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Jason Day to Nike? (MERGED)


takingitdeep

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Going to nike from adidas is a step back imo

 

How?

If i had to guess it would be because now he has to wear those terrible shirts with fake collars. Adidas shirts are much, much better.

 

For 10 million bucks a year Id play with shorts/shirt in winter and in wool socks during summer...

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Nike is, and for the foreseeable future, is a shoe company. 60% of their revenue comes from shoes and still pretty much dominate the shoe market. They have 62% of the athletic shoe market and the next closest is Sketchers at 5%. Nike has never outsold Adidas in globally in apparel numbers. Nike generates 15B in shoe revenue alone while all of Adidas generates 9.5B. Nike has doubled their revenue in 10 years. Stock price isn't always the best measure in determining a popularity contest. Golf revenues are 2.5% of Nikes total revenue.

 

I think Nike doing signature shoes with Day and Rory, or any of the younger guys will increase their shoe sales with the casual golfer. Tiger Woods stuff until maybe the last year or two, were really traditional in style. I would not be surprised if Nike really tries to flood the shoe market in golf now.

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Anybody else sick of the PXG talk? I truly believe they are a flash in the pan company and will be gone in the next 5yrs or so.

 

I think it's hard to be a flash in the pan company when you are owned by a quasi-Bond villain billionaire that has stated he doesn't care if he loses millions of dollars a year doing what he really likes to do (Bob Parsons)

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I don't get the apparent need for EVERY "star" in every sport to have their own signature shoe. There was one-and ONLY one that succeeded. Air Jordans. That's it.

 

I can see it now- some 12 year old is on the putting green pining away for that one day their folks finally pony up the dough for a pair of Mcilroys. Our a pair of Dustin Johnsons...

 

Yeah, rolls right off the tongue...

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Good post but revenue contribution for Nike Golf (with or without equipment) is a blip on the bottom line for NIKE, Inc.

 

I think they have bigger issues to deal with than who is wearing their golf apparel. Nike received zero lift from the Olympics and globally they are facing increasing pressure from brands like Adidas, Under Armor, Reebok, Puma, etc. You can see it in their stock price, over the last six months they are pretty flat.

 

I agree... and therein lies the rub regarding the dismissal of hard goods. These particular changes are geared towards fiscal 2017. Ramp up soft goods and anticipate a greater overall profit margin based on some decent gains there coupled with a better margin. It may be a small part of the overall scope of Nike, but soft goods made more than hard goods and we're doing infinitely better than the hard goods side. The biggest factor was eliminating the hard good position of the Nike Golf portfolio, it will allow a higher operating ceiling in terms of earnings percentage. If they can sign some high profile players that may dramatically increase sales in soft goods, even better.

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I don't get the apparent need for EVERY "star" in every sport to have their own signature shoe. There was one-and ONLY one that succeeded. Air Jordans. That's it.

 

I can see it now- some 12 year old is on the putting green pining away for that one day their folks finally pony up the dough for a pair of Mcilroys. Our a pair of Dustin Johnsons...

 

Yeah, rolls right off the tongue...

 

If you look at the revenue and popularity of Lebrons, Kobes and KDs, you are incorrect.

 

Golf shoes are different because not everyone can play golf. All you need is a ball and a pair of shoes for golf.

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I mentioned this in the post discussing the equipment deal with NIKE. I said those that dont like NIKE are not going to like the fact that NIKE dropped equipment because this will free up NIKE to sign a ton more players. Look to see alot of swooshes on TV next year.

 

To the poster that mentioned that you care more about whats in the persons bag. Thats true for most WRX'ers but when people tune into TV they SEE the swoosh they dont see the Titleist club. NIKE is going to sell a ton of footwear and apparel going forward.

 

I don't understand...

 

They had the game's most prominent figure since 1997, covered in Nike garb. Then a few year's back, brought on the next hottest star.

 

But NOW they're going to sell a ton of apparel?

Can't sell cars, why wait 20 years to realize you should have been selling trucks all along.......LOL
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The rest of the signings remain to be seen. Every company of Nike's magnitude sets a budget that includes their endorsements/sponsorships/advertising. They leverage that budget against their expects percentage of growth and profit margin. If they expect X for sales over the course of fiscal 2017, they budget Y for the expenses. If they do something like sign Dustin Johnson as an example, then they're expecting the soft goods market to expand at a rate to cover the contractual signings and bring a profit... Hence dumping the hard goods. Did the clubs make them a few bucks? Sure, but when allocated with the soft goods profit margins it brought down the earnings target.

 

Let's say they make 1BN off soft goods and 1BN off hard goods at the end of the year (hypothetical numbers) and soft goods returns a 15% profit and hard goods brought a 5% profit. Net percentage of the 2BN earnings is now 10%. Cut out the hard goods and forecast a 5% increase on soft goods. Give Jason and Dustin 10MM a piece (forecasting that their signings will help facilitate a 5% bump). They turn 1.2BN in fiscal 2017 with a net loss of 20MM for Jason and Dustin. They still netted 1.18BN, or 180MM profit. If those forecasts come in, the signings helped earn Nike golf an 8% bump in net profit from the previous year' and probably a similar expectation for fiscal 2018.

 

Long story short: they're going to expect to post awesome percentage margins without hard goods and a couple piss-ant 10MM contracts can not only be washed but seen as a tool for accelerated growth. Looks terrific on paper and stock tickers.

 

Good post but revenue contribution for Nike Golf (with or without equipment) is a blip on the bottom line for NIKE, Inc.

 

I think they have bigger issues to deal with than who is wearing their golf apparel. Nike received zero lift from the Olympics and globally they are facing increasing pressure from brands like Adidas, Under Armor, Reebok, Puma, etc. You can see it in their stock price, over the last six months they are pretty flat.

 

FWIW, North America has been what has hurt their sales most recently. But fully agree on the bigger issues.

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As a player, I'd rather have a fat paycheck for wearing a certain companies apparel while bagging anything I wanted than be restricted to using certain clubs. To me it seems like a contract with more freedom and a win-win for any player.

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I think it was mentioned when Rory signed with Nike, but it seems to free these guys up from a lot of sponsor commitments. Day, and Rory before, were walking billboards.

 

2ADE2B7800000578-0-image-m-153_1453912591539.jpg

 

153001_m16.jpg

 

That is an interesting angle. Up until this point Nike hasn't allowed any other sponsor logos on their apparel. Does that change now that they are apparel only, or will that continue to be the same? I would assume, as you mentioned, that Day wouldn't have any more sponsor logos on his apparel now.

Speaking of logos, anyone care to explain what the logo on the side of Tiger's hat was in 2000?

 

I think rors has openly said that he likes the freedom of less sponsor commitments. Chubby had the dude looking like the second coming of Zach Johnson. Given that Jason has a very young family, less sponsors is better for him. Obviously, he'll be in nike head to toe. Lexus and RBC will still sponsor him (AK had a sponsorship with them when he was playing...I think it was a bag deal). I'm also assuming the wealth management ppl (who handles his finances) is within the RBC umbrella. Nike more than likely brought him out of his concur deal.

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Considering TM might be for sale, why doesn't Nike just buy the whole thing?

 

 

first TM is for sale and the new company will emerge shortly. (and it won't be UA, Nike or any other golf company) Nike golf is autonomous, it would be foolish, no cancel that It would be stupid for Nike to even consider buying TM. Wanna know why? 17 years in club and ball business with a huge operating budget and the best players and they only managed a 2-3% marketshare. In every business circle I have been involved in that's call failure- no way to sugar coat it- it failed miserably.

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Considering TM might be for sale, why doesn't Nike just buy the whole thing?

 

 

first TM is for sale and the new company will emerge shortly. (and it won't be UA, Nike or any other golf company) Nike golf is autonomous, it would be foolish, no cancel that It would be stupid for Nike to even consider buying TM. Wanna know why? 17 years in club and ball business with a huge operating budget and the best players and they only managed a 2-3% marketshare. In every business circle I have been involved in that's call failure- no way to sugar coat it- it failed miserably.

 

correct Nike is not buying any other golf company EVER

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I say the best thing that could happen is to have Under Armour purchase Taylormade which gets you two things. A. You get Jason Day and a lot of the Taylormade Staff to wear Under Armour which will undeniably increase sales in that regard, B. and this is as important if not more would be getting Jordan Speith to sign with Taylormade. Boom!!!!!!!! Suddenly Under Armour is now on the top of the food chain. Under Armour then zaps Taylormade's previous notion that pumping out equipment every six months to every other year will get them back to supremacy. TMUA. That is the new LOGO. Starring Jason Day, Jordan Speith, Justin Rose, Dustin Johnson, Sergio Garcia. WOW what a line up.

 

Now that would get very interesting...

 

I think shareholders would bolt if that was even suggested.

 

I wonder if the big boys have opt outs if another company buys their current sponsor

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Opinions are like Word not allowed holes...everybody has one and most of them stink. The comments about Adidas being better than Nike are stinky opinions. It's business. Great move for Jason Day to get with the most popular brand of apparel and shoes out there. Their 2016 line of shoes covered styles for all types...the boring and the bold. No other brand has such range (although Puma actually comes close and may get even close with Bryson's line in the future).

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so its official? they just announced Jday to nike apparel deal 10 million plus a year to wear shoes and hat

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so its official? they just announced Jday to nike apparel deal 10 million plus a year to wear shoes and hat

 

You should see his deal with taylormade. I laughed when I read someone suggesting it would be 5 million per year from taylormade. Not even in the same zip code.

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so its official? they just announced Jday to nike apparel deal 10 million plus a year to wear shoes and hat

 

Not even a Nike bag sponsor. No idea why they don't insist on that with Tiger, Rory, and Jason.

 

Would be interesting to see if Day would have gone to Nike clubs had they stuck around. Would they have still let Day use TaylorMade clubs?

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Can't wait for threads blaming Nike shoes when Jason goes an extended period without winning.

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I don't get the apparent need for EVERY "star" in every sport to have their own signature shoe. There was one-and ONLY one that succeeded. Air Jordans. That's it.

 

I can see it now- some 12 year old is on the putting green pining away for that one day their folks finally pony up the dough for a pair of Mcilroys. Our a pair of Dustin Johnsons...

 

Yeah, rolls right off the tongue...

 

If you look at the revenue and popularity of Lebrons, Kobes and KDs, you are incorrect.

 

Golf shoes are different because not everyone can play golf. All you need is a ball and a pair of shoes for golf.

 

MJ's air Jordan's are sold four times as much as those three- COMBINED. And he's been retired for thirteen years.

 

Nike needs to put a face to the name-or in this case, the shoe. It makes sense I suppose. That doesn't mean it will transfer over to the game of golf, at all. The market is just too Damn small compared to other sports for one. Couple that with the cost of the game itself and really don't see the upside to such a deal.

 

Side note- I had three pairs of the original air Jordans. Weren't allowed to use them during the season as we wore converse but man, those were spectacular basketball shoes... :)

 

 

 

 

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I don't get the apparent need for EVERY "star" in every sport to have their own signature shoe. There was one-and ONLY one that succeeded. Air Jordans. That's it.

 

I can see it now- some 12 year old is on the putting green pining away for that one day their folks finally pony up the dough for a pair of Mcilroys. Our a pair of Dustin Johnsons...

 

Yeah, rolls right off the tongue...

 

If you look at the revenue and popularity of Lebrons, Kobes and KDs, you are incorrect.

 

Golf shoes are different because not everyone can play golf. All you need is a ball and a pair of shoes for golf.

 

MJ's air Jordan's are sold four times as much as those three- COMBINED. And he's been retired for thirteen years.

 

Nike needs to put a face to the name-or in this case, the shoe. It makes sense I suppose. That doesn't mean it will transfer over to the game of golf, at all. The market is just too Damn small compared to other sports for one. Couple that with the cost of the game itself and really don't see the upside to such a deal.

 

Side note- I had three pairs of the original air Jordans. Weren't allowed to use them during the season as we wore converse but man, those were spectacular basketball shoes... :)

 

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As a player, I'd rather have a fat paycheck for wearing a certain companies apparel while bagging anything I wanted than be restricted to using certain clubs. To me it seems like a contract with more freedom and a win-win for any player.

 

yeah, seems like a no-brainer really....just changing clothes/shoes and get another paycheck.

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