Nike dropping golf equipment (merged)

[jpdx]

I hit Nike clubs for the first time on the weekend (Vapor Pro irons and Vapor Fly driver) and thought they were surprisingly good. I nearly bought the driver based on the Trackman numbers.

 

Very sad to see a manufacturer leave the industry, but it'll be nice to see Rory playing with clubs he actually likes.

 

most people that have hit my clubs hava all said the same...surprised at how well they felt and were thoroughly impressed.

 

It is sad, they have produced some great clubs. It seemed like the way they went recently with the colours and innovative designs was a desperate attempt to try and get back on track.

 

I don't think it was a desperate attempt to get back on track. they've always been outside the box...who would've thought of making air pockets in shoes prior to nike? Waffle iron outsoles? they've always been on the cutting edge...admittedly they were sometimes over the edge.

 

Course was open before they took up the game and would be after they left it

 

Lucky for you that people behave properly where you play but that is not the norm and most are people who weren't "taught golf" by someone who valued etiquette and things like taking care of the course by raking traps etc are the ones I'm talking about and yes they seem to have take up the game with Tiger's ascent.

 

Anser: I think it's on all of us to teach rules and etiquette of golf to the next person. How else would they learn? Whether it's when they were five or 3 someone has to teach them. If money is not on the line, is it really that big of a deal that your ball lands in a footprint in a bunker?

 

 

#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?

 

My biggest question also is the customer service and support.

[L.a.green14]

Just got the last 3-wood in the Dicks nearest me. Everything else had gone.... whether the clubs are good or not, 65% off is daylight robbery!

[Golfnut801]

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

Does it really matter though? Still a ton of money.

[Smash Factors]

Doesn't bother or surprise me that Nike is backing away from golf. Years ago when I first heard that Nike was going to make clubs I thought it was strange. What the heck does Nike know about golf anyway? I never bought any of their clubs and I don't recall ever buying or even hitting a Nike ball. Nike was first a shoe company. Lets not forget that.

 

So yeah, I'm fine with them leaving the game. I don't think they ever really should have been in the game in the first place.

 

They knew Tiger was going to be a huge cash cow, unprecedented really. They had to get in the equipment business. With Tiger being out, no one close to his commercial success in their stable, the golf equipment business hurting, and misreading the golf market (thought that the untapped market was younger and hipper golfers), they couldn't get over those barriers. But this was the right move even though it sucks to say. Golf equipment is down, rounds are only up because of the warm winter, and you just can't have so much volatility.

 

This basically confirms my feelings about Nike Golf. They were in it for the money: not because of a love for the game.It could be argued that they never really cared about golf in the first place. Their concern was exploiting the cash cow.

Well, no kidding. You think Titleist is in this for the love of the game? Ping? Callaway?

 

Really? You're actually gonna try and bundle all those companies together with Nike? Those brands (Titleist, Ping and Callaway) care more about golf than anyone. You ever heard of jumping on the "Band Wagon"? Nike is a shoe company. Acushnet started as a rubber company back in the 1930's, shortly after began manufacturing golf balls and eventually became Titleist. They've been devoted to golf since the beginning. Karsten Solheim began making clubs in his garage, then became Ping. Do you think Nike really cares which sport band-wagon they jump on? If Tiger played tennis, they would have made balls and racquets.

 

I'm sure over the years Nike's had a lot of very talented people working for them in golf, but they bought those people. Believe me, Nike could care less about golf.

[Arpeggi]

Rory, Koepka, Finau etc hit the jackpot. Getting paid by Nike for apparel and shoes and by another company for clubs. I'm assuming the $ from Nike is the same with or without clubs. These guys were signed to sell apparel.

[prorobo]

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

 

Nike is a $100.1b company according to Forbes.

 

http://www.forbes.com/companies/nike/

[dlygrisse]

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

Does it really matter though? Still a ton of money.

 

Revenue does not equal profit. Profit is probably 10% of that number. Now 30 million is a lot of profit, but the golf division was probably hemorrhaging money so I am sure that is why they dropped it. Too many years of trying to make it work with no success. Would love to see the P and L of the golf division only.

[mmack067]

You guys are talking apples and oranges here. $30B sales, $100B market cap (market value of shares based on current price)

[putts4bogey]

$100B is the market cap. $32B was the revenue.

[rawdog]

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

 

Nike is a $100.1b company according to Forbes.

 

http://www.forbes.com/companies/nike/

 

Market Cap =/= Revenue

 

Market cap is a measure of the value of a company and it's stock. Revenue is how much money they take in.

[WHC888]

Rory, Koepka, Finau etc hit the jackpot. Getting paid by Nike for apparel and shoes and by another company for clubs. I'm assuming the $ from Nike is the same with or without clubs. These guys were signed to sell apparel.

my understanding is that no where in Tiger's contract states how many Nike golf clubs he has to play, he is free to play anything but he chooses Nike.

[tonster]

Nike likely looked around all their products lines, their respective gross margins and made a simple business decision. Same reason Adidas is looking to spin TM, why UA doesn't intend to get into equipment, and why Fila will eventually breakup Acushnet.

[dlygrisse]

Rory, Koepka, Finau etc hit the jackpot. Getting paid by Nike for apparel and shoes and by another company for clubs. I'm assuming the $ from Nike is the same with or without clubs. These guys were signed to sell apparel.

my understanding is that no where in Tiger's contract states how many Nike golf clubs he has to play, he is free to play anything but he chooses Nike.

 

That is the rumor, but you know there was pressure.

 

"Hey Tiger, we are paying you 25 million a year, how about you try this new putter" Tiger-"sure, can you add a sight dot to the top line?"

 

"No prob, I'll have the guys at The Oven get er done"

[driverhead]

I noticed a big price drop on the drivers, fws, and hybrids, but not on the irons, Anyone know why the irons price has stayed level?

[QuigleyDU]

Rory, Koepka, Finau etc hit the jackpot. Getting paid by Nike for apparel and shoes and by another company for clubs. I'm assuming the $ from Nike is the same with or without clubs. These guys were signed to sell apparel.

my understanding is that no where in Tiger's contract states how many Nike golf clubs he has to play, he is free to play anything but he chooses Nike.

 

That was his contract at one time. Who knows if it ever changed. he has signed multiple contract since that time.

[lopey986]

I noticed a big price drop on the drivers, fws, and hybrids, but not on the irons, Anyone know why the irons price has stayed level?

 

Supposedly the Irons have sold well while the woods haven't. But i'm sure we'll see a price drop incoming with this announcement, it's only a matter of time.

[dlygrisse]

Nike likely looked around all their products lines, their respective gross margins and made a simple business decision. Same reason Adidas is looking to spin TM, why UA doesn't intend to get into equipment, and why Fila will eventually breakup Acushnet.

 

The money is in balls and apparel, especially when you have the ProV in your portfolio. Nike couldn't even sell very many balls. Although a buddy of mine did pick up some MoJo's for like $10. :stop:

[Conrad1953]

I wonder how much longer Nike will continue the TW golf clothing, hat

and shoe line?

[Flagrant]

Rory, Koepka, Finau etc hit the jackpot. Getting paid by Nike for apparel and shoes and by another company for clubs. I'm assuming the $ from Nike is the same with or without clubs. These guys were signed to sell apparel.

my understanding is that no where in Tiger's contract states how many Nike golf clubs he has to play, he is free to play anything but he chooses Nike.

 

That is the rumor, but you know there was pressure.

 

"Hey Tiger, we are paying you 25 million a year, how about you try this new putter" Tiger-"sure, can you add a sight dot to the top line?"

 

"No prob, I'll have the guys at The Oven get er done"

 

I doubt he would ever choose to leave his Scotty, but for some reason after the meltdown he came back with the method.......... I'd say pressure at the very least

[cota0429]

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*

 

*Gold Pro Combos

*Mallet Origins

*Drivers that adjust based on angle of attack.

 

Screw Nike corporate. Hard to support a brand that just gave up. Hope David Franklin, Prater, Scott, Mike Taylor end up at PXG.

[mcc0819]

I wonder how much longer Nike will continue the TW golf clothing, hat

and shoe line?

 

Tiger's agent said that he'll continue to wear Nike apparel. So i'm assuming it's safe to say he'll continue wearing TW apparel.

[flog2]

havent read the posts but...........

 

Global sports Giant decides a small division isnt doing well so decides to move on and concentrate on its core business values...........

 

that's it isn't it? cant see anymore discussion needed.

 

I am interested in Rory and Tigers next moves though

[jons1]

Is this like when bands say this is the LAST TIME they will go on tour... so they can sell out all the tickets?

[mmhayden13]

Rory, Koepka, Finau etc hit the jackpot. Getting paid by Nike for apparel and shoes and by another company for clubs. I'm assuming the $ from Nike is the same with or without clubs. These guys were signed to sell apparel.

my understanding is that no where in Tiger's contract states how many Nike golf clubs he has to play, he is free to play anything but he chooses Nike.

 

Do these people know that the clubs Tiger used are not what everyone else on tour used???. His clubs are completely custom and there are like a couple guys who build only Tiger clubs for him. He could have played anything he wanted.

 

But why when you have a company catering and building what you want???

[howeber]

I know it's a horrible time to enter the golf business....

 

But I'd totally bag some Tiger Woods Golf clubs. Clean blades and small drivers -- no color or "swoosh" marketing BS.

[golfsjc]

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*

 

*Gold Pro Combos

*Mallet Origins

*Drivers that adjust based on angle of attack.

 

Screw Nike corporate. Hard to support a brand that just gave up. Hope David Franklin, Prater, Scott, Mike Taylor end up at PXG.

 

Gold pro combos??? why the f*** did they have to quit now?? "#$%"%&%/!!!!!

[Hack333]

Better buy all the Nike equipment you can now they will be collectors items someday

[Colonel_Steelhead]

Prediction forthcoming:

 

Tiger signs with new form of macgregor and sales go through the roof. Two weeks later tons of extra stiff shafted 12* 3 woods and 2 irons appear on the bst.

[GLG20]

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

Look at market cap... They are valued at 91B.

http://finance.yahoo...quote/NKE?p=NKE

 

EDIT. Looks like that was covered :)

 

I've never used a Nike club or ball, never had anything against it just never got the opportunity. To me less is not more, the more companies pushing innovation the better,

regardless of how you feel about brands. Of course it still needs to be profitable.

[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*

 

*Gold Pro Combos

*Mallet Origins

*Drivers that adjust based on angle of attack.

 

Screw Nike corporate. Hard to support a brand that just gave up. Hope David Franklin, Prater, Scott, Mike Taylor end up at PXG.