Rory McIlroy seals million-dollar deal with Nike
As the Northern Ireland golfer signs a 10-year deal with Nike worth an estimated £155m, what does the deal says about Nike? And how does it compare with the sponsorship deals of other sportsmen?
After winning his second major last summer at the age of 22, it is no surprise that the young golfer from County Down prompted interest from the big sponsors.
In just five years, McIlroy has gone from being sponsored by Titleist, the manufacturers of golf equipment, to the covetable Nike brand, putting him at the forefront of international sport and confirming his place as the most marketable sportsman around.
The details of the deal have not been revealed, but it has been widely reported to be a 10-year contract worth as much as £155m if the golf star remains on form and keeps winning majors.
The deal is greater than Nike’s estimated £124m 10-year contract with Tiger Woods, who has been carrying Nike’s distinctive swoosh for 16 years, and will significantly raise McIlroy’s position in the Forbes athletes rich list, which last year put him at number 91.
Rory is an extraordinary athlete who creates enormous excitement with his on-course performance, while at the same time connecting with fans everywhere. Cindy Davis, Nike
McIlroy, who hails from Holywood, Northern Ireland, will use Nike’s full range of clubs, balls, clothing and accessories, with the clubs being used competitively for the first time in the Abu Dhabi HSBC Championship later this week. And yes, he will be up against the other leading golf name in Nike colours: the 14-times major winner, Tiger Woods, during the game.
Cindy Davis, president of Nike Golf, said McIlroy was the “epitome of a Nike athlete”.
“Rory is an extraordinary athlete who creates enormous excitement with his on-course performance while, at the same time, connecting with fans everywhere,” she added.
Good news for Nike
Analysts say Nike’s sponsoring of McIlroy marks an attempt to move the brand away from the fallout from previous deals. There were Woods’s much publicised extra-marital affairs and the break-up of his marriage in 2009, and Nike is suffering from its sponsorship of Lance Armstrong, who was dropped last year after he was found guilty of doping.
It is also a sign of sports brands hedging their bets, said Simon Chadwick, professor of sport business strategy at England’s Coventry University.
“There is still some equity (value) in the Woods brand. McIlroy, rather than being a replacement, is the heir-apparent,” he said. “In golf and cycling they built much of their business on the back of two individuals. They needed to move quickly and decisively to make a big signing and with McIlroy that is what they have done.”
Who are the biggest earners in sport?
1. Floyd Mayweather, boxing: £54.2m
2. Manny Pacquiao, boxing: £39.58m
3. Tiger Woods, golf: £37.8m
4. LeBron James, basketball: £33.82
5. Roger Federer, tennis: £33.62m
6. Kobe Bryant, basketball: £33.37m
7. Phil Mickelson, golf: £30.5m
8. David Beckham, football: £29.3m
9. Cristiano Ronaldo, football: £27.1m
10. Peyton Manning, American football: £27m
Figures include salary, bonuses and sponsorship, according to Forbes business magazine 2012.
Rich list
The Nike deal should propel McIlroy into the top five of Europe’s sports stars in terms of sponsorship income, behind a couple of Formula One drivers, plus footballers Cristiano Ronaldo and Lionel Messi.
He is still some way behind the biggest in America though. Michael Jordan is reputed to earn double the golfer’s deal from Nike, even though 10 years have passed since he played professional basketball.
But regardless of his future earnings, his achievements so far, his consistent record and his stunning victory at the US PGA championship last summer, mean McIlroy is likely to remain golf’s golden boy for some time.