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I'm no math wizard...

• ct690911 7,205 Posts

  Wed, Sep 14 2016 5:11 PM

  But exactly how many hats and shirts does Nike have to sell to recoup this; especially since the equipment is being discontinued?

  "Nike has signed world No.1 golfer, Jason Day, to a new deal to wear its shoes, apparel, and hat. Day will earn north of $10 million per year from Nike to wear its' swoosh.  In 2013, Rory McIlroy signed a deal worth $250 million over 10 years."

  No idea what Tiger Woods makes...but wow.

  ct
  

• twinponds169 3,028 Posts

  Wed, Sep 14 2016 5:29 PM

  Well, those shirts go for $80 bucks or so, probably cost about 4 bucks to make, lol. I think the golf department is just an enhancement to their promoting name and brand recognition. My kid can't seem to go to school with less than a $150 pair of sneaks on his feet, and a damn swoosh on everything else as well, lol. Same exact $60 dollar backpack at Walmart without the swoosh is $15 bucks. Quite the business.

  Side note: took him school shopping a few weeks ago at a Nike outlet store, trying to save a FEW dollars on this crap, I find a rack full of RZN Plats, the level 90 ball here on WGT. Paid 14 dollars a dozen for them, or $3.50 a sleeve, as opposed to $6.50 a sleeve on here for virtual ones, lol.

• Lutjanid 697 Posts

  Wed, Sep 14 2016 10:57 PM

  Don't forget that all of Nike's Billions are generating more money as we speak. The stuff is of course made for a few cents then has a whopping mark up put on it. Looking at their hardware sales the last few years they were not that bad, but probably tending towards a flat-line followed by a gradual decrease. I'm wondering if they have any patents on the equipment side of things that they will let go. For the right price...of course.

• alanti 10,564 Posts

  Thu, Sep 15 2016 2:38 AM

  twinponds169:

  Well, those shirts go for $80 bucks or so, probably cost about 4 bucks to make

  When I lived in Hong Kong, I knew the head honcho for Nike for Asia....yes astronomical profit margins.

  So another way of looking at it is sell 70,000 pairs of shoes....$10M recouped.

  Now look at how many kids "must" have these.......in the US alone.....then add worldwide......

  Brand recognition is huge and the whoosh or tick is recognized worldwide. And sometimes if it drives the sales of a competitor down, another goal is achieved.

  Unlike a sporting franchise where the owners often plunder money in just for kudos and will never profit, sports equipment is a BIG business.

  twinponds169:

  Paid 14 dollars a dozen for them, or $3.50 a sleeve, as opposed to $6.50 a sleeve on here for virtual ones, lol.

  LOL I use Titleist Pro V's.......and buying them cheaper than my virtual Nike's.....but then again, real companies do have sales......unlike this virtual one.

  Of and did I mention bulk discounts????

• ct690911 7,205 Posts

  Thu, Sep 15 2016 4:10 AM

  "Brand recognition is huge and the whoosh or tick is recognized worldwide. And sometimes if it drives the sales of a competitor down, another goal is achieved."

  Fully understand Alan. but with these contracts, how many kids follow Jason Day?... viewership for golf as a whole has dropped off huge since Woods went MIA.. I'm not sure the big Advert contracts should be going to golfers. But, Nike execs know better than me, for sure.

  I've often wondered why McDonalds even bothers to advertise...who the hell hasn't heard of the golden arches?

  ct

• PaulTon 10,731 Posts

  Thu, Sep 15 2016 4:11 AM

                

• craigswan 31,552 Posts

  Thu, Sep 15 2016 4:25 AM

  A maths wizard at work . The british grammar school  education at its best .