Tiger Woods’ Nike Fallout Follows Magic Johnson’s $5.2 Billion Rejection After 45 Years

One of the longest-standing endorsement partnerships came to an end this week when Tiger Woods officially announced the end of a decades-long partnership with Nike. While Mr. T bid farewell to Nike after making a ton of money for himself and the company, it brings to mind a missed opportunity from the 1970s when an NBA legend passed up the chance to capitalize on a lucrative Nike deal worth $5.2 Billion.

Magic Johnson, although now a billionaire, did make one financially costly error during his initial NBA days. But did he know what was truly at stake? Earlier this week, the Hall of Famer appeared on the ‘All The Smoke’ podcast, where former NBA players and cohosts Matt Barnes and Stephen Jackson asked Johnson about his ill-fated decision.

Magic Johnson’s Billion-Dollar regret

Last year, the NBA legend achieved billionaire status through years of dedicated work in his various business ventures. However, this elevated financial milestone could have been attained much earlier and with minimal effort had he chosen to accept the lucrative Nike deal.

During his conversation with fellow NBA veterans, co-host Matt Barnes asked Magic about the Nike offer he received in 1979. Magic explained with laughter, “So, here I am, just winning the National Championship against Larry Bird, and three companies came in; Converse, Adidas, and Nike. Nike was just a year or two old. Converse offered me the most money.”

Since he didn’t have much money back then to support his family, he went ahead and chose Converse as they offered more money, unlike Nike which was ready to offer stocks. Magic continued, “My family didn’t come from money… So you know when you grow up broke, take the money. Phil Knight came in and said, ‘Hey, I can’t offer you the same type of money. But I can offer you stock’.”

While the co-hosts took a sarcastic dig at him, the 64-year-old clenched his teeth and placed his hands on his head as he let out a frustrated sigh along with laughter and said, “I wasn’t [trying to hear that] and I didn’t know nothin’ about it… That’s one thing that hurts us sometimes when you don’t come from money… I didn’t even know what stocks was at that time. So I passed on the stocks. Can you imagine? Forty-five years and $5 billion of stock.”

The stocks that Magic refused about 45 years ago are now valued at over $5.2 billion. That’s a mind-boggling number even if you’re a billionaire like Magic. Although he doesn’t regret passing on the one-of-a-kind opportunity, the NBA veteran has talked about it several times.

However, with time, and especially when Nike brought in athletes like Michael Jordan and Tiger Woods, their brand exploded like no other. Last year, while on a promotional tour for Magic’s Apple TV docuseries, “They Call Me Magic,” he joked about the decision and said “It kills me every single time I think about that. Man, Michael Jordan would have been making me so much money.” When Nike signed the deal with Jordan, they aimed to gain $3 million in the next 4 years. Over 37 years later, Nike earns $3 million every 5 hours just from the sales of Air Jordans.

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Regardless of this setback, everything worked out very well for Magic, but not so much for Tiger Woods, whose reputation has taken many hits.

What may have caused the Nike-Tiger Woods fallout?

Tiger, undoubtedly the most dominant athlete in golf, is etched in the sport’s history as a bona fide champion who shattered barriers. Despite controversies, Nike remained steadfast in its support. Although rumors of a Nike-Tiger split persisted, their enduring partnership seemed unshakable. The recent signing of Tiger’s son, Charlie, with Greyson Clothiers fueled speculation. While some attribute it to Tiger’s tarnished reputation, Nike’s consistent support contradicted this view. Age may also be a factor, as Tiger’s prime appears to be in the rearview.

However, Woods tweeted his final goodbye to Nike and has surely proven how he is a true professional through his memorable adieu. Whatever the reason could be, he made over $660 million during his 27 years with Nike. Announcing the end of an era, he wrote, “Over 27 years ago, I was fortunate to start a partnership with one of the most iconic brands in the world. The days since have been filled with so many amazing moments and memories, if I started naming them, I could go on forever”.

The legend ended his statement by thanking everyone at Nike who he has worked with and helped grow the brand. His exit could bring a lot of harm to Nike’s standing in golf, or could potentially end up wrapping up Nike’s involvement on the greens.

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