Nike and Tiger Woods: GCSE Business in the News

Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers.

What's the Story?

After more than 27 years, Tiger Woods and Nike have ended their long-term partnership. Woods first signed with Nike in 1996 when he turned professional with a 5-year, $40 million contract. This grew into one of the most lucrative deals in sports history, including a 10-year, $200 million contract in 2013.

Woods thanked Nike and its co-founder Phil Knight for their "passion and vision" in supporting him over the decades. Nike said it was an honour to partner with Woods, one of the greatest golfers ever.

The partnership was mutually beneficial, with research finding Nike recovering over half its investment in Woods just from golf ball sales between 2000-2010. When scandal hit Woods' personal life in 2009, Nike stood by him while other sponsors dropped him.

Reasons for the split are unclear, but Nike has struggled in golf recently, stopping club and ball sales in 2016 to focus on apparel and shoes. Woods now uses TaylorMade clubs and Bridgestone balls.

Experts believe Nike will feel the loss more, as Woods was key to building its brand. He and Michael Jordan made Nike what it is today. They also believe Nike will struggle to replace Woods' impact, even with top golfers like Rory McIlroy signed.

Nike out of the Woods