Nike dropping golf equipment (merged)

[GC70]

http://golfweek.com/2016/08/04/nike-golf-exit-from-equipment-player-reaction-future-plans/

 

Here's a good read !

[Man_O_War]

I just started playing the Nike Tour RZN Black. I know it's not popular but I love the click and firmer feel off the wedges and putter around the green. Anyone who's played that ball know a similar ball I could try that is a tad more firm and "clicky"

 

I'm stocking up on the tour black, but I've heard the Bridgestone b330 is most similar. Prov and 1x spin far too much for me so once I run out of the stock of tour blacks I put together, I'll probably try those next.

 

of all the balls you referenced, the rzn tour black is the best of the bunch. I will be stocking up for 5 years of supply

[RICKYBOBBY]

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.

 

This is not Mark Parkers first move. Hes been the CEO calling the shots for quite some time.

[RICKYBOBBY]

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 CEO for quite some time now.He also said they want to aim at 50b by 2020? They have a plan in place for growth and Nike Golf equipment isn't part of that plan.

 

Knight just retired as of June 30th of 2016. Just a month ago? I don't think axing golf was knights thinking. Parker just got the rains it seems. This is Parkers first CEO big boy decision. Knight was the end all be all up until June. Plus 700 million from 2% of he business is good. Nike had 30 billion total revenue in middle of 2015.

 

 

Mark Parker took over in 2006 and the stock is up over 400% since he took over. He recently announced that he and his team has laid out a plan to take NIKE to a 50 billion dollar company in the next 4 years. I think Mark Parker knows what hes doing.

[matchavez]

Part of the problem is we have Muni's charging higher rates than ever before and the game isn't growing at the rate that it did 10-15 years ago. I can't believe how much it costs to have to play 18 now compared to 07. Literally seems like a 15-20% increase across the board.

 

Now, take inflation into account, and if it's 20% in 10 years, that's less than 2% a year. It isn't cost.

[matchavez]

I just started playing the Nike Tour RZN Black. I know it's not popular but I love the click and firmer feel off the wedges and putter around the green. Anyone who's played that ball know a similar ball I could try that is a tad more firm and "clicky"

 

I'm stocking up on the tour black, but I've heard the Bridgestone b330 is most similar. Prov and 1x spin far too much for me so once I run out of the stock of tour blacks I put together, I'll probably try those next.

 

If you like the RZN black, then B330 is your ball. Only difference is B330 is less harsh on impact and less problem in cross wind.

[jons1]

Maybe Nike Golf should have listened...

 

 

[DatSliceDoe]

I think more will follow Nike in the coming years. TM/Callaway better watch out, their days are numbered with $500 drivers and pump/dump tactics on the retailers and their customers. Nike saw the end coming and got out. Seems like they got out FAST as well, without leaving boatloads of inventory on the market.

[RICKYBOBBY]

The irony in all of this is that Nike is getting absolutely killed in golf apparel by Under Armour and Adidas and losing in footwear to newcomers Skechers and Under Armour. They used to dominate the golf apparel segment.

 

Their equipment has gotten better over the years and, while significantly smaller than the big four (TM, Callaway, Titelist, and PING), is not falling off the cliff like their apparel business.

 

 

I hope your kidding. "Getting killed" yeah...no

[chickenpotpie]

Man, first Harambe and now Nike....what is the world coming to?

[Switter]

The Domino effect begins....

 

 

"Golfsmith considers bankruptcy as it seeks new owner"

 

http://www.bloomberg.com/news/articles/2016-08-04/golfsmith-said-to-consider-bankruptcy-as-it-seeks-new-owner

 

The Domino effect begins....

 

 

"Golfsmith considers bankruptcy as it seeks new owner"

 

http://www.bloomberg.com/news/articles/2016-08-04/golfsmith-said-to-consider-bankruptcy-as-it-seeks-new-owner

[Tin Whistle]

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.

 

 

Uh...I know a guy who knows a guy who needs a CFO that knows how to prove to the IRS that 10% of $32B is $30M...can I send him your link?

[ikarcuaso]

I started reading this thread yesterday and just made it to the end now. I feel like it peaked in the mid teen page numbers and has been going downhill since. RIP Nike Golf.

A few other Nike threads have since been merged in. The arc of the ENTIRE combined thread is altered DRAMATICALLY. A real page-turner and must re-read.

[Tin Whistle]

Worlds about money. It makes me sick. Greedy corporations pushing people around to line the top of the food chains pockets.

 

Accountants calling the shots every where. Unrealistic sales targets, corporations pushing the working people to make them richer at the expense of family time.

 

Nike not the only offenders. So many like that.

 

Up the revolution!!

Business kind of has to be about making money. And people who launch and run a business should be rewarded very well for the risk they take and the effort they put in to do it. That's very much how the economy works. Nobody's come up with a more successful strategy yet.

 

Bobby Mugabe of Zimbabwe might disagree

 

[Tin Whistle]

My wife works for a high end North American retailer. She did tons of business with Nike and would visit the HQ twice a year to vet product.

 

One thing we've discussed is the Nike brand and what it stands for. Most people know when they buy Nike (blank), they are buying the best quality, most advanced, best performing equipment.

 

The truth is, the amount of R&D that Nike puts into their products goes above and beyond what anyone can even imagine. They will not put something out unless they think and have tried to prove that it is the absolute best product on the market.

 

I'm not totally sure how that played out or had played out with respect to their golf equipment, but make no mistake the amount of money they poured into this division is absolutely mind boggling, and I'm not sure the public will ever fully know the extent of it.

 

No doubt about it

 

 

[Tin Whistle]

I think the problem is when large sports equipment manufacturers “add-on” golf. It eventually fails. I worked in a pro shop in NJ in the mid 90’s when Nike signed Tiger. It’s not like Nike already had a great club or ball and then went after endorsements. They made a record breaking deal with Tiger without any golf equipment business to speak of, then tried to build the capability. Took them decades. Look up what Tiger played in his ’97 Masters win (as mentioned in this thread, Cameron putter, Cobra driver, etc.). For all those old enough to recall those days, it felt like Nike was trying to buy their way into golf with no experience. That may be the source of some of the haters out there. Early Nike golf efforts were awful. The first irons, woods, etc. were not good. Contrast that approach with PXG who actually seem to be trying to make a great product first. At least their endorsements are coming after the R&D. And PXG is not a big all sports equipment manufacturer. Neither were Ping or Callaway. The original Taylormade started by Harry Taylor was golf only, as was Roger Cleveland’s wedge business. Prince, Head, Rawlings, Spalding, AMF, all attempted golf add-ons and failed eventually. At least Acushnet had the good sense to carve out a golf focused brand for Titleist. Golf is tough and unique (game and business). That’s what I like about it and why I play. Sorry to see Nike golf fold, they were finally getting things on track.

 

Ok this is true the first woods and irons were horrendous. However, be fair, they did figure things out along the way when the Ignite line was first released. It's really not fair to sit here and bash nike up and down the list regarding shapes and quality. Does any remember Cleveland's weird top dented driver? How about the FT-I square cinderblock on a stick? Everyone did it, let's not pretend that callaway and other major reps didn't attempt it.

 

Original Nike blades were the best irons it ever made

 

[ronster]

Wow 58 pages of sadness, vitriol and everything in between.

 

I'm a bit shocked but not completely surprised considering their core business is apparel.

 

I've played a number of their clubs and balls and still play the Vapor Driver, VRS forged irons, Nike wedges and Method Matter putter using the new RZN tour balls. I always thought their gear was decent.

 

I saw things that definitely were odd.

 

Guess the writing was on the wall...

 

1. The club I play a lot of golf at is a Nike shop. Tried to order new Engage wedges in April/ May. Told they were out of stock in the warehouse. Still haven't received them. Another guy ordered custom clubs in June. No clubs as of last week.

 

2. The equipment rep for my area left for new opportunities and they never replaced him.

 

3. Stock levels of new equipment at the shops were non-existent.

 

It makes sense Nike decided to cut the cord. It doesn't make sense in the timing and the speed of the cuts.

 

Golf is a funny game. There is a lot of passion and pride when it comes to equipment. A thread that is 58 pages long and growing shows that Nike Golf, good or bad, did have an effect.

 

I never had the opportunity to go to the Oven or get the swag like my friends and others here gotten, but I hope the people behind the scenes at Nike Golf and the Oven were given decent packages and land on their feet somewhere else.

 

[Rangeballz]

Maybe a company like Tour Edge has the best strategy. Make great equipment, have no paid endorsement deals, and price the product fairly. Slow and steady wins the race it seems.

 

Edited - cancel what I said. Just checked their website and they have $400 drivers and $800 iron sets. Oh well....

[Llortamaisey]

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.

 

 

Uh...I know a guy who knows a guy who needs a CFO that knows how to prove to the IRS that 10% of $32B is $30M...can I send him your link?

 

Why you gotta put my business on front street?

[TheMoneyShot]

I think the problem is when large sports equipment manufacturers “add-on” golf. It eventually fails. I worked in a pro shop in NJ in the mid 90’s when Nike signed Tiger. It’s not like Nike already had a great club or ball and then went after endorsements. They made a record breaking deal with Tiger without any golf equipment business to speak of, then tried to build the capability. Took them decades. Look up what Tiger played in his ’97 Masters win (as mentioned in this thread, Cameron putter, Cobra driver, etc.). For all those old enough to recall those days, it felt like Nike was trying to buy their way into golf with no experience. That may be the source of some of the haters out there. Early Nike golf efforts were awful. The first irons, woods, etc. were not good. Contrast that approach with PXG who actually seem to be trying to make a great product first. At least their endorsements are coming after the R&D. And PXG is not a big all sports equipment manufacturer. Neither were Ping or Callaway. The original Taylormade started by Harry Taylor was golf only, as was Roger Cleveland’s wedge business. Prince, Head, Rawlings, Spalding, AMF, all attempted golf add-ons and failed eventually. At least Acushnet had the good sense to carve out a golf focused brand for Titleist. Golf is tough and unique (game and business). That’s what I like about it and why I play. Sorry to see Nike golf fold, they were finally getting things on track.

 

Ok this is true the first woods and irons were horrendous. However, be fair, they did figure things out along the way when the Ignite line was first released. It's really not fair to sit here and bash nike up and down the list regarding shapes and quality. Does any remember Cleveland's weird top dented driver? How about the FT-I square cinderblock on a stick? Everyone did it, let's not pretend that callaway and other major reps didn't attempt it.

 

Original Nike blades were the best irons it ever made

 

100% agree!

[carn9698]

Worlds about money. It makes me sick. Greedy corporations pushing people around to line the top of the food chains pockets.

 

Accountants calling the shots every where. Unrealistic sales targets, corporations pushing the working people to make them richer at the expense of family time.

 

Nike not the only offenders. So many like that.

 

Up the revolution!!

 

 

what the hell am i reading

the truth

 

[carn9698]

Worlds about money. It makes me sick. Greedy corporations pushing people around to line the top of the food chains pockets.

 

Accountants calling the shots every where. Unrealistic sales targets, corporations pushing the working people to make them richer at the expense of family time.

 

Nike not the only offenders. So many like that.

 

Up the revolution!!

Business kind of has to be about making money. And people who launch and run a business should be rewarded very well for the risk they take and the effort they put in to do it. That's very much how the economy works. Nobody's come up with a more successful strategy yet.

world needs businesses yes but most get greedy and push employees around. No morals to them.

[BlackDiamondPar5]

Worlds about money. It makes me sick. Greedy corporations pushing people around to line the top of the food chains pockets.

 

Accountants calling the shots every where. Unrealistic sales targets, corporations pushing the working people to make them richer at the expense of family time.

 

Nike not the only offenders. So many like that.

 

Up the revolution!!

Business kind of has to be about making money. And people who launch and run a business should be rewarded very well for the risk they take and the effort they put in to do it. That's very much how the economy works. Nobody's come up with a more successful strategy yet.

world needs businesses yes but most get greedy and push employees around. No morals to them.

 

You can thank Wall Street for the level of greed in today's world. It's no longer acceptable to deliver a reasonable profit, but the margin has to also improve year over year. Hey Thanks to Wall Street not to far off Southwest Airlines will go the way of others and force baggage fees. Wouldn't surprise me if ridiculous change fees come as well.

 

As for the demise Nike golf equipment, other than those losing their jobs which I extended my sympathy, this probably is not a bad thing for golf.

[wldchld22]

Yep they did EVERYONE at the OVEN dirty on this deal! Called meeting, told everyone no more OVEN pretty much. Get your personal stuff and leave.

 

That's too bad. I saw lots of interest in purchasing Nike stuff that came from The Oven.

 

Regular Nike stuff? Ehhh, not so much.

 

#opentheoven

 

 

#opentheoven

 

Nike opened the oven and stuck their head in it!

 

Really hoping someone saves the oven by buying it or Nike returns in a year or two just selling putters out of it. Less effort and more return on investment.

[wldchld22]

Maybe a company like Tour Edge has the best strategy. Make great equipment, have no paid endorsement deals, and price the product fairly. Slow and steady wins the race it seems.

 

Edited - cancel what I said. Just checked their website and they have $400 drivers and $800 iron sets. Oh well....

 

They have other stuff priced below that. They also have their bazooka line. The slow and steady players are looking good right now. Titleist, Wilson, mizuno, ping....

[nikegal]

Worlds about money. It makes me sick. Greedy corporations pushing people around to line the top of the food chains pockets.

 

Accountants calling the shots every where. Unrealistic sales targets, corporations pushing the working people to make them richer at the expense of family time.

 

Nike not the only offenders. So many like that.

 

Up the revolution!!

Business kind of has to be about making money. And people who launch and run a business should be rewarded very well for the risk they take and the effort they put in to do it. That's very much how the economy works. Nobody's come up with a more successful strategy yet.

world needs businesses yes but most get greedy and push employees around. No morals to them.

Hi Carns :) I cannot speak to this greed and corporate paternal bullying that you speak of with Nike however I can speak to them as a single mother and their integrity kindness, compassion and generosity in my dealings with them. The only other company that I spoke to or delt with that I felt was on their level was Titleist. Corporate greed is nothing new and just as every generation believes that the world is going to hell in a hand basket and "things aren't like they used to be," so too does this phenomenon exist in relationship to corporate America(or corporations) in any capitalistic society.

 

This is capitalism. One of the driving forces is indeed greed. We just hope that just as it takes a bit of selective narcissism to reach the top of the mountain, so too do the individuals at the helm display selective greed in dealing with the macro market forces versus their employees who helped propel them to the corporate mountain top. I obviously cannot speak to the specifics in this situation as I am not privy to the relevant information needed to cast an educated opinion.

 

What I can say and what I do have enough information on is that some amazing people were delt an incredibly unfortunate blow through no fault of their own, and my thoughts and my prayers go out to each and every one of them. However, I just want to say that in the corporate arena, sometimes great teams and great individuals flawlessly execute a game plan according to their coaches wishes, and what was a victorious strategy last season or the one before is no longer the game plan to win today.

 

Who's fault is this? I look to the board, Chairman and CEO as it starts at the top, for better or worse. Again, what was a winning strategy 7-10 or even 2-4 years ago obviously is not appropriate to compete in today's market. Unfortunately, some incredible individuals must pay the price. So in the end, it's not about golf clubs or balls or shoes and apparel or even this game. It's about the people. Please keep them in your thoughts and prayers. Have a nice weekend :) Maddie

[lopey986]

This thread took a weird turn.

[nikegal]

This thread took a weird turn.

That will happen when you have a board of over 400,000 members and threads with hundreds of participants. One person's "weird" is another's "normal," lol. Take care Lopey :) M

[QuigleyDU]

How many days before Rory is back playing his titleist clubs and winning again. He has never been the same since he put the Nike clubs in his hand. I bet his confidence level goes through he roof again once he is back with titleist!

 

doubt that will happen, He still has a nike clothing deal. Titleist want you head to toe titleist, and footjoy. I am thinking along the lines of Mizuno, srixon, or someone that will allow him to continue wearing nike clothes.

[Forged4ever]

An apology to "fowleristhetruth."

 

Nicely Played....

 

http://www.golfwrx.com/forums/topic/1202114-no-more-nike-equipment-reps-thoughts-on-nike-equipment-future/page__p__11858690#entry11858690

 

Fairways & Greens 4ever My Friend,

RP