the swoosh become passé?

Jason Day, while announcing his decision to part ways with Nike, said he looked the same as his next golfer and the next and the next. There was no individuality or personal touch to the apparel the Aussie, or, for that matter, other golfers, were wearing. That’s when a stretchwear brand inspired by golf came into the picture.

It seems next-generation golfers want something more than traditional golf attire—tight tees with pants. In the Malbon promotion video, the former World No. 1 donned a Malocchio Chino pant with a sand-colored belt.

Paradoxical as it may sound, Malbon Golf is mixing up casual styles with traditional golf attire, offering a unique blend of vintage style and modern-day hip. The former World No. 1 said, “I’m excited to be able to go outside of the box and wear something that’s dramatically different than what everyone is used to seeing in golf today.”

Jason Day walked the talk. The PGA Tour reported that the Australian international sported an olive green jacket and baggy pants on Monday. But then, why not Nike? Why not ask the brand you have been wearing for nearly a decade to make some loose-fit clothing, as Day said he preferred? It raises multiple questions about Nike’s future plans for golf.

Let’s also not forget that the $162 billion giant was supposedly working on a shoe that fits Woods’s needs after the operation. The 15-time Major winner has gone through another surgery—this time in the ankle—since then, but the promised kicks haven’t been announced. Reports also suggest that the PNC Championship has marked the end of Woods’s partnership with Nike. Does that indicate the problem is rooted deep inside?

The last leg of Nike in golf?

The problem seems to lie much deeper, and not just with Nike Golf, but with Nike Inc. Notably, Nike has already laid off a chunk of its employees this month. The layoff happened across human resources, recruitment, sourcing, brand, engineering, digital products, and innovation. The Daily Mail also reported that the sports brand is mulling over more layoffs.

This is strangely reminiscent of the sudden shutdown of Nike Golf’s equipment brand. Nike Golf’s revenue that year took a $63 million hit from 2015 stemming from poor sales, which went 8.2% down from the previous year.

However, Nike’s hard goods exit was read in two ways. One that golf was losing popularity, despite making a comeback to the Olympics after 112 years. Two, the brand wanted to focus on core areas, footwear, and apparel. Seven years later, it appears Nike is losing its footing in the core business as well. 

Read More: What Lies Next: Will Tiger Woods’s Rumored $500M Exit Spell the End of Nike Golf?

A few weeks ago, Nike slashed its revenue outlook and announced cost-cutting measures. CNBC reported that the company expected its year-long revenue to grow 1%, down from the mid-single digits in the earlier forecast.

Reportedly, a broader restructuring is underway. Part of that restructuring will also involve Nike’s golf business. Although Nike might not shut down their golf apparel business yet, they are planning to run it through Original Equipment Manufacturers. TWLegion reported that the megabrand will outsource its golf business to Srixon or Cleveland. But even if the sports brand outsources its business, it needs to retain the stars to hold sway over the golf world. But Jason Day’s exit and Tiger Woods’s eerie silence give all the wrong signals.

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