Tiger Woods parts ways with Nike after 27 years

Nike Inc (NYSE: NKE) is in focus at writing after Tiger Woods ended his partnership with the athletic footwear and apparel company after 27 years.

Tiger Woods made the announcement on X.com

Speculation had been going on for months that he was considering parting ways with the Beaverton-headquartered firm. On Monday, Woods confirmed the rumours as he wrote on “X”:

Last month, Nike Inc reported its financial results for the second quarter that topped Street estimates and revealed plans of cutting about $2.0 billion in costs over the next three years.

Nike shares have now declined back to the price where they traded in late October of 2023.

Why is Tiger Woods ending his partnership with Nike?

Note that Nike has corroborated the story on Instagram as well with a picture of the legendary professional golfer that reads “it was a hell of a run”.

According to Wood’s agent – Mark Steinberg – it was a “business decision” for the athlete to not renew his partnership with Nike. He may now consider a new endorsement deal with one of Nike’s peers considering he also wrote “there will certainly be another chapter” on X.com today.

Tiger Woods provided up to $4.0 million worth of exposure to the New York listed firm when he went four rounds, as per Eric Smallwood of Apex Marketing. Analysts, however, do not expect this development to have a meaningful impact on Nike.

Wall Street currently has a consensus “overweight” rating on shares of Nike Inc.