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Posts Tagged ‘Phil Knight’

Will Tiger return any money to Nike?

Posted by ZA on December 17, 2009

As the scandal around golfer Tiger Woods rages on, sales of Nike Golf apparel are dropping.  Retailers are no longer pushing the Tiger Woods branded Nike Golf line and his absence from the PGA Tour is only going to continue to hurt sales.  Bloomberg estimates that Nike stands to lose approximately $30 million in sales from the current Tiger scandal.  A former CBS Sports executive says “The aura (around Tiger) is gone”.

So the question is will Tiger give any of that money back to Nike?  Woods is almost solely responsible for building Nike Golf division into a half a billion dollar cash cow.  For that Tiger has been paid over $100 million dollars by Nike in his career.  So will Tiger consider giving some of that money back to Nike now – when it’s clear that Tiger’s personal actions are hurting the corporate giant.  I doubt that Tiger would ever hand over a check to Phil Knight, but I do think this will prompt Tiger to give Nike a sweetheart deal whenever his current contract expires.  Sure Tiger has made more money for Phil Knight than Knight has paid to Woods, but Knight & Nike have also stood by Tiger during this scandal.  Knight is the only sponsor who has vocally supported Woods saying that Tiger’s transgressions are just a “minor blip” on his great career.   I’m betting that Phil Knight gets a nice holiday card from Tiger this year.

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Posted in Athletes, Golf, Nike | Tagged: , , , | Leave a Comment »

“The kid from North Carolina” aka: Michael Jordan

Posted by ZA on September 9, 2009

A great article from Yahoo Sports on Nike’s decision to sign Michael Jordan.  The original deal signed back in 1984 was for $500k and a piece of the profits from Nike sales of Jordan products.  The deal eventually catapulted Nike from a top sporting goods company to a global brand.

Some more interesting tidbits from the article:
* Nike’s total revenue in 1984 (year MJ signed) was $900 million, in 2008 Nike had $18.6 billion in revenue.

* No one at Nike had ever met Michael Jordan when they agreed to sign him to an endorsement deal.

* Nike produced so much black & red apparel with Jordan that “at one point there was a run on the world’s supply of red-colored thread”.

It’s a good article by Dan Wetzel, it’s worth a read.

Posted in Apparel & Shoes, Athletes, Endorsement Deals, NBA, Nike, Sports Brands | Tagged: , , , | Leave a Comment »