Nike dropping golf equipment (merged)

[cota0429]

One thing in this thread that people are completely misguided on is the profitability of Nike in golf. It's not that NIke was losing money, it's a margin issue. Or return on investment. They were making money but very little. So why spend $20 mil to make $22 mil when you can use that $20 mil to make $45 mil? Just using sample numbers

 

Well said

[mmhayden13]

 

 

Lesmond funny you post this. The other day I got a wild hair and tried the Bridgestone B330 out. And I love it. After my Platinums are gone I will be playing it.

[JackpotJohnny]

This is as I call it a Jordan speith effect. His deal with under armour and titleist had escalators. He got base for playing titleist then if he won 2 majors it went up. Then under armour did his 10 year deal on clothes and shoes and now titleist has to pay under armour to have titleist on his bag.

 

Oh! And rumor is that under armour owns his bag. That's why titleist has to pay under armour to have titleist on it. I could see how this would be good for other companies. Let the apparel companies pay them for apparel have the club companies pay for using clubs but get a kick back.

 

He doesn't have Titleist on his bag. AT&T is the only logo on his bag now.

 

+1

 

It was a pretty good fish tale tho

[Holy Moses]

I don't play Nike golf gear, but a good buddy of mine works there (worked there) and he got his pink slip today.

 

The human capital impact will be very sad.

 

There are also the folks who work at the Clubhouse in Beaverton who lost their jobs in addition to the folks at the Oven.

 

Did they give severance packages?

[swoosh21]

Reading the Nike 2017 thread... everyone who was so sure about next clubs, rumors about orange being the new accent color, saying how the Vapor Fly discounting was genius...

 

http://www.golfwrx.com/forums/topic/1338928-nike-2017/

 

 

These weren't rumors. The clubs are in production. They could launch but will be scrapped now. And orange was the new color.

 

Hyper orange. More of a red. Black crown.

 

 

"It was all a dream..." - notorious BIG

[swoosh21]

I wish they did one last drop of the clubs.

[mmhayden13]

I don't play Nike golf gear, but a good buddy of mine works there (worked there) and he got his pink slip today.

 

The human capital impact will be very sad.

 

There are also the folks who work at the Clubhouse in Beaverton who lost their jobs in addition to the folks at the Oven.

 

Did they give severance packages?

 

Yes they did. Heard from a guy I know who worked there.

[Yanki01]

http://www.golfchannel.com/news/golf-central-blog/agent-no-timetable-woods-equipment-change/?cid=facebook-gc-a-agent-no-timetable-woods-equipment-change-080316

[swoosh21]

I don't play Nike golf gear, but a good buddy of mine works there (worked there) and he got his pink slip today.

 

The human capital impact will be very sad.

 

There are also the folks who work at the Clubhouse in Beaverton who lost their jobs in addition to the folks at the Oven.

 

Did they give severance packages?

 

 

Yes they did. Heard from a guy I know who worked there.

 

Good to hear

[wldchld22]

They drop clubs but insist on making awful eyewear.

 

That's the real crime.

[Holy Moses]

I can't believe that Nike made $60 million profit two years ago on golf. That's what they would need to have made money this year. I'm sure margins were slim the last few years, but they had to lose some last year.

[swizbeatz]

Fits with what I head and posted in 2017 thread. Some big names will sign with them apparel but didn't want to play the clubs.

[jjgdyr]

does this mean my nike putter is a collector's item

 

Nike paperweight.

[dlamb83]

This is as I call it a Jordan speith effect. His deal with under armour and titleist had escalators. He got base for playing titleist then if he won 2 majors it went up. Then under armour did his 10 year deal on clothes and shoes and now titleist has to pay under armour to have titleist on his bag.

 

Oh! And rumor is that under armour owns his bag. That's why titleist has to pay under armour to have titleist on it. I could see how this would be good for other companies. Let the apparel companies pay them for apparel have the club companies pay for using clubs but get a kick back.

 

He doesn't have Titleist on his bag. AT&T is the only logo on his bag now.

 

+1

 

It was a pretty good fish tale tho

 

It's really not a fish tale at all. Under armour has rights to Jordan's bag and under armour is paid by the sponsor titleist or AT&T or whoever wants to be on his bag.

[Joe_51]

With cuts in Texas and Oregon do we know if they are also cutting down in customer support like the online chats or twitter/instagram communications. Cuz their support through those venues has always been top quality

[Tin Whistle]

Not sure if this is a hard good or a soft good or an ephemeral good

[mallrat]

Reading the Nike 2017 thread... everyone who was so sure about next clubs, rumors about orange being the new accent color, saying how the Vapor Fly discounting was genius...

 

http://www.golfwrx.com/forums/topic/1338928-nike-2017/

 

 

These weren't rumors. The clubs are in production. They could launch but will be scrapped now. And orange was the new color.

 

FWIW, not in production.

 

I was one of the people who said NO WAY and I WAS WRONG. I said it. Didn't see it coming and neither did the employees.

[IHFN]

I think there is a little misunderstanding here. These companies aren't losing money with golf equipment. We just live in a stock market economy that doesn't allow for corporations to grow at "only 4%" per year like Nike golf equipment was.

 

It really makes no sense at all if you think about it. It's making money, consistent money, but because it's not increasing enough each year, it's considered a failure. But having something like golf club sales increase every year is just a fantasy that will never happen.

 

You can make money, but unless the number of players grow each year, it's ridiculous to think that you can continue to gain in profits each year. It's just as ridiculous to think that each Taylormade driver will increase your drives by 10-15 yards.

 

But this is the stock market economy that we live in now. Corporations get penalized if they don't continually grow, cut costs, and squeeze out every dime possible. This is a great example of the problem. It will continue to happen as long as we look at the stock market and use it to judge how well our economy is going.

 

Nike Golf lost 8% last year. Pretty sure they lost money then because they weren't making 8% profit. They were also Nike's worst performing sector.

 

Sales dropped 8% last year, but they were still making a profit.

 

How do you know?

 

One of the articles I read earlier discussed it and it's one thing I've noted from the articles on the other site that shall not be named that discusses in detail these issues with the golf companies. Their profits are stagnant, not that they aren't making profits. And in this economy, that is just as bad. It's sad.

[Holy Moses]

I think there is a little misunderstanding here. These companies aren't losing money with golf equipment. We just live in a stock market economy that doesn't allow for corporations to grow at "only 4%" per year like Nike golf equipment was.

 

It really makes no sense at all if you think about it. It's making money, consistent money, but because it's not increasing enough each year, it's considered a failure. But having something like golf club sales increase every year is just a fantasy that will never happen.

 

You can make money, but unless the number of players grow each year, it's ridiculous to think that you can continue to gain in profits each year. It's just as ridiculous to think that each Taylormade driver will increase your drives by 10-15 yards.

 

But this is the stock market economy that we live in now. Corporations get penalized if they don't continually grow, cut costs, and squeeze out every dime possible. This is a great example of the problem. It will continue to happen as long as we look at the stock market and use it to judge how well our economy is going.

 

Nike Golf lost 8% last year. Pretty sure they lost money then because they weren't making 8% profit. They were also Nike's worst performing sector.

 

Sales dropped 8% last year, but they were still making a profit.

 

How do you know?

 

One of the articles I read earlier discussed it and it's one thing I've noted from the articles on the other site that shall not be named that discusses in detail these issues with the golf companies. Their profits are stagnant, not that they aren't making profits. And in this economy, that is just as bad. It's sad.

 

It's one thing to be stagnant. It's another to lose $60 million on $780. At the very least, the hard goods dept had to lose money for them.

[Mitchell]

Best wishes, thoughts and prayers to all Nike employees and athletes that may be negatively impacted by this decision.

[drbonesvt]

Reading the Nike 2017 thread... everyone who was so sure about next clubs, rumors about orange being the new accent color, saying how the Vapor Fly discounting was genius...

 

http://www.golfwrx.com/forums/topic/1338928-nike-2017/

 

 

These weren't rumors. The clubs are in production. They could launch but will be scrapped now. And orange was the new color.

 

Hyper orange. More of a red. Black crown.

 

 

"It was all a dream..." - notorious BIG

 

"Used to read golf digest magazine"

[Freight-train]

I wonder what Tiger is gonna play now? What is Rory gonna play? LOL. Just wanted to be person # 1,000 to ask.

[mmhayden13]

Reading the Nike 2017 thread... everyone who was so sure about next clubs, rumors about orange being the new accent color, saying how the Vapor Fly discounting was genius...

 

http://www.golfwrx.com/forums/topic/1338928-nike-2017/

 

 

These weren't rumors. The clubs are in production. They could launch but will be scrapped now. And orange was the new color.

 

FWIW, not in production.

 

I was one of the people who said NO WAY and I WAS WRONG. I said it. Didn't see it coming and neither did the employees.

 

I was told by employee of the Oven that 2017 stuff is/was in production already. And they were already testing 2018 equipment.

[gunmetal]

Wonder what Anthony Kim will play when he comes back? :taunt:

[mallrat]

With cuts in Texas and Oregon do we know if they are also cutting down in customer support like the online chats or twitter/instagram communications. Cuz their support through those venues has always been top quality

 

They are keeping some staff and Twitter/Instagram is not done by Nike golf

[dpark]

I don't play Nike golf gear, but a good buddy of mine works there (worked there) and he got his pink slip today.

 

The human capital impact will be very sad.

 

There are also the folks who work at the Clubhouse in Beaverton who lost their jobs in addition to the folks at the Oven.

 

Did they give severance packages?

 

I don't know. When I heard the news I texted my buddy who was supposed to be in Texas for the week. He was already heading home.

[duffer888]

This is more evidence that TW has unifficially retired if you ask me.

[BlackM00Nlight]

Not sure if this is a hard good or a soft good or an ephemeral good

 

I'm a big fan of the app, hope it stays around.

[txl146]

Anyone knows why? Nike online experts were always knowledgeable and friendly.

[Holy Moses]

I wonder what Tiger is gonna play now? What is Rory gonna play? LOL. Just wanted to be person # 1,000 to ask.

 

 

My guess is that Rory gets out of the Nike clothing deal and goes back to Titleist. Callaway is the only other serious contender. If the TaylorMade deal goes through, maybe the new buyer tries to make a splash.

 

I have no idea where Tiger goes. A split bag for him?