Nike to Cut $2 Billion in Costs Over 3 Years - Ends Tiger Woods Partnership After 27 Years - Could Cuts in Football Follow?
Jan 9, 2024, by Phan Tich Giay
- Cost Cutting: Nike aims to cut $2 billion in costs over the next 3 years, partly through workforce reductions.
- End of Partnership: Nike has ended its 27-year partnership with Tiger Woods as part of its cost-cutting measures.
- Football Concerns: Nike's future involvement in men's football is uncertain, with potential further contract terminations.
Update: Confirming the previous rumors, Nike has announced the end of its Tiger Woods partnership after 27 years. This is part of the company's strategy to cut costs by $2 billion over the next 3 years. It remains to be seen if famous football clubs or players will follow. Indeed, Nike has already lost dozens of players and other contracts in the past few years, including Neymar, Grealish, Portugal (from 2025) and the Premier League (from 2025).
Indeed, a possibility for Nike to save more costs would be the early termination of football club contracts, such as the FC Barcelona contract. It would cost Nike money in the short-term but free them up of costs in the long term (which is often liked by stock markets).
Recently, Nike announced that it plans to cut more costs in the future by saving $2 billion over the next 3 years, according to The Oregonian.
The plan to save $2 billion over the next three years is part of an effort to regain lost momentum and spark Nike's sleepy innovation engine.
Nike Only Grew 1%, Shares Fall 10%
According to the report, Nike expects to incur as much as $450 million in restructuring charges in the quarter that ends 28 February, mostly for severance costs, suggesting that Oregon's largest company is in the process of parting ways with a significant number of employees.
To put that cost in perspective, Nike predicted it would incur between $200 million and $250 million in severance costs in 2020 when it eliminated 700 jobs.
With the aim of reducing costs in the coming years, it is understandable that Nike has terminated contracts with many major tournaments, major clubs and major players in 2023.
Recently, Barcelona are said to be unhappy with Nike, despite being one, if not the top-payed club in the world. Puma is said to be making every effort to replace Nike - however, Footy Headlines do not think Puma would/could pay as much as Nike.
At present, Nike executives have not given specific information about the $2 billion savings plan, but they have said the company can do it in any way, from streamlining the organizational chart to reducing the number of products and eliminating layers of management.
Nike may even end its contract with golf legend Tiger Woods in a bid to cut costs over the next three years. Tiger Woods has been signed to Nike since 1996 and has had a partnership with Nike for nearly 30 years. His current contract with Nike expires at the end of this year. We’ll see if Woods will be wearing the Swoosh in 2024.
According to its latest report on 30 November, Nike also lowered its sales forecast for the fiscal year ending 31 May to around 1% growth. Shares were down around 10% in after-hours trading within an hour of the earnings report.
Based on financial reports, analysts have pointed out that Nike's product pipeline is declining and that it is losing market share in running, its legacy category.
On the earnings call, Donahoe said the cost-cutting will enable Nike to invest more in innovation and other growing areas of the company, such as its women’s category, the Jordan brand and running.
Donahoe added that Nike is returning to its "front foot" with early momentum in trail running and basketball.
What do you think about Nike's current situation? Do you think Nike will have even fewer top teams and players in the future? Comment below.
Saudi Side Al-Nahda Club Unveils Brand-New Minimalist Logo
Saudi club Al-Nahda has officially revealed a brand-new visual identity and logo, moving away from its long-standing traditional emblem in favor of a sleek, ultra-modern aesthetic for the 26-27 season and beyond. Thanks to @MidanAlAtqam.
The new crest adopts a sharp shield silhouette executed in the club's signature black and sky blue colorway. At the core of the design is an abstract, interlocking geometric structure forming stylized vertical lines and an angular motif, accompanied by the club's founding year, 1949, at the bottom. This marks a radical departure from the previous ornate crest, which was packed with intricate elements including Arabic calligraphy, a classic football, a torch, and a handshake.
According to club chairman Ibrahim Al-Mowalad, the rebrand encapsulates Al-Nahda's journey through heritage, belonging, and future ambition. The drastic makeover has generated significant debate among fans, dividing those who appreciate the streamlined modern look and those who feel it strips away the detailed regional identity of the original crest.
Adidas Juventus 26-27 EQT Collection Spotted in Stores
New in-store images have surfaced showcasing the upcoming Adidas Juventus 26-27 EQT collection. First leaked earlier in the year, the 1990s-inspired lifestyle line is now arriving at retail locations, delivering a heavy dose of nostalgia for Bianconeri supporters. Thanks to @La_Bianconera.
The standout feature across the entire capsule is the return of Juventus' classic oval crest, placed front and center alongside retro Adidas branding. The collection is built around iconic 90s Equipment cutlines, highlighted by a color-blocked nylon track top and matching pants featuring bold geometric panels in black, white, and soft purple-grey tones. Alongside the tracksuit, the lineup includes a clean white tee with angular shoulder inserts and a shiny grey striped retro jersey.
3 Nike Mercurial 26-27 Boots Leaked: Kobe 'Mambacurial', White / Teal & United Pack
Headlining the leak is the striking Nike Mercurial Kobe 'Mambacurial' special edition. Drawing inspiration from the iconic 2013 crossover between the Mercurial Vapor 9 and Kobe 8, the boots feature a vivid pink, purple, and orange gradient upper complemented by volt accents and an iridescent soleplate. Also shown is a crisp white and teal colorway, set to serve as Nike's final regular on-pitch Mercurial pack of the calendar year with a scheduled release around December 2026 or January 2027. Rounding out the trio is the latest United Pack edition, which combines a light blue base with metallic silver heel graphics and bright orange accents along the Swoosh outline.
Shakhtar Donetsk to Feature 'Invest in Ukraine' Sponsor Message in Champions League
Shakhtar Donetsk will sport an updated sponsor look during their 26-27 UEFA Champions League campaign. The Ukrainian champions will wear the slogan "Invest in Ukraine" printed directly below the logo of their principal sponsor, SCM, throughout the league phase of Europe's premier club competition.
The initiative is led by SCM (System Capital Management), the industrial and investment group owned by club president Rinat Akhmetov.
Shakhtar will play at least eight matches during the expanded Champions League league phase, hosting their home fixtures in London at Stamford Bridge.
