Nike is dropping its golf equipment business

As for the golf equipment market, aside from the inconvenience of the current Nike clubs in stores and shops and dealing with returns and refunds, Nike’s overall market presence at 3 percent or less in woods and irons does not leave a gaping void in the landscape, especially with the company’s continued commitment to footwear and apparel.

That doesn’t sound like someone in it with Nike clubs for the next three or five years.

Nike has called time on its golf equipment business to concentrate instead on clothes and shoes, throwing the brand’s £150 million deal with Rory McIlroy into doubt.

“We’re committed to being the undisputed leader in golf footwear and apparel”, said Trevor Edwards, president of the Nike brand. While he has gone over a year without having played the sport due to health concerns, his assistant affirms he would still be the company’s “iconic ambassador” for the golf business. And it’s smart to do so. Could he sign with Nike apparel and elsewhere for clubs, or will he just stay with TaylorMade sticks and Adidas gear? (NYSE:NKE) has exited the golf equipment business in a bid to relay focus on its key product categories. The company said last month that sales were growing in all of its major regions and it was “cautiously optimistic” about the second half. There is a near-term risk that clearance markdowns at Nike could influence margins for the other golf brands such as Callaway – but long-term benefits are bullish. “We will work with each of our athletes to manage the appropriate transition”.

Acushnet, which owns ball-maker Titleist and shoe brand Footjoy, filed for IPO this summer and is looking for $100 million or more to finance the offering. For comparison, running made billion.

Why is the golf-club business so bad?

Finally, a moment of silence for my Nike PD Soft golf balls. According to Reuters, the number of people playing golf in the United States has narrowed from 30 million players in 2000 to just 23 million in the recent times.

“They don’t sell clubs”.

The fall of Tiger Woods certainly did not help.

Dick Sullivan, president and CEO of PGA Tour Superstore, believes this move will be good for Nike Golf. They signed the phenom in 1996, and the rest is history.

It essentially created a golf division specifically for Woods. When he faltered, so did Nike Golf. How will their relationship with Nike look in the future? The star won the British Open and the PGA Championship in 2014, but hasn’t won a major since then.

1985: A year later and Nike secured their first tour player, a certain Seve Ballasteros. Will Rory go back to his “old” equipment?

It is still unclear how his contract – and that of Tiger Woods – will be affected by Wednesday night’s news. I love all the guys out here that I work with.

Be Civil – It’s OK to have a difference in opinion but there’s no need to be a jerk.