Rory Becomes one of sports biggest earners
What happened to an era of austerity? Nike has shocked many parties with the value of their new deal with rising star Rory McIlroy, but will it be a good return on investment?
The deal believed to be around £12.5 million a year means Nike will need to sell a number of polo shirts and golf balls to recoup such an outlay….in fact they would need to sell precisely 500,000 golf polo shirts a year to break even on the deal!
Sometimes however you need to look past the numbers as Nike’s deal with Tiger Woods back in the day proved. Nike had 1% share of the golf equipment market when they signed Tiger; 5 years later they had 15%.
They also have power in numbers as Nike’s new video to launch the Rory deal proved
Often to make the most out of your star athletes it is to put them together in the way that Turkish Airlines have done with Messi & Kobe Bryant and the way Adidas & Nike do with their roster of footballers.
Nike is going all-in, banking on McIlroy keeping his spot as the world’s No. 1 player and doing so with Nike’s clubs in his bag. He has used Titleist clubs and balls since becoming a professional, and it looks like he’ll change everything in the bag (except maybe the putter) for this week’s tournament in Abu Dhabi HSBC Golf Championship. Woods made a similar change from Titleist to Nike as a pro, but he did it one club at a time. Then again Rory using Tiger as a role model might not be the best idea in the long run.
If Rory’s form dips Nike will feel the backlash, however PrettyGreen think that if Nike can ride out the Tiger infidelity storm as they did, a few stray strokes from Rory as shouldn’t be a problem.
Rory may need the cash to keep that lovely Irish bob maintained.