New Nike deal for
Tiger Woods
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.
AP
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