Phil Knight, Nike’s co-founder, is not surprised with the company’s exit from the golf equipment business. Knight was speaking in a Bloomberg TV interview recently and when quizzed about Nike’s move out of golf hard goods, he replied, “It’s a fairly simple equation, that we lost money for 20 years on equipment and balls. We realized next year wasn’t going to be any different”
Nike announced exit from the equipment business in August last year and the move surprised golf aficionados around the world.
Nike jumped into the golf industry back in 1984, developing its first line of golf shoes, but didn’t get into the hard goods (clubs, balls and bags) side of the industry for another 14 years.
Nike arrived with a blockbuster $40m signing of Tiger Woods in 1996 and as potent as Woods’ star power was and still is, it still had its limits with the company shutting shop 20 years later.