Friday, May 19, 2000
Nike bracing for 'earthquake'
if Tiger changes golf ball
By DOUG FERGUSON
AP Golf Writer
For the first time in 98 tournaments around
the world, Tiger Woods played golf Thursday with a swoosh instead
of a Titleist.
In the latest and loudest shot fired in
the golf ball wars, Woods experimented with a Nike Golf ball in
the first round of the Deutsche Bank Open, leaving Nike hopeful
it could use his massive appeal to grab a greater share of the
market.
“If he decides to switch, it's an earthquake,”
said Bob Wood, president of Nike Golf.
Whether either happens remains to be seen.
After a 2-under 70 that left him three strokes
out of the first-round lead, Woods said he has been experimenting
with a version of the Nike Tour Accuracy the past few months while
practicing at his home course outside Orlando, Fla.
“Basically, I wanted a test round on
the tour,” Woods said. “If I think it's viable to switch,
I'll switch. If not, I'll go back to my ball.”
Woods is under contract with Titleist, but
industry sources, speaking on condition of anonymity, have said
he has an escape clause that would allow him to terminate the
deal on short notice.
“It's in my contract that I can try
any ball,” Woods said.
Titleist spokesman Joe Gomes said the company
would have no comment.
For Woods to change could be just what Nike
needs to move into the highly competitive — and highly profitable
— golf ball industry. The National Golf Foundation says Americans
spent $820 million on golf balls in 1999.
“People who enjoy golf talk equipment
— what irons you just bought, what balls you play,”
Wood said. “You never talk about shoes you wear or apparel.
The emotional core is equipment. For us to become a great golf
brand, which is our desire, we feel it's really important to have
a foothold in the equipment business.”
Under his Nike contract, Woods wears clothes,
shoes and a hat. The clothing line was redesigned to be more appealing
to the masses, while the shoes were not an immediate hit because
of their high cost.
But everyone needs golf balls.
Titleist has the largest slice of the pie,
with industry sources putting its share in the premium ball market
at 50 percent. Nike entered the ball market last year with limited
success, and this year signed up 14 touring pros to use its ball.
“Despite increased marketing spending,
Nike really hasn't moved the dial in retail sales,” said
Tim Conder, a senior leisure analyst for A.G. Edwards in St. Louis
who follows the golf equipment industry. “If Tiger is starting
to come on board, that won't hurt. But we'll see. The main issue
is whether serious golfers view Nike as having a serious ball.”
Titleist makes its own ball, as does Maxfli
and Callaway, which recently invested $170 million on a golf ball
plant. Nike's ball is made by Bridgestone, which has a 13 percent
share of the premium ball market.
Conder questions why Bridgestone would make
a superior product for a competitor.
But if Woods switches, Nike can claim its
ball is used by the No. 1 player in the world.
“Tiger is Tiger. He gives credibility
to a lot of products,” said Jim Baugh, president of Wilson
Sporting Goods, which makes the Smart-Core golf ball. “Consumers
will always try products based on stories like this. Whether they
switch in the long term depends on the performance of the product.
“Everybody can try golf balls. It's
whether they stay with the product. For an average player using
the ball Tiger Woods uses, what's the score at the end of the
day?”
The ball Woods used Thursday is not available
on the market, although it is similar to the Tour Accuracy.
“I would say the feel is much like
I'm accustomed to,” Woods said in Germany. “It doesn't
go lower, just holds its line a little better.”
Pressed for more details on the ball, Woods
replied, “I don't know the specs. Ask a rocket scientist.”
Woods has a five-year contract with Titleist
that pays him $2 million a year to play its clubs and balls. The
contract was reworked last year when Titleist complained that
Nike was using Woods in commercials to promote its ball.
One of those spots showed Woods bouncing
a ball off a wedge — between his legs, behind his back. Another
was a chorus of hackers hitting 300-yard drives when Woods showed
up on the practice range.
Woods' contract with Nike is also being
renegotiated and is expected to be worth at least $80 million
for five years. Part of that depends on whether he switches balls.
“I don't think it would have gone this
far if he wasn't interested in pursuing this, if he wasn't at
least partially convinced this wouldn't be an advantage for him,”
Woods said.
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