According to the media reports, Nike will stop selling golf clubs, balls and bags after years of falling sales at its golf division. But the company said it would “accelerate innovation” in golf footwear and clothes.
Nike invested huge amount in golf during the late 1990s with its sponsorship of Tiger Woods, giving him his first five-year contract in 1996, worth $40m.
But the winner of 14 of golf’s major tournaments has been struggling with a loss of form in recent years. In 2013 Nike signed a sponsorship deal with Rory Mcllroy, reported to be worth $100m over five years.
But despite that hefty spending on marketing, Nike has been struggling in the golf business. Last year sales at Nike’s golf unit fell by 8% to $706m, the third year of declining sales.
Earlier this year Nike’s rival Adidas announced its intention to sell most of its golf business. It put its TaylorMade, Adams and Ashworth brands up for sale.###