Miles Bennett
In 2016, Nike announced it would no longer make golf equipment, which opened the door for other companies to partner with golfers. Nike sold its golf division, including Nike Golf, to KPS Capital Partners in 2017. This meant that golfers who were previously sponsored by Nike and used Nike clubs could now sign with other companies. Notably, Tiger Woods signed with TaylorMade in 2017, and in 2024, the two launched an apparel line called Sun Day Red, marking the end of Woods' $500 million endorsement deal with Nike. While there has been confusion about the ownership of TaylorMade, it has never been owned by Nike. Instead, it was acquired by Adidas in 1997 and sold to KPS Capital Partners in 2017. TaylorMade is now a subsidiary of Centroid Investment Partners after being purchased from KPS Capital Partners in 2021.
| Characteristics | Values |
|---|---|
| Did TaylorMade buy Nike Golf? | No |
| Who owns TaylorMade? | Centroid Investment Partners |
| Previous owners of TaylorMade | KPS Capital Partners, Adidas |
| Year of acquisition by KPS Capital Partners | 2017 |
| Year Adidas acquired TaylorMade | 1997 |
| Nike's golf division status | Closed |
| Year Nike closed its golf division | 2016 |
| Nike-sponsored golfers' club choice | Nike clubs |
| TaylorMade's contracted golfers | Tiger Woods, Rory McIlroy, Scottie Scheffler, Collin Morikawa, Tommy Fleetwood, Nelly Korda, Brooke Henderson, Charley Hull, Kai Trump, Dustin Johnson, Jason Day, Rickie Fowler, Jon Rahm |
| TaylorMade's golfer endorsements post-acquisition | Tiger Woods, Rory McIlroy |
| Tiger Woods' equipment choices | TaylorMade clubs, Titleist Scotty Cameron putter, Bridgestone balls |
| Tiger Woods' apparel choice | Nike apparel, Sun Day Red |
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What You'll Learn
Tiger Woods left Nike for TaylorMade
Tiger Woods has ended his 27-year partnership with Nike, which was worth about $500 million, and has entered a new era with his own clothing brand, "Sun Day Red", in collaboration with TaylorMade. Woods is set to return to the PGA Tour with his new golf-accessory line, which features a bare-bones drawing of a tiger with 15 stripes, representing the 15 major championships he has won.
TaylorMade is an American sports equipment manufacturing company based in Carlsbad, California, and focuses on the golf equipment market, producing golf clubs, balls, and clothing. The company was founded in 1979 by Gary Adams and initially focused on producing metal woods, which allowed for better distance and accuracy compared to traditional wooden clubs.
In 2016, Nike announced it would no longer be making golf equipment, which opened the door for Woods to partner with TaylorMade. Woods signed with TaylorMade in 2017, after Nike's golf division closed, to use their equipment while continuing to wear Nike apparel. This partnership marked a significant shift in the golf industry, as it gave Woods an ownership stake in a golf brand, something he never achieved with Nike.
The new clothing line, "Sun Day Red", is a reference to Woods' tradition of wearing a red shirt on the final day of a tournament, which was recommended to him by his mother as a symbol of strength. The logo features a leaping tiger with 15 stripes, each representing one of Woods' major championship wins. The name "Sun Day Red" also follows the "rule of three", with TaylorMade stating that there is a special power in 3's.
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Nike sold its golf division in 2016
Nike Inc. is an American multinational corporation that designs, develops, manufactures, and sells footwear, apparel, equipment, accessories, and services. The company was founded on January 25, 1964, as "Blue Ribbon Sports", by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory.
Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and Nike CR7. The company also sells products under its Air Jordan brand and its Converse subsidiary.
In 2016, Nike decided to exit the golf equipment business, including club manufacturing, due to an 8.2% decline in sales in one year. The decision meant that sponsored athletes wore Nike apparel exclusively. Nike Golf finished fiscal 2016 with $706 million in revenue, its worst year since 2011, when the division generated $623 million.
Nike's golf division included golf clubs, balls, and bags. Despite heavy spending on marketing, Nike struggled in the golf business, with sales at Nike Golf falling by 8% to $706 million in 2015, the third year of declining sales.
Nike's decision to exit the golf equipment business was likely influenced by the challenging marketplace and the economic downturn that began in late 2008. Additionally, Nike's prime golf endorsers, such as Tiger Woods, had been struggling with a loss of form in recent years.
It is important to note that Nike did not sell its golf division; instead, it exited the golf equipment business and chose to focus on golf footwear and apparel. The company stated that it intended to partner with more of the world's best golfers and remain the undisputed leader in golf footwear and apparel.
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TaylorMade was acquired by Adidas in 1997
TaylorMade Golf Company is an American sports equipment manufacturing company based in Carlsbad, California. The company focuses on the golf equipment market, producing golf clubs, balls, and clothing. TaylorMade was founded in 1979 by Gary Adams, who borrowed $24,000 and leased a 6,000-square-foot building in McHenry, Illinois. The company initially sold only one item, the 12-degree loft metalwood, which was unique in its steel construction. This innovation led to a rapid rise in popularity and established the brand's reputation for performance and quality.
In 1997, TaylorMade was acquired by Adidas, allowing Adidas to expand its portfolio into golf equipment and apparel. Under Adidas' ownership, TaylorMade continued to innovate and grow, becoming the top driver in golf in 2005. During this time, TaylorMade maintained endorsement deals with many professional golfers, including Tiger Woods, who brought significant success to the company.
In 2017, Adidas decided to sell TaylorMade as part of a broader strategy to focus on its core business areas. The golf division had struggled with profitability compared to other segments. TaylorMade was acquired by KPS Capital Partners for US$425 million, and the deal was completed in November 2017. This change allowed TaylorMade to operate independently and focus on innovation and performance without the constraints of a larger parent company.
Since the sale, TaylorMade has made significant strides in innovation and product development, releasing various new golf clubs and equipment that have been well-received in the market. The company has continued to thrive and collaborate with professional golfers, maintaining its position as one of the top brands in the golf industry.
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TaylorMade focuses on innovation and collaboration
TaylorMade Golf Company is an American sports equipment manufacturing company based in Carlsbad, California. The company focuses on the golf equipment market, producing golf clubs, balls, and clothing.
TaylorMade was founded in 1979 by Gary Adams, a golf equipment salesperson whose father was a professional golfer. Adams borrowed $24,000 and leased a 6,000-square-foot building in McHenry, Illinois, to launch the company. He initially sold only one item: a 12-degree loft metalwood. This steel-constructed club replaced persimmon as the primary material for modern drivers and offered golfers more forgiveness on bad shots and a lower centre of gravity to create more lift.
The innovation of the metal driver revolutionized the golf industry and quickly established TaylorMade as a leading brand. Over the years, the company has continued to focus on innovation, introducing groundbreaking technologies that have transformed club design and performance. Notable advancements include adjustable weights, speed pocket technology, and forged face technology.
TaylorMade has also expanded its product line to include a variety of golf clubs, improving accessibility for amateur golfers. In addition to its focus on innovation, the company emphasizes collaboration with professional golfers. TaylorMade maintains endorsement deals with many leading golfers, including Tiger Woods, Rory McIlroy, and Scottie Scheffler. These partnerships enhance the company's presence in the golfing community and foster a deeper connection with its customers.
TaylorMade's ownership has changed several times since its founding. The company was independently owned until 1984 when it was acquired by Salomon S.A. In 1997, Adidas bought Salomon, and TaylorMade became a subsidiary of Adidas. In 2017, Adidas sold TaylorMade to KPS Capital Partners, a private equity firm. The sale gave TaylorMade the freedom and independence to work with athletes sponsored by other brands, such as Nike. As of 2021, TaylorMade is a subsidiary of Centroid Investment Partners, a Korean private equity firm that purchased the company from KPS.
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Nike's departure from golf equipment was an opportunity for competitors
Nike's departure from the golf equipment business in 2016 was indeed an opportunity for competitors. Nike's golf division had been struggling, with its endorsers not performing well and the company facing challenges in the marketplace. The economic downturn in 2008 and the decline in golf participation also impacted Nike's golf business.
Nike's exit left a void in the market, and competitors were quick to seize the opportunity. Bob Philion, the president and CEO of Cobra Puma Golf, stated that his company was "poised to pounce" on the newfound opportunities. Other equipment companies like PXG and Callaway also stood to benefit from the shake-up in the industry.
TaylorMade, a competitor in the golf equipment market, was able to gain an edge after Nike's departure. TaylorMade had previously been acquired by Adidas in 1997 but was sold to KPS Capital Partners in 2017. This sale gave TaylorMade the "freedom and independence" to work with top athletes, including Tiger Woods, who brought significant success to the brand.
In addition to TaylorMade, other golf equipment manufacturers like Mizuno and Bombtech also had the chance to step up and fill the gap left by Nike's departure. Overall, Nike's exit from the golf equipment business created a competitive landscape, with various companies vying to establish their dominance through innovative products and endorsements.
While Nike's departure was an opportunity for competitors, it also disappointed some golfers who had come to appreciate the quality of Nike's equipment. Despite this, the golfing world adapted and moved forward, with new sponsorships and equipment choices being made.
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Frequently asked questions
No, TaylorMade did not buy Nike Golf. In 2016, Nike announced it would no longer make golf equipment, which opened the door for other companies to partner with golfers.
People may think this because of the two companies' previous collaborations and shared presence in high-profile golf sponsorships.
Nike's departure from the golf equipment market opened up opportunities for other brands to assert themselves in the marketplace.
Nike-sponsored golfers could now sign with other golf equipment companies. Tiger Woods, for example, signed with TaylorMade in 2017.
Yes, TaylorMade bought golf clothing companies Ashworth in 2008 and Adams Golf in 2012.
