Nike dropping golf equipment (merged)

[Yanki01]

Patrick Rodgers, a Nike player who made his pro debut at the Travelers three years ago, and his caddie, Thomas Maples, were at the Nike equipment truck Wednesday morning. They talked to staff about testing wedges. The two returned in the afternoon, after news had broken, and were met with: "I don’t think we need to do any more testing of wedges. We all just lost our jobs."

 

Ouch, that's just brutal for everyone involved.

 

where was this from?

[Interpol]

Equipment manufacturers are slowly realizing avid amateurs largely don't play equipment based on what they see guys on TV play.

 

If they "realize" this then why, why, why do they spend literally tens of millions of dollars a year paying the guys on TV to play and advertise their clubs?

 

Golf equipment marketing is one of the toughest things to get right. Manufacturers can plaster their equipment and pros on TV ads 24/7 but in the end all that really does is get the consumer to go to the shop, where he finds himself inundated with a multitude of choices that may or may not be better for him than the stuff that was hyped to him on TV.

 

Look at how car manufacturers do it. When they come out with an exciting new model, if you're interested your only choice is to visit your local car dealership that specializes in that brand. If you decide to buy a different model, it makes no difference to the manufacturer, they're still selling something to you.

[Frankensteins Monster]

Golf Channel - News: Nike Golf's equipment shutdown has ripple effect on industry

http://www.golfchann...ffect-industry/

Sorry if this was already posted

After reading this, I can only think that this is exactly the result of PXG making clubs the players actually want. Why pay players to use inferior equipment? Why sell inferior equipment? Nike is and always will be about the shoes.

 

Except Nike has made the best driver and three wood I ever used. This is coming from someone who hasn't had a Nike club in his bag since the original blades.

[Bama87]

Damn that's tuff they just dropped the staff like that. Why would you not carry them through the rest of the year? Hardly any support for the guys playing the clubs. How quick do we see players switching brands? It has to be very very soon I'd suspect, if the Nike tour van guys/gals are out.

[tomc262]

Tiger should go back to Mizzy irons, FJ Classics shoes and steel shafted King Cobra driver! :)

[Holein8]

Just my two cents. I think we will see Nike switch to the marketing strategy they have used in tennis since the days of Agassi. They do not make racquets, balls, or any equipment for that sport but instead focus 100% on footwear and fashion. Therefore they have every top player in the game signed to them (other than Novak Djokovic) and they make money hand over fist because the players have complete freedom to choose the equipment they feel best suits them. It makes a lot of sense from a business model standpoint and they have the blueprint of being incredibly successful in it from that sport.

Just my two cents. I think we will see Nike switch to the marketing strategy they have used in tennis since the days of Agassi. They do not make racquets, balls, or any equipment for that sport but instead focus 100% on footwear and fashion. Therefore they have every top player in the game signed to them (other than Novak Djokovic) and they make money hand over fist because the players have complete freedom to choose the equipment they feel best suits them. It makes a lot of sense from a business model standpoint and they have the blueprint of being incredibly successful in it from that sport.

 

Eh? Current ATP top 10 Men's Rankings apparel and footwear. You really need to take your Nike blinkers off

 

1. Djorkovic: UniQlo / adidas

2. Murray: UA / UA

3. Federer: Nike / Nike

4. Wawrinka: Yonex / Yonex

5. Nadal: Nike / Nike

6. Nishikori: UniQlo / adidas

7. Raonic: NB / NB

8. Berdych: adidas / adidas

9. Tsonga: adidas / adidas

10: Thiem: adidas / adidas

[mallrat]

So I just heard on GC the business guy said Nike did over 700 million in golf sales alone last year. It accounted for just 2% of nikes total business revenue.

 

So I ask this. No BS. No way in the sticks does cobra and or mizuno do 700 million in golf sales a year. I'm probably 100% wrong,but nah! No way those company's do 700 million in golf equipment.

 

Nike should think like Parsons at pxg. I'll make clubs and it's only 2% of my total revenue. It's ok,it's only 2% of my gross revenue.

 

Something seems amiss when you look at it. 700 million a year and it's only 2% risk and you say "we're done"!! The risk and money spent to make 700 million can't be that lopsided.

 

Specially if you have 98% of another part of company to even it out. The new CEO at Nikes first move after Phil retires is to kill golf area. Just seems odd.

 

Mark Parker has been the CEO for years. Phil just retired as Chairman of the board.

 

This is a move for Wall St more than anything. It's a question of margin or return on capital. Plus that $700 million is very skewed because I don't think they release hard goods vs apparel numbers.

[gvogel]

It took me a day to realize that this is Nike's recognition that Tiger is done.

[mahanate]

This topic is quite interesting to read, and fanboys and haters aside, there is the occasional posting that hits it on the head, and this bears repeating.

 

1. Diversified, large companies trim less profitable product lines all the time. I work for a diversified resources company, and we sell of businesses that provide a lesser return on capital employed than others- note that these are still profitable, but they represent sub-optimal use of resources (financial and human). This is just good management, and good stewardship of shareholder trust. Nike is a publicly listed company. They are obliged to use net profits (that can either be reinvested in product or given to shareholders as dividend) for the highest possible returns. Basic fiduciary responsibility.

 

2. It is possible that TW's decline resulted in lower sales. If Rory had a 2015 like Spieth did, things *may* have been different. But it is still very possible that the golf equipment business is one of the less profitable lines for Nike, and this decision could have still been taken. See (1) above.

 

As far as whether returning to a SC putter is going to make Rory world #1 again, I will leave that to more sanguine heads than mine.

[AmazinBlue]

It took me a day to realize that this is Nike's recognition that Tiger is done.

I said the same thing in another thread. I don't think this is TW's fault, but I think Nike's golf equipment image was all based on Tiger, everyone else was gravy. It seems to me, TW let them know he's not coming back and they said, "that's it, we're out!". It seems like no one else in the Nike stable, even Rory can carry that brand. I think the golf equipment industry is up for some serious changes, not bad one, just a lot changes.

[regiwstruk]

Know a few engineers at the Oven and caught up with them a few minutes ago. A few tidbits:

 

1. They had no idea. Cops showed up to escort them out as it would happen with any company. Obviously, with the industry as it was, they're not crying but they were shocked about the hard cut.

2. No acquisition on the horizon that they are aware of and even if so, the employees at the Oven are not being absorbed anytime soon. As far as they know, that facility is shut down completely.

3. Little ill-will towards Nike corporate...everyone knows the score. They had a great experience and weren't being just PC about it. Truly enjoyed their time.

4. I saw the equipment that will never see the light of day. Every Nike golf guy would have been absolutely thrilled! The bulk of the haters would silenced, or would look more illogically biased than ever at the very least. Think MM Proto but with some additional elegance.

5. There were more Origins coming, too, including the mallets I was waiting for. GD it! They looked great. Always like the method roll so it's a bummer that these won't be released.

 

*SIGH*

[meaks17]

Another company has to be interested in Nike's equipment patents, I wonder if they are selling them or just hanging on to them?

[Brad Thor]

Get used to this as the game is dying and youth participation has dropped like a rock. Who wants to be in a dying market, break out the Nike soccer balls.

[moose557]

This is a blessing to these guys. They get to keep their giant contracts but it's only for clothing now and can go out and sign with anyone else they want. Basically double dip. Suspect Rory and Koepra will go back to titliest. Even for less then others offer since they are flush with Nike money.

 

Nike just signed these guys and owe Rory and Tiger a ton. Just cause there getting out of equipment they still got to pay Them the contracts they signed.

[puttingmatt]

as Tiger goes, so does Nike golf. the Nike brand was built on Tiger.

clothing will still be there. Expect an early next year Tiger retirement announcement.

[ConcentricDimples]

Will the Nike staffers be allowed to play Nike clubs at the FedEx playoffs? (Like, technically, are their clubs their property or are they Nike's property?)

 

 

 

I really liked Nike Balls throughout the last 15 years. A couple drivers as well. In my humble opinion, however, they never got the aesthetics of their clubs quite right.

[BloctonGolf11]

Just my two cents. I think we will see Nike switch to the marketing strategy they have used in tennis since the days of Agassi. They do not make racquets, balls, or any equipment for that sport but instead focus 100% on footwear and fashion. Therefore they have every top player in the game signed to them (other than Novak Djokovic) and they make money hand over fist because the players have complete freedom to choose the equipment they feel best suits them. It makes a lot of sense from a business model standpoint and they have the blueprint of being incredibly successful in it from that sport.

Just my two cents. I think we will see Nike switch to the marketing strategy they have used in tennis since the days of Agassi. They do not make racquets, balls, or any equipment for that sport but instead focus 100% on footwear and fashion. Therefore they have every top player in the game signed to them (other than Novak Djokovic) and they make money hand over fist because the players have complete freedom to choose the equipment they feel best suits them. It makes a lot of sense from a business model standpoint and they have the blueprint of being incredibly successful in it from that sport.

 

Eh? Current ATP top 10 Men's Rankings apparel and footwear. You really need to take your Nike blinkers off

 

1. Djorkovic: UniQlo / adidas

2. Murray: UA / UA

3. Federer: Nike / Nike

4. Wawrinka: Yonex / Yonex

5. Nadal: Nike / Nike

6. Nishikori: UniQlo / adidas

7. Raonic: NB / NB

8. Berdych: adidas / adidas

9. Tsonga: adidas / adidas

10: Thiem: adidas / adidas

 

Check the Women's. I did forget Murray got sniped by UA but if you look at the WTA it is DOMINATED by Nike. As well, money wise the only four men who matter are Federer, Djokovic, Murray, and Nadal.

[niscur24]

Know a few engineers at the Oven and caught up with them a few minutes ago. A few tidbits:

 

1. They had no idea. Cops showed up to escort them out as it would happen with any company. Obviously, with the industry as it was, they're not crying but they were shocked about the hard cut.

2. No acquisition on the horizon that they are aware of and even if so, the employees at the Oven are not being absorbed anytime soon. As far as they know, that facility is shut down completely.

3. Little ill-will towards Nike corporate...everyone knows the score. They had a great experience and weren't being just PC about it. Truly enjoyed their time.

4. I saw the equipment that will never see the light of day. Every Nike golf guy would have been absolutely thrilled! The bulk of the haters would silenced, or would look more illogically biased than ever at the very least. Think MM Proto but with some additional elegance.

5. There were more Origins coming, too, including the mallets I was waiting for. GD it! They looked great. Always like the method roll so it's a bummer that these won't be released.

 

*SIGH*

 

#1 is NUTS. Why would they need to be escorted out? They were all employees of Nike legally allowed to be there. Understand they are killing hard goods but shutting things down takes time. There's always closeout work that needs to get done.

#4 Drives drive me CRAZY. They already paid for the R&D on 2017 gear so do some sort of a last hurrah release limited run. If you guys saw prototype hard goods including woods than tooling and production had to be at least rolling in some form. Understanding they could CNC/grind irons and CNC putters onsite for protos but the woods had to come from tooling.

[Boogs2]

Know a few engineers at the Oven and caught up with them a few minutes ago. A few tidbits:

 

1. They had no idea. Cops showed up to escort them out as it would happen with any company. Obviously, with the industry as it was, they're not crying but they were shocked about the hard cut.

2. No acquisition on the horizon that they are aware of and even if so, the employees at the Oven are not being absorbed anytime soon. As far as they know, that facility is shut down completely.

3. Little ill-will towards Nike corporate...everyone knows the score. They had a great experience and weren't being just PC about it. Truly enjoyed their time.

4. I saw the equipment that will never see the light of day. Every Nike golf guy would have been absolutely thrilled! The bulk of the haters would silenced, or would look more illogically biased than ever at the very least. Think MM Proto but with some additional elegance.

5. There were more Origins coming, too, including the mallets I was waiting for. GD it! They looked great. Always like the method roll so it's a bummer that these won't be released.

 

*SIGH*

 

I get its part of the business, but man that sucks. I hope they received a severance package to help out a little bit.

 

For the upcoming products, it would be nice to see what was coming but I'm sure the photos will never be released.

[Anser]

Golf Channel - News: Nike Golf's equipment shutdown has ripple effect on industry

http://www.golfchann...ffect-industry/

Sorry if this was already posted

After reading this, I can only think that this is exactly the result of PXG making clubs the players actually want. Why pay players to use inferior equipment? Why sell inferior equipment? Nike is and always will be about the shoes.

 

Except there is no superior or inferior equipment - PXG irons aren't any better than the recent Nike offerings nor any other pro line set

 

Players will play whatever puts the most coin the bank

 

You think Billy Horschel made some big jump in quality going from Ping to PXG? No but I bet he bought a new house for doing it :)

[lopey986]

Patrick Rodgers, a Nike player who made his pro debut at the Travelers three years ago, and his caddie, Thomas Maples, were at the Nike equipment truck Wednesday morning. They talked to staff about testing wedges. The two returned in the afternoon, after news had broken, and were met with: "I don’t think we need to do any more testing of wedges. We all just lost our jobs."

 

Ouch, that's just brutal for everyone involved.

 

where was this from?

 

Golf Channel blog. Linky below.

 

http://www.golfchannel.com/news/golf-central-blog/nike-golfs-equipment-shutdown-has-ripple-effect-industry/

[bladehunter]

This topic is quite interesting to read, and fanboys and haters aside, there is the occasional posting that hits it on the head, and this bears repeating.

 

1. Diversified, large companies trim less profitable product lines all the time. I work for a diversified resources company, and we sell of businesses that provide a lesser return on capital employed than others- note that these are still profitable, but they represent sub-optimal use of resources (financial and human). This is just good management, and good stewardship of shareholder trust. Nike is a publicly listed company. They are obliged to use net profits (that can either be reinvested in product or given to shareholders as dividend) for the highest possible returns. Basic fiduciary responsibility.

 

2. It is possible that TW's decline resulted in lower sales. If Rory had a 2015 like Spieth did, things *may* have been different. But it is still very possible that the golf equipment business is one of the less profitable lines for Nike, and this decision could have still been taken. See (1) above.

 

As far as whether returning to a SC putter is going to make Rory world #1 again, I will leave that to more sanguine heads than mine.

 

 

 

 

acording to the GC report this morning sales are not 'down" they had incresed every year for several years.... just not fast enough... that proves pretty easily that TW effect has zeero to do with it

[lopey986]

Know a few engineers at the Oven and caught up with them a few minutes ago. A few tidbits:

 

1. They had no idea. Cops showed up to escort them out as it would happen with any company. Obviously, with the industry as it was, they're not crying but they were shocked about the hard cut.

2. No acquisition on the horizon that they are aware of and even if so, the employees at the Oven are not being absorbed anytime soon. As far as they know, that facility is shut down completely.

3. Little ill-will towards Nike corporate...everyone knows the score. They had a great experience and weren't being just PC about it. Truly enjoyed their time.

4. I saw the equipment that will never see the light of day. Every Nike golf guy would have been absolutely thrilled! The bulk of the haters would silenced, or would look more illogically biased than ever at the very least. Think MM Proto but with some additional elegance.

5. There were more Origins coming, too, including the mallets I was waiting for. GD it! They looked great. Always like the method roll so it's a bummer that these won't be released.

 

*SIGH*

 

#1 is NUTS. Why would they need to be escorted out? They were all employees of Nike legally allowed to be there. Understand they are killing hard goods but shutting things down takes time. There's always closeout work that needs to get done.

#4 Drives drive me CRAZY. They already paid for the R&D on 2017 gear so do some sort of a last hurrah release limited run. If you guys saw prototype hard goods including woods than tooling and production had to be at least rolling in some form. Understanding they could CNC/grind irons and CNC putters onsite for protos but the woods had to come from tooling.

 

They did say they are finishing out the manufacturing process of what is already underway, so I dunno, we very well might get some limited releases like with the LE Black Vapor Fly drivers. It'll be interesting to see. Some of the guys with ins with Nike may be getting some really cool s*** that no one else can get their hands on.

[Interpol]

#4 Drives drive me CRAZY. They already paid for the R&D on 2017 gear so do some sort of a last hurrah release limited run. If you guys saw prototype hard goods including woods than tooling and production had to be at least rolling in some form. Understanding they could CNC/grind irons and CNC putters onsite for protos but the woods had to come from tooling.

 

Doesn't make any business sense to do so. A company that has declared its intention to completely exit a market will have difficulty selling new product, 'limited edition' or not. What about customer service/support after purchase? Repairs? Parts?

[ikarcuaso]

Know a few engineers at the Oven and caught up with them a few minutes ago. A few tidbits:

 

1. They had no idea. Cops showed up to escort them out as it would happen with any company. Obviously, with the industry as it was, they're not crying but they were shocked about the hard cut.

2. No acquisition on the horizon that they are aware of and even if so, the employees at the Oven are not being absorbed anytime soon. As far as they know, that facility is shut down completely.

3. Little ill-will towards Nike corporate...everyone knows the score. They had a great experience and weren't being just PC about it. Truly enjoyed their time.

4. I saw the equipment that will never see the light of day. Every Nike golf guy would have been absolutely thrilled! The bulk of the haters would silenced, or would look more illogically biased than ever at the very least. Think MM Proto but with some additional elegance.

5. There were more Origins coming, too, including the mallets I was waiting for. GD it! They looked great. Always like the method roll so it's a bummer that these won't be released.

 

*SIGH*

 

#1 is NUTS. Why would they need to be escorted out? They were all employees of Nike legally allowed to be there. Understand they are killing hard goods but shutting things down takes time. There's always closeout work that needs to get done.

#4 Drives drive me CRAZY. They already paid for the R&D on 2017 gear so do some sort of a last hurrah release limited run. If you guys saw prototype hard goods including woods than tooling and production had to be at least rolling in some form. Understanding they could CNC/grind irons and CNC putters onsite for protos but the woods had to come from tooling.

Ever been laid off? Always a chance some bitter, disgruntled dude my try someone crazy on the way out.

[bladehunter]

Know a few engineers at the Oven and caught up with them a few minutes ago. A few tidbits:

 

1. They had no idea. Cops showed up to escort them out as it would happen with any company. Obviously, with the industry as it was, they're not crying but they were shocked about the hard cut.

2. No acquisition on the horizon that they are aware of and even if so, the employees at the Oven are not being absorbed anytime soon. As far as they know, that facility is shut down completely.

3. Little ill-will towards Nike corporate...everyone knows the score. They had a great experience and weren't being just PC about it. Truly enjoyed their time.

4. I saw the equipment that will never see the light of day. Every Nike golf guy would have been absolutely thrilled! The bulk of the haters would silenced, or would look more illogically biased than ever at the very least. Think MM Proto but with some additional elegance.

5. There were more Origins coming, too, including the mallets I was waiting for. GD it! They looked great. Always like the method roll so it's a bummer that these won't be released.

 

*SIGH*

 

#1 is NUTS. Why would they need to be escorted out? They were all employees of Nike legally allowed to be there. Understand they are killing hard goods but shutting things down takes time. There's always closeout work that needs to get done.

#4 Drives drive me CRAZY. They already paid for the R&D on 2017 gear so do some sort of a last hurrah release limited run. If you guys saw prototype hard goods including woods than tooling and production had to be at least rolling in some form. Understanding they could CNC/grind irons and CNC putters onsite for protos but the woods had to come from tooling.

 

 

 

i agree with you in a way on #1...but lets be honest..theres always one guy ( would possibly be me) who would start a "Reese Bobbie" s*** show and start throwing things or taking all the prototypes home on his or her way out.... thats why the police needed to be there... also for libility reasons... so someone couldnt claim abuse or discrimination on the way out ... they still could but with solid witnesses wearing badges it makes for a hard case to win.... you work for a Giant and enjoy the perks you have to die at the hands of the giant on their terms when they are through with you.... thats the way it is....they now know they were just numbers on a balance sheet.... same as any big corp employee

[dciccoritti]

That's what you get when you decide to validate your equipment based on the success of the athlete. Should have focused on validating their equipment based on performance and technology. Live by the sword, die by the sword.

 

Oh, and their clothing and shoes suck a** IMO. I'd take the equipment over the clothing and shoes any day of the week.

 

All this coming from someone who completely enjoyed and appreciated Tiger's performance and passion demonstrated throughout his career.

 

Bye Nike but don't fret. There are millions who require association to validate their self worth. ;-)

[puttingmatt]

This topic is quite interesting to read, and fanboys and haters aside, there is the occasional posting that hits it on the head, and this bears repeating.

 

1. Diversified, large companies trim less profitable product lines all the time. I work for a diversified resources company, and we sell of businesses that provide a lesser return on capital employed than others- note that these are still profitable, but they represent sub-optimal use of resources (financial and human). This is just good management, and good stewardship of shareholder trust. Nike is a publicly listed company. They are obliged to use net profits (that can either be reinvested in product or given to shareholders as dividend) for the highest possible returns. Basic fiduciary responsibility.

 

2. It is possible that TW's decline resulted in lower sales. If Rory had a 2015 like Spieth did, things *may* have been different. But it is still very possible that the golf equipment business is one of the less profitable lines for Nike, and this decision could have still been taken. See (1) above.

 

As far as whether returning to a SC putter is going to make Rory world #1 again, I will leave that to more sanguine heads than mine.

 

 

 

 

acording to the GC report this morning sales are not 'down" they had incresed every year for several years.... just not fast enough... that proves pretty easily that TW effect has zeero to do with it

I don't believe that, When I think of Nike golf,I think of Tiger. He is the face of Nike golf.

 

 

[vjswing]

Will be at John Deere Classic for most of next week - I live in the general area. I'll definitely be curious to see what's going on in the bags of the Nike staffers. Just looking over field list, I see Lovemark, Ancer, Kyle Stanley, Seung Yul Noh. Perhaps I'm missing someone?

 

https://johndeereclassic.com/tournament/field-list/

[GC70]

This is like the energy bunny!