Nike dropping golf equipment (merged)

[prorobo]

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.

 

If you think a multi-billion dollar corporation doesn't have out clauses built into contracts for situations like these, then I have a bridge for sale. Those guys were being paid to wear the apparel and play the equipment. It would be understandable to think a possible situation is percentage pay on the remainder of contracts for apparel only and free reign with equipment like a Jordan Spieth.

[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

 

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.

 

I have and the results are in:

 

Nike 5

Adidas 3

Lotto 1

Qiaodan 1

 

Hardly total dominance in tennis with 35% of the top 10 in combined men's and ladies, in fact adidas have 40%! I play club tennis and the most poplar shoe by a very long way is the adidas Barricade followed probably by a Lotto shoe. Of course it may be different in the USA

[jtitleist12]

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://johndeerecla...ent/field-list/

 

I would bet the current staffers will continue to play their current Nike equipment for the remainder of the year and test new equipment on the side.

 

- Josh

[c. howard]

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*

 

Just saying, if you saw the equipment and it is that great you need to plan a heist and get us the good stuff!

 

Really curious to see what was planned. Probably didn't produce anything left handed yet, so I'd be screwed anyway ha.

[niscur24]

#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?

 

The same could be said for all us us scurrying to snatch up the 2016 stuff. If something breaks, like the Flex440, what are they going to be replace it with? If you bought it for $499 are they going to give you $500 credit to NDC, $150 @ its last sale price, or tell you Shite out of luck.

[The Mad Bomber]

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

 

But in the world of finance, revenue that doesn't meet forecast is considered a downturn. If year over year growth is down and forecast revenue is not met, we'd commonly say that revenue is down. You can be damn sure that NIKE had forecasted more than a 3% market share since its first foray into the equipment business. They're just cutting a loser. Nothing more or less

[larciel]

Bottom line is that Nike's bottom line on golf was not improving. Even though they're $100b company, the loss for 8+ years was getting out of hand. And Tiger is not getting younger is another push toward this cliff-off decision.

 

All I wanna know is if RORY 006 putter price will go higher. got 3 in my closet. :D:D

[mmack067]

Greg's photos are going to get a lot of views going forward as we all try to figure out who's doing what equipment wise.

[pheenomz4774]

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*

 

Even as a big time Nike fan I wasn't shocked, sad, or devastated about the news until I read this post. Nike was just up against too much to get into THIS particular business that prides itself upon elitism and exclusion.

[Interpol]

The same could be said for all us us scurrying to snatch up the 2016 stuff. If something breaks, like the Flex440, what are they going to be replace it with? If you bought it for $499 are they going to give you $500 credit to NDC, $150 @ its last sale price, or tell you Shite out of luck.

 

Exactly. Anyone thinking about buying Nike clubs on closeout right now needs to consider this. If possibly not having any after purchase support doesn't bother you, have at it.

 

Releasing new product lines or prototypes or 'limited edition' stuff at fire sale prices is fine if the company elects not to support said products with a warranty. If you're willing to take that chance, more power to you.

[Chilli9880]

I'm not going to search through 20 some odd pages, I just wanted to know if Lesmond has reacted to this?

[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.

 

I have and the results are in:

 

Nike 5

Adidas 3

Lotto 1

Qiaodan 1

 

Hardly total dominance in tennis with 35% of the top 10 in combined men's and ladies, in fact adidas have 40%! I play club tennis and the most poplar shoe by a very long way is the adidas Barricade followed probably by a Lotto shoe. Of course it may be different in the USA

 

True but if you look at the big names in women's tennis same story as men's: Serena, Sharapova, Azarenka. The top 3 overall earners, before Sharapova's issues, all Nike sponsored. Again money flows through the top stars. As well, watch any tournament the overall percentage of players on both sides is Nike heavy. I see them taking this same approach to golf now, going after specific stars and signing them with the freedom to look at what equipment they choose.

[mallrat]

Something people are missing is how much does this open them up to go after other players. I honestly think they could sign Day and DJ to clothing deals for ridiculous amounts. Yet these amounts would be a fraction of Nike's production, labor and materials costs for hard good. Which will most likely grow Nike's clothing/shoe revenue more than anything they could possibly do in hard goods.

 

[ikarcuaso]

Some dudes are not reading the first 900+ comments before posting.

 

C'mon people!

[Jagpilotohio]

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

 

In Nike's boardroom Monday: "Tiger is done. Rory has forgotten how to putt. Screw it! we quit!"....

 

Oh well, never cared for any of it anyway. I never have bought a Nike product of any type in my 4+ decades on this planet. Hate all of it.

 

All those little 9 year old Asian fingers putting together $150 dollar sneakers and crappy golf shoes for 50 cents an hour really turns me off.

[Jagpilotohio]

then theres this freakin' classic tweet:

 

 

 

 

Follow

Mizuno Golf

‏

@

Golf_Mizuno

 

 

@TigerWoods @McIlroyRory @BKoepka @Kevin_Chappell @JhonattanVegas @russhenleygolf @themichellewie --Team Mizuno now holding open tryouts

• 
  
• LIKES 1,002
  
• 
  

7:23 PM - 3 Aug 2016

[snapier]

Bottom line is that Nike's bottom line on golf was not improving. Even though they're $100b company, the loss for 8+ years was getting out of hand. And Tiger is not getting younger is another push toward this cliff-off decision.

 

All I wanna know is if RORY 006 putter price will go higher. got 3 in my closet. :D :D

 

$100B? Sorry to single you out but lot's of bogus numbers being thrown around.

 

Fiscal year is Jun - May.

Nike Net Sales or Revenue

 

2011 - $20.86B

2012 - $24.13B

2013 - $25.31B

2014 - $27.80B

2015 - $30.60B

2016 - $32.38B

[carn9698]

A big issue for me was that silly Nike Swoosh near the heel on top of their woods. Distracting and silly. You just think gimmick and lack of quality at address. Not for most golfers that feeling. You just want to think shot and target.

[idriveahonda]

As I've said before...I'll take the risk and play the gear without any support.

 

Anyone with Flex 440's that want to get rid of them (heads or complete), reach out to me.

[niscur24]

As I've said before...I'll take the risk and play the gear without any support.

 

Anyone with Flex 440's that want to get rid of them (heads or complete), reach out to me.

 

[mallrat]

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

 

 

In Nike's boardroom Monday: "Tiger is done. Rory has forgotten how to putt. Screw it! we quit!"....

 

Oh well, never cared for any of it anyway. I never have bought a Nike product of any type in my 4+ decades on this planet. Hate all of it.

 

All those little 9 year old Asian fingers putting together $150 dollar sneakers and crappy golf shoes for 50 cents an hour really turns me off.

 

Do you have any clue what goes on in Nike's factories? I do. The only little fingers are from adults. Because of past lawsuits Nike's factories are highly scrutinized and they have much better working conditions than many other companies factories.

 

Why should other countries have to use the American wage scale? If they did do you have any clue how little we would be able to afford.

[blblco02]

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

 

 

In Nike's boardroom Monday: "Tiger is done. Rory has forgotten how to putt. Screw it! we quit!"....

 

Oh well, never cared for any of it anyway. I never have bought a Nike product of any type in my 4+ decades on this planet. Hate all of it.

 

All those little 9 year old Asian fingers putting together $150 dollar sneakers and crappy golf shoes for 50 cents an hour really turns me off.

 

Do you have any clue what goes on in Nike's factories? I do. The only little fingers are from adults. Because of past lawsuits Nike's factories are highly scrutinized and they have much better working conditions than many other companies factories.

 

Why should other countries have to use the American wage scale? If they did do you have any clue how little we would be able to afford.

 

Exactly. It's hilarious how many grown men have no clue how the world works. And post ridiculous slanderous information on the Internet.

[OBbogey5]

Did Tiger ever play the ProV line?

[mcc0819]

A big issue for me was that silly Nike Swoosh near the heel on top of their woods. Distracting and silly. You just think gimmick and lack of quality at address. Not for most golfers that feeling. You just want to think shot and target.

 

Lol ok dude. Go stick with you "turbulators."

[Hammer4837]

Who was the manufacture of the Nike Clubs?

[ikarcuaso]

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

 

 

In Nike's boardroom Monday: "Tiger is done. Rory has forgotten how to putt. Screw it! we quit!"....

 

Oh well, never cared for any of it anyway. I never have bought a Nike product of any type in my 4+ decades on this planet. Hate all of it.

 

All those little 9 year old Asian fingers putting together $150 dollar sneakers and crappy golf shoes for 50 cents an hour really turns me off.

 

Do you have any clue what goes on in Nike's factories? I do. The only little fingers are from adults. Because of past lawsuits Nike's factories are highly scrutinized and they have much better working conditions than many other companies factories.

 

Why should other countries have to use the American wage scale? If they did do you have any clue how little we would be able to afford.

And there are companies that never allowed themselves to exploit child laborers in the 3rd world, to begin with.

[jaymay82]

Who was the manufacture of the Nike Clubs?

 

Guandong Shenzen Golf

[CHR_11]

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

But the thing is I know 4 of those players and 2 are wearing Nike

[carn9698]

A big issue for me was that silly Nike Swoosh near the heel on top of their woods. Distracting and silly. You just think gimmick and lack of quality at address. Not for most golfers that feeling. You just want to think shot and target.

 

Lol ok dude. Go stick with you "turbulators."

not a fan of them either pal. Needs to be kept plain clean and black for this old fart.

[ctfuzz21]

So, I've waded through 20+ pages and haven't seen anybody post what I believe is actually happening here. Spoiler Alert: it's not Tiger's fault.

 

A number of years back, the governing bodies of golf put a limit/restriction on ball speed. Maybe better put, the OEM's found that limit. Since, whether we all want to face it or not, technological advances in the equipment have come to a standstill.

 

That's not to say that innovation has ceased or, at the very least, the market in departments have been silenced. Companies have worked to be creative in making us believe the new equipment will give us that little extra edge that we need. Problem is, they're really up against the wall. So, what else can they improve? The ball? That's going to go the other direction bc they (gov bodies) were too late to the game. Irons? Nope, bc anything to help improve weighting is too game improvement and you lose the traditionalists and anything to traditional has no perceived value over anything already on the market.

 

This has led to a situation where all of these OEM's have/are selling nothing more than a commodity. All of the products are "virtually" the same as it relates to performance. Cosmetic changes and you're emotional connection with a brand are all that differentiate themselves from one another.

 

On the surface, this would seem like a level playing field or at the very least, one that Nike would have home field advantage on due to the increased importance of marketing. However, NikeGolf was already starting years behind the pack. Their hand was forced from beginning. Not a bad hand, but they were always going to be needing to target the younger golfer and those that found the game thru Nike/Tiger. Problem is, these are not the golfers throwing money around on new clubs every season. Partially bc it's easier to fill that emotional connection with a shirt and a pair of golf shoes than a $500 driver. Still get that same brand connection, but for a fraction of the price.

 

I believe that NikeGolf and Adidas saw the writing on the wall a little sooner than the rest of us. The next progression of the market will be to win on price (as I saw many people suggesting with a lower price point). I promise you, this is a war that nobody wins. And a war that Nike or Adidas want their brand to be a part of, if possible.

 

Yes, I think the marketing approach will evolve in the coming years from all of this. More lucrative apparel deals, with equipment being the afterthought or additional line item, rather than the other way around. I think you'll see a brand like Wilson adapt quickly, as this has been a very successful approach for them in the tennis market.

 

But don't overlook the headline here. This is a sad day for golf. Haters can rejoice, but the lack of competition is bad for consumers. The exodus of large, recognizable brands is bad for the game. The sky is not falling on golf, but the alarm bells should be going off.

 

I hope those who were personally affected rebound quickly and get back on their feet.