Tuesday, August 24, 1999
Report: New Nike deal with Woods, spurred by
TV ads
By The Associated Press
Tiger Woods is restructuring his contract with Nike to more
than double its current value, paying him between $80 million
and $90 million in the next five years, according to a published
report.
Nike's decision to renegotiate the deal was accelerated by
two of his TV commercials — including one depicting Woods
bouncing a golf ball off a club head, Golf World magazine
reported in its Aug. 27 editions.
Woods' original five-year contract with Beaverton, Ore.-based
Nike, signed in 1996, was for $40 million. Since signing that
eye-popping deal, Woods won the 1997 Masters and this year's PGA
Championship, reached the world No. 1 ranking and raised public
consciousness about the sport of golf.
Woods also has a contract with Titleist to play its clubs and
balls, and Titleist officials felt the TV spots created the impression
that Woods was endorsing Nike's golf ball.
Titleist sued Nike on June 25 in U.S. District Court in Boston,
alleging the ads violate Woods' exclusive contract to endorse
Titleist balls and clubs.
Golf World also quoted unidentified sources at Titleist as
saying that the Fairhaven, Mass.-based company will cut its financial
obligation to Woods in half, to $2 million a year, and will no
longer have its name on his golf bag.
Mark Steinberg, who handles Woods' affairs for International
Management Group, told the magazine that the conflict between
Nike and Titleist over the ads was the impetus for both deals
to be restructured.
“There would have been renewal talks in the next eight
to 12 months anyway, but this way there are no lawsuits and no
damage to Tiger Woods, Nike or Titleist,” Steinberg told
Golf World.
The magazine quoted the Titleist sources as saying the company
long felt it wasn't getting enough exposure for the money it was
paying Woods because his hat and shirt contain either the Nike
swoosh or the logo of his clothing line.
Golf World also reported that American Express or Rolex are
likely contenders to replace Titleist as the name on Woods' golf
bag.
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