Nike (NKE) co-founder Phil Knight said in an interview that aired on Wednesday (6/28) on Bloomberg TV, that despite Tiger Woods’ enormous success and popularity, “we lost money for 20 years on equipment and balls”. The company exited the golf equipment space in 2016, while Woods has since signed an equipment deal with TaylorMade. Adidas (ADDYY) sold TaylorMade Golf earlier this year, to PE firm KPS Capital Partners, for $425 Million.
Howie Long-Short opines: Nike poured money into R&D in golf’s version of an arms race for years. The space is finally rationalizing, which should be good for those left.
Fan Marino says: I can’t help but think that Tiger’s little 2009 Thanksgiving incident, wasn’t exactly the catalyst Nike needed to turn a profit on golf equipment.